"Bob Crantz" wrote in message
...

"Maxprop" wrote in message
k.net...

"Thom Stewart" wrote in message
...
Dave,

Refinery output has not only kept pace but has excided it many,many
times AND had to cut back. Cut back usually due to lack of charge or
Tankage at capacity.

If that's true, Thom, why is Big Oil whining about their inability to
keep up with demand? Inadequate supply, along with high crude prices, is
the primary reason they are giving for high prices at the gas pump.

My take on high pump prices is simply that Big Oil knows it has very
friendly allies in the White House and in Congress--allies who won't take
substantive action against runaway, windfall profits resulting from high
gasoline prices. Realize of course that having a Democrat president and
Congress would make little difference--both parties take huge amounts of
money from Big Oil for campaign finance. Until the public outcry is loud
enough that our government can't/won't ignore us, the high prices and
windfall profits will continue, IMO.

Max



What distinguishes a windfall profit from just profit?

Profits earned while taking advantage of price hikes as a consequence of
events, such as natural disasters (e.g.--Katrina).

There's much bigger profits made from the internet than oil.

And what has that got to do with this discussion?


Why is profit bad?

Profit is fine, provided it is not exorbitant on commodities that people
require for earning their livings and living their lives. Say, for example,
that for some arcane reason food producers found themselves in a
monopolistic situation, like Big Oil, in which they could charge $11.50 for
a loaf of bread and $13.00 for a gallon of milk. Or shoe
manufacturers/importers found themselves in a similar situation and were
able to fetch $150 for the cheapest pair of shoes on the market. Of course
these things do not happen, thanks to competition, supply and demand. There
essentially is no competition in petroleum production-distribution these
days. It is highly monopolistic, and they can charge whatever they wish.
And they are doing so, using any available reason to "justify" their price
gouging. Current oil company profits are waaaay beyond their usual and
customary percentage of gross receipts.

Max