Re: But...


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Posted by Sherman in Idaho [72.47.153.24] on Friday, July 13, 2012 at 22:32:18 :

In Reply to: But... posted by Doc Dave [71.87.156.173] on Friday, July 13, 2012 at 21:46:17 :

That's probably true, but today even the refiners aren't making a profit (if you believe them). What did gas sell for in the 30s? 15 cents a gallon? So that's equivalent to about 23 cents a gallon today. The retailers make nowhere near that, maybe a couple pennies a gallon on the average.

Basically the same thing has happened to fuel as happened to lumber. A century ago, trees on the stump were almost free and so was oil in the ground. Almost all the cost of lumber or gasoline was the cost of taking that free raw material, extracting, transporting it, and processing it into the finished product. Now it's the opposite. The extraction, processing, and transportation are so much cheaper due to technology that they add up to a tiny fraction of the cost of the finished product, but the raw material is what's gone way up in cost. It used to be the guy who owned the sawmill or the refinery who made the money. Now it's the guy who owns the timber or the oil field that makes most of it.



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