When gas prices were over $4.00 per gallon, almost everybody was cursing the oil companies for their excessive profits. Many people argued that the oil companies were colluding to keep oil prices high.
Liberal groups were calling for investigations and even regulation.
So where are these people now that gas prices could dip below $2.00?
There are certain fixed costs in producing a gallon of gasoline. The cost of oil is the biggest expense. If oil companies have to pay more for oil, the price of oil-related products will go up. Profits are necessary to keep oil flowing. If there’s no money – profits – to explore, drill, and transport oil, we all suffer.
Many people also forget that there is no single person who owns an oil company. There are millions of investors. Anybody who has a retirement account of any sort most likely is receiving oil money profits.
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