Sports and my thoughts

Wednesday, April 26, 2006

Thoughts: I can answer all there questions

And I am not even that qualified, I just have common sense, something the democrats lack. The democrats are so worried how the oil companies made so much money this year. Well I can answer that question very simply.

Think of it this way, lets say you own a hot dog stand. Now one week you bought 100 hot dogs for a dollar each. And before you sell them there is a big hot dog shortage and that is out of your control and the price you can sell them goes up to 10 dollars each. So as a hot dog stand would you still sell at your old price or would you raise your price along with everyone else.

Now imagine that same idea on a scale of millions upon millions of gallons of oil. That is basically why the oil companies made so much money. There supply was at $20-30 a barrel and by the time they got into that stock barrels were selling upwards to $60-70 a barrel. Any good business man would have done the same thing. Sell at the high price and make a profit.

0 Comments:

Post a Comment

<< Home