
Originally Posted by
GA_Teg
Actually after all that, which makes sense, you are way off.
There was no increase in oil but rather a decrease in production capabilities and flow obstructions. So the cost to produce xxx number of barrels into usuable products never changed as they either produced less or the same amount. The rationing of items and the price of gas going up is where there record profits came from. Example, it costs you $30 to make product A. You produce 50 a quater and they sell for $60. Demand soars driving the price to $200 but you still only produce 50 a quater at a cost of $30 each. Therefore you have a record profit for x quarter. This is basically what happend in the oil market.