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Originally Posted by Donger
The oil companies do benefit from higher priced crude. It doesn't cost any more to refine a barrel at $10 a barrel versus $70 a barrel. So, their costs remain stable despite crude pricing.
As to their profit margin, it has fluctuated between, well, -10% to 10% now. The oil companies have lost billions in the past. Of course, no one remembers that fact. When oil was $15/barrel....
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Not that I doubt you, but I have to wonder how they could lose money selling a product that most of us can't do without. How many years ago are you talking? Also, how did they have losses comparable to today's profits when they were paying $15 PB? I'm assuming that the crude is their greatest cost, is that correct? Or does getting it here and refining it cost more? It just seems like if they were losing money it was probably their fault. But again, I don't know jack about it, I'm just making some general assumptions.