Quote:
Originally Posted by The Unabomber
You are taking the position as if the oil companies will suffer if gas prices were to hold at 80 cents throughout a full year. That's B.S. and i'm saying that while ENCANA is building the two tallest office towers west of Toronto, i highly doubt that they would suffer, they just take advantage of a market that NEEDS the product that they offer rather than WANTS it.
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You're right oil companies probably wouldn't go under, just as grocery stores won't go under if they arbitrarily sold food for less as well. You NEED food don't you? Are oil companies not allowed to build towers to meet their office needs like companies in other industries? You need a bank too, why don't they just charge less interest than they could get on the market? Hell, why don't they just lend you money for free because you NEED it. You NEED a phone too, why not make Telus sell their phone service for arbitrarily less because they wouldn't go under if they sold things for cheaper too.
The issue is that when prices are set lower than the market is willing to pay for them comsumption will increase because the marginal consumer will be consuming more. The pumps would run dry, and then people like you would blame the oil companies for a giant conspiracy for holding back gasoline from the market. There simply isn't the refinery capacity available in North America nor the ability to quickly add capacity to meet the demand of a constant 80 cent/ litre price.
Shows how uninformed you are when you specifically mention Encana because: a) They don't even sell gasoline in Canada, b) they are building ONE tall building in Calgary not two, 3) Oil makes up less than 20% of their business