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Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by jeffbee on Thursday July 28, 2022 @10:41AM (#32264971)
Oil is the textbook commodity and the expected profit margin on commodities is ~zero. That's the nature of a commodity: a good so interchangeable, with so many competing producers, that the profit margins are inevitably minimized.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by kgwgk on Thursday July 28, 2022 @11:37AM (#32265788)
By ~zero do you mean "covering just the cost of capital over a full cycle"? This is a textbook example of a capital intensive and cyclical industry.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by jsight on Thursday July 28, 2022 @11:05AM (#32265346)
The problem is that supply naturally reacts slowly and ~1/10th of the supply was removed from the global market. I've heard people act as if that's a small shift, but its really not small at all over the short term.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by missedthecue on Thursday July 28, 2022 @03:05PM (#32268794)
Not all commodities are equally recoverable at similar costs though, and in a world where we need more oil/copper/iron than can come out of the cheapest mine, there will be profit