Why is oil actually $70 a barrel when they are pumping it for $2 a barrel?

Cheap labor pumps it.

It then has to be refined, transported, etc., etc. Lots of costs involved to get it to your tank.

Comprende?

Your joking right? Or are you really that clueless.

- How big is a $70 barrel of oil?

- What are you pumping for $2 a barrel?

- What is it that you are shipping from Iraq to NY that is a 70 lb crate?

Greed.

Supply and demand doesn't apply here - there has never been an oil shortage. The system manipulate the price easily because all of the suppliers work in concert.

The oil supply industry is profitable at $30/barrel. It's a classic swindle, supported by Congress.

Price = What the consumer is willing to pay for a product

Profit = What the consumer is willing to pay - the cost to deliver that product.

The price of oil is determined by supply and demand, not by how much it costs to pump it.

If a company can make it cheaper by delivering to a consumer more efficiently they generate bigger profits. This generally brings the price down in time, but since demand for oil is rising, and supply is always going down, the price will tend to increase.

Good question...

The price of Oil is actually determione buy Demand and supply.

Althought the pump price of $2/bbl depends on the producer. This value varties depend on which part of the world you are and the producing company.

Anything above that price goes as profit to the producing Coy and its lease aggreement with the residing govt.

A lot of people want oil. If you want to maximize profit, you sell it for how much you think people are willing to pay, not for just slightly more than cost.

whos gonna buy $70 oil

Speculation.

If I can sell my oil to some idiot who thinks my oil will run dry tomorrow why not