SumitI used to think that the cost of a product was the cost of the product. This was the way I thought all the time, but now I think that the cost of a product is the cost of the production, distribution, and manufacturing of the product.
Product costs are not a fixed number. They can be estimated by the cost of resources needed to manufacture the product. Production costs are based on the cost of raw materials, the cost of labor, the cost of transportation, the cost of warehousing, and the cost of marketing the product. Distribution costs are based on the cost of shipping the product and the cost of shipping the finished product to consumers.
That said, most products you buy today are expensive. These days, for example, the cost of a gallon of gasoline is $4.58. This is not because gasoline is more expensive, but because manufacturing the chemical compounds that make up gasoline, like the oil it burns and the catalysts it uses to burn it, requires a lot of expensive energy-intensive processes like refining and processing.
The reason is that the “fuel” we burn to run our cars, trucks and planes is, by its very nature, expensive. Because the chemical compounds that make up gasoline, and thus the fuel that we use in our cars, is a relatively scarce resource, petroleum companies have to find it hard to find a large enough market for the fuel they’re burning. And that means the cost of selling gasoline has to be lower than the cost of buying gasoline.
This is why so many businesses are moving into the “natural gas” energy industry and why they are also trying to move to renewable energy sources (wind and solar) for their power stations. Because natural gas is so much more “unlikely” to end up in a landfill than oil, it is less expensive to extract than oil.
If you look at a lot of the company’s profits and earnings from the gas industry, you see who’s the biggest player in the energy industry and why they’re still trying to make the most out of it. The truth is, gas is expensive in the oil industry and can be used to make electricity. But that’s not what the company is doing right now. We’re trying to pay more for it, because we’re buying more gas and because we want to make more of it.
Yeah, you can see why we put oil at the top of our list. We don’t want to use oil to make electricity. We want to use it to make electricity to power our cars and to make our buildings. So we’re putting a lot less of it into the ground, and we’re using even less of it now, and we can use it to make electricity to power our cars and our buildings. We really don’t need to spend that much on oil.
Yeah, because the car companies are also not using the same amount of oil that the power companies are. If it was all the same amount of oil, wouldn’t that be a great thing? But the power companies aren’t using half the amount of oil, so the car companies are using a lot less.
So the whole idea of “natural gas” and “petroleum” is really just a bad joke.
The power companies are using a lot less oil, so the car companies are also using a lot less oil. So the whole idea of natural gas and petroleum is really just a bad joke.
