Record Oil Company profits...

[SCUDSBROTHER]

Originally Posted by gales0678

demand has increased i don't have the exact figures, but, take a look at a chart between the usd and the px of a barrell of oil, seems to me that as the dollar drops as it has been for the last number of years the per barrell price of oil has increased - there is a direct corelation to a weak dollar leading to higher oil prices - when the foreigners sell us there oil they get paid in usd. if the usd is falling the only way to cover their losses on the usd is to raise the prices per barrell that with demanded outpacing supply pushes the price higher -

The thread is about record oil company profits? O.K....The reason there are record oil company profits is because they don't have to compete for your business.They all agree to keep the price as high as possible.It's not like airfares where you have airlines competing for your business.Whatever the price of gas should be (based on competition in the market place) will not be known until this problem is tackled.There are a lot of things brought up here to explain why the price of gas is high.The price of gas is one thing,and the profits of oil companies is another.The latter will always be very high if they don't have to compete.I can live with high gas prices,but I am tired of the lack of competition that exists between a limited # of oil companies in this country.We refuse to make them compete with each other.With that fact,how can there ever be anything but huge oil company profits? It will remain huge until there is competition involved in the pricing of gasoline.This is not hard to understand.You will never ever know the price you actually should be paying for gas until you have free-market competition involved in the pricing of gas.Maybe it should be $4 $3 $2.75 ,or whatever,but you won't know until competition is involved.All you have to do is compare it to the airline industry.If you have free market competition,then you will be able to "shop" for the price you pay to fly somewhere.Try flying to Cincy sometime.Guess what? It's outrageously high to fly into there(or it was last year.)Why? No competition.Delta has a monopoly.Is it still this way,Cannon?

[gales0678]

but scuds other indutries have had record profits and the public wasn't against them

a couple of years ago the banks and mortgage co's made record profits and nobody said a word because eveybodies house went up in price

when the gov't broke up the standard oil trust back in the early part of the 20th century they thought it would be better , but, in fact rockefeller became the richest man in history after the break up of standard oil - why not go back to 1 oil co with 1 guy controlling it , it seemed to work better that way as he kept everyone in line

[gales0678]

the other thing scuds profit margins are around 7 % for most of these co's do you think that is absurd?

if you want to start regulating industry look out there are a lot more out there that have profit margins higher than 7 %

[SCUDSBROTHER]

Originally Posted by gales0678

the other thing scuds profit margins are around 7 % for most of these co's do you think that is absurd?

if you want to start regulating industry look out there are a lot more out there that have profit margins higher than 7 %

Obviously,their profits are absurd.They wouldn't be if there was price competition.There is very little competition going on.There are a lot of reasons for high prices,but only one real main reason their profits are this high(no price competition.)Regulate? How about it works like other free market systems,and have many companies competing by offering the best prices possible for the consumer?

[gales0678]

scuds the price for the barrell of oil goes up every time the usd falls

until the falling usd gets fixed the px of oil goes higher in my opinion

oil is px in usd - middle east needs to sell at higher price if usd is worth less

we need to start supporting our currency

[Cajungator26]

Originally Posted by gales0678

scuds the price for the barrell of oil goes up every time the usd falls

until the falling usd gets fixed the px of oil goes higher in my opinion

oil is px in usd - middle east needs to sell at higher price if usd is worth less

we need to start supporting our currency

I miss you, Marty.

[gales0678]

damn its cold up here in ny for may send up some of that sunshine

[SCUDSBROTHER]

Originally Posted by gales0678

scuds the price for the barrell of oil goes up every time the usd falls

until the falling usd gets fixed the px of oil goes higher in my opinion

oil is px in usd - middle east needs to sell at higher price if usd is worth less

we need to start supporting our currency

Yes,but the thread isn't about the cost of oil .It's about the huge profits of oil companies,and that mainly comes from them agreeing on prices of gasoline(don't compete with each other.)

[GBBob]

Originally Posted by SCUDSBROTHER

Yes,but the thread isn't about the cost of oil .It's about the huge profits of oil companies,and that mainly comes from them agreeing on prices of gasoline(don't compete with each other.)

If you broke down a $4 gallon of gas, what % is the original crude cost, what % is refining, taxes, etc? I've seen that before, but can't remember. I know the gas station owners aren't the ones getting rich either.

[SentToStud]

Originally Posted by GBBob

If you broke down a $4 gallon of gas, what % is the original crude cost, what % is refining, taxes, etc? I've seen that before, but can't remember. I know the gas station owners aren't the ones getting rich either.

Would also like to see the breakdown for a gallon of milk.

All this fuss and milk is still more expensive than gas. Go figure that out.

How about some sympathy for Exxon shareholders who saw their share price go down over 3.5% yesterday while the overall market was steaming up?

SentToStud's Rule #1: own an oil stock. Better yet, own two. A little company I like a lot is Parker Drilling.

Originally Posted by SCUDSBROTHER

Yes,but the thread isn't about the cost of oil .It's about the huge profits of oil companies,and that mainly comes from them agreeing on prices of gasoline(don't compete with each other.)

Bullshit.
Show me the meetings.
Show me the facts.
This has happened before
but at a diff. level.

They have been called to the floor on this many times.
Again, if you have ever watched C-Span, you know they
are constantly called in on this and there is no evidence of
your claim.
The Oil companies have to supply our government
with so much information... if you were a small businessman you
would never take on all this regulation.

I will again ask: Can you tell me any other time in the history
of the world when so many countries are consuming petroleum?
I hate this crap as much as anyone else. Why in
God's name would anyone dare to defend the Evil Oil Empire
when its so easy to just totally blame them?

Does anyone understand that China is consuming more oil
than the US (for the first time) and that their economy is absolutely bursting
wanting more? Does anyone see that India is right behind?
Does anyone see that there are too many people after something
that is limited in supply? I think I understand how this drives the barrel
(a future price) sky high. We are paying far less money for gasoline than almost any country barring Venezuela (their government subsidizes it, so the people trade gas for food across the border... wonderful) Why do we pay less than almost any developed country in the world? Can anyone answer this?

Finally, I ask again: Please explain why oil companies should
not be making high profits with demand at an all-time high?
Dont say price fixing when you cant explain cost differentials
in diff. countries and without evidence.
Oil company numbers are right there in gov.
records for all to read. They are one of the most exposed,
highly regulated businesses in this country.

Scudsian economics. Make it easy and blame the easiest
target. Makes you feel good. But it will not solve the problem,
because it is not the real problem.

Stop consuming.
Then you wont notice the prices.

[timmgirvan]

Originally Posted by SCUDSBROTHER

Obviously,their profits are absurd.They wouldn't be if there was price competition.There is very little competition going on.There are a lot of reasons for high prices,but only one real main reason their profits are this high(no price competition.)Regulate? How about it works like other free market systems,and have many companies competing by offering the best prices possible for the consumer?

Their profits are absurd..but most of their profits comes from overseas oil sales...they put 30% back into R&D(as per an Exxon stockholder and employee I heard on radio last night). In Nigeria, gas is 6.50 a gallon,Europe is as bad or worse! I know, I know...they keep flashing those huge numbers but they actually made less that Wall Street projected. It's a pickle for sure, but windfall profits tax just put more money at the govts disposal...and we know how well that works!!

[jp96stang]

My company has profit margins of 25% so should it be regulated?

Shell for example posted quarterly profits of about 7.5 billion on about 110 billion in quarterly revenue.......thats just shy of 7%. No one would be bitching if they showed profits of 7.5 million on 110 million in revenues!!

Gale is right on the point. the value of the usd is what controls the price of oil.

[SentToStud]

Originally Posted by jp96stang

My company has profit margins of 25% so should it be regulated?

Shell for example posted quarterly profits of about 7.5 billion on about 110 billion in quarterly revenue.......thats just shy of 7%. No one would be bitching if they showed profits of 7.5 million on 110 million in revenues!!

Gale is right on the point. the value of the usd is what controls the price of oil.

No one was crying for these oil companies when oil was $10 a barrel. Plenty of oil industry firms went bust. If you tax this, what is next? Do i-Phones really need to cost $600? Why not $200?

[Better Than Honour]

Originally Posted by SentToStud

No one was crying for these oil companies when oil was $10 a barrel. Plenty of oil industry firms went bust. If you tax this, what is next? Do i-Phones really need to cost $600? Why not $200?

American Oil Companies take 33% of the oil out of land owned by the federal government. They got sweet deals and basically pay the government nothing in royalties. They are not like other businesses. They also get free protection from the United States military. They have infrastructure throughout the world, especially in the middle east, and the US military spends over $40 billion a year protecting it. Oil companies screw the public because they can. If they are going to screw the government out of royalties than the government should screw them back.

Alternative fuels though are the way to go. The oil industry though is doing everything it can though to pay off the auto industry and the government so this does not happen. Remember the auto industry bought the technology for the electric car battery and then the oil industry bought it from them so nobody could use it. No conspiracy there. Just reality.

Originally Posted by SentToStud

No one was crying for these oil companies when oil was $10 a barrel. Plenty of oil industry firms went bust. If you tax this, what is next? Do i-Phones really need to cost $600? Why not $200?

AT&T wireless is giving a $200 rebate now. Of course there's a reason. New iPhones in June.