Record Oil Company profits...

[zippyneedsawin]

Oil companies worldwide continue to 'cash in' as they choke to death economies like here in the US.

Here's an AP article on more record profits for these greedy companies:



By JANE WARDELL, AP Business Writer
Tue Apr 29, 12:36 PM ET



BP PLC and Royal Dutch Shell PLC, Europe's two biggest oil producers, posted forecast-busting first-quarter earnings on Tuesday thanks to record crude oil prices that are expected to bolster profits across the industry.

The combined profits of $17 billion reignited calls for a windfall tax on oil profits as consumers struggle to pay for food and fuel.

British Prime Minister Gordon Brown suggested that some of those profits should be reinvested in costly exploration for new oil reserves in the North Sea.

BP posted a 63 percent surge in first-quarter net profit to $7.6 billion (4.9 billion euros), while Shell reported a 25 percent rise, to a record $9.08 billion (5.81 billion euros).

Revenue at BP jumped 44 percent to $89.2 billion (57.1 billion euros), while sales at Shell soared 55 percent to $114 billion (72.95 billion euros).

Last week ConocoPhillips reported a 16 percent rise in net income to $4.14 billion. Like BP and Shell, the third biggest U.S. producer far outpaced industry expectations. More big profits are expected from the biggest two U.S. companies, Exxon Mobil Corp. and Chevron Corp., when they report first-quarter earnings later this week.

Crude oil hit $111.80 per barrel during the quarter, while gas jumped an average of 22 percent. Crude has pushed even higher since, reaching a record $119.93 per-barrel this week.

BP shares jumped 6 percent to 613 pence ($12.18), while Shell rose 4.5 percent to 25.83 euros ($40.39).

The enormous profit reports from European companies coincided with the end of a two-day refinery strike in Britain that shut off 700,000 barrels of oil per day, brought from the North Sea to a BP plant.

Truck drivers staged a protest in London's Park Lane on Tuesday, blaring their horns to protest a 30 percent rise in the price of diesel over the past year. A similar protest took place in Washington, D.C. on Monday, and it wasn't the first.

"The price of fuel is becoming something many families are struggling with," said Sheila Ranger, a spokeswoman for the RAC Foundation, a commuter advocacy group. "This will be the last straw for some motorists."

Shell's Chief Financial Officer Peter Voser said oil companies are not to blame.

"We don't understand the oil price at this stage," he said. "The fundamentals will not justify an oil price as we see it at the moment."

Shell's earnings from oil production rose 52 percent to $5.14 billion (3.3 billion euros), due almost entirely to the price increases. The company said combined production of gas and oil equivalents increased by less than 1 percent to 3.4 million barrels per day, as a 9 percent rise in gas production outweighed a 6 percent fall in oil production.

Stripping out the impact of oil inventories that have risen in value, refining profits would have fallen 20 percent, Shell said.

"It seems that better marketing and trading were able to offset the weak refining environment," analyst Alexandre Weinberg of Petercam.

Shell has invested heavily to improve production after a string of setbacks, including an accounting scandal in 2004. More recently, it has faced attacks on its pipelines in Nigeria and a forced sale of part of its stake in a major project on Russia's Sakhalin Island to a state-run enterprise.

BP's profit follows an even rougher period for the company from production outages, U.S. environmental fines and fraud and the scandal-tinged departure of its chief executive.

Chief Executive Tony Hayward, who took over from John Browne a year ago, has focused on bringing new production and refining capacity on line to improve earnings.

"At last, it appears that BP is beginning to improve its operational performance and this looks set to drive a stronger financial performance in the second half," said Tony Shephard, analyst at Charles Stanley & Co.

BP's closely watched replacement cost profit rose 48 percent to $6.59 billion (4.34 billion euros), compared with $4.44 billion in the first quarter of 2007. The replacement cost figure is viewed by many analysts as the best measure of an oil company's underlying performance because it excludes changes in the value of crude inventories, measuring the amount it would cost to replace assets at current prices.

The company said refining availability improved for the sixth successive quarter.

"BP is still not firing on all cylinders but its operational turnaround looks to be on track with a strong second half recovery in prospect," said Charles Stanley & Co. analyst Tony Shephard.

The Demand for oil worldwide
is insatiable. What the heck do
we expect?

They cant get it out of the ground
quick enough. If demand goes down,
prices will follow. There need be no
secret meetings between oil companies.

The people are two deep waiting for their
icecream. Are you gonna stop selling?

All of these side issues are fine and dandy.
Bottom line is stop driving the car, flying the plane,
using the truck and boat to transport goods. These
engines all use some petroleum distillate. China is now
using more pet. that the US.

Game on. India waits.

[hi_im_god]

Originally Posted by pgardn

The Demand for oil worldwide
is insatiable. What the heck do
we expect?

They cant get it out of the ground
quick enough. If demand goes down,
prices will follow. There need be no
secret meetings between oil companies.

The people are two deep waiting for their
icecream. Are you gonna stop selling?

All of these side issues are fine and dandy.
Bottom line is stop driving the car, flying the plane,
using the truck and boat to transport goods. These
engines all use some petroleum distillate. China is now
using more pet. that the US.

Game on. India waits.

way too complicated.

reminds me of econ 1 and 2. yawn.

boogiemen are easier to understand.

Originally Posted by hi_im_god

way too complicated.

reminds me of econ 1 and 2. yawn.

boogiemen are easier to understand.

Everyone wants oil.
Prices go up.

Companies that are associated with
a product that is in high demand and is limited have
a difficult time doing poorly.


Stop the blame game and ride a bike.

I have no background in Economics.
No classes ever taken.
I await education on a difficult topic from heaven.

I would seriously like to be told why oil companies
should not be making big profits given current conditions.

[hi_im_god]

supply curve stable or down

plus

demand curve up

equals

boogieman curve through the roof.

Originally Posted by hi_im_god

supply curve stable or down

plus

demand curve up

equals

boogieman curve through the roof.

Alrighty then.

[SCUDSBROTHER]

There is no true competition in the oil market. A very few companies
control the entire market. We are basically slaves to these companies.
If they decide to charge us $4.20 per gallon, than we have to pay and
that is it. It is not like we can drive down the street and get a
better price and they know it. You don't really "shop around" for gas prices.If that was true,then you would see some much lower prices at some stations,but it isn't a free market situation.Don't you remember in the mid 80's when the price of oil was low,and The 1st George Bush was vice President? He went and talked the Saudis into keeping production low,and the price of oil went back up.If this was a free market system involved,then you would have many more companies involved here with refining oil.What do we have 4 or 5? Don't you think others would like some of those huge profits? Why do you think it is that there aren't hundreds of oil companies involved here? Why is it you shop around for the best price of a new computer,but not for the best price of a gallon of gas?With computers the difference in prices is quite noticeable.The price between brands of gasoline? Not much.When was the last time gas prices went down substantially? Wasn't it before the November 2006 election?I told ya at the time to take note of it.

[Danzig]

everyone should have seen the writing on the wall when all the small companies were being gobbled up by the large. can't beat the competition? buy it.
so, you have a few super companies, and absolutely no competition. and then you have high prices, because who's going to act to bring them down? it's the 'governments fault' in that the regulatory bodies allowed all these mergers to happen. and now we pay the price, yet again, for lack of foresight.

[2Hot4TV]

OPEC will keep raising the price till it train wrecks the U.S. and then it will buy up the wreckage with the profits. All this in the next 10 years?

[zippyneedsawin]

Originally Posted by pgardn

The Demand for oil worldwide
is insatiable. What the heck do
we expect?

They cant get it out of the ground
quick enough. If demand goes down,
prices will follow. There need be no
secret meetings between oil companies.

The people are two deep waiting for their
icecream. Are you gonna stop selling?

All of these side issues are fine and dandy.
Bottom line is stop driving the car, flying the plane,
using the truck and boat to transport goods. These
engines all use some petroleum distillate. China is now
using more pet. that the US.

Game on. India waits.

If it were as simple as supply and demand.. then why are the PROFITS so high? The oil companies claim the prices go up because of supply issues.. but shouldn't increased cost cover the revenue supposedly lost by the lower volume of sales, not create ridiculous profit margins? Why are other fuels/energy sources we rely on REGULATED, and Oil is not? Natural Gas and Electricity rates/prices are regulated, because everyone needs these... Oil is NO DIFFERENT. Our economy and the world are clearly dependant on it. You can't provide goods and services without it.
I love when people say if you don't like it, 'Stop driving." OK, you can tell the INDIVIDUAL to do that.. what about Businesses that rely on transporting those goods and services?? Guess what, now we are not only paying high prices at the pump, but also when we check out at the grocery store, mall, or any service provides.
There's a food crisis in multiple countries around the world? Why? Because of the higher cost. Why?? Because of the cost to transport that food.
And what about School Districts?? Should we stop busing the kids to school?
Municipalities?? Should highway department vehicles/crews stop maintaining the roads?
POLICE, FIRE DEPARTMENTS, AMBULANCE SERVICES?? Yeah, they should stop driving too. Sorry, Billy, the ambulance crew is 4 miles away, so they'll be here in an hour because they are WALKING here..maybe.
If oil prices were actually regulated, the cost would be half of what it is right now.. and those companies would still be in the black. It's greed. And it's decimating the American and Global economies. Ok, I'm getting off my soapbox now.... What's the latest on Big Brown??.. I haven't heard much about him lately...

[Mortimer]

You've got to be kidding me.

[SCUDSBROTHER]

If I tell ya some other commodity is too high,then the answer is gunna be either,don't buy it,or sell it yourself(if you think it's such a good business to get into.)In this case,the fact is you can't do the latter in this country.That's why there are so few companies involved here.When they say oil company profits are up,it ain't like when they say hi-tech company profits are up.Hi-Tech companies would mean that a lot of companies are doing well.In this case,what? 4 ,or maybe 5 (at the most) are involved.So,you have a lack of competition involved in the problem right there,and then you have the countries that actually have the oil to pump (out of their ground) openly getting together to control supply(OPEC.)THIS IS NOT A FREE MARKET SYTEM.IT IS NOT CAPITALISM.It's more like when the mob gets together and pays off politicians.As long as countries (getting oil out of the ground) continue to get together and talk about the amount of oil they put up for sale,then it's not a free market.Same with having limited number of oil companies in this country.They don't have to compete.There is no competition involved in any of this.I have no problem with people who want supply and demand to rule.Of course,we should use less,but you're not noticing that it's the supply that is contantly being kept low by those involved (you will never get the supply high if you allow these people to contantly talk, and agree to keep supplies low.)Obviously there is a lot of profit being made in this industry.So there should be a lot of companies competing for that profit(and giving you a fair price.)That would be a free market.What we have now is not a free market system.

[johnny pinwheel]

Originally Posted by zippyneedsawin

If it were as simple as supply and demand.. then why are the PROFITS so high? The oil companies claim the prices go up because of supply issues.. but shouldn't increased cost cover the revenue supposedly lost by the lower volume of sales, not create ridiculous profit margins? Why are other fuels/energy sources we rely on REGULATED, and Oil is not? Natural Gas and Electricity rates/prices are regulated, because everyone needs these... Oil is NO DIFFERENT. Our economy and the world are clearly dependant on it. You can't provide goods and services without it.
I love when people say if you don't like it, 'Stop driving." OK, you can tell the INDIVIDUAL to do that.. what about Businesses that rely on transporting those goods and services?? Guess what, now we are not only paying high prices at the pump, but also when we check out at the grocery store, mall, or any service provides.
There's a food crisis in multiple countries around the world? Why? Because of the higher cost. Why?? Because of the cost to transport that food.
And what about School Districts?? Should we stop busing the kids to school?
Municipalities?? Should highway department vehicles/crews stop maintaining the roads?
POLICE, FIRE DEPARTMENTS, AMBULANCE SERVICES?? Yeah, they should stop driving too. Sorry, Billy, the ambulance crew is 4 miles away, so they'll be here in an hour because they are WALKING here..maybe.
If oil prices were actually regulated, the cost would be half of what it is right now.. and those companies would still be in the black. It's greed. And it's decimating the American and Global economies. Ok, I'm getting off my soapbox now.... What's the latest on Big Brown??.. I haven't heard much about him lately...

big brown got the 20 hole

[gales0678]

scuds - what about demand from china and india - isn't this causing some of the increase?

[SCUDSBROTHER]

Originally Posted by gales0678

scuds - what about demand from china and india - isn't this causing some of the increase?

Have you ever really heard anyone say there is plenty of oil? Not much,right?Unless you have competition,you are gunna be reliant on 4 or 5 oil companies refining only as much oil as they want.You're also gunna be reliant on OPEC to pump as much oil as they conpire to pump.Do you really think they are ever gunna say that there is plenty of gas."We are gunna lower the price,because we have so much that we need to get rid of some." That situation won't happen unless you have more companies refining oil.It's pretty much like what the A.M.A is trying to do with medicine..."Keep medical care rare and expensive." The price of gas dipped before the 2006 Fall election..right? They wanted you to keep electing the people in charge(at that time the Congress ,Senate,and Presidency were all Republican majorities that favored 4 or 5 oil companies going without honest competition.)Weren't China and India using oil then..LOL..?

Look at oil prices in other developed countries.
We got it lucky here.

Do people actually believe Oil companies are somehow
holding back oil like De Beers with Diamonds?

Again I ask.
Please explain in English how a product
that has such a high demand with China now eating
it at a higher rate than we do, and India gearing up,
not make big profits?

How?

And why the heck should oil companies even worry
about spending money on drilling off the Pacific and in
Alaska. We wont let em.

So how many people are you guys gonna carpool with
to work? Got your bike to get to the grocery store or
go to the park? Does your car get 60 miles per gallon?

Pillow got what he wanted. It is going to force
people to change habits. Subways and buses.

Originally Posted by SCUDSBROTHER

If I tell ya some other commodity is too high,then the answer is gunna be either,don't buy it,or sell it yourself(if you think it's such a good business to get into.)In this case,the fact is you can't do the latter in this country.That's why there are so few companies involved here.When they say oil company profits are up,it ain't like when they say hi-tech company profits are up.Hi-Tech companies would mean that a lot of companies are doing well.In this case,what? 4 ,or maybe 5 (at the most) are involved.So,you have a lack of competition involved in the problem right there,and then you have the countries that actually have the oil to pump (out of their ground) openly getting together to control supply(OPEC.)THIS IS NOT A FREE MARKET SYTEM.IT IS NOT CAPITALISM.It's more like when the mob gets together and pays off politicians.As long as countries (getting oil out of the ground) continue to get together and talk about the amount of oil they put up for sale,then it's not a free market.Same with having limited number of oil companies in this country.They don't have to compete.There is no competition involved in any of this.I have no problem with people who want supply and demand to rule.Of course,we should use less,but you're not noticing that it's the supply that is contantly being kept low by those involved (you will never get the supply high if you allow these people to contantly talk, and agree to keep supplies low.)Obviously there is a lot of profit being made in this industry.So there should be a lot of companies competing for that profit(and giving you a fair price.)That would be a free market.What we have now is not a free market system.

You can make it yourself Scuds.
Save that trash. Use that Biofuel YOU can
produce. Good luck making it cost effective.
Even with 10 dollar gas.

Supply has and will be a constant problem with
so many restrictions on drilling. THis is not a new problem.
Consumption, consumption. Tell the Chinese to stop driving.
And then talk to India in 2 years. Or move to Europe. Only 7 or 8
dollars a gallon. AMERICANS love the freedom of driving where
they want when they want. Thats got to change.

BTW.

The CEO of Shell has spilled his guts.
He has already concluded we (US) are in trouble.
Surprisingly he does not need money.

He has talked with all the major candidates,
gone on record with plans on city mass transit possibilites,
cars that are fuel efficient, they have a number of pamphlet
on all these ways to drive less. He is horrified with the prices.

Wonder why Obama and Clinton are not bashing oil
companies day after day. Dont you think that would
work well for good democrats? Collusion and all that rot.
Oh yes, the candidates are all being paid off. These American
Oil Companies have been in front of Congressional subcommittees
so many times once gas hit the 3 dollar mark and then waivered
back and forth. They have had to spill records on meetings,
they have been bombarded.

Both candidates are looking for conservation and new
technology. Thats their thrust. They are not busting
on the oil companies near as much as they could.

Again it is a case of oversimplification. Price fixing.
Thats the basic problem. And its easy because it
affects everyone of us who drives, pulls horses in trailers.
The problem is you cant fix a problem by playing
a continuing game that is not yeilding results.

It is not a simple problem. Consumption is by far the
easiest way to allieviate pain. So every one write down
the new car you purchase that gets extremely efficient
gas mileage... when it actually hurts enough economically.
I am in the market. I would like to know the pitfalls, good
points behind the hybrid. Anyone who actually owns one
and drives it, help.

[gales0678]

scuds - worldwide demand has outstipped supply , either demand has to fall or supply has to increase for px to fall - also oil is px in usd - as our currency get weaker the px in usd goes up which hits us in the pocket - bernake is cooked he can't keep cutting rates to help the consumer in this country who is already overexteneded to help prop up the housing mkt

ths will weaken our currency even more and make oil more expensive , we are in a tough spot here

o'rielly had clinton on last night and she says eveyone is to blame - funny eneough she did not answer some of his questions about why she voted against certain new drilling projects and he didn't press her on it, but, dennis miller came on and told o'rielly he did press her hard eneough on the issue

[zippyneedsawin]

Originally Posted by pgardn

Look at oil prices in other developed countries.
We got it lucky here.

Do people actually believe Oil companies are somehow
holding back oil like De Beers with Diamonds?

Again I ask.
Please explain in English how a product
that has such a high demand with China now eating
it at a higher rate than we do, and India gearing up,
not make big profits?

How?

And why the heck should oil companies even worry
about spending money on drilling off the Pacific and in
Alaska. We wont let em.

So how many people are you guys gonna carpool with
to work? Got your bike to get to the grocery store or
go to the park? Does your car get 60 miles per gallon?

Pillow got what he wanted. It is going to force
people to change habits. Subways and buses.

It's pretty clear why they are making big profits, because they are charging so much! No one can deny that. But when these oil companies claim they're raising prices because of 'supply concerns'... that's bullshit. Remember shortly after Katrina hit the Gulf Coast? Prices skyrocketed with claims of supply issues. Sure... the prices don't go down as fast as they climb.. funny how that works.