PhillyKev 0 #1 October 29, 2004 Reported this week in the WSJ BP has doubled their NET profit this past quarter. Exxon Mobile NET profit has soared 56%. So when you guys complain about the price of gas at the pumps and use that as proof that the oil is not influential in the president's decision to go to war, try to remember where his business interests lie when he leaves office either in a few months or 4 years. Quote Share this post Link to post Share on other sites
ChasingBlueSky 0 #2 October 29, 2004 Kev - hate to tell you this, but both parties are members of the elitists...they are all influenced by lobbyists, including the oil industry. This is an area that both Kerry and Bush are exactly the same in. Free market fundamentalism has changed the face of politics._________________________________________ you can burn the land and boil the sea, but you can't take the sky from me.... I WILL fly again..... Quote Share this post Link to post Share on other sites
billvon 3,064 #3 October 29, 2004 >BP has doubled their NET profit this past quarter. To be fair, they are also one of the leaders in alternative energy; high gas prices may both hurt their petroleum business and boost their solar business. Quote Share this post Link to post Share on other sites
ChasingBlueSky 0 #4 October 29, 2004 Quote>BP has doubled their NET profit this past quarter. To be fair, they are also one of the leaders in alternative energy; high gas prices may both hurt their petroleum business and boost their solar business. Very true, BP has "green" stations going up even around Chicago. They have solar panels in the top of the canopy that covers the gas pumps. Interesting enough, they let go quite a few people from that department here in town - I just spoke with one of the former Project Managers last week._________________________________________ you can burn the land and boil the sea, but you can't take the sky from me.... I WILL fly again..... Quote Share this post Link to post Share on other sites
Jimbo 0 #5 October 29, 2004 QuoteTo be fair, they are also one of the leaders in alternative energy; high gas prices may both hurt their petroleum business and boost their solar business. Those same high gas prices are likely funding the alternative energy programs, too. - Jim"Like" - The modern day comma Good bye, my friends. You are missed. Quote Share this post Link to post Share on other sites
Trent 0 #6 October 29, 2004 Just to let you know... The reason oil companies are showing huge profits right now is because they're selling gas at TODAY'S price when they've purchased the futures contract at the 6 month to 1 year ago price. Didn't I explain this to you in an older thread? If the price for crude doesn't drop, then the oil companies will be forced to buy at the higher prices and their profits will shrink. Unless they time it right and they can make it by on their current futures contracts until the price (maybe) lowers again. This is normal so far. Not that the oil companies aren't in it for the profit or anything...Oh, hello again! Quote Share this post Link to post Share on other sites
PhillyKev 0 #7 October 29, 2004 I understand that completely. I was just posting this to counter the argument made by several on here that high gas prices indicate that the oil companies aren't benefitting. Quote Share this post Link to post Share on other sites
PhillyKev 0 #8 October 29, 2004 Chevron up 62% Net profit Quote Share this post Link to post Share on other sites
Trent 0 #9 October 29, 2004 Now I see. I just wanted to throw my .02 in to make sure people saw how it most often works in cases like this. As it is... you're right, now. They'll most likely be right, later. Oil companies will profit no matter what, but over time, the ups and downs almost cancel each other out... ceteris paribus.Oh, hello again! Quote Share this post Link to post Share on other sites
PhillyKev 0 #10 October 29, 2004 Except that when oil supplies go back up, the oil companies do this little thing called manipulating the prices by not refining as much to keep supplies of gas down. They profit when oil is in short supply, and when oil is plentiful, they artificially restrict the gasoline supply. It's win-win for them. Quote Share this post Link to post Share on other sites
Trent 0 #11 October 29, 2004 Not necessarily. To be successful at doing that, they'd have to have an industry (global) agreement with other oil companies because just one company willing to make "normal" profits would ruin it for everyone. From what I've seen in economics and oil practices, the gas prices moves closely with that of oil and the bottleneck is more often OPEC restrictions rather than refineries.Oh, hello again! Quote Share this post Link to post Share on other sites
PhillyKev 0 #12 October 29, 2004 How Gas Companies Manipulate Prices Quote Share this post Link to post Share on other sites
rickjump1 0 #13 October 29, 2004 QuoteHow Gas Companies Manipulate Prices Don't forget the smallest tropical storm in the Gulf will drive prices up. Even for a single day it adds up. Hurricanes like this summer cost offshore production and delayed drilling. I wonder why Bp and BHP come to the Gulf of Mexico. Is it because of cheap American labor: rigs, service companies, boats, helicopters? Oops forgot the French are here too.Do your part for global warming: ban beans and hold all popcorn farts. Quote Share this post Link to post Share on other sites
ahegeman 0 #14 October 29, 2004 QuoteExcept that when oil supplies go back up, the oil companies do this little thing called manipulating the prices by not refining as much to keep supplies of gas down. They profit when oil is in short supply, and when oil is plentiful, they artificially restrict the gasoline supply. It's win-win for them. Good for them. They have a right to control their production. They built the facilities. If you don't like it, start your own oil company. Or don't use gas. Oh, petroleum is vital to our economy and without it mankind would be still living in huts. So thank them for helping make nearly everything we have possible. And buy some stock.--------------------------------------------------------------- There is a fine line between 'hobby' and 'mental illness'. --Dave Barry Quote Share this post Link to post Share on other sites
PhillyKev 0 #15 October 29, 2004 QuoteGood for them. They have a right to control their production. Um, no, they don't. They do NOT have the right to conspire to manipulate prices. There are laws against that. QuoteOr don't use gas. Oh, petroleum is vital to our economy and without it mankind would be still living in huts. So thank them for helping make nearly everything we have possible. I don't use much gas, about $10/month. And you pointed out another reason why they DON'T have the right to manipulate prices. Because oil is vital to the national infrastructure and they have to work within the guidelines of the national energy policy. The national energy policy is set by the administration in order to balance the overall health of the economy with the interests of the oil companies. It gets a little skewed, though, when the policy is set by an administration that shares the interests of the oil companies and meets with them in closed door meeting to set the policy as Cheney did. Quote Share this post Link to post Share on other sites
kallend 2,106 #16 October 29, 2004 QuoteQuoteExcept that when oil supplies go back up, the oil companies do this little thing called manipulating the prices by not refining as much to keep supplies of gas down. They profit when oil is in short supply, and when oil is plentiful, they artificially restrict the gasoline supply. It's win-win for them. Good for them. They have a right to control their production. They built the facilities. If you don't like it, start your own oil company. Or don't use gas. Oh, petroleum is vital to our economy and without it mankind would be still living in huts. So thank them for helping make nearly everything we have possible. And buy some stock. Same goes for the media - think it's biased? Don't whine, start your own TV station or newspaper. But I still wonder what Cheney was doing in those secret "energy" meetings four years ago. That does not inspire confidence that big oil is purely free-market driven. If there was nothing to hide, why hide it? And, of course, we do have ENRON as an example of illicit activity in the energy industry.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
Trent 0 #17 October 29, 2004 Interesting read. Worth people looking into since actual price-fixing with competitors is illegal. I saw that this came up, but an oil company can reduce supply to suit their needs and maximize profit. The problem is that the other companies follow suit, de-facto price-fixing. (whether or not it's pre-arranged is another story). At current wholesale prices, the 1-3 cent profit increase that was repeatedly mentioned, makes up just around 1% of the price or less. OPEC has a much more powerful influence over the actual prices at the pump. They're the reall shady ones when it comes to production limitations.Oh, hello again! Quote Share this post Link to post Share on other sites
ScottishJohn 25 #18 October 29, 2004 i don't mind the gas companies making a profit. After all that is why they sell oil etc. Unfortunately here in the UK about 80 % of the price of petrol is tax. If the tax wasn't so high then we wouldn't be paying 84p per Litre. I think there is roughly 4 L to the Gallon.---------------------------------------------------------------------- If you think my attitude stinks you should smell my fingers Quote Share this post Link to post Share on other sites
kallend 2,106 #19 October 29, 2004 Just bought 27 gallons of AVGAS at $3.15 a gallon!... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
