ExxonMobil $10.36BWhat can you say? When your expenses stay about the same and the substance you're hawking goes up drastically in price, profits will rise. Unless you lower the price of your product. And who in this greed-forsaken world ever expects that to happen?
BP $7.27B
Royal Dutch Shell $6.3B
ConocoPhillips $5.19B
Chevron $4.35B
Actually I don't really mind the obscene profits of the oil companies, because Americans and the rest of the world will not decrease their demand by buying more efficient automobiles, reducing development and sprawl, and driving less or taking mass transportation. We deserve to get screwed because we're as selfish and greedy as they are. But what does really piss me off are the huge tax breaks the oil companies are granted by Congress and the Administration even in the face of these large profits. That is wholly unnecessary and a sign of real corruption. Politicians deserve to lose their jobs for it (read: Republican politicians--they're the ones doing the granting). I hope high gasoline prices are a factor in the November elections, but overall I am not very confident they will be. Americans simply don't seem to mind getting royally screwed. Oh sure, they complain when the TV cameras show up at the gas pumps, but they don't seem to translate into votes in November.
2 comments:
David,
Oil company profits as a percentage of revenue (about 10%) are not unusually high.
The high cost of oil is due to simple supply/demand. Supply has not grown fast enough - due in large measure to our unwillingness to drill for more.
I would prefer less subsidy and more drilling in sites now off limits to increase supply. If you are not for more supply then you have to take responsibility for the high prices.
I am glad to see you back in business.
However, I agree with the other commenter that in this case you are wrong.
Oil companies do not control the price at the pump to anywhere near the extent that you and many others imply. If they reduced the price they would run out. This would amount to a disorderly form of rationing.
Systematic, mandated rationing isn't very popular these days, but it's the only workable alternative to high prices. This would be the responsibility of the policy sector, if we ever had a responsible policy sector, but it is not and cannot be the responsibility of the oil companies.
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