and exxon has records profits, earning $1300 a second!!!!!! :
n shatters profit records
Oil giant makes corporate history by booking $11.7 billion in quarterly profit; earns $1,300 a second in 2007.
By David Ellis, CNNMoney.com staff writer
February 1 2008: 2:26 PM EST
Exxon Mobil booked the biggest quarterly and annual profits in U.S. corporate history Friday, helped by higher oil prices.
Eye on oil
High gas prices: Recession-proof
Americans may see falling stock markets and employment rates, but worldwide demand and OPEC should keep the heat on oil and gas prices. (more)
Oil prices: OPEC's high wire act
The cartel struggles to keep oil prices high, but not high enough to kill the economy. Long term, are they investing enough to meet worldwide demand? (more)
QUICK VOTE
On this frantic Friday, what do you think is the biggest news on Wall Street?
Microsoft announces $45 billion bid for Yahoo
Exxon earns biggest quarterly profit ever
Government reports a job loss in January
or View results
NEW YORK (CNNMoney.com) -- Exxon Mobil made history on Friday by reporting the highest quarterly and annual profits ever for a U.S. company, boosted in large part by soaring crude prices.
Exxon, the world's largest publicly traded oil company, said fourth-quarter net income rose 14% to $11.66 billion, or $2.13 per share. The company earned $10.25 billion, or $1.76 per share, in the year-ago period.
The profit topped Exxon's previous quarterly record of $10.7 billion, set in the fourth quarter of 2005, which also was an all-time high for a U.S. corporation.
"Exxon can put out some amazing numbers and this is one of those cases," said Jason Gammel, senior analyst at Macquarie Securities in New York.
Exxon also set an annual profit record by earning $40.61 billion last year - or nearly $1,300 per second in 2007. That exceeded its previous record of $39.5 billion in 2006.
In the fourth quarter, the company said revenue rose 29.5% from a year ago to $116.64 billion.
Analysts were looking for the company to report quarterly profit of $10.36 billion on revenue of $114.9 billion, according to earnings tracker Thomson Financial.
The company reported strong results in its worldwide exploration and production, or "upstream," business. Profit rose 32% to $8.2 billion during the quarter, offsetting some weakness earlier in the year.
Income in Exxon's refining, or "downstream," business rose 15.7% during the quarter to $2.27 billion.
Exxon attributed its impressive results to strong performance across its divisions, but a large part of the profit surge was underpinned by climbing oil prices.
Crude prices skyrocketed nearly 60% last year. The surge helped prices break through the $100 a barrel mark for the first time ever early last month. Since crossing that milestone, prices have eased to around $90 a barrel.
Natural gas prices also jumped last year, albeit marginally. But costs have also increased for the oil companies, which is why profits haven't risen as rapidly as crude prices.
Big oil companies that both pump oil and refine crude into gasoline have to spend more for crude but are unable to pass on all the extra cost to consumers, which eats in to gasoline profit margins.
The average price for a gallon of regular gasoline hit an all-time high of $3.23 in May, according to the motorist organization AAA. The high prices were blamed on strong demand and a series of accidents that shut down refineries in the U.S. But slack demand for gasoline in the latter half of last year kept gas prices from rising as dramatically as crude prices.
Exxon's record results, which coincide with smaller rival Chevron's (CVX, Fortune 500) profit jump, drew some fire from both government officials and consumer rights groups, who have argued previously that the the oil industry is deliberately restricting supply and profiting on the back of U.S. motorists.
Sen. Charles Schumer, D-N.Y. took a swipe at the two firms, calling on fellow lawmakers to break the country's dependence on foreign oil and rollback unnecessary tax incentives for oil companies.
Judy Dugan, research director of The Foundation for Taxpayer and Consumer Rights, urged Congress to initiate some oversight into unregulated energy trading markets, which have been accused of helping to drive up the price of oil.
"Exxon is happy to take advantage of these prices," said Dugan.
But finding oil has also become more costly. The oil boom has led to a surge in exploration and drilling activity, which has pushed up the price for skilled workers and equipment.
Furthermore, new supplies of oil are increasingly difficult to find and generally tend to be located in harder to reach - and hence more expensive - places. The new natural gas field discovered this week by Brazil's Petrobras lies three miles under the ocean.
ExxonMobil representatives also stressed the cyclical nature of the business and noted that growing global demand for energy will require companies to heavily invest in future growth. The company said it estimates that global demand will grow by 30 percent by 2030.
"The challenge for all of us in the industry is how to we meet that increased demand," said Henry Hubble, vice president of investor relations.
Exxon and Chevron aren't the only two oil giants to report impressive earnings recently. Conoco (COP, Fortune 500), the nation's third-largest oil company, trounced profit estimates by nearly 25% when it reported last week. And Royal Dutch Shell PLC, Europe's largest oil company, reported a 60% increase in profits Thursday.
-CNNMoney.com staff writer Steve Hargreaves contributed to this report
Exxon, the world's largest publicly traded oil company, said fourth-quarter net income rose 14% to $11.66 billion, or $2.13 per share.
In the fourth quarter, the company said revenue rose 29.5% from a year ago to $116.64 billion.
Sure those numbers look huge but it is also based on a huge investment. I mean in reality it is only a 10% profit. The overall dollar number is only based on how huge their operations are. I mean to make that 11 billion they have to spend 100 billion. I think on a return on investment basis banks and real estate companies typically have better performance as far as profits go than oil companies.
Sure those numbers look huge but it is also based on a huge investment. I mean in reality it is only a 10% profit. The overall dollar number is only based on how huge their operations are. I mean to make that 11 billion they have to spend 100 billion. I think on a return on investment basis banks and real estate companies typically have better performance as far as profits go than oil companies.
very true. their profits margins are less then many companies/industries.
so what? the oil companies do not set the price of oil.
profits due largely to the price of oil being up --> oil is up partly because of on-going instability in middle east --> instability in middle east due to continued occupation of iraq and war rhetoric with iran --> war due to current administrations foreign policy --> admistration is headed by former oil executive and others tied to industry
I am certainly no bush supporter but 1) gas prices are not solely determined by him and 2) high gas prices are good. bottom line. gets people to drive less, helps the environment, helps public health, helps community development.
Please show me where it proven that higher gas prices leads to people driving less??? People bite the bullet and drive just about as much as they normally due, they may make slight adjustments but for the most part driving habits and gas consumption stay the same, hence the continued high demand for oil and gas.
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Social awareness does not equal political activism!
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profits due largely to the price of oil being up --> oil is up partly because of on-going instability in middle east --> instability in middle east due to continued occupation of iraq and war rhetoric with iran --> war due to current administrations foreign policy --> admistration is headed by former oil executive and others tied to industry
Sure those numbers look huge but it is also based on a huge investment. I mean in reality it is only a 10% profit. The overall dollar number is only based on how huge their operations are. I mean to make that 11 billion they have to spend 100 billion. I think on a return on investment basis banks and real estate companies typically have better performance as far as profits go than oil companies.
A huge investment that involves murder and rape of the land.
very true. their profits margins are less then many companies/industries.
Exactly I was able to find this link where JP Morgan made about a 15% profit on what they would call a bad quarter. That is a way better return on investment than what the oil companies are getting, I am sure a lot of it has to do with the fact that a bank branch is a lot cheaper to run than an oil platform. Yet how come no one ever complains as much about crappy bank service charges, and low interest rates on savings accounts, as they do about gas prices
this so called war on terror is about war profiteering ... companies like exxon profited from this war directly ... i don't really care how much money a company makes - but when it comes at the expense of innocent lives - it's problematic ... and i can even give some slack if a company indirectly profits - but when they hold influence over the gov't and said gov't enters into shady wars overseas - it's a crime ...
Please show me where it proven that higher gas prices leads to people driving less??? People bite the bullet and drive just about as much as they normally due, they may make slight adjustments but for the most part driving habits and gas consumption stay the same, hence the continued high demand for oil and gas.
well this is very true. as I said earlier, gasoline demand is highly price inelastic. But it just seems like at a certain point, this could change. I think it's inelastic because people think it's just temporary, or they think they have to drive, or that they have some "right" to drive. I think as the price keeps climbing with little relief and people become better informed, this could change. People are more and more starting to demand alternatives, and I think that's where it starts. But no one will ever have incentive to change their ways if gasoline just remained at the ridiculously low price it has been historically.
Sure those numbers look huge but it is also based on a huge investment. I mean in reality it is only a 10% profit. The overall dollar number is only based on how huge their operations are. I mean to make that 11 billion they have to spend 100 billion. I think on a return on investment basis banks and real estate companies typically have better performance as far as profits go than oil companies.
True but they're still making 11 billion dollars. When you operate in that type of volume your GP doesn't need to be 20-25%. I'd be interested to see what the net profit is because I imagine that the cost of their operation hasn't dramatically increased which would make the overall pocket profit sky rocket.
That's what it boils down to and I think that's why people are pissed. You didn't hear the oil companies crying poverty before so I'm assuming they were still making decent money.
If it's supply and demand they're turning out basically the same supply so the cost of turning that out wouldn't dramatically increase.
Problem is that these "alternatives" that are being pushed and people are calling for (biodiesel and ethanol) are causing more problems and creating global food shortages. And actually cause more harm to the environment then gasoline production.
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Social awareness does not equal political activism!
5/23/2011- An utter embarrassment... ticketing failures too many to list.
Problem is that these "alternatives" that are being pushed and people are calling for (biodiesel and ethanol) are causing more problems and creating global food shortages. And actually cause more harm to the environment then gasoline production.
well this is very true. as I said earlier, gasoline demand is highly price inelastic. But it just seems like at a certain point, this could change. I think it's inelastic because people think it's just temporary, or they think they have to drive, or that they have some "right" to drive. I think as the price keeps climbing with little relief and people become better informed, this could change. People are more and more starting to demand alternatives, and I think that's where it starts. But no one will ever have incentive to change their ways if gasoline just remained at the ridiculously low price it has been historically.
no self-respecting environmentalist considers ethanol a good alternative to gas ...
I don't know if it's had as big an impact on the current food crisis as has been claimed. it doesn't quite make sense to me at this point in time (though it's always been a concern as something that definitely has the potential to happen).
the problem with biofuel is that you have to use so much energy to produce and transport it. also the agricultural impact on the land is not good.
when I said "alternatives" I was thinking more along the lines of public transportation, bike paths, side walks, cross walks, different urban design, etc, as well as alternatives in areas other than transportation such as electricity.
I just read an article about a brand new, from scratch city being built in Abu Dahbi (not sure how that's spelled). It will be COMPLETELY CARLESS.
I don't know if it's had as big an impact on the current food crisis as has been claimed. it doesn't quite make sense to me at this point in time (though it's always been a concern as something that definitely has the potential to happen).
the problem with biofuel is that you have to use so much energy to produce and transport it. also the agricultural impact on the land is not good.
when I said "alternatives" I was thinking more along the lines of public transportation, bike paths, side walks, cross walks, different urban design, etc, as well as alternatives in areas other than transportation such as electricity.
I just read an article about a brand new, from scratch city being built in Abu Dahbi (not sure how that's spelled). It will be COMPLETELY CARLESS.
food crisis is due to monoculture and climate change ... increased drought means no food production especially in poor countries like in africa ...
and your point on ethanol is spot on ... i was replying to chromjam's post ...
for sure - our first priority has to be conservation of resources and a reduction of usage ... your alternatives is where it begins ...
and yeah - you can read about that development on treehugger.com ... just do a search ...
so what? the oil companies do not set the price of oil.
they may not set the market value but they can help control it. Right now oil refineries in the US are running at about 80% capacity. That is close to the same rate they were running after Hurricane Katrina.
Now I wonder why they are running at 80% capacity?? To control the supply which in turn pushes up the future prices of oil and in turn gives them another record quarter profit. These greedy bastards are making obscene amounts of money at the expense of lower income Americans who this hurts the most.
It's bullshit and there is no need for oil to be at the prices they are now at. I think the oil companies are going to keep controlling the supply until they see an actual change in peoples behavior of oil consumption which will result in lower profits. They are just trying to find that point where they can maximize profits.
Just my opinion.
Seeing visions of falling up somehow.
Pensacola '94 New Orleans '95 Birmingham '98 New Orleans '00 New Orleans '03 Tampa '08 New Orleans '10 - Jazzfest New Orleans '16 - Jazzfest Fenway Park '18 St. Louis '22
they may not set the market value but they can help control it. Right now oil refineries in the US are running at about 80% capacity. That is close to the same rate they were running after Hurricane Katrina.
Now I wonder why they are running at 80% capacity?? To control the supply which in turn pushes up the future prices of oil and in turn gives them another record quarter profit. These greedy bastards are making obscene amounts of money at the expense of lower income Americans who this hurts the most.
It's bullshit and there is no need for oil to be at the prices they are now at. I think the oil companies are going to keep controlling the supply until they see an actual change in peoples behavior of oil consumption which will result in lower profits. They are just trying to find that point where they can maximize profits.
Just my opinion.
how do you know 80%. I'll take your word for it and that fucking blows.
how do you know 80%. I'll take your word for it and that fucking blows.
I read an article on it this morning. I will try to find it and post it. and here it is.
"RTT News, NY - Apr 20, 2008
Wednesday
The Energy Department's crude oil inventory report for the week ended April 18th is scheduled to be released at 10:30 AM ET on Wednesday.
U.S. crude oil inventories declined by 2.3 million barrels in the week ended April 11, 2008 to 313.7 million barrels. Gasoline stocks fell by 5.5 million barrels, but they are still above the upper limit of the average range. Meanwhile, distillate inventories edged up by 0.1 million barrels and remain in the lower half of the average range for this time of the year. Refinery capacity utilization averaged 82.2% over the four weeks ended April 11th, down 0.6 percentage points from the previous week."
There is no need for plants to be running at this low of a capacity in my opinion and there is only one obvious reason they are doing it because they know we have to drive and use oil. I can picture the oil companies after hurricane katrina hit and they bumped gas prices to $3 a gallon and people didn't buy less. They are sitting there going, "holy shit..we can charge whatever we want and get away with it. Let's just keep supply down." Until they find that tipping point it will keep going up in prices.
Seeing visions of falling up somehow.
Pensacola '94 New Orleans '95 Birmingham '98 New Orleans '00 New Orleans '03 Tampa '08 New Orleans '10 - Jazzfest New Orleans '16 - Jazzfest Fenway Park '18 St. Louis '22
It's bullshit and there is no need for oil to be at the prices they are now at.
I think that's a totally wrong statement.
perhaps you are not happy with where the money is *going* but that doesn't mean the prices are wrong.
oh and I don't think that they are controlling the supply of oil even if the refineries are working at 80% capacity. I don't think that the latter necessarily means the former. there's no cartel, no single company would have incentive to restrict supply and raise prices on their own.
perhaps you are not happy with where the money is *going* but that doesn't mean the prices are wrong.
I guess you are right when it comes down to it. I can't stand the thought of people making this much money at the price of lower income families. I'm lucky enough to be able to afford gas but I have met people who are having trouble finding jobs that live in rural counties, can't afford to move and they now can't afford to drive to work. And don't give me the they need to move to the city or they shouldn't live in rural counties, it is part of the circle of poverty. They make more money living off of welfare because the price of gas is taking up a large part of their budget. When things like this start happening then something is very wrong in my opinion.
But you know what sucks..I have no friggin idea what can be done to stop it or fix it. So i come on here and rant.
Seeing visions of falling up somehow.
Pensacola '94 New Orleans '95 Birmingham '98 New Orleans '00 New Orleans '03 Tampa '08 New Orleans '10 - Jazzfest New Orleans '16 - Jazzfest Fenway Park '18 St. Louis '22
Comments
i like my 360 ...
Waiting for GTA IV and the Deadliest Catch games. Those should basically keep my from paying for gas because I won't be driving places.
n shatters profit records
Oil giant makes corporate history by booking $11.7 billion in quarterly profit; earns $1,300 a second in 2007.
By David Ellis, CNNMoney.com staff writer
February 1 2008: 2:26 PM EST
Exxon Mobil booked the biggest quarterly and annual profits in U.S. corporate history Friday, helped by higher oil prices.
Eye on oil
High gas prices: Recession-proof
Americans may see falling stock markets and employment rates, but worldwide demand and OPEC should keep the heat on oil and gas prices. (more)
Oil prices: OPEC's high wire act
The cartel struggles to keep oil prices high, but not high enough to kill the economy. Long term, are they investing enough to meet worldwide demand? (more)
QUICK VOTE
On this frantic Friday, what do you think is the biggest news on Wall Street?
Microsoft announces $45 billion bid for Yahoo
Exxon earns biggest quarterly profit ever
Government reports a job loss in January
or View results
NEW YORK (CNNMoney.com) -- Exxon Mobil made history on Friday by reporting the highest quarterly and annual profits ever for a U.S. company, boosted in large part by soaring crude prices.
Exxon, the world's largest publicly traded oil company, said fourth-quarter net income rose 14% to $11.66 billion, or $2.13 per share. The company earned $10.25 billion, or $1.76 per share, in the year-ago period.
The profit topped Exxon's previous quarterly record of $10.7 billion, set in the fourth quarter of 2005, which also was an all-time high for a U.S. corporation.
"Exxon can put out some amazing numbers and this is one of those cases," said Jason Gammel, senior analyst at Macquarie Securities in New York.
Exxon also set an annual profit record by earning $40.61 billion last year - or nearly $1,300 per second in 2007. That exceeded its previous record of $39.5 billion in 2006.
In the fourth quarter, the company said revenue rose 29.5% from a year ago to $116.64 billion.
Analysts were looking for the company to report quarterly profit of $10.36 billion on revenue of $114.9 billion, according to earnings tracker Thomson Financial.
Despite topping Wall Street's estimates, Exxon (XOM, Fortune 500) shares slipped in afternoon trading.
The company reported strong results in its worldwide exploration and production, or "upstream," business. Profit rose 32% to $8.2 billion during the quarter, offsetting some weakness earlier in the year.
Income in Exxon's refining, or "downstream," business rose 15.7% during the quarter to $2.27 billion.
Exxon attributed its impressive results to strong performance across its divisions, but a large part of the profit surge was underpinned by climbing oil prices.
Crude prices skyrocketed nearly 60% last year. The surge helped prices break through the $100 a barrel mark for the first time ever early last month. Since crossing that milestone, prices have eased to around $90 a barrel.
Natural gas prices also jumped last year, albeit marginally. But costs have also increased for the oil companies, which is why profits haven't risen as rapidly as crude prices.
Big oil companies that both pump oil and refine crude into gasoline have to spend more for crude but are unable to pass on all the extra cost to consumers, which eats in to gasoline profit margins.
The average price for a gallon of regular gasoline hit an all-time high of $3.23 in May, according to the motorist organization AAA. The high prices were blamed on strong demand and a series of accidents that shut down refineries in the U.S. But slack demand for gasoline in the latter half of last year kept gas prices from rising as dramatically as crude prices.
Exxon's record results, which coincide with smaller rival Chevron's (CVX, Fortune 500) profit jump, drew some fire from both government officials and consumer rights groups, who have argued previously that the the oil industry is deliberately restricting supply and profiting on the back of U.S. motorists.
Sen. Charles Schumer, D-N.Y. took a swipe at the two firms, calling on fellow lawmakers to break the country's dependence on foreign oil and rollback unnecessary tax incentives for oil companies.
Judy Dugan, research director of The Foundation for Taxpayer and Consumer Rights, urged Congress to initiate some oversight into unregulated energy trading markets, which have been accused of helping to drive up the price of oil.
"Exxon is happy to take advantage of these prices," said Dugan.
But finding oil has also become more costly. The oil boom has led to a surge in exploration and drilling activity, which has pushed up the price for skilled workers and equipment.
Furthermore, new supplies of oil are increasingly difficult to find and generally tend to be located in harder to reach - and hence more expensive - places. The new natural gas field discovered this week by Brazil's Petrobras lies three miles under the ocean.
ExxonMobil representatives also stressed the cyclical nature of the business and noted that growing global demand for energy will require companies to heavily invest in future growth. The company said it estimates that global demand will grow by 30 percent by 2030.
"The challenge for all of us in the industry is how to we meet that increased demand," said Henry Hubble, vice president of investor relations.
Exxon and Chevron aren't the only two oil giants to report impressive earnings recently. Conoco (COP, Fortune 500), the nation's third-largest oil company, trounced profit estimates by nearly 25% when it reported last week. And Royal Dutch Shell PLC, Europe's largest oil company, reported a 60% increase in profits Thursday.
-CNNMoney.com staff writer Steve Hargreaves contributed to this report
http://money.cnn.com/2008/02/01/news/companies/exxon_earnings/
i like getting my ass owned by 10 year olds on H3 ... then hear them talk smack with their pre-pubescent voices ... it really makes my day ...
so what? the oil companies do not set the price of oil.
Sure those numbers look huge but it is also based on a huge investment. I mean in reality it is only a 10% profit. The overall dollar number is only based on how huge their operations are. I mean to make that 11 billion they have to spend 100 billion. I think on a return on investment basis banks and real estate companies typically have better performance as far as profits go than oil companies.
very true. their profits margins are less then many companies/industries.
profits due largely to the price of oil being up --> oil is up partly because of on-going instability in middle east --> instability in middle east due to continued occupation of iraq and war rhetoric with iran --> war due to current administrations foreign policy --> admistration is headed by former oil executive and others tied to industry
Please show me where it proven that higher gas prices leads to people driving less??? People bite the bullet and drive just about as much as they normally due, they may make slight adjustments but for the most part driving habits and gas consumption stay the same, hence the continued high demand for oil and gas.
Admin
Social awareness does not equal political activism!
5/23/2011- An utter embarrassment... ticketing failures too many to list.
whats your point?
A huge investment that involves murder and rape of the land.
Exactly I was able to find this link where JP Morgan made about a 15% profit on what they would call a bad quarter. That is a way better return on investment than what the oil companies are getting, I am sure a lot of it has to do with the fact that a bank branch is a lot cheaper to run than an oil platform. Yet how come no one ever complains as much about crappy bank service charges, and low interest rates on savings accounts, as they do about gas prices
http://dealbook.blogs.nytimes.com/2008/04/16/jpmorgan-earns-24-billion-in-1st-quarter-profit-beating-expectations/
what? ... you don't get it? ...
this so called war on terror is about war profiteering ... companies like exxon profited from this war directly ... i don't really care how much money a company makes - but when it comes at the expense of innocent lives - it's problematic ... and i can even give some slack if a company indirectly profits - but when they hold influence over the gov't and said gov't enters into shady wars overseas - it's a crime ...
Are you serious?
well this is very true. as I said earlier, gasoline demand is highly price inelastic. But it just seems like at a certain point, this could change. I think it's inelastic because people think it's just temporary, or they think they have to drive, or that they have some "right" to drive. I think as the price keeps climbing with little relief and people become better informed, this could change. People are more and more starting to demand alternatives, and I think that's where it starts. But no one will ever have incentive to change their ways if gasoline just remained at the ridiculously low price it has been historically.
True but they're still making 11 billion dollars. When you operate in that type of volume your GP doesn't need to be 20-25%. I'd be interested to see what the net profit is because I imagine that the cost of their operation hasn't dramatically increased which would make the overall pocket profit sky rocket.
That's what it boils down to and I think that's why people are pissed. You didn't hear the oil companies crying poverty before so I'm assuming they were still making decent money.
If it's supply and demand they're turning out basically the same supply so the cost of turning that out wouldn't dramatically increase.
Admin
Social awareness does not equal political activism!
5/23/2011- An utter embarrassment... ticketing failures too many to list.
??
http://straight.com/article-141020/monocrops-bring-food-crisis
no self-respecting environmentalist considers ethanol a good alternative to gas ...
well said.
I don't know if it's had as big an impact on the current food crisis as has been claimed. it doesn't quite make sense to me at this point in time (though it's always been a concern as something that definitely has the potential to happen).
the problem with biofuel is that you have to use so much energy to produce and transport it. also the agricultural impact on the land is not good.
when I said "alternatives" I was thinking more along the lines of public transportation, bike paths, side walks, cross walks, different urban design, etc, as well as alternatives in areas other than transportation such as electricity.
I just read an article about a brand new, from scratch city being built in Abu Dahbi (not sure how that's spelled). It will be COMPLETELY CARLESS.
food crisis is due to monoculture and climate change ... increased drought means no food production especially in poor countries like in africa ...
and your point on ethanol is spot on ... i was replying to chromjam's post ...
for sure - our first priority has to be conservation of resources and a reduction of usage ... your alternatives is where it begins ...
and yeah - you can read about that development on treehugger.com ... just do a search ...
they may not set the market value but they can help control it. Right now oil refineries in the US are running at about 80% capacity. That is close to the same rate they were running after Hurricane Katrina.
Now I wonder why they are running at 80% capacity?? To control the supply which in turn pushes up the future prices of oil and in turn gives them another record quarter profit. These greedy bastards are making obscene amounts of money at the expense of lower income Americans who this hurts the most.
It's bullshit and there is no need for oil to be at the prices they are now at. I think the oil companies are going to keep controlling the supply until they see an actual change in peoples behavior of oil consumption which will result in lower profits. They are just trying to find that point where they can maximize profits.
Just my opinion.
Pensacola '94
New Orleans '95
Birmingham '98
New Orleans '00
New Orleans '03
Tampa '08
New Orleans '10 - Jazzfest
New Orleans '16 - Jazzfest
Fenway Park '18
St. Louis '22
how do you know 80%. I'll take your word for it and that fucking blows.
I read an article on it this morning. I will try to find it and post it. and here it is.
"RTT News, NY - Apr 20, 2008
Wednesday
The Energy Department's crude oil inventory report for the week ended April 18th is scheduled to be released at 10:30 AM ET on Wednesday.
U.S. crude oil inventories declined by 2.3 million barrels in the week ended April 11, 2008 to 313.7 million barrels. Gasoline stocks fell by 5.5 million barrels, but they are still above the upper limit of the average range. Meanwhile, distillate inventories edged up by 0.1 million barrels and remain in the lower half of the average range for this time of the year. Refinery capacity utilization averaged 82.2% over the four weeks ended April 11th, down 0.6 percentage points from the previous week."
There is no need for plants to be running at this low of a capacity in my opinion and there is only one obvious reason they are doing it because they know we have to drive and use oil. I can picture the oil companies after hurricane katrina hit and they bumped gas prices to $3 a gallon and people didn't buy less. They are sitting there going, "holy shit..we can charge whatever we want and get away with it. Let's just keep supply down." Until they find that tipping point it will keep going up in prices.
Pensacola '94
New Orleans '95
Birmingham '98
New Orleans '00
New Orleans '03
Tampa '08
New Orleans '10 - Jazzfest
New Orleans '16 - Jazzfest
Fenway Park '18
St. Louis '22
I think that's a totally wrong statement.
perhaps you are not happy with where the money is *going* but that doesn't mean the prices are wrong.
oh and I don't think that they are controlling the supply of oil even if the refineries are working at 80% capacity. I don't think that the latter necessarily means the former. there's no cartel, no single company would have incentive to restrict supply and raise prices on their own.
I guess you are right when it comes down to it. I can't stand the thought of people making this much money at the price of lower income families. I'm lucky enough to be able to afford gas but I have met people who are having trouble finding jobs that live in rural counties, can't afford to move and they now can't afford to drive to work. And don't give me the they need to move to the city or they shouldn't live in rural counties, it is part of the circle of poverty. They make more money living off of welfare because the price of gas is taking up a large part of their budget. When things like this start happening then something is very wrong in my opinion.
But you know what sucks..I have no friggin idea what can be done to stop it or fix it. So i come on here and rant.
Pensacola '94
New Orleans '95
Birmingham '98
New Orleans '00
New Orleans '03
Tampa '08
New Orleans '10 - Jazzfest
New Orleans '16 - Jazzfest
Fenway Park '18
St. Louis '22
no thats absolutely true. someone mentioned it but very good point.