There has been quite a lot of unhappy chatter about the price we pay for gas and diesel. I have been curious about what the oil companies will post for earnings during this period, as we all feel ripped off. You are correct, you are being ripped off, the projected earnings tell it all.
From Standard and Poor, these are projected earnings growth for energy related companies:
Drilling 194%
Equipment and sevices 63%
Integrated oil and gas 54%
Exploration and production 85%
Refining and marketing 141%

Even if these figures are 25% off, which I doubt, it still smells like Edit
Do you think that the executives of these companies will feel any heat?
Do you think that there will be any change?
Or do you think that the executives will just duck their heads and wait for all the heat (if any) to blow over?
Personally, I do not mind profit, we all live by it, but I do mind being ripped off. Didn't the government pass a "price gouging law" for hurricane Katrina, why not one now?
Let your representatives know exactly what you think!!!!!!!!!!!!!!!!!!!!

 

I have let them know, and none of them showed any interest in helping.

 

Good, but you gotta stay on them, one rant means nothing, being a thorn in their side is the only thing that will get their attention.

 

Agree............

 

Waste of time Guys, you wouldn't even want to live in a country where the Govt can set the prices for a private owned company such as the oil companies are. I can't imagine how torqued I would be if they tried to set prices in my company.

It is supply and demand, as long as you are willing to pay the price they will continue to charge the high prices. Remember that oil is traded as a commodity, it is not regulated like a utility. Don't expect the Govt to be able to do much to help ease prices.

 

do like everyone else, buy stock in the company. the company does better, the stock does better.

If China-Mart was facing a 200% increase in earnings everyone would be cheering.

 

I just hope the big oil companies will use the profits for further exploration and develpoment. A company making profits is more willing to put some money towards the future; now if the government would just ease some restrictions so they could build new refineries thus increasing supply.

I agree that if the oil companies want to have high prices; let them. Supply and demand...The market will stabilize on what it can handle.

I work for in environmental consulting for a very large energy company. We have been getting a ton of work lately because the energy company has loosened their pocket books some and is letting some money come out for improvements throughout their plants which is good for the environment and more efficient for the company.

 

The oil field has ALWAYS been a boom and bust industry.
Three to four years ago, we were laying people off and washing the walls, ceiling, and scrubbing the floors to pass the 32 hrs we were working per week. A couple years ago we started working again, now we are running 60 hr weeks again and have more employees than parking places. In the next three to five years, we will slow back down and probably lay some people off again.
While we are making money, we are expanding our facility, working on R&D, giving raises (5% across the board) and spending more freely than before. Yes, the drilling industry will look for more sources, along with more effective ways to further develop the resources already known. There are many places that have been explored, large deposits found, but not developed because of risk. Risk of equipment, risk to the environment, risk to human safety, risk to the reserve.

 

Good interesting replies and observations to my post. I put up those earnings because of a earlier post ranting about the high prices of fuel, which generated a lot of response, mostly negative. In some way, the high prices do not bother me, as I am seeing people start to change their driving habits, and think more before they drive, as they take into account the expense of fuel. In the long run, this is good, for a lot of reasons. I run on WVO, so I fill up about three times a year, our other car is a VW TDI 5sp, that gets in the mid 40's.

 

Way back in the 50's, my draftsman bought his first car. A forty sumthing Ford. He earned $.25/hr, a gallon of milk was $.30/gallon, and fuel was $.30/gallon.
He admits he didn't drive near as far each week, but he didn't go as far on each gallon either.

 

My reply to anybody who says the government ought to step in and either cap prices, or institute some sort of excessive profits tax on the oil companies, is -- Does that mean you're for bailing them out when ever they're losing money, too? Remember in the '90s when a bunch of them went out of business? No complaints back then. It's a 2 way street in my book. You can't have it one way without having it the other.

 

I remember gas being $.17 in the fifties....seems like yesterday

Jim

 

Some of those record profits will take a hit. Most of the major's took a big hit in Rita and Katrina. A lot of platform's lost and plants damaged. They will not be rebuilt with taxpayer funds like the people who didn't have insurance or the correct insurance. They will bear the full cost of those repairs out of their profits. I heard there was an article about BP probably having to spend most of their 1st and 2nd quarter profit to rebuild in the Gulf. I know Chevron lost one of their big deepwater facility's and my company took some serious damage to several of our facility's as well. I don't expect anyone to feel sorry for the big company's, but like many have said it is a world market and the US still has just about the cheapest fuel of any country on the planet.

 

I admit, I dont always listen when he starts down memory lane, but it was something along the lines of gas and milk were about the same price and more than an hours wages.

 

From the Boston Herald:

“Oil companies came under new fire yesterday when it emerged that ExxonMobil's profits are likely to soar above $10 billion this quarter on the back of the fuel crisis. That's $110 million a day, and more net income than any company has ever made in a quarter.”

Do I want them to be a regulated industry? I don’t know???? When Exxon is reporting a profit of $110 million a day? You can say what you want but that is price gouging in it clearest form. Yes it is supply and demand. But they have us over a barrel. We have to drive and they know it. If fuel goes down to $2.50 per gallon you would be a lot happier right? At least that is what they want you to feel.

On top of that, natural gas is going to go up this winter. That’s convenient.
But utilities are a “regulated” industry. They have to submit a prospective of what they believe fuel will run during the winter. What do you bet that it will be an all time high also? Poor elderly people. I bet we see an all time high death toll for the elderly and low-income people this year. I hope you can live with blood on your hands gas companies. I’m sure it doesn’t bother you, but I’m lucky enough to pick up the pieces of children who die in house fires because of your greed. People will do whatever they can to stay warm. Safe or unsafe.

I hope you can sleep at night Gas Companies. But what am I thinking? Of course you can, living in your huge "WARM" mansions.

Britt