Record Profits for Oil Company
 

This story tells it all. [verymad] [verymad]
http://www.msnbc.msn.com/id/11098458/

Just to put this in perspective:

4Q - $10.3B (excluding items) / $99.7B = 10.33% profit

FY - $33.9B (excluding items) / $371B = 9.14% profit

Is that excessive? For a shareholder, I guess one would have to compare it to other industry segments (such as drugs, banking, etc.) to decide.

Rusty

I am glad to see the industry finally making some profit again, they went through some pretty lean years and that hurt their ability to spend money on R&D. It takes money to build new refineries and find ways to get oil out of previously considered dry holes.

I don't like paying high prices at the pumps either, but unless the industry makes a decent profit, it can't move forward. If it doesn't move forward, the prices will just keep rising.

I don't recall/know of any new refinery sites being build. :rolleyes: Maybe ones being repaired from the weather we had last year, but nothing new. Sorry I can't side with you on that one. Oh by the way, you can't squeeze water from a dry sponge.

My whole point was that when profits are down the oil companies can not afford to build new refineries. Now that profits are up that means there is extra money for research and development.

Also you may not get water out of a dry sponge, but they have found ways to get more oil out of wells that had stopped producing in the past. Look Here

Oil companies making a profit is good for America and good for us at the pumps in the future.... Simple Economics it means jobs and a chance to explore better options as well as "squeezing a not so dry sponge". :rolleyes:

They've not built any "new" refineries in years and probably won't as long as the enviro freaks keep lobbying their leftist reps to not allow it. And why would big oil even want more refineries. Even their own finance reports show that they have made record earnings due to high fuel prices. Anything that is going to lower those margins is not in their best interest.

Yes, they've built quite a few internationally. It's common to ship refined product from these offshore refineries instead of crude oil to be refined here.

Rusty

Then they should be stating their intentions, if they dont want to have the government take away their runaway profits. Tell us what you are gonna do with all this money that you are making on us so we can see (as investors in your business) what our return will be

we being the american consumer [rant]

9% to 10% profit margins hardly qualify as runaway profits. :rolleyes: :(

Rusty

Check out these guys: http://www.valero.com/

Actually if you were an investor you would receive the portfolio showing exactly how they are spending your money. I am a stock holder and I have a say in company matters because I have paid for that right, you can as well.

As a consumer they do NOT have to tell you how they spend the money. If you own a business, you don't have to share your future plans with anyone either, in fact you would be irate at anyone who suggested you had to, as you just did. The only people you would have to share that info with, would be your partners or "stock holders" and rightfully so.

Do not confuse the high pump prices with runaway profits, there are many things that contribute to the prices at the pump. Oil is traded as a commodity, that means cost can and is affected by those who speculate on the volatility of the market.

Perhaps we would be better off if it wasn't traded as a commodity, I certainly won't argue that point, but it currently is so the point is moot. As a consumer we have no "given Right" to know how a company plans to spend it's profits.

So let me get this straight. You want to know what your return will be "as a consumer"????? You think the government should "take away their profits"?????......where are you from?

Well fella's as much as I love my truck...The days of belching black smoke and showing these sports cars what real power is are numbered.

I read somewhere that most geoligist believe that most of the earths oil will be depleted within the next 30 years. With the Asian countries becomming more and more oil dependent and their population being like 100 times the US...I can see why

Unless you are a stockholder, you are NOT an "investor in their business" - you are a consumer of their product.

Rusty

I have no problem with the oil companies making massive profits but the fact that many are also receiving billions in taxpayer supported subsidies is a real.
It's like giving food stamps to Bill Gates.