Chevron profit hits $5B for first time; oil's 'Big 5' have made $95B so far this year (1 Viewer)

[KidRocks]

Awesome!

Or is that gross, as in you know... lacking in refinement!

Either way the extremely and excessively Fat Cats at Big Oil can thank President Bush for their healthy, hefty, indelicate, indecent, obscene, and or vulgar, profits!

And they did too, you don't think that the recent drop of gas prices at the pump is just a coincidence do you? Just before the elections?










http://www.usatoday.com/money/companies/earnings/2006-10-27-chevron_x.htm

SAN RAMON, Calif. (AP) — A $5 billion third-quarter profit from Chevron (CSX) lifts the cumulative results of the five major oil companies that reported July-through-September earnings this week to more than $31.5 billion.

The industry benefited from oil prices that averaged more than $70 a barrel, as well as its ability to earn more money from gasoline production and sales. Chevron's profits grew the fastest among its peer group, rising a whopping 40% from a year ago.

Chevron's results, released Friday, marked the third time in the past year that its quarterly results have hit a new high. The third-quarter earnings were also far above analyst estimates.

The boom times at Chevron and other major oil companies have exasperated motorists and politicians as gasoline prices remained above $3 a gallon in many parts of the country before a recent decline eased some of the economic pain and frustration.

 

[jujuman13]

There are Regulatory bodies that constantly and ceaselessly monitot the price of Gas across the US.
I have not heard that any of these bodies have complained.
What must be realised is that these companies that produce Gas frequently own the oil in the ground or under the seas, they would be remiss in their duty to their shareholders if they did not price oil at whatever the market sets the price.
So, yes the profits are enormous, but did you know that most of these profits are passed to shareholders including Mutual funds.
Naturally the bosses also get an increase in their renumeration.
So what is disgusting about it?
Would you suggest that the US switches to a command economy (Communism)? because if that were to happen some 90% of private vehicles would be priced off the roads.
Leave the oil companies alone.

 

[Navy Seal Patriot]

Major oil companies reported their lobbying expenditures for the first six months of 2006.
Exxon Mobil $6,320,000 (up from $3,560,000)
Chevron Corp $4,500,000 (down from $5,350,000)
Occidental $2,958,626 (up from $999,369)
Marathon $1,820,000
BP $1,600,000
Shell $1,169,348
ConocoPhillips $530,078 (down from $2,089,872)
Ashland $442,000
Sunoco $280,000
Anadarko $150,000 http://www.politicalmoneyline.com/

Lot more money to influence politics, in oil political expenditure$--two thirds goes to the GOP. :shock:

 

[KidRocks]

There are Regulatory bodies that constantly and ceaselessly monitot the price of Gas across the US.
I have not heard that any of these bodies have complained.
What must be realised is that these companies that produce Gas frequently own the oil in the ground or under the seas, they would be remiss in their duty to their shareholders if they did not price oil at whatever the market sets the price.
So, yes the profits are enormous, but did you know that most of these profits are passed to shareholders including Mutual funds.
Naturally the bosses also get an increase in their renumeration.
So what is disgusting about it?
Would you suggest that the US switches to a command economy (Communism)? because if that were to happen some 90% of private vehicles would be priced off the roads.
Leave the oil companies alone.

Sure pal. I'll leave em alone.

I'll just wait for some of that "renumeration" to trickle on down to me in the form of a hopeful higher minimum-wage increase, you see, I'm not a fortunate shareholder, I'm just a peon.

Is this country great, or what?

 

[Napoleon's Nightingale]

Re: Chevron profit hits $5B for first time; oil's 'Big 5' have made $95B so far this

Either way the extremely and excessively Fat Cats at Big Oil can thank President Bush for their healthy, hefty, indelicate, indecent, obscene, and or vulgar, profits!

No, they can thank the inner workings of supply and demand. The profits of Big Oil are not even close to obscene. Time to examine the facts:

Lets do some math.

1. 1 barrel of oil costs $60.75 per barrel and contains 42 gallons of crude oil.

2. 42 gallons of crude oil only produces 20 gallons of gasoline.

3.The national average price per gallon of gasoline is $2.20

4. The federal gas tax per gallon of gasoline is $0.18 and the average State gas tax is $0.22

5. Exxon-Mobil, if you subtract the gas taxes, makes $1.18 per gallon of gasoline.

6. After the company's expenditures they only have a 10% profit margin which means they only make $0.18 per gallon of gasoline.

7. Exxon-Mobil only has a profit of $3.60 from a single barrel of oil in gasoline sales. That isn't even close to what it costs to purchase that barrel of oil in the first place. In otherwords, Exxon-Mobil could not possibly be price gouging you because they are NOT making enough in gasoline sales to purchase the oil from which that gasoline derives.

So where does Exxon-Mobil get the $57.15 more it needs to purchase a single barrel of oil? The answer is: by making and selling other petroleum products, such as plastics, and chemicals, such as ethyl alcohol. Just about everything you own is a petroleum product which is why companies like Exxon-Mobil make as much money as they do. It is also important to note that the reason why we've seen increases in gasoline prices is because many states have passed legislation which would increase their gas tax every year.

 

[Kandahar]

Re: Chevron profit hits $5B for first time; oil's 'Big 5' have made $95B so far this

Awesome!

Or is that gross, as in you know... lacking in refinement!

Either way the extremely and excessively Fat Cats at Big Oil can thank President Bush for their healthy, hefty, indelicate, indecent, obscene, and or vulgar, profits!

Umm, what exactly has President Bush done to boost their profits?

And they did too, you don't think that the recent drop of gas prices at the pump is just a coincidence do you? Just before the elections?

How exactly would these companies go about fixing their prices if they wanted to? Do you really think that every oil company in the world cares more about who controls Congress than they do about making money? That's absurd.

 

[hipsterdufus]

OILYGARCHY - That's what I call it. OILYGARCHY.

FYI: Former Chevron Director Condi Rice had an oil tanker named after her. It's now called the Altair Voyager

 

[aquapub]

Either way the extremely and excessively Fat Cats at Big Oil can thank President Bush for their healthy, hefty, indelicate, indecent, obscene, and or vulgar, profits!

Revealing your hysterical ignorance about basic market realities again?

The world's two most populated countries both started driving cars virtually overnight. It was only THEN, AFTER there was a gargantuan increase in world oil consumption that prices went up. It's called supply and demand. :roll:

Baselessly conspiracy theorizing about Bush only hurts YOU, not Bush. :lol:

Imagine that. Selling exponentially more product than you have ever sold in history increases your profits. It's all a conspiracy. :roll:

 

[Binary_Digit]

Re: Chevron profit hits $5B for first time; oil's 'Big 5' have made $95B so far this

Companies in a free market don't raise prices on a whim if they're competing with other companies who produce similar goods and services. If one company raises its prices but the others don't, consumers will stop buying that company's goods and it may go bankrupt. The only way that's financially viable for a company is if they conspire with all the other competitors, and they all raise their prices together - and that is illegal.

End-consumer prices aren't determined by the company so much as they're determined by the market. Supply and production costs dictate the minimum price, and consumers determine the price above that minimum they're willing to pay. As a company, when the marginal cost of production is equal to the marginal rate of return, that's the price you should charge. If you want more profits, you increase production and (hopefully) the consumption of your product. You don't raise prices to increase profits because that will drive consumers to your competitors instead. Unless you and all your competitors are breaking the law.

So neither Bush nor the oil companies are responsible for gas prices. End-consumers (you and me) have more influence over gas prices than Bush and Big Oil. KidRocks, do you drive a hybrid car?

 

[CurrentAffairs]

Yeah, every Monday morning, President Bush calls up all the major oil companies and gives them an arbitrary number as to how much HE wants gasoline to cost at the pump. His main goal, make kidrock as hysterical as possible. :lol:

 

[KidRocks]

Re: Chevron profit hits $5B for first time; oil's 'Big 5' have made $95B so far this

Umm, what exactly has President Bush done to boost their profits?



How exactly would these companies go about fixing their prices if they wanted to? Do you really think that every oil company in the world cares more about who controls Congress than they do about making money? That's absurd.

I don't know how Prsident Bush and his oil buddys manage to manipulate and fix oil prices but they do, believe me they do!

The price of gas for the most part rises to 3 dollars a gallon on average for years and years and then *POOF*, it dramatically drops a whole dollar in a matter of weeks? BULLSH!T!

Just before the elections? No way Jose... it was not just mere coincidence!

 

[Kandahar]

Re: Chevron profit hits $5B for first time; oil's 'Big 5' have made $95B so far this

I don't know how Prsident Bush and his oil buddys manage to manipulate and fix oil prices but they do, believe me they do!

Let's see...
On the one hand, I've studied economics extensively. On the other hand, you freely admit that you don't know what you're talking about. And I'm supposed to just "believe you that they do"?

Do you have any reason at all for believing as you do, or are you just another blind adherent to the Church of Price-Gouging Conspiracy Theories?

The price of gas for the most part rises to 3 dollars a gallon on average for years and years and then *POOF*, it dramatically drops a whole dollar in a matter of weeks? BULLSH!T!

Just before the elections? No way Jose... it was not just mere coincidence!

Perhaps you haven't noticed, but the price of gasoline is ALWAYS volatile. And perhaps you haven't noticed, but the price of gasoline ALWAYS falls after summer is over and people aren't driving as much.

Do you have any evidence that the price of gasoline drops more during Octobers of even-numbered years than odd-numbered years?

 

[Navy Seal Patriot]

2000: August peak, $1.43; second week of September, $1.55. No seasonal break there.

-- 2001: August peak, $1.65; second week of September, $1.62. Down three whole cents.

-- 2002: August peak, $1.38; second week of September, $1.36. Down two pennies.

-- 2003: August peak, $1.71; second week of September, $1.63. Down nine cents.

-- 2004: August peak, $1.85; second week of September, $1.79. Down six cents.

-- 2005: August peak, $2.59; second week of September, $2.88. Big jump. Katrina's to blame (wink, wink).

-- 2006: August peak $3.03; second week of September, $2.41. Down 62 cents on the average, and even more in specific markets. Wow! Now, there's a seasonal break the like of which has never been seen, either in actual pennies or in percentage terms. How can that be, if prices were being set by something other than greed? Perhaps someone can explain the market forces that made a 20-25 per cent cut possible.

 

[Kandahar]

Re: Chevron profit hits $5B for first time; oil's 'Big 5' have made $95B so far this

2000: August peak, $1.43; second week of September, $1.55. No seasonal break there.

-- 2001: August peak, $1.65; second week of September, $1.62. Down three whole cents.

-- 2002: August peak, $1.38; second week of September, $1.36. Down two pennies.

-- 2003: August peak, $1.71; second week of September, $1.63. Down nine cents.

-- 2004: August peak, $1.85; second week of September, $1.79. Down six cents.

-- 2005: August peak, $2.59; second week of September, $2.88. Big jump. Katrina's to blame (wink, wink).

-- 2006: August peak $3.03; second week of September, $2.41. Down 62 cents on the average, and even more in specific markets. Wow! Now, there's a seasonal break the like of which has never been seen, either in actual pennies or in percentage terms. How can that be, if prices were being set by something other than greed? Perhaps someone can explain the market forces that made a 20-25 per cent cut possible.

Supply and demand.

If it's all about politics, how come we didn't see similar price drops in 2002 and 2004? Did the price drop more in areas with close elections than elsewhere? How exactly did the oil companies go about engineering this massive conspiracy? Did Elvis really die or does he live in a UFO?

 

[Iriemon]

Re: Chevron profit hits $5B for first time; oil's 'Big 5' have made $95B so far this

Supply and demand.

If it's all about politics, how come we didn't see similar price drops in 2002 and 2004? Did the price drop more in areas with close elections than elsewhere? How exactly did the oil companies go about engineering this massive conspiracy? Did Elvis really die or does he live in a UFO?

I agree with your points, Kandahar, but don't you think that Oil company profits and behavior smacks of collusion, just a little? How many major oil companies are there? How hard would it be for them to manipulate prices a bit? Why, when oil prices are increasing, didn't competition set in and cause them to lower prices instead of making these grotesque profits?

Does the industry really act like a highly competitive one to you?

 

[Kandahar]

Re: Chevron profit hits $5B for first time; oil's 'Big 5' have made $95B so far this

I agree with your points, Kandahar, but don't you think that Oil company profits and behavior smacks of collusion, just a little?

No.

How many major oil companies are there?

Here's a short list:
http://en.wikipedia.org/wiki/Oil_companies

Way too many oil companies for collusion to be possible.

How hard would it be for them to manipulate prices a bit?

Impossible. Oil is fungible, so all it takes is one supplier to not go along with the scam.

Why, when oil prices are increasing, didn't competition set in and cause them to lower prices instead of making these grotesque profits?

Higher prices/profits don't mean that competition isn't working. They would've been even higher without competition. A better question is: if competition WASN'T working, why were the prices low in the first place?

Does the industry really act like a highly competitive one to you?

Yes. One of the most competitive industries in the world, since the products aren't differentiated.

 

[Napoleon's Nightingale]

Re: Chevron profit hits $5B for first time; oil's 'Big 5' have made $95B so far this

...don't you think that Oil company profits and behavior smacks of collusion, just a little?

Not when you examine the facts. The only reason why it would seem that way is because alot of Republican dominated State Legislatures have been raising their State's gas tax and because demand and consumption have been increasing.

How many major oil companies are there?

Five:Chevron-Texaco, Conoco-Philipps, BP-Amoco, Exxon-Mobil, and Shell. How many of them are American companies? Two: Chevron-Texaco and Exxon-Mobil.

How hard would it be for them to manipulate prices a bit?

Extremely difficult for a few reasons:

1. They don't set the price of crude oil; they just buy it. The thing you have to remember, in the oil industry, is that what a barrel of oil cost you yesterday, twelve hours ago, or even five minutes ago it will not cost you tomorrow, twelve hours from now, or five minutes from now.

2. If they had to rely on gasoline sales alone then they would all go out of business. That is why they always recieve government subsidies no matter which party is running the show in Washington D.C.

3. They are subjected to extreme oversight on the part of the Federal government.

Why, when oil prices are increasing, didn't competition set in and cause them to lower prices instead of making these grotesque profits?

Two reasons:

1. They all import the vast majority of the oil they use to produce their products from the same countries.

2. All but one of those countries are OPEC members. OPEC decides what the price of oil will be.