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Price Gouging Oil Companies Should Pay A Windfall Tax = Bring it on!

I understand that you are weaseling. First, you say that supply/demand does not apply to the Saudis. Next, you say that they can manipulate supply/demand. Which is it because it cannot be both?
It is not a true supply and demand if the market is being manipulated by the Saudi led OPEC.
 

Even before Vladimir Putin’s invasion of Ukraine shocked energy markets and sent oil prices to over $100 a barrel, Exxon was banking obscene profits. On February 1, the Texas-based fossil fuel giant announced profits of almost $9 billion for the fourth quarter of 2021—its biggest take in seven years.​


Exxon didn’t have to party alone; Chevron, Shell, and BP were announcing surpluses of only slightly less startling proportions.

“Combined, the four companies raked in $24.4 billion in quarter four of 2021, bringing their total profits for last year to over $75.5 billion. Chevron, Shell, BP, and Exxon used these bloated profits to shower billions onto their shareholders—including their wealthy executives whose salaries are heavily padded with stocks,” reported the watchdog group Accountability.US.

“In 2021, the four companies bought back over $6.6 billion in stocks while hiking up their dividends. And the oil giants are planning for an ‘even better’ 2022 for shareholders, with plans already in place to buyback over $22 billion in stock thanks to high oil prices.”

In fact, 2022 could be dramatically better for Exxon and the other major oil companies.











Oil companies are a business. Biden told them he intended to put them out of business. They owe Joe nothing, he has dealt the cards he holds and he's a lousy card player, can't bluff. Now he wants them to help him out. His decisions caused most of this and he will continue to make more bad decisions because that's what he does. He's one of those guys who thinks he the smartest one in the room and he's the dumbest. Terrible decision making by Joe.
 
It is not a true supply and demand if the market is being manipulated by the Saudi led OPEC.
That wasn't the case a little over a year ago. Every country in the world knows we have a fool as President. Biden is weak, has bad policies, has poor advisers, and he has caused most of our current problems. His bad ideas, his failure to act, his belief that "Putin doesn't want me to be President" is all causing this.
 

Even before Vladimir Putin’s invasion of Ukraine shocked energy markets and sent oil prices to over $100 a barrel, Exxon was banking obscene profits. On February 1, the Texas-based fossil fuel giant announced profits of almost $9 billion for the fourth quarter of 2021—its biggest take in seven years.​


Exxon didn’t have to party alone; Chevron, Shell, and BP were announcing surpluses of only slightly less startling proportions.

“Combined, the four companies raked in $24.4 billion in quarter four of 2021, bringing their total profits for last year to over $75.5 billion. Chevron, Shell, BP, and Exxon used these bloated profits to shower billions onto their shareholders—including their wealthy executives whose salaries are heavily padded with stocks,” reported the watchdog group Accountability.US.

“In 2021, the four companies bought back over $6.6 billion in stocks while hiking up their dividends. And the oil giants are planning for an ‘even better’ 2022 for shareholders, with plans already in place to buyback over $22 billion in stock thanks to high oil prices.”

In fact, 2022 could be dramatically better for Exxon and the other major oil companies.











Exxon's profit margin for 2021 was 8.1%. That is not particularly high. For example, Walmart's profit margin in 2021 was 24.1% and Microsoft's was over 30%.
 
That wasn't the case a little over a year ago. Every country in the world knows we have a fool as President. Biden is weak, has bad policies, has poor advisers, and he has caused most of our current problems. His bad ideas, his failure to act, his belief that "Putin doesn't want me to be President" is all causing this.
Yea and nope

Since the 1973 Arab oil embargo, Saudi Arabia has managed to call the shots as far as oil prices are concerned, by controlling supply. All major oil price fluctuations in recent history can be attributed to changing production levels in Saudi Arabia, along with other OPEC nations.
 
An oil company that is running mid single digit net margins for the past 10 years nearly needs special taxes but all the tech companies ten times the size running 20-30% margins, they should pay less in taxes than the oil companies do now? Makes sense.
 

Even before Vladimir Putin’s invasion of Ukraine shocked energy markets and sent oil prices to over $100 a barrel, Exxon was banking obscene profits. On February 1, the Texas-based fossil fuel giant announced profits of almost $9 billion for the fourth quarter of 2021—its biggest take in seven years.​


Exxon didn’t have to party alone; Chevron, Shell, and BP were announcing surpluses of only slightly less startling proportions.

“Combined, the four companies raked in $24.4 billion in quarter four of 2021, bringing their total profits for last year to over $75.5 billion. Chevron, Shell, BP, and Exxon used these bloated profits to shower billions onto their shareholders—including their wealthy executives whose salaries are heavily padded with stocks,” reported the watchdog group Accountability.US.

“In 2021, the four companies bought back over $6.6 billion in stocks while hiking up their dividends. And the oil giants are planning for an ‘even better’ 2022 for shareholders, with plans already in place to buyback over $22 billion in stock thanks to high oil prices.”

In fact, 2022 could be dramatically better for Exxon and the other major oil companies.











The oil companies are not responsible for the current state of oil prices, Joe Biden's policies in America related to his desire to shutdown the fossil fuel industry are responsible.
 
It is not a true supply and demand if the market is being manipulated by the Saudi led OPEC.
I would say that's Trumpian but he's smarter than that.
 
Because the left will do almost anything besides go out and get a job and make something of themselves.


You do realize we had a windfall profits tax on oil companies for ALL EIGHT years of Saint Reagan's administration...
 
I would say that's Trumpian but he's smarter than that.
Read


Since the 1973 Arab oil embargo, Saudi Arabia has managed to call the shots as far as oil prices are concerned, by controlling supply. All major oil price fluctuations in recent history can be attributed to changing production levels in Saudi Arabia, along with other OPEC nations.
 
With a domestic source of oil at the same price as before, why do none of those companies undercut the other?

I'm pretty sure US prices only ever go down to keep foreign competitors out of the US market. That's cartel behaviour, and the Federal government should bust it.

Companies act as companies act.

I'm guessing that the oil producers who are also refiners and distributors and retailers are incorporated at the various levels to limit liablities.

They may be incorporated regionally and internationally as well.

If that is the case, then BP is probably buying and selling from BP and the relationships are what they are, but they are not non-existent.

When I was working, the fleet of vehicles, the building and the business divisions were all owned by the same guy, but they were all incorporated separately.

He owned the companies from which he leased the vehicles and the building and operated the various dba divisions independently, but he owned them all.

I imagine the price negotiation confrontations were less than adversarial. ;)
 
Companies act as companies act.

I'm guessing that the oil producers who are also refiners and distributors and retailers are incorporated at the various levels to limit liablities.

They may be incorporated regionally and internationally as well.

If that is the case, then BP is probably buying and selling from BP and the relationships are what they are, but they are not non-existent.

When I was working, the fleet of vehicles, the building and the business divisions were all owned by the same guy, but they were all incorporated separately.

He owned the companies from which he leased the vehicles and the building and operated the various dba divisions independently, but he owned them all.

I imagine the price negotiation confrontations were less than adversarial. ;)

You are describing "vertical integration" I believe. It's anti-competitive business conduct and could be busted with government "exchanges" at each level. Or possibly, if you have faith in government to get involved without getting cheated, government-owned competitors.

Hey, wasn't the strategic oil reserve meant to do just that? Maybe they had no control over who could buy the crude.

Ideally there would be a strategic fuel reserve; unfortunately fuel does not keep as well as crude oil.
 
The Soviet-mirroring Democrats want to do everything through command-economy state-mandated redistributionism.
They won't allow free market mechanisms to do their work.
The Soviet-mirroring Democrats always want tight-fisted control over the economy, and their tax-&-redistribute response is just more of their command economy mentality.
Their approach will only recreate Soviet-era bread lines and gasoline lines.
 
The Soviet-mirroring Democrats want to do everything through command-economy state-mandated redistributionism.
They won't allow free market mechanisms to do their work.
The Soviet-mirroring Democrats always want tight-fisted control over the economy, and their tax-&-redistribute response is just more of their command economy mentality.
Their approach will only recreate Soviet-era bread lines and gasoline lines.

The free market mechanism being competition? It's not working now, so what do you propose to do to make it work?

Kids selling petrol in old milk bottles perhaps.
 
The free market mechanism being competition? It's not working now, so what do you propose to do to make it work?

Kids selling petrol in old milk bottles perhaps.

You don't seem to remember oil prices being at record lows when there was competition among frackers, shale and other small oil producers.
Saudis were forced to open their floodgates in order to fight back against the onslaught of all these smaller rivals.
Regulations have killed that and now put the Saudis back in their comfort zone.
 
You don't seem to remember oil prices being at record lows when there was competition among frackers, shale and other small oil producers.
Saudis were forced to open their floodgates in order to fight back against the onslaught of all these smaller rivals.
Regulations have killed that and now put the Saudis back in their comfort zone.

So eliminate some regulations, and have our coastlines ruined by oil spills and ground water vital to farmers, ruined by poisonous fracking chemicals ... and oil of course.

You cannot explain how the world oil price drives US fuel price so strongly, despite the US importing only a fraction of its oil. Or more exactly, you won't face the fact that the US oil industry is screwing you just because it can.
 
I don't need to ask which party is supporting the bill for windfall profits tax for oil companies. I laughed out loud.

Let me guess. Green party?
 
So eliminate some regulations, and have our coastlines ruined by oil spills and ground water vital to farmers, ruined by poisonous fracking chemicals ... and oil of course.

You cannot explain how the world oil price drives US fuel price so strongly, despite the US importing only a fraction of its oil. Or more exactly, you won't face the fact that the US oil industry is screwing you just because it can.

Oil is a commodity -- Americans have to buy it on the open market which everybody bids on.
 
Oil is a commodity -- Americans have to buy it on the open market which everybody bids on.

So much oil being extracted locally, plus the price of shipping, does restrain the US fuel price somewhat.

But I was wrong before when I ascribed high fuel prices in Europe to importing alone. They also have high taxes, for instance Germany $2.86 /gal. If the US was serious about oil independence, they would limit consumption with a higher fuel tax.
 
The USA oil giants have plenty of oil in the ground as well as in GIANT storage tanks all around the USA.

How can we consumers trust the oil giants to be truthful? We cannot. Inflation is NOT necessary ever. The best thing Americans can do is stay home and drive 50% less. Have zoom parties and other socialization events.
 

Price-Gouging Oil Companies Need to Pay a Windfall Tax​

Prices at the pump are shooting up as oil companies turn massive profits. A windfall-profits tax could go a long way toward providing relief for working families.​

By John Nichols

MARCH 11, 2022​


The average price of a gallon of self-serve regular gasoline in Los Angeles County rose 8.9 cents today, its 30th record in 32 days. In Orange County average price rose 8.8 cents, its 29th record in 34 days.
A Chevron gas station on Tuesday, March 8, in Tustin, Calif. The average price of a gallon of self-serve regular gasoline in Los Angeles County rose 8.9 cents Tuesday, its 30th record in 32 days. (Gary Coronado / Los Angeles Times)










 
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