Oil Subsidies

[EFsDad]

everything above is pass tense and can be easily verified. Nothing complicated here... same costs of delivering product + tripling of prices charged = 30x net profits increases x volume in $$ trillions = the most profitable companies on the face of the earth.

And not one source...

http://www.forbes.com/2011/05/10/oil-company-earnings_2.html

But on average, between 2006 and 2010, the largest oil companies averaged a profit margin of around 6.5%. This pales in comparison to profit margins in just about every other industry. The pharmaceutical industry, for example, routinely averages a profit margin of about 16%. The soft drink market is even more lucrative.

At the gas tank integrated oil companies make about 7 cents per gallon. Meanwhile, the government extracts more than 48 cents, on average, per gallon. That's right: Uncle Sam takes nearly seven times more out of drivers' wallets via taxation than "Big Oil."

And who are the "Evil Oil Companies"... Evil greedy regular folks...

Compared with a small fraction of oil stocks (about 1.5%) owned by corporate management, the vast majority of such investments are held by average Americans, primarily via retirement accounts. Independent research shows that 14% of industry shares are in IRAs and a full 30% held in mutual funds. Another 27% of oil stocks are in public pension funds.

And what kind of impact do they have on the general economy...

Oil and natural gas companies support more than 9.2 million U.S. jobs and have invested nearly $2 trillion in domestic capital projects over the last decade. Higher earnings mean more cash to plow into new projects and jobs.

Let's stop with the doom and gloom if there is nothing to support your accusations. Please.

 

[_CY_]

this is what's amazing... almost NO media coverage on the largest transfer of wealth in the history of the world. Can anyone tell me of another instance of $$$ trillions removed from from world's economy in such a short time frame (3 years). Katrina occurred in 2005 (prices raised overnight) .... the almost collapse of world economy happened in 2008.

Facts are not hard to find ... look in say Exxon Mobil's tax returns. 30x net profit increases were reported after Katrina. Oil companies/oil producers have cash flow measured in Trillions.

you cannot deny above is true and easily verified. just because there is next to NO media coverage doesn't change the fact it happened. forget percentage of profits that's thrown around... percent of net profits are for accounts. which are manipulated by a army of accounts. look at actual cash flow of oil companies/oil producers which are measured in $$$$ trillions.

let's talk in terms of cause/effect... the world's economy is HUGE, measured in terms of $$$ trillions dollars that moves slowly in timelines measured by decades. The tripling of fuel prices literally overnight resulted in $$$ Trillions dollars of windfall for oil producers/oil companies. NO other event within this short timeframe is large enough to cause the world tail spinning into a recession.

when the gulf disaster unfolded into the largest /most expensive man made disaster in US history. LOTS of pundits predicted the demise of Exxon Mobil .... I laughed ... to put size of the profits involved in perspective. Exxon Mobil's total losses ate up profits for ONE quarter. that's right it took all of 4 months for Exxon Mobil to recover from the largest and most expensive disaster in US history.

like Steve Jobs says... it's only possible to connect the dots afterwards....

And not one source...

http://www.forbes.com/2011/05/10/oil-company-earnings_2.html



And who are the "Evil Oil Companies"... Evil greedy regular folks...



And what kind of impact do they have on the general economy...



Let's stop with the doom and gloom if there is nothing to support your accusations. Please.

 

[Biggsly]

Lol....

 

[EFsDad]

http://seekingalpha.com/article/267072-busting-the-myth-about-oil-company-profits

Later in the week Exxon Mobil (XOM) reported first quarter profits went up a whopping 69% to $10.7 billion from the same quarter a year ago. This ignited a firestorm almost immediately, raising the ire of politicians and activists alike who accused the oil industry of profiteering while Americans pay nearly $4 a gallon for gasoline.
Instead of being good news, it was reported as bad news on the front page of major newspapers and became the lead off story on most TV and radio news broadcasts.
On the other hand Apple (AAPL), which showed a 95% increase in net profits in its quarter, from $3 billion to $6 billion, had Steve Jobs proudly announce those results in his April 20, 2011 news conference.

The following graph from the U.S. Energy Information Agency (EIA) shows the results of what happens to oil company profits when crude oil prices increase:

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[RidgeHunter]

Lol....

Indeed. RidgeHunter pontificates on the economy for _CY_:

1. The economy, as it's presented to us, is fake.

2. I thoroughly believe that large corporations and their buddies the government are evil, I just refuse to believe that "Big Oil" is inherently more evil than any other large industry, and that they are responsible for every wrong since Jesus died.

3. If your economy can be rocked by price fluctuations of a non-renewable, limited resource with a decades long history of instability, your economy sucked in the first place.

4. Sadly, since none of us have our "screw you money", we are forced to suckle at the teat of big business. Deal with it. Here in Oklahoma, especially in Tulsa, it's the oil and natural gas industry. It really cracks me up when I hear a Tulsan bitching about the oil and gas industry. Our entire local economy has historically, and still is, based around the petroleum industry. If you participate in any economic activity in Oklahoma, you are in the oil business. It's literally all we have (besides airplanes), and it's all that has kept our economic head above water time and time again.

 

[Biggsly]

Indeed. RidgeHunter pontificates on the economy for _CY_:

1. The economy, as it's presented to us, is fake.

2. I thoroughly believe that large corporations and their buddies the government are evil, I just refuse to believe that "Big Oil" is inherently more evil than any other large industry, and that they are responsible for every wrong since Jesus died.

3. If your economy can be rocked by fluctuation of a non-renewable, limited resource with a decades long history of instability, your economy sucked in the first place.

4. Sadly, since none of us have our "screw you money", we are forced to suckle at the teat of big business. Deal with it. Here in Oklahoma, especially in Tulsa, it's the oil and natural gas industry. It really cracks me up when I hear a Tulsan bitching about the oil and gas industry. Our entire local economy has historically, and still is, based around the petroleum industry. If you participate in any economic activity in Oklahoma, you are in the oil business. It's literally all we have, and it's all that's kept our economic head above water time and time again.

I agree. Like I once heard a man say. If you beatch about oil, Don't drive a car. If you drive a car, STFU and buy a bicycle.

 

[_CY_]

your data is grossly off topic.... charts and graphs can be soooo misleading.
chart below is for 2009 to 2011 long after spike in prices/profits have occurred.

notice the time frame involved is from aug 2005 (Katrina) to 2008 when almost melt-down of world's economy occurred. no other period is more relevant.

profits at Oil companies jumped by 30x + after sky rocketing prices after Katrina. your chart's 69% increase has little to no relevance when comparing to profits pre-Katrina.

NO matter how much spin is put on the topic... FACT remains that $$$$ Trillions of dollars was yanked out of world economy by oil companies/oil producers in a very short time frame (3 years) before sending world into recession. then prices was reeled back allowing world's economy to make a mild recovery.

Oil companies are not stupid... they have armies of economist on staff... they don't want to kill the goose that lays the golden eggs. the only thing that MEGA giants fear is polititians who can change the rules. the other is sending world into a 1929 style depression. in which case everyone, including Mega Giants will lose.

http://seekingalpha.com/article/267072-busting-the-myth-about-oil-company-profits





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[Biggsly]

I thought Obama was going to fix all this.

 

[Hobbes]

I thought Obama was going to fix all this.

He will. He only needs 4 more years.

 

[RidgeHunter]

M King Hubbert wrote this book decades before we got to watch the movie. Why are people surprised?. I LOL at "Big Oil woke up one day in 2003 and decided to start screwing us." Whatevs. This is all predicable, and inevitable. Big oil does what it can with what it has. That's what businesses do. Laying all economic problems on their shoulders is laughable.



Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.