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Saturday, February 2, 2008

Huge Profits For Oil Companies: I'm Glad Somebody's Happy

Too bad all those people who are losing their jobs and homes won't be able to afford to put $100-a-barrel oil in their cars.

Exxon Mobil said Friday:

  • Fourth-quarter earnings up to $11.66 billion, the highest ever operating profit by a U.S. company
  • Shares rose 1.7 percent
  • Net income rose nearly 14 percent from the year-earlier of $10.25 billion
  • Earnings per share rose to $2.13 from $1.76 last year
According to The Guardian:
  • Chevron Corp posted an enormous profit in the quarter...it's net income rose to $4.88 billion, or $2.32 a share, from $3.77 billion, or $1.74 a share. Sales in the quarter rose to $59.9 billion from $46.24 billion last year. Chevron's earnings for its exploration and production segment rose 66 percent to $4.84 billion
  • Royal Dutch Shell posted a $27.6 billion profit in 2007 -- the largest ever profit by a European company
At least Obama objected:

...But their swelling coffers have attracted unwanted attention from politicians, who have characterized the companies as opportunists and suggested taking back lucrative tax breaks.
Democratic presidential hopeful Barack Obama said Exxon's profit was a sign that the U.S. economy is "out of balance."

"Exxon Mobil posted record profits at 11 billion dollars this quarter alone at a time when families are struggling ... to fill up their gas tanks," he told reporters in Los Angeles.

3 comments:

Lyn said...

Oil companies earn their money. For over a century they've done the exploration, drilling,and refining. They bring to market a very valuable commodity. They make investments in foreign countries that often require years of operation just to produce a profit.
Oil prices are high because demand is high. Developing countries require more oil and refined petroleum products. There is a limited amount of oil on the market, and with more buyers the price rises. You quoted the "candidate" Obama as saying Exxon's profits show that the economy is out of balance. Wrong. Prices rise with demand. The market works. Don't blame high gasoline prices for those people losing their jobs and homes - blame those people for their lack of job skills, poor productivity, and their lack of financial responsibility.
I congratulate the oil companies and their stockholders. They bring a product to market and they earn a fair return. It's a job well done.

OMYWORD! said...

Oil companies suck. Period. They are bloated profiteers. They are the recipients of more corporate welfare from our government than those shiftless jobless and homeless people whom you say lost their jobs or homes through their own fault. Maybe some of them did. Maybe some of them didn't. Maybe some of them saw an "American Dream" of home ownership dangled in front of them and stupidly thought, "wow, if the bank says I can afford this, maybe I can!" I think the carrot should never have been dangled, frankly.

Our dependency on oil is why the middle east has us by the balls. If we invested all the money we WASTED in the Iraq war, into alternative fuels, (and I'm not talking about coal or corn), we could walk away from the oil.

Wow - maybe there could even be companies that invest in these new energy industries and employ people and earn profits too. Wouldn't that be amazing?

And I didn't blame the oil companies for people losing their jobs. Read my post again. I said that people who are losing their jobs and homes right now (due to mortgage crisis and other Bush-created problems), can't afford to pay bloated gas prices.

The issue is this - the old "supply and demand" theory can't explain a 400% increase in the price of a barrel of oil over the last 5 years. It's OBSCENE. And it happens at a time when people are struggling. That's obscene.

Bianca said...

Interesting post. Also, there is a discussion going on on "Our adiction to fossil fuels" on Funnel Ideas www.funnelideas.com.
It is also open for people to comment or post solution on the matter, if you are interested.