reply to post by dbates
Yes, that is quite a bit, and I noticed that. I could have sworn the maximum that the government could impose on net income was like 37%, but I
reply to post by jsobecky
I have to be honest, I 'm not real informed on market speculators, and how that whole scene works.
What I do understand is financial statements.
In 2002, crude oil was around 1/2 the price of crude oil in 2007.
2002 crude oil was around $35 per barrel
Crude oil was around $72 per barrel in 2007
As I showed before, sales have doubled since 2002. That means, they are still seeing the same percentage of cash from each sale. Also, their
production costs stayed the same (i.e. they are not paying workers more, not funding more operations, etc), so they are actually making four times the
amount they were in 2002.
So market speculation aside, oil companies are just rolling in it. They are bringing in 2 times the cash, and making 4 times the net profit they were
At the same time, they are buying back tons of common stock and giving out giant dividends to share holders. Someone else pointed out that they also
spend a small fortune lobbying in Washington.
So if gas prices in 2007 were double that of 2002, but oil companies were making 4 times the net income, where is all this extra money that these
speculators are making coming from?
It's an honest question, I just don't understand it.
After thinking about it, I do understand that they are making money off the market and not the product. However, that seems even more shady.
[edit on 30-4-2008 by Sublime620]