Shell's profit soars to record $9 billion

reply to post by nyk537


Hey now, this is not a partisan issue anymore. The republicans are just as guilty for implementing bloated, useless programs these days.

I do think some programs are necessary (welfare, healthcare, etc), but you are right that there are far too many; and many of these programs can be left up to the states.

reply to post by Sublime620


You're absolutely right of course. Sometimes I just can't help myself though.

reply to post by b_j8


Just a note: the notion that oilcos use their profits to buyback common stock for the stockholder's benefit does happen, but it is not at the expense of lower investment in exploration and development. It's just a routine move that almost every publicly traded company makes from time to time in order to keep the stock from becoming watered down. Does it have a beneficial effect for the stockholders? Yes, but so does cost cutting and modernization, etc.

Also, the feds take 18.4 cents/gallon. Minor nit.

reply to post by jsobecky


You're absolutely right. It is a common practice. I was not surprised to see it happen.

I was not shaming them for doing so - per se - however everyone seems to think they are spending all the money investing in the future. That's garbage. They spent far more money making sure the earnings per share looked better than they did on capital expenditures.

Walmart Cash Flow
For instance Walmart (I like to use them since they are gigantic also) spent half as much on buying back common stock as they did on expanding. Whereas Exxon spent four times as much on buying common stock than they did on capital expenditures.

Capital Expenditures (14,937,000)
Sale Purchase of Stock (7,691,000)

Honestly, a companies gotta do what it's gotta do. However, people have been saying a lot of stuff on this thread, and I'm just using financial statements to back it up or refute it.

Clearly Exxon was far more concerned about stock holder equity than it was with expanding or finding new oil.

reply to post by nyk537


I can't blame you. Sometimes when I'm feeling down I curse Bush and it makes me feel better.

[edit on 1-5-2008 by Sublime620]

reply to post by marg6043


One thing that everyone is forgetting about is that these companies want the right to explore and drill in the Wild Life Refuge in Alaska and also wat 85 % of the Continental shelf. If so, then they promise that the prices, perhaps, will come down. However, no doubt if permision is given, then the consumer will have to absorb the cost of drilling for oil at even a greater price than already paying. Isn't this actually political black mail which will result with the oil companies having greater control and say ?