It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Originally posted by marg6043
reply to post by bjax9er
Sadly that is just an excuse for prices, the poor, poor oil barons are wealthy beyond believe while reaping the profits of oil consumption by the consumer they gouge.
Yes it cost money to get that oil and refine it, but guess what if they were losing money they would not be reaping insane profits for decades and getting richer. They are not losing a penny.
So no, the fallacy that they are spending so much on getting that oil doesn't match their increasing profits.
Beside they get no only tax incentives and deductions but they do not give it back to the consumer either, they keep it as profits.
Originally posted by marg6043
reply to post by FraternitasSaturni
US is an oil producing nation big difference from those nations that rent the rights to explore and drill from US in the gulf and Alaska.
First off, it's not your average corporation. Yes, they are making billions, but what percentage of their cashflow is actual profits? BigOil makes a very low percentage profit, compared to practically all other industries.
Lesser energy consumption by private companies dependent on US Government spending. With money earmarked for these companies drying up, many of their projects will slow down leading to lesser energy consumption. Of course, it would have been preferable to have companies that use less energy without the enforced 'sequester' doing the trick, but as things stand this is how economy moves in the world dictated by oil. From a tangential point, remember: the United States is the world's largest consumer of oil.
Oil companies get a lion's share of Federal energy subsidies. In fact, it's hard to give oil companies more subsidies than they already get, either directly or through preferencial fiscal imposition. There's a silver lining to this: partly thanks to government subsidies, US consumers have enjoyed the lowest gas prices in the western world for decades. European consumers often pay twice as much as US consumers for the same gallon of gasoline. So as you've guessed, these subsidies will only go down. In order to secure the same profits, oil companies will have to increase prices. If the company is involved in the extraction then this increase will affect oil prices. If the company is involved in the distribution then this will rather influence gas prices instead.
Originally posted by Becoming
I keep hearing that Europe has higher gas prices.
While that is true, they also have a very good rail system and bus system pratically all over the place that is very cheap.
I would gladly pay European gas prices if we had their public transportation.
On topic. Obama did say during the town hall debate with Romney that gas prices are high because of how well the economy is doing.
I shutter to think what we will be paying when the economy actually starts to do well.
Oil companies have a long history of making large profits and increasing revenue, and 2011 was no exception. Exxon-Mobil (XOM) is the world's largest company, after Wal-Mart (WMT). A look at Fortune magazine's top 100 companies in the U.S. will show you that three of the top four corporations are large cap integrated oil companies. The list is ranked by revenue, and lists Exxon as bringing in a total of over $354 billion in 2011. Exxon is ranked second, with Chevron (CVX) and ConocoPhillips (COP) in third and fourth. The 3rd and 4th runners up on the list have a combined revenue around $380 million, only about 7% more than their larger cousin Exxon
The first three months of the year were good to the oil industry -- although American drivers and their elected leaders are not offering congratulations.
This week, the world's six largest publicly traded oil companies reported a combined $38.1 billion in first-quarter profits. Of the so-called supermajors, only BP (BP)'s earnings declined from the year before.