Now that gas costs us $3/gal, do these two news storied bother you?

Question

Story 1: Kuwait issues checks to citizens after surlpus. Each of Kuwait's one million citizens will receive a check for $265 after this year's budget surplus.

Story 2: Exxon Mobil (Charts) has been smashing corporate profit records on the back of soaring oil prices. In the fourth quarter 2005 the company reported quarterly profits of $10.7 billion, the highest ever for a U.S. company, on $88.3 billion in revenue, or $1.72 a share.

to urbanbulldogge

I believe you answer your own concerns. Kuwait is a member of OPEC who have increased the price of oil as a group, while preventing individual nation members from setting lower rates, removing the concepts of free enterprise. Kuwait's budget surplus comes from this oil revenue.

As far as Exxon's role in this, open market concepts generate profit by income minus cost. If all other factors were to remain constant for Exxon, BP or any other oil company, then their profits would be down, as thier costs have gone up. Also, in a similar agreement (to OPEC), it is impossible for one oil company to break ranks and maintain more consitent pricing. I believe that concept is refered to as price fixing.

Answer 1

How much did Bush and Cheney make out of this, that's what I really want to know.

At least Kuwait is giving back to its people and they're not even a democracy. We live in a freaking democracty where we elect our senators and representatives and president. What have they done for us lately??? Oh I know, told us that we have to stand strong as Americans die in Iraq and elsewhere in order to fill his and Cheney's pockets with cash. Enough said.

Answer 2

You forgot to mention that BP has already posted record quarterly profits this past quarter with Exxon likely to beat that.

The oil companies are posting these profits through their unique control of the oil market. They don't have to pay/charge market price for their oil because they control everything from the drilling strait through to the gas station. The sad thing is, station owners are often forced to sell gas for less than they are charged, just so that people will shop there and hopefully buy something from inside.

What really makes a person wonder is watching gas prices steadily climb by 40-60 cents over the course of two months while oil prices stay nearly flat (I have been doing the research for nearly six months and have proof).

Answer 3

not in the slightest bit.

1) what does kuwaits budget have to do with our gas prices? If the U.S. govt had a surplus and gave a tax rebate, does that mean prices were too high for american goods?

2) exxon has ABSOLUTELU NO control over the price of oil. the people that complain about thier profitsare just showing the world how ignorant theyare whe it comes to economics and free markets.

Oil is traded on an open market, i.e, the traders set the price. So insread of spouting drivel about the oil companies, how about you explain how they re responsible?

Answer 4

I'm with Nick. In addition, an observation: Many of the people who are complaining about gas prices can be seen paying triple their cost of eating by driving up to the fast food window instead of preparing a home cooked meal. Depends on your priorities! Gas was 28 cents a gallon when $60 a week were big wages! Gasoline has never kept up with inflation! It's all relative! Go ahead and sample the prices in 95% of the world and see how dissatisfied you are with our prices in the U S of A!
Secondly, just who do you think EXXON or BP or any of the other oil companys are???? "They is us"!

Answer 5

You might want to move toanother country, but do you realize the US has low prices compared to most other countries. Much of Europe is over $4.00 a gallon in US dollars. Japan and China have been above $4 for a while. If people are so upset by this, why don't they do something to make it better, like buying a hybrid, or changing their habits to use less gas by carpooling or taking public transit.

Answer 6

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Answer 7

did you see 9/11 the movie do you realize that president bush is having this war to cause all these problems to make his pockets fatter....he does own a oil company in texas ya know?.....suprised go see the movie all of it cant be made up...

Answer 8

Good thing I own stock in Exxon.

Answer 9

Yes totally but then again this would have bothered me at $2.00 a gallon.

Answer 10

It just makes me think that I need to move to another country.