I was just watching something on the oil pipeline shut down in Alaska. The oil companies seem to be at fault for not properly maintaining the pipes and are now forced to spend millions on fixing them with no clue how long it will take. This is a good handy excuse to drive up the price of gas thus turther increasing the billions in profits they see. So, they can afford to give their top execs things like $400 million severance packages, and post the highest gains of any companies on the stock exchanges, and now even higher. Meanwhile us, the little guy at the pumps are paying through the nose for gas and thus having to shift our budgets off other critical things. In your opinion, Do you think the oil companies should absorb the loss their negligence is going to cost instead of seeing it as an opportunity to further increase their already massive bottom line profits?
2006-08-12 03:00:49 · 12 answers · asked by dread pirate lavenderbeard 4 in Business & Finance ➔ Corporations
ABSOLUTLY!!!.... With a systematic way to operate today’s oil industry; they are increasing rapidly the prices of crude oil, which is equal to payment at the pump. The oil companies have made the world their HOSTAGES, co-dependents of oil products. I’ll say just like the Tobacco industries they should be force by the court of law, to pay the damage made to the already hijack World and Mother Nature.
2006-08-12 04:41:17 · answer #1 · answered by hyungtkd 2 · 0⤊ 1⤋
The oil company will absorb the loss. While it is true that the price of oil will go up, and this will potentially drive up the price of gasoline in the near future, this particularly company will not see their profits rise because they will be selling less oil, approximately 400,000 barrels a day, which comes to around $30 Million a day they will lose. The price of oil may go up, but it seems to be staying relatively near the levels it has been around for the past few months. This is largely due to the US opening the strategic reserve to keep from seeing a price spike. As far as the massive profits, it isn't because the oil companies just decided to raise prices. The price of oil has been increased due to an increased demand. China has really grown as an economy, and their oil usage has begun to expand tremendously. This has made more competition for the oil that is available, requiring those who want to use it to pay a higher price. In order to see the price fall, new fields need to be developed to increase supply, or new sources of fuel need to be used to lessen demand. The profits are a result of this simple function. BP, the owner of the oil field, will be punished, as they will not be receiving the money from the oil they could be selling. This negligence will cost them, not improve their bottom line.
2006-08-12 03:11:55 · answer #2 · answered by theeconomicsguy 5 · 1⤊ 0⤋
It relies upon on the way you define the term 'exorbitant.' for occasion the beverage (beer) marketplace contained in the U. S. has a income margin of basically approximately 25% whilst the oil marketplace generally has a income of five-7%. even nevertheless - we don't see each and every physique complaining approximately 'beer income.' yet another ingredient to evaluate is that federal taxes on gas are greater advantageous than the income made by utilising the enterprise that made it. BTW - the U. S. government is popping a income of $6 million money a time without work of the oil spill.
2016-09-29 04:45:06 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Too right they should...so should the water companies in Britain that, due to broken and leaky pipes, lose millions of gallons of water a day, then introduce bans due to water shortages, and incresae prices to pay for the repairs they should have done years ago...look on the bright side though...sooner or later, natural resources will run out, and then the greedy, manipulative oil gits will have nothing... the sooner the better
2006-08-12 04:58:53 · answer #4 · answered by murphy51024 4 · 0⤊ 0⤋
Before you start a crusade against the oil companies, make sure the mutual funds you may have in your 401K or pension plan do not have oil stocks. If so, you are being benefited from high oil prices too.
2006-08-12 04:59:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It simply shows BP as a negligent business for not keeping up with the integrity of its equipment and infrastructure. Because the oil itself is on the world market, I'm hard-pressed to believe in the conspiracy theories.
2006-08-12 03:07:02 · answer #6 · answered by stevis78 4 · 1⤊ 0⤋
I think they should fix what they messed up. While the oil companies profits are huge their profit margin is very low next time you buy bottled water at $1.29 for 20oz. bottle find out how much it is a gallon and how much it cost the company to produce it.
2006-08-12 08:25:29 · answer #7 · answered by Christopher W 2 · 0⤊ 0⤋
I always wonder if its really necessary to shut it down or this a way to jack the prices up. The Gov needs to put a stop to this, oil co. are making money no matter what, its the people who suffer.
2006-08-12 03:08:42 · answer #8 · answered by Granny 1 7 · 0⤊ 1⤋
Yeah sure thing....they should absord it and not the lowly people... and not pass it on the ultimate consumers. They should realize that we are the one who suffer. Nowadays, everything goes up except the wages (so sorry), and gasoline prices is really sucks.
2006-08-12 03:12:31 · answer #9 · answered by Malou C 1 · 0⤊ 0⤋
I think they suck, everyone else is getting poorer because of the gas prices but they post record profits?? It's just not right.
2006-08-12 03:08:31 · answer #10 · answered by Anonymous · 0⤊ 1⤋