Can the oil companies explain the overwhelming billions in profits?

Question

The American Petroleum Institute told lawmakers its members were not to blame for high pump costs.
"We recognize that consumers are frustrated with today's higher prices," API chief economist John Felmy told lawmakers on a House panel investigating the price run-ups.

How can they honestly expect the American public to believe they are not responsible and continue to post record breaking profits???

For all of those whose biggest complaint was in regards to the high cost of taxes on gas that is collected by the federal, state and city governments....what would be the results if this gas tax was eliminated? what does this tax provide for you as a taxpayer?

For the record, I spoke to a relative yesterday who works for the oil company on the oil rigs in the Gulf.....and he is telling me that when they come across an active well, they are capping it.....not even attempting to increase supply to keep up with demand.

Answer 1

they need it now so that they can afford to pay Bush/Cheney as consultants in 2008, paybacks are a b itch

Answer 2

with due respect, what the **** are you people on? They make money with oil, that's what businesses do. They don't get into business to break even. When the price of oranges go up because there's a big flood in Florida do you ***** that the evil people at Tropicana are trying to gouge you? No, you either bite the bullet and buy the more expensive oranges or you don't. Nobody's forcing you to buy Sunny Delight. Same with gasoline, if you're so worried about the price of gas, buy a more fuel efficient car. Or here's an Idea! Take the bus! Alot of people complain that the evil corporations like chevron and shell are gouging you, but they're not. They're in the Oil business to make a profit, nobody owns a business just to cover they're expenses. There are shortages, there's also the fact that refineries are having alot of backlog problems. The price is going up all over the world. India and China need alot more oil now, so more demand results in higher prices. How many of you guys work for a company that doesn't make a profit? Cuz if you do, odds are you're probably not going to have a job for much longer. The price of oil is going up all over the world, and businesses pass on their costs the consumer, that's how the world works.

Answer 3

Please read Drew Blos response and not that the Government Taxes on a gallon of gas are twice what the oil companies make in profit for finding the oil, getting the oil out of the ground, transporting the crude oil to their refineries, distributing the oil (gas) to the pumps. Yet the Government does nothing except tax the hell out of it and make twice what the oil companies make. If the government wanted to do something about oil prices, they could take their money grubbing hands off it and lesson the taxes!

Answer 4

The margin of profit remains constant . It is the rise in use that makes it appear as if profits are going up .
If i sell ice cream at a dollar a scope and sell 50 scoops a day and make 10 cents per scope my profit is $5.00 if i sell 100 my profit is $10.00 now have i changed anything in my structure to increase my profit .
If sugar goes up 20cents and I raise my price 20 cents to cover the cost I am not making any more profit then when I sold it at a dollar .
So you see it is not the oil companies that increase the share of profits it is the amount used by consumers .

Answer 5

Is that a House of Representatives panel? The House of Representatives that puts a tax on gasoline? Why don't you ask them to cut the taxes? While you're at it ask your state, county, and city to get their hands out of your pockets. At least the oil companies are providing a product. A product that we keep buying.

Answer 6

The answere to the problem is alternative fuels such as solar, wind, and or other fuel technology that would bring about competition and thus lower prices at the pump. I believe that proposal was called Prop. 87 in California which the voters in their infinite wisdom defeated to the delight of the oil companies.........

Answer 7

Can our politicians (R and D) explain why the government takes more in taxes than the oil companies take in profit? Gas is what it is because the government is taking most of it in tax!

Answer 8

Yes, it's very simple.
Americans are voracious users of petroleum and are willing to pay for it. End of story
The WORLD uses about 90 million bbls of oil each DAY
The US uses about 25 miilion of those each DAY

Do some simple arithmetic.
Ae you outraged that Bill Gates has made 45 BILLION off crappy software? No?

Answer 9

Some of the American public would believe that Saddam Hussein had weapons of mass destruction if you told them so. So don't go holding out any help for them to see what is happening right in front of their eyes.

Answer 10

Only business I know that gets away with making more money by restricting supply. It is not very funny to see how they tend to make more money when they stop selling more product to the market. I am sure they are pleased to take refineries off line for "routine maintance" just before peak demand.

Answer 11

They aren't responsible. We are. As long as we all choose to drive all over the place in our gas guzzlers then we are providing the demand. The oil companies aren't there to provide a public service and give us free or cheap gas. If you don't like the prices, don't drive. Simple economics.