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To: MNJohnnie

P.P.S. I don’t buy the 10 cents a gallon story. Many oil companies pump oil out of their own wells in international waters and pay only what it costs to extract and transfer it or on federal land and pay a fixed royalty that is far less than the current spot price. Why do you think their profits are at record levels? It isn’t because their sales were up by 50%.


25 posted on 04/29/2008 10:34:05 AM PDT by Blood of Tyrants (G-d is not a Republican. But Satan is definitely a Democrat.)
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To: Blood of Tyrants
Why do you think their profits are at record levels? It isn't because their sales were up by 50%

It is because they are selling other petrochemicals at higher prices. Oil doesn't just go for fuel. It goes for plastics, chemicals, road tar, and hundreds of other uses. Check out their annual reports and you can see exactly where the revenue is coming from. A majority is international downstream (selling wholesale oil to other countries), second is non-fuel petrochemical sales, and the lowest profit margin item is oil for fuel production.

30 posted on 04/29/2008 10:37:06 AM PDT by mnehring
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To: Blood of Tyrants

Their profits are setting records because of volume. They are selling every single gallon they can produce or import. Their gross profit doesn’t change the per until profit of $.10 a gallon.


39 posted on 04/29/2008 11:06:51 AM PDT by MNJohnnie (http://www.iraqvetsforcongress.com ---- Get involved, make a difference.)
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To: Blood of Tyrants
Why do you think their profits are at record levels?

Its because their sales and profits go up every year.

They have record profits every year.

Banks still make twice as much in profit margin as oil companies but nobody cares.

47 posted on 04/29/2008 12:02:08 PM PDT by <1/1,000,000th%
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