Posted on 11/09/2005 1:39:04 PM PST by rdb3
Oil Company Execs Defend Huge Profits
WASHINGTON (AP) -- The chiefs of five major oil companies defended the industry's huge profits Wednesday at a Senate hearing where they were exhorted to explain prices and assure customers they're not being gouged. There is a "growing suspicion that oil companies are taking unfair advantage," Sen. Pete Domenici, R-N.M., said, opening the hearing in a packed committee room. "The oil companies owe the American people an explanation," he declared. Lee Raymond, chairman of Exxon Mobil Corp., said he recognizes that high gasoline prices "have put a strain on Americans' household budgets" but he defended his company's huge profits, saying petroleum earnings "go up and down" from year to year. |
(Excerpt) Read more at breakingnews.nypost.com ...
told me the
the= that
Who's to say what "huge" profits are?
Oh...the Slimes.
9% return for Exxon-Mobil, which is 1% above the industry average. Microsoft couldn't (wouldn't) operate on 9%.
I think there was a little added here and a little added there up and down the supply chain. From a PR/Marketing perspective, the oil companies should have been out front on this before they announced earnings; they could have said they were taking 1% for re-investment, or showed how they were sucking it up along with the consumer.
I do blame excesssive Chicken Little speculation in the oil markets, but there's no one individual or company to blame.
Unfortunately, I don't own any oil stocks. Sold my Conoco at 20 or so a few years ago...stupid, stupid, stupid.
The "margin" on the popcorn and the bottled water is unconscionable...
You don't have to have an ipod, you have to have gas.
Gouging at a Home Depot for plywood, during a time of crisis is illegal.
Gouging a the price of a hotel room during a hurricane is illegal.
Supply and demand has nothing to do with those two scenarios, even though supply of plywood may be short, or hotel rooms may be few, the companies are still not allowed to gouge.
What needs to be determined is if "gouging" is what's truly going on with the oil companies.
If you do not raise the price of an item that is in great demand there will be none left. Simple economics.
The smell of money always brings out the cheap demagoguery.
I do blame excesssive Chicken Little speculation in the oil markets, but there's no one individual or company to blame.
______
REVISED OPINION: I blame the media for the Chicken Little crap.
Lets get a definition gouging. Say Company A has a profit margin of 7%. What % profit margin would it need to get to for it to be considered gouging?
You've got that right.
I got the beer!
ECONOMIC IDIOTS
There is no such thing as gouging. If you don't like the price...don't buy it!!!!
On Charlie Rose last night, Raymond pointed out that they have been expanding refinery capacity steadily by enlarging existing refineries. Too hard, too expensive to build refineries at new locations. Nonethless, it shopuld be evident that they are putting too many eggs into two few baskets. Baytown is the largest refinery in the country. If Rita had hit head on, they we would have been in a world of hurt.
That's my point, a clear definition needs to be set of what is considered gouging.
Since during hurricanes, natural disasters, they are quick to cite other industries for gouging, even when their costs might be rising to obtain a product (i.e. Home Depot having to bring in extra supplies of plywood to a storm area during a storm raises their costs, but still they're not allowed to charge more for the plywood or they'll be prosecuted), a clear definition of what is considered gouging needs to be set.
LOL....TWO WORDS!!! ....I might know economics, but I can't count words....!!!
Letter to the US Senate:
As I listened today to the hearings on the oil and gas industry I was reminded of other countries, the USSR and Nazi Germany and Fascist Spain and Communist China, and the list could go on and on.
Just what the hell are you people doing with my tax money? Why are you acting like Joe Stalin and Adolph Hitler? Profit is what drives this nation; it is what gives you the money for your royal lifestyle in D.C.
We are at war with and enemy that desires to kill us all and you are wasting time and my money on some dumb assed hearing on profits. They pay tax on those profits. Get to work on something that we need not something to get your name in the New York Times.
Only if they're not yours. 8^)
Some people will never understand that gasoline prices go up and down to control distribution.
This problem is mainly caused by people at the pump, not the oil industry.
Unfortunately, envy, jealousy and stupidity permeate much of our society, but it runs rampant in the halls of Congress, especially in the Senate.
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