Oil Company Executives Defend Profits

[mespock]

By H. JOSEF HEBERT, Associated Press Writer


WASHINGTON - The chiefs of five major oil companies defended the industry's huge profits Wednesday at a Senate hearing where lawmakers said they should explain prices and assure people they're not being gouged.

There is a "growing suspicion that oil companies are taking unfair advantage," Sen. Pete Domenici R-N.M., said as the hearing opened in a packed Senate committee room.

"The oil companies owe the country an explanation," he said.

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 companies huge profits, saying petroleum earnings "go up and down" from year to year.

ExxonMobil, the worlds' largest privately owned oil company, earned nearly $10 billion in the third quarter. Raymond was joined at the witness table by the chief executives of Chevron, ConocoPhillips, BPAmerica and Shell Oil USA.

Together the companies earned more than $25 billion in profits in the July-September quarter as the price of crude oil hit $70 a barrel and gasoline surged to record levels after the disruptions of Hurricanes Katrina and Rita.

Raymond said the profits are in line with other industries when profits are compared to the industry's enormous revenues.

God Bless America!!! This is great where big companies can get richer as the screw the nation!!! I love this country!!!

 

[MonsterMark]

God Bless America!!! This is great where big companies can get richer as the screw the nation!!! I love this country!!!

You could always show them up and sell your gas guzzling, high-performance 8 cylinder luxury car and start driving a Civic or something. Heck, you could just start walking and really show them.

 

[mespock]

You could always show them up and sell your gas guzzling, high-performance 8 cylinder luxury car and start driving a Civic or something. Heck, you could just start walking and really show them.

that's right my 30+ mpg hwy a gas guzzler.. compared to what? I don't drive one of those gas guzzling SUV's, or use as my daily driver a big ass 4 x4.

But you are right I should just shut up and be happy with the way things are going.

The GOP have everything in hand. They are honest ethical, and really care about me. I am sorry forever thinking that there would be a better way..

Please send more Americans to Syria, and Iran, we have plenty of people living in ghettos whose life would be better if they were in the service of the United States.

Damn I've been wrong all this time.. Please forgive me forever thinking life could ever be better..

I am sorry.

And God Bless America - Long Live President Bush - I hope he continues on his ethical quest to make America the best country in the world.

I hope we invade Venezuela, and kick there M-Fxxxing ass out of South America..

 

[fossten]

Mespock, do you know the actual profit for the oil company from one gallon of gas?

I doubt it.

Do you know the actual fed/state taxes added to one gallon of gas?

I doubt it.

 

[Joeychgo]

After Katrina, I saw numerous businesses move to help victims. The local convienance store gave away lunch to anyone with a driver's liscense from LA or MS.

I guess it would be real good PR for the oil companies to take some of the profits they got cause the markets raised the price of oil and help the US people a bit.

Rich - your awful combative today. Did you not get your flinstone vitamin today?

-

 

[fossten]

I guess it would be real good PR for the oil companies to take some of the profits they got cause the markets raised the price of oil and help the US people a bit.
-

Great SOCIALIST idea, Joey. I suppose the Dems in Congress should try to FORCE them to do it, huh?

 

[pepperman]

After Katrina, I saw numerous businesses move to help victims. The local convienance store gave away lunch to anyone with a driver's liscense from LA or MS.

I guess it would be real good PR for the oil companies to take some of the profits they got cause the markets raised the price of oil and help the US people a bit.

Rich - your awful combative today. Did you not get your flinstone vitamin today?

-

He probably got alot of DQ today.:biggrin:

 

[mespock]

Rich - your awful combative today. Did you not get your flinstone vitamin today?

-

I was trying to see thing from the other side..

 

[fossten]

Mespock, do you know the actual profit for the oil company from one gallon of gas?

I doubt it.

Do you know the actual fed/state taxes added to one gallon of gas?

I doubt it.

Since nobody seems to know, I'll tell you:

Oil company's profits per gallon: 10 cents.

Government tax per gallon: 46 cents.

WHO'S GOUGING HERE?

 

[MonsterMark]

I guess it would be real good PR for the oil companies to take some of the profits they got cause the markets raised the price of oil and help the US people a bit.

Boy I want to pound that softball you pitched out of the park.

Rich - your awful combative today. Did you not get your flinstone vitamin today?

It may have to do with Rich's new member nickname. LOL.

 

[mespock]

It may have to do with Rich's new member nickname. LOL.

I'm hurt didn't you see I said I was sorry and I am a conservative Righty now!

 

[MonsterMark]

I'm hurt didn't you see I said I was sorry and I am a conservative Righty now!

They haven't invented brain transplants yet so I doubt you have been able to receive an upgrade.

I guess you could always change your surname and reapply at the 'pimp my name' site.

http://www.playerappreciate.com/index.asp

 

[TheDude]

Since nobody seems to know, I'll tell you:

Oil company's profits per gallon: 10 cents.

Government tax per gallon: 46 cents.

WHO'S GOUGING HERE?

Exxon Mobil posted a 9.9 billion dollar profit for the quarter; I repeat a profit of 9.9 billion in a quarter . I don’t know how much they make per gallon, but any company making that much in profits (in the pocket) is not doing poorly.

 

[TheDude]

Great SOCIALIST idea, Joey. I suppose the Dems in Congress should try to FORCE them to do it, huh?

Ya, helping people in desperate need is a terrible idea. What is that Joey (aka Liberal Bastard) thinking!

 

[fossten]

Exxon Mobil posted a 9.9 billion dollar profit for the quarter; I repeat a profit of 9.9 billion in a quarter . I don’t know how much they make per gallon, but any company making that much in profits (in the pocket) is not doing poorly.

SO WHAT?

Since when is making a profit illegal or improper in this country? You liberals have no conception of what it means to run a large corporation and be beholden to stockholders, or you wouldn't say that crap. You're doing nothing but parroting talking points led by your Nancy Pelosi/Ted Kennedy haters in Congress, and it's ridiculous.

For you people to say that the answer is to tax their profits is absolutely Soviet Communistic. Are you really so naive as to think that if Congress passes a heavy tax on windfall oil profits, that you'll see a dime of that? If you think that, then I've got some swampland in Florida to sell you.

Oh, I know what you're going to say: But they're making extra profits on the backs of consumers! Bullcrap. This situation was a direct result of distribution being hurt from Katrina due to the lack of refineries in this country. We were barely functioning at normal levels, and it took only one disaster to expose our weakness. And what do the Dem Congressmen do? They attack the oil companies! How stupid is that? Why isn't congress under investigation for their ridiculous taxes on gas?

And if the oil companies are gouging, why are prices going down? Why wouldn't they just keep gouging if that's what they are doing? 'Well, they have to try to fake us out, then stick it to us later.' How ridiculous that sounds!

There are solutions to get prices of gas to go down, and most of them involve UNDOING what the lib dem environmentalists have done to this country for the last 30 years. First of all, increase supply by drilling off our coasts. Second of all, release the harmful restrictions on refineries so our companies can increase our distribution lines, thus reducing prices. Third, lower taxes on gas from the confiscatory current levels so we can have some breathing room. Everybody's whining about being dependent on Arab oil, but the minute somebody like Bush tries to do something about it like drill or build, the libs cry and whine about that! Make up your freaking mind already!

This is absurd. I'm not surprised that in the face of FACTS you libs would still be anti-corp and anti-profit. It totally smacks of socialism.

By the way, MICHAEL MOORE owns big oil stock. WHAT A HYPOCRITE.

 

[97silverlsc]

SO WHAT?

Since when is making a profit illegal or improper in this country? You liberals have no conception of what it means to run a large corporation and be beholden to stockholders, or you wouldn't say that crap. You're doing nothing but parroting talking points led by your Nancy Pelosi/Ted Kennedy haters in Congress, and it's ridiculous.

For you people to say that the answer is to tax their profits is absolutely Soviet Communistic. Are you really so naive as to think that if Congress passes a heavy tax on windfall oil profits, that you'll see a dime of that? If you think that, then I've got some swampland in Florida to sell you.

Oh, I know what you're going to say: But they're making extra profits on the backs of consumers! Bullcrap. This situation was a direct result of distribution being hurt from Katrina due to the lack of refineries in this country. We were barely functioning at normal levels, and it took only one disaster to expose our weakness. And what do the Dem Congressmen do? They attack the oil companies! How stupid is that? Why isn't congress under investigation for their ridiculous taxes on gas?

And if the oil companies are gouging, why are prices going down? Why wouldn't they just keep gouging if that's what they are doing? 'Well, they have to try to fake us out, then stick it to us later.' How ridiculous that sounds!

There are solutions to get prices of gas to go down, and most of them involve UNDOING what the lib dem environmentalists have done to this country for the last 30 years. First of all, increase supply by drilling off our coasts. Second of all, release the harmful restrictions on refineries so our companies can increase our distribution lines, thus reducing prices. Third, lower taxes on gas from the confiscatory current levels so we can have some breathing room. Everybody's whining about being dependent on Arab oil, but the minute somebody like Bush tries to do something about it like drill or build, the libs cry and whine about that! Make up your freaking mind already!

This is absurd. I'm not surprised that in the face of FACTS you libs would still be anti-corp and anti-profit. It totally smacks of socialism.

By the way, MICHAEL MOORE owns big oil stock. WHAT A HYPOCRITE.

I work for one of the oil companies that got "called on the carpet" to answer about price gouging. At work, the profit they make on a barrel of oil is refered to as the crack. Normally it is in the 2-5 dollar range. During the period of high gas prices, the crack was running around 29-32 dollars. You tell me if that is reasonable. You keep railing about free trade and running a corporation in this country. The republican party seems to be about letting corporations do whatever they want as long as money continues to flow into their pockets/PACs/re-election funds and to hell with the people who elected them. They are supposed to be there to represent us and protect us from unscrupulous corporations, among other things, not to allow the corporations to screw us in ever more creative ways.While the company I work for is making record profits, they have also cut our health benefits once again this year, while spending as little money as possible maintaining the equipment we work on, assuring that sooner or later, and probably sooner, that there will be a failure that might very well involve loss of life or injury to the people who work on that equipment. How much profit is reasonable for shareholders, and how much of it should come by screwing consumers or placing the lives of employees in jeopardy? You talk a lot of :q:q:q:q, but your ass isn't on the line. Government agencies such as OSHA and EPA were created because there were plenty of scumbags that placed profit before the safety of workers and the environment and the current administration is doing their best to undo all the progress that has been made protecting them.

 

[fossten]

I work for one of the oil companies that got "called on the carpet" to answer about price gouging. At work, the profit they make on a barrel of oil is refered to as the crack. Normally it is in the 2-5 dollar range. During the period of high gas prices, the crack was running around 29-32 dollars. You tell me if that is reasonable. You keep railing about free trade and running a corporation in this country. The republican party seems to be about letting corporations do whatever they want as long as money continues to flow into their pockets/PACs/re-election funds and to hell with the people who elected them. They are supposed to be there to represent us and protect us from unscrupulous corporations, among other things, not to allow the corporations to screw us in ever more creative ways.While the company I work for is making record profits, they have also cut our health benefits once again this year, while spending as little money as possible maintaining the equipment we work on, assuring that sooner or later, and probably sooner, that there will be a failure that might very well involve loss of life or injury to the people who work on that equipment. How much profit is reasonable for shareholders, and how much of it should come by screwing consumers or placing the lives of employees in jeopardy? You talk a lot of :q:q:q:q, but your ass isn't on the line. Government agencies such as OSHA and EPA were created because there were plenty of scumbags that placed profit before the safety of workers and the environment and the current administration is doing their best to undo all the progress that has been made protecting them.

Oh, gee, Phil, if you're so much in the know, how come you're not testifying before the Senate? Come on, you know better than that. The main reason prices are so high is supply/demand and taxation. You think the oil companies won't have higher costs as a result of this shortage? There was a temporary spike due to the lack of supply versus constant demand, and it's going back down. Your anecdotal evidence doesn't hold credibility against economic forces at work here. Your personal experience, while deserving concern, doesn't mean the government should step in and screw everything up. That's what happens every time the govt steps in: Things get screwed up.

Your response is laughable: You rail against the oil companies while lamenting the environment. You can't have both. You either have to accept the higher prices brought on by more regulations, or you have to remove the fetters on companies in order to increase the supply, thereby reducing prices.

If I was an oil company and I wanted to maximize my profits, I would do the very things that were done three decades ago: Over-regulate the industry and prevent more drilling/building.

Let's face it: We have an obvious supply problem. The best way to get out from under it is to drill and build. Our population and consumption of gas/oil is many times greater than it was thirty years ago, yet we still operate on the same levels of distribution. You see how stupid that sounds?

I say again: What's wrong with a company profiting? Why aren't YOU just as upset about the government taking a larger share than the companies themselves?

 

[raVeneyes]

I am tired of your illogical arguments.

If there were a supply problem in America there would be gas stations with "Closed...no gas today" signs like the oil crisis.

There's no supply problem...the price american oil companies pay per barrel hasn't gone up. The price to produce from crude to gas hasn't gone up. The taxes on gas haven't gone up. The only thing that has gone up are the oil company profits.

If supply were an issue as you say, then N.J. would still be the lowest cost gasoline in the country. For the first time in over three years we have higher gas costs than the national average, yet we refine and take delivery of billions of gallons of oil every month.

Simplistic supply/demand economics are not the forces at work here.

 

[fossten]

I am tired of your illogical arguments.

If there were a supply problem in America there would be gas stations with "Closed...no gas today" signs like the oil crisis.

There's no supply problem...the price american oil companies pay per barrel hasn't gone up. The price to produce from crude to gas hasn't gone up. The taxes on gas haven't gone up. The only thing that has gone up are the oil company profits.

If supply were an issue as you say, then N.J. would still be the lowest cost gasoline in the country. For the first time in over three years we have higher gas costs than the national average, yet we refine and take delivery of billions of gallons of oil every month.

Simplistic supply/demand economics are not the forces at work here.

Oh, you poor baby. You have no idea what you're talking about. You offer no evidence, only an absolute cause/effect statement that concludes everything while explaining nothing.

New Jersey has a 63-cent tax on gasoline, the highest in the nation, thanks to your liberal governor and legislature. You really should do your homework.

If anything is illogical, it's your argument. And if you're tired of debating me, then quit b1tching and go somewhere else.

 

[raVeneyes]

New Jersey has a 63-cent tax on gasoline, the highest in the nation, thanks to your liberal governor and legislature.

You just proved my point

We've had that gas tax for YEARS. It has not affected gas prices at all, and now suddenly when Rita hits, we have prices that are higher than the national average.

 

[TheDude]

SO WHAT?

Making a profit is great, gouging the people isn't. But we know how you feel, they aren't gouging, they are suffering to stay alive. Katrina this and shortages that, if we were in a crisis and supply was way down, why didn't any gasoline stations close? In ths 70's when there was an oil crisis, stations were closed left and right due to actual shortages.

Michael Moore is a hypocrite? Ok.

 

[MAllen82]

I'd have to agree that something is awry with something in the oil industry. When Katrina hit, you all know that Atlanta had the largest surge of gas prices anywhere. I posted my pictures of the lines of over 50 people at the gas pumps, and the prices shot up to $5/gallon. Methinks something was up. I managed to find one gas station 2 days into this that had a supply still, and was only charging $3.15/gallon. Now, that was well over what I used to pay, but no where near what most were paying. I asked the guy at the counter why the prices went up since they already paid for the gas. Shouldn't it still be the same price? He said yes, it should. He could still charge the old amount, but he said he would be an idiot if he didn't take a little advantage of what was going on. And he was referring to everyone else charging $5. I agreed with his point. However, everyone really makes me angry. They were just taking advantage of hysteria that was fused by the media (that would be all media in this instance, not just the liberal media ). What really makes me angry are those BP commercials that interview some chick or dude, and then play that dramaric music while saying "BP was the first to blah blah blah". And then they say, "It's a start". I find that really offensive for some reason. It's a start. It just sounds like they are laughing at us while they run these ads saying, "OH sure, we care, we're trying to help the oil situation out." But it just doesn't seem sincere. I actually agree with Phil, I don't care how much they charge regularly, if the people will pay it, then there's enough demand to charge that much, but to raise prices after the hurricane, whatever happened there, I really don't even know, but if that's what happened, then :q:q:q:q 'em all.

 

[97silverlsc]

This will give you an indication how much BP cares:
http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=NEWS_RELEASES&p_id=11589

Before you flap your gums again, fossten, this was a catastrophic event at a refinery that involved death, injury and damage to private property. If shrub and the repugs hadn't cut funding for OSHA, as well as putting crony stooges in key positions within the agency, this might have been avoided. Instead it was a chain of events that occured because of failure of the company to do what was required as well as reduced inspections by OSHA because of Shrubs policies.

 

[mespock]

I'd have to agree that something is awry with something in the oil industry. However, everyone really makes me angry. They were just taking advantage of hysteria that was fused by the media (that would be all media in this instance, not just the liberal media ). What really makes me angry are those BP commercials that interview some chick or dude, and then play that dramaric music while saying "BP was the first to blah blah blah". And then they say, "It's a start". I find that really offensive for some reason. It's a start. It just sounds like they are laughing at us while they run these ads saying, "OH sure, we care, we're trying to help the oil situation out." I really don't even know, but if that's what happened, then :q:q:q:q 'em all.

Your whole statement was excellent.. :Beer

 

[fossten]

You just proved my point

We've had that gas tax for YEARS. It has not affected gas prices at all, and now suddenly when Rita hits, we have prices that are higher than the national average.

Oh, so it's when RITA hits. I thought you were trying to say that the oil companies just coincidentally HAPPENED to gouge prices at around the same time as the disaster.

It all makes so much sense now.

:slam