Are Oil Companies to blame for high fuel prices?
 

http://money.cnn.com/2008/05/05/news...ex.htm?cnn=yes

The article mostly discusses fuel reaching up to $5.00/gal in the near term. However, at the end of the article, 83% of those polled thought "Big Oil" was making too much profit.

What do you think? Are companies like Exxon or Chevron making big profit $$$ and driving up the price of fuel at the expense of consumers?

Something funny going on here. For the most part we experience a gradual increase during the summer months and the a decrease during the winter months. But, not
a decrease to the point we had seen the previouse year. So it is a slow and steady climb. Now, we see nothing but price increase to the tune of .15 cents/gallon in the past two weeks. Does not seem like much and really it is not. At any rate, the oil people need to slack up. I believe they look at the profit as a safety net when the oil prices go up in the future. They can afford to purchase it and continue the vicious cycle.

We keep getting told that the price of fuel down under relates directly to the price in Singapore.

Fine.

The price in singapore goes up 5 cents, we go up 5 cents. it goes down 4 cents, we go down 2 cents.

there is an ever-increasing difference, people are giving up trying to predict fuel prices now and an inquiry into prices "failed to find any evidence of collusion". what a crock. blind man freddy could see it!

Maybe it's about time people just put up with the fact that their really isn't enough to go around anymore? :)

Yes, it is not a infinite thing, no doubt. Alternative fuels are needed. Somehow I see us going into the industrial age and returning back to the days of horse and buggy. Oh well, I always wanted to be a farmer anyway. Live off my own land. Just make sure I have electricity to run my computer and internet. I'm not asking for much:D

If fuel prices were going up to maintain the status quo on profit margins, i can understand that. HOWEVER, in this day and age when prices are going up, and they keep announcing record breaking profits, thats f'ing bullschitt, and the smell is coming from big oil.

Its Common sense, record making profits means overpriced product, because its obviously not costing you alot to produce that product!

They (big oil) also have the politicians in their pockets, so nothing will be done about it.

Look at Exxon's average profit margin after taxes for the past 5 years (10.6%) and compare it to their profit margin for the last quarter (11.23%). I don't think it's ridiculously out of line.


http://finapps.forbes.com/finapps/js...os.jsp?tkr=xom
http://finance.yahoo.com/q/ks?s=XOM

As a rabid capitalist I have to question the term "too much profit".

Oil companies are not public service organizations nor are they non-profit corporations. They are in existence to make money.... as much money as they can.

It sure would be swell if the oil companies were nice guys and would keep their profits low for the betterment of society and their fellow citizens.

That aint how capitalism works.

Oil companies have the legal right to market their product at the highest price the market can bear. We have anti-trust laws to prevent gouging but it appears that the large oil companies have not violated these laws.

Naturally, I, as the customer would like the price to be lower. That is also the nature of capitalism. I feel that all companies that sell me stuff make "too much profit". :shifty:

But it aint my oil I am buyin.

It is unfortunate that my lifestyle is dependent on buying oil.

Unless we are going to nationalize the oil industry and declare it to be a national resource, there is little we can do.

^ what Platapus said.

You cant blame capitalism for doing what it does!
If a company stopped being 100% competitive it would not exist for long.

The only way to get around it is by government regulation of business, but this is
impossible when dealing with companies that compete world-wide on such a large scale.

Even the ultra-regulation of nationalisation would only fully work if you where oil -
self-sufficient.

Theres lies, damn lies, and statistics. The later of which is what big oil uses as an excuse for their PRICE GOUGING.

I dont think folks accross the atlantic realise just how much gas prices effect us.
Generally speaking We have no public mass transit to speak of. Most people work in the city, and live in the suburbs. A 30 minute commute (assuming no traffic) is not uncommon. Combine that with the housing BS.

Where i used to live, i drove 70 miles a day round trip as a commute. Considering most people have been forced to live further and further out of town to find affordable housing, this is like a crushing heel upon people. Theres alot more going on to the average American then the price of gas, its the effects of it, in the big picture of their daily economic lives. You want to kill the average american financialy? Jack up the gas, and watch everything else go downhill fast. The way its going, pretty soon you'll have people who can't afford to get to work, which means eventually they'll lose their homes.

Now, i don't pay that much for gas anymore because i dont use as much of it as i used to. (where 1 tank lasted me 1 week, it now lasts me 4). I live 10 miles from work now.. maybe less. But my month rent here is 3/4's of my month earnings, and it keeps going up, with no end in sight.. Housing keeps going up, which puts greater demand on retals, they keep going up, the dollar is weaking and gas prices keep going up. From where i sit, the economy looks like schitt. So when i think of those fat cats gouging our asses, recording their record profits.... ...there is no other response but ANGER.

You are right. Because there aren't enough refineries in the US. The amount of oil in the ground isn't the issue. It is worldwide competition, not enough drilling, not enough refineries, not enough local production in our sphere, etc.

Quoting the german magazine "Der Spiegel": "A prayer is the answer to all your problems!"

http://www.spiegel.de/wirtschaft/0,1518,551480,00.html

A religious group formed up in Washington. Daily prayers for lower fuel prices... they call it "prayer at the pump". :hmm:
They believe the fuel price will go down like the walls of jericho.... some day...

Expensive gas isn't the problem here. Historically cheap gas is.

I think they'll be more chance of them getting bit on the bottom by a cabbage :lol:

There should be a windfall tax imposed on these gigantic fuel companies as soon as they reach a predetermined profit threshold.....but only after they have paid their political levy to the political fat cats that allow them to amass such huge sums of money. ;)

There's a difference between profit and profit margin. I think when you understand the totality of the figures involved, the oil companies are making healthy but not excessive profits.