US Oil Companies

[Pontiakos]

Say what you will here is the bottom line......


http://www.usatoday.com/money/companies/earnings/2006-07-27-exxon_x.htm


NEW YORK (Reuters) — ExxonMobil (XOM), the world's largest public oil company, said Thursday that quarterly profit surged 35%, pushed up by another quarter of sharply higher oil prices.
Net income in the second quarter was $10.36 billion, or $1.72 a share, compared to $7.64 billion, or $1.20 a share, in the year earlier quarter. It was the second largest quarterly profit ever recorded by a publicly traded U.S. company.

Analysts on average expected a profit of $1.64 a share, according to Reuters Estimates.

The results topped Wall Street expectations but came in behind ExxonMobil's record profit of $10.71 billion set in the fourth quarter of 2005.

Revenue rose to $99.03 billion from $88.57 billion in the prior-year quarter. That was short of ExxonMobil's record third-quarter revenue of $100.72 billion — which also stands as record revenue generated by any U.S. public company ever in a single quarter.

ExxonMobil said it spent $4.9 billion on capital and exploration projects during the quarter, up 8% from a year ago, while distributing $7.9 billion to shareholders in the form of dividends and share repurchases. Congress has been urging the big oil companies to put more of their profits toward boosting the supply of energy for consumers.

In a surprise move, the company boosted its capital spending program forecast to $20 billion this year, citing additional exploration and production opportunities.




Of course this is an independent phenomenon...it has nothing to do with the Iraqi oil or the current war in the Middle East.

When will these people pay for their greed?

 

[Rob]

In Soviet Russia

 

[Seán D]

business exists to make profits

 

[Pontiakos]

business exists to make profits

true

You have to admit that things are a little different here thought right?


For example in the US the consumer doesn't have much of a choice if they reside outside of a big city. They have to commute to work everyday and even with carpooling this mode of transportation is no longer cost effective.

These profits are argueably unlawfull. If the price of gasoline is so high in developed countries then there needs to be analogous profit. The current national average is 3.00$ per gallon in the US. 89 Billion dollars indicates price gouging. This is not analogous profit.

 

[Seán D]

well they can charge as much as they want really. we can't do anything about it. oil supplies will eventually run out, and with supply and demand, prices will just go up and up. yes, the profits are excessive, but they are perfectly entitled to keep prices like that as the days of oil are numbered. sad but true unfortunately

 

[Run DMB]

In Soviet Russia

In Soviet Russia, prices gouge you!

 

[Ubik Valis]

In Soviet Russia Russian Reversal reverses YOU!!!

 

[Joe]

business exists to make profits

Yeah, but there's also a difference between exploitation in commerce capitalism--low to extreme...this seems a bit extreme to me.

 

[rhizome17]

Its not just US oil companies though, its oil companies in general. Its true they can ultimately charge whatever they want, but it would be nice and idealistic to think this happens in the spirit of free and fair competition given its one of the myths capitalism is built on. Supply and demand don't really enter the equation if collaboration exists between companies. If there is a fall in oil prices or new fields are found and the 'supply' side is taken care of, then there would be investigations into oil company practices. however as long as China is going through an 'all you can eat' phase of economic development and consuming energy at a rate that will only increase over the next few decades then everyone will be paying for it.

And the Russians with their oil and gas fields get the chance to reemerge as an economic power...