More info on "Big" Oil profits...

Thank you Ron! This was the point I was trying to make in the thread the other day!!

 

Very interesting..........business' don't stay in business long if they lose money.

 

1. Someone needs to wait for the NEXT profit report from Yahoo. Ain't gonna be no 45%. :grin:

2.
6.8% British Petroleum,
+
7% ConocoPhilips,
+
7.1% Shell
+
7.7% Chevron
+
10.7% Exxon Mobil.
=
A sh*tload of percents.
(39.3% to be exact)

3.

If that's true, then why do gas prices vary so greatly hour-to-hour? I've seen it fluctuate more than $0.30 in a 24 hr. period.
Also, if that's true, why have gas prices almost doubled in the last 2 years? $08.8 x 4 quarters = $0.35.2 x 2 years = $0.70.4.
Using their formula, it just doesn't add up.

.

 

Thanks for posting Ron. This is exactly what I was trying to say in the thread the other day too. The words "record profits" mean nothing except to those trying to gain by sensationalizing the story. If my company lost money for the first two years in business, then made one dollar the third year and two dollars the fourth year, those two bucks would be "record profits" for me. Oh yeah, the record profits wouldn't help me from going out of business in the fifth year.

I have too much stock in a large oil company. I need it to perform for me to have a comfortable future. Guess what, it is not keeping up. So go ahead and keep telling me about "record profits" and how big oil is ripping us off. It just ain't so. Like I said last week, return on average capital employed for big oil in general sucks! Return on average capital employed is a critical factor to the success of a company and the willingness for people to invest their hard-earned money in that company.

Returns on invested capital over a longer time frame are even more telling. Analysts at Goldman Sachs report that returns on investment capital in the oil and gas sector from 1970 to 2003 were less than the U.S. industrial average over that same period.

Although few believe it, the oil industry would have to earn record profits for a long time before it would produce above average returns for its long-term investors.

 

If it is such a great deal, buy the stock. I am begging you to buy the worst performer on your list and bump them up a bit. Dump your Microsoft, Yahoo, MSN and Limited Brands. If you are smart though, you won't do it becuase there are so many better investments than big oil.

You are using the new math. 8.8% x 4 quarters = 8.8% (annual) when I quit after 8th grade.

Gas prices jump so high in one day because the nature of the business is to follow competitors on the corner. It is common practice to follow them to the point where each gallon is sold at a loss. Then one of the competitors "restores" (i.e. "Lets return the price to where it should be if we are going to make a living.") The hope is that all of the other competitors will follow the leader and restore their prices as well.


True, gas prices have almost doubled in two years but crude prices have more than doubled. They don't make gas out of magic fairy dust.

Just how many of the gas stations that you see in Columbus and Wexner-Land are run by the oil companies that you list above? Who is making the pricing decision, a big oil company or an independent owner?

$122 crude = $2.90 per gallon before the crude is transported to a refinery, stored, refined, stored, transported to a terminal, stored, state tax added, federal tax added, LUST tax added, Oil Spill Recovery tax added, and finally trasported to a gas station

Just crude + taxes = $3.37 before is is made into gasoline then piped and trucked all over the country (those things add a little cost too). The $3.62 you are seeing at the pump shouldn't look too bad to you. Oh yeah, that math is assuming a barrel of crude makes a barrel of gas (but it doesn't) so the real price per gallon is even higher.

The first time anyone suggested builing a refinery behind the party room off the 18th green at New Albany Country Club, the community would be up in arms. There would be barbed wire all of those white fences.

Don't worry, Hilary will make it all better for all of us.

 

Ehhhh.... I still get my water from the hose. :dunno2: .... or was that hoes. :grin: ..... "Baby! Can I get a refill, please!" :huglove:

 

HAHAHAHAhahahahah!.......................I love hoes

 

nice find ron...... i agreed with you in the other thread and i agree with you on this one....... it is not the oil companies screwing us......... they just happen to be easy targets when media outlets get a hold of quarterly/annual financial reports. the problem is these media outlets fail to report the entire story!!! "record profits" is not a real accurate way to report this information.....look at the stock performance, look at the cost of doing business, etc....... americans need to wake up and realize that the prices we have been paying for gas in the last decade have been ridiculously low in relationshp to other countries and the economies at the time. look at the price of gas 2-3 years ago.... taking into account inflation, we paid less for a gallon 2-3 years ago compared to back in the 60's when gas was a quarter!!!!

 

You know....I don't give a shit about what "record profits" mean from one company to another....I don't care about the return to the shareholders....

Gas prices suck, and I'm not happy about them.

 

sure jeff, it sucks when we have been used to a certain level of costs and they go up to a more realistic level based on current economic environment. the fact still remains, it is not the oil companies causing this. like i said before, we as a country are finally seeing what the REAL price of gas is! i do not like it either, but i understand the reality of the current situation......

 

Couldn't have said it better myself... LOL!

 

hahahahahaahha...... yeah, it sucks but it is what it is.....lol

 

Screw the Saudi Sheiks!!! Hahahahaha. (I know, jk)

 

Ron- I was referring to Yahoo's deal getting dumped by Micro$oft late last week.

Funny: In 1994, I told my mom's boyfriend at the time (who started Pizza Hut with 2 other guys) to "put $10,000 into a search engine company called Yahoo.". He said I was nuts. If I wasn't a Mac&Cheese-eating college kid, I would have done it. I should have sold a kidney. :grin:

Ummm....check that again. I said CENTS...not PERCENT.

Fine, but I said "hourly".

It's not?!?!? Sure smells like magic fairy dust.
On a serious side, didn't we just kick everyone's ass over there? Aren't we the dictators (of price) now?

"Wexner-Land? Heh heh....cute. His house is about 2 miles up the road. Nice place, but too much landscaping for me. :grin:
Closest gas stations to me:
- BP
- Shell
- Speedway (Marathon)

I would guess that about 80% of the stations inside I-270 are owned by one of the companies listed in the article.

AFAIK, Speedway/Marathon is the only independent here in Columbus. Not sure what the deal is with Citgo/7-11 or Duke/Dutchess...or any of the truck stops.

Well, it *is* a nice room. :grin:
Besides, with the fantastic new roundabout they installed, the trucks couldn't make it in or out of the N.A.C.C.

Yeah, and we'd have the novelty of having a woman president! Come on...that's enough to run the most powerful country on the planet....right?
:laugh:

 

I've never seen the "Multi-Quote" button used so.... so.... well. izza:

 

M.Q. is for tossers and sheep-shaggers.
I do it OLD SCHOOL!
:grin: