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“Got kitesurfing on the mind, mixed with some search & classification tech, and a dab of political ranting”

Oil companies hitting record profits…again

Posted by direwolff on July 27, 2006

I’m all for companies profitting in the tradition of the American Way, but when it’s on the backs of hard working people, there has to be a way to keep this in check. Exxon Mobil announced today its 36% earnings increase in profits from a year ago, (comments on the Huffington Post’s news clip on this do a good job of showing the anger people are feeling about this). This article also discusses the stellar performances of Royal Dutch Shell, BP, ConocoPhilips, and Chevron is expected to announce its financial results at the end of the week. Now one has to wonder how this is all possible when the oil companies have been claiming that their prices are increasing resulting in average consumers getting pumped at the pump. They also claim growing costs for exploration. In my “stupid pet tricks” math, I’m trying to figure out how a company can make more money when all of its costs are increasing unless of course it’s charging its customers at a greater rate than the costs are rising. I’m happy to claim ignorance on how all of this works, but it does seem a might peculiar how all this seems to working out with an administration full of former oil executives at the helm. I’m not saying there’s anything wrong with that, but…

OK, now let’s contrast all of this with the following Washington Post story from April 26th of this year, “GOP Blocks Measures Boosting Taxes on Oil Companies’ Profits“. Wake me up when this nightmare is over. By the way, if you don’t think any of this affects our country’s security, then it’s probably time that you go back to that sleep you’ve been enjoying.

Update 8/3/06: A friend yesterday made a very estute comment on this matter, saying something has to be wrong if in a competitive marketplace all of the incumbents are making record profits at the same time. I have to agree with him, and while I’d hate to use the term collusion, I will.

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