926% Increase in profits? Want to guess who?

[underpants]

Let's see the AVERAGE price per gallon of regular in January was $1.42 yesterday it hit $2.00 which (by my figurin') is a 41% increase.

Oh yeah DON'T BUY GAS TODAY (5/19/04)national boycott.

http://www.channelnewsasia.com/stories/afp_world_business/view/81105/1/.html

Boom for California top oil companies with soaring gasoline prices

LOS ANGELES : As prices at the pump have soared, so have profits at California's top five oil companies, according to a study by a Los Angeles consumer group.

The study by the Foundation for Taxpayer and Consumer Rights (FTCR) compared oil company profit reports and gasoline prices over the last two years.

The five companies included in the study -- Shell, ConocoPhillips, ExxonMobil, Chevron Texaco and BP -- refine 90 percent of California's gasoline, controlling the majority of its gas stations, the group said.

The group found that in 2003, average 35 percent increase in gas prices pumped up average company profits nearly tenfold -- by 926 percent

"If pump prices stay up, then 2004 will (be) the most profitable year yet for the oil companies," said FTCR petroleum industry consultant Tim Hamilton, who led the study.

"These levels of profits are likely to continue in the West, regardless of any actions taken by OPEC (Organization of Petroleum Exporting Countries) between now and the elections, since these spikes in profits are driven by refinery manipulation, not crude shortagese said.

[GOPisEvil]

1. Bastards.

They are putting the wood to the consumers, and our Government (who is made of these same people) does nothing.

Why can't some Americans add 2+2?

[underpants]

10. And they are still buying for the reserve at these inflated prices

Part of Kerry's proposal is to not open up the reserves (god move politically IMHO) but to stop buying oil to fill the reserves-less of an effect but if you can lower the price by lowering demand on that one end why not?

926%? Geesh!

[Ganja Ninja]

2. 2 words: Mission Accomplished!

[NMDemDist2]

5. make hay while the sun shines I guess

since it looks like their boy is going down in flames :)

[MallRat]

3. I thought the oil companies weren't realizing any added profit.

Weren't they just passing along higher crude oil prices to the consumer? I mean, they wouldn't use this as an excuse to pad their profit margins, would they?

(/sarcasm)

:eyes:

-MR

edited to fix title.

[ProfessorGAC]

15. Actually The Answer Is Yes & No

It's a semantic game. It's true they're not making any more profits on a proportional margin basis!

That's because they operate on fixed margins above the cost of production, which includes the raw material, mfg. cost, and allocated overhead absorption.

Thing is, when the crude prices go up, the overall cost of production goes up. (From just the increase in raw material.)

So, if a gallon of gas is fully costed at $0.80 per gallon (say, at a crude price of $33/bbl.) then they charege at market the 30% margin and sell for $1.04. If crude goes up 24%, ($40/bbl.), the overall full cost of a gallon of gas goes up about 19%, to >$0.95/gallon.

Tack 30% margin onto 95 cents and you get 28 1/2 cents, which is 4.5 cents more than when crude was at $33/bbl.

So, from an accounting point of view, their profitability is exactly the same on a proportional unit cost basis. But, from a realistic POV, they are DEFINITELY making more cash.
The Professor

[underpants]

18. Look at the big brain of GAC

You are right wow I think I need to take a break after reading that.

Well said.

[ProfessorGAC]

21. Thanks

My brain is now even bigger, since you helped swell my head with your compliment. Not sure i can fit out my office door, now!
The Professor

[Don_G]

4. Who Profits?

Dimbo, the poor sunufabitch behind the register taking your money or their masters?

Or am I talking treason by asking for "accountability" from our currently selected officials?

[FreakinDJ]

6. Look at the California energy crisis What did the Fed do then

Nothing

Will that would not be entirely correct. Actually they worked their asses off behind the scenes to prevent California from investigating the price manipulation by refusing to release records and setting time limits to hinder their efforts.

When Gray Davis asked Bush to step in and help control the problem he said "Thats their problem"

[underpants]

11. I read somewhere that Lay tried to warn Ca. what they were doing

when the legislation was being debated but once it passed they decided to take full advantage of it. Seriously I read that in a fairly mainstream pub, of course it failed to mention that Enron et al WROTE the legislation and pumped money (pre-emptively also) to get it through. At one point someone at Enron decided to test the system for abuse, they sold a KW at $9,999.99 just under the $10K mark that would trigger an alert. When no one noticed they knew that when it hit the fan they could print their own money.

You are right W did nothing.

[FreakinDJ]

19. It was not Lay but it was an Enron employee

He was doing some consulting to one of the subcommittees regarding the plan to deregulate California's energy market in 94. He advised them that the plan could be manipulated. He then returned to Houston at his position with Enron.

6 months later when Pete Wilson later fast tracked the Energy Deregulation Bill the same energy consultant followed the "Official Version" of deregulation good for consumers.

[demnan]

7. That's it

I'm buying a hybrid as soon as I can.

[havocmom]

8. ENRON proved entire American populations could be held hostage

and they could force regime change. It will keep happening unless Americans elect legislatures who are not bought and paid for.

There are no governments, only corporations and political puppets preforming for public theater. The puppet masters are laughing all the way to the bank.

[Nadienne]

13. Held hostage...

Kinda reminds me of Greg Pallast's book. It's what energy companies do here; it's what the world bank does to 3rd world countries.

Prepare for the coming of the oligarch...

:scared:

[camero]

9. Well what do you know

and smirky has raised record campaign contributions. $185 million so far. That money had to come from somewhere. Coinkydink?

http://www.opensecrets.org/presidential/summary.asp?ID=N00008072

Total Receipts: $185,074,755
Total Spent: $97,918,955
Cash on Hand: $108,772,498
Debts: $125,628
Date of last report: March 31, 2004

[underpants]

12. Minimal "investment" with huge ROI

Link isn't working -BTW

If I remember correctly W's top 10 contributors saw a 386% ROI in the first 6 months of this misadministration through legislation during the "honeymoon period" and.........executive orders.

How nice.

[camero]

16. Works for me

:shrug: I'll try it again.

http://www.opensecrets.org/presidential/summary.asp?ID=N00008072

That is odd isn't it?

[Career Prole]

14. Neocons attempted to take over the nation and make it

their own. If not for some major screw-ups on their part and the work of the folks at DU and other fine websites and honest columnists and bloggers spreading the truth, their Cloak of Invisibility would still be intact and in all likelihood they could have accomplished their real mission by the end of bush*'s presumed second term.
They aren't invisible anymore and every day more apathetic Americans are waking up to the threat.
It seems the neocons have sensed this turning of sentiment and are just going to go brazen and turn it into a big "smash and grab" before they lose their power. They've become common looters in their final months of power.

[underpants]

17. Memorial Day is 12 days away

ABC lst night said that a 500 mile trip on average would cost $12.50 more as prices currently are. I don't know if that really adds up but if you keep telling people how great things are going and they keep doling out more money for gas MILK and other things the message (no matter how many times you say it) will not take hold.

Yes I don fear what will happen near the end of they loose and DREAD what could happen in a second term. It is quite frightening.

[Career Prole]

20. You have to admit though the s**t's staring to stick to them...

Last year it would miss or just slide off the "popular wartime president". (sorry for the mental image :puke:)
My babtist mother-in-law, so babtist that on the very day my mother passed away she apologized to me that she "had to go to hell" because as a Catholic she wasn't "saved", has announced she won't vote this year. She'd never vote for a Democrat but this woman not voting for bush* is a powerful statement.

[evil_orange_cat]

22. this is extortion... plain and simple...

but the public doesn't care... they get more outraged at the half second flash of Janet Jackson's boob than being extorted by oil companies.

As long as the public doesn't give a rat's ass, they deserve to get fleeced.

[Lori Price CLG]

23. Kick, kick, kick..

Our protests also need to take place at the offices of Bush's central paymasters --the oil companies.

:kick:

[underpants]

24. I just e-mailed this to my Mom (she sent me the boycott e-mail)

I am not allowed to send e-mails back to the list of people she mistakenly sent to me, seems their panties get all in a bunch over facts (and I mean the older guys on the list).