Reply #6: Except...

[TreasonousBastard]

OPEC has had limited success in adjusting crude prices, which are set by exchanges in London, New York, and Rotterdam. They have no interest in sky-high prices anyway, since historically high prices are followed by a crash.

The oil companies themselves are usually running at full capacity in all their operations and have limited ability to adjust prices.

All US companies have preferential tax treatment, if they pay any taxes at all. They all have political clout and anti-trust is pretty much nonexistant any more. And they all pollute and transfer heal;th and other costs as much as they can get away with.

I'm not sure how much the military is protecting Venezuelan, Russian, Indonesian, Nigerian, or Mexican supplies. Or Exxon's Singapore and Carrbbean refineries. The military will be out there anyway, oil or no oil. And many other industries (Boeing, Raytheon, GE, Bath Iron Works...) are supported/subsidized by military spending. Some, such as shipbuilding, exist almost entirely on military spending.

I'll go with the return being a little high for some sectors, but it might be transient because of current oil pricing FIFO/LIFO accounting and other factors.

Note that Verizon just made 1.2 billion on 17 billion revenue in the first quarter:

"Verizon’s operating income margin -- adjusted to exclude special and non-recurring items as well as, for purposes of this calculation, net pension and OPEB expenses of $22 million in the fourth quarter 2003 and $275 million in the current quarter -- rose from 18.3 percent to 20.4 percent over the same period. Consistent with past practice, Verizon believes that excluding these effects enhances comparability and provides a better picture of operating cost management."

And Verizon ain't alone.

I'm not defending the oil companies. I've had a lot of dealings with them in the past and God knows I have no love for them.

But, if someone is going to trash them, trash them where they deserve to be trashed.