Oil executives defend profits before irate U.S. senators

Thursday 22nd May, 06:45 AM JST

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RomeoRamenII at 01:22 AM JST - 23rd May

daydream;

It's clear you won't accept the fact that the oil companies are making higher profits on the volume of oil sold and only incrementally on the higher price of crude.

Do yourself a favor and educate yourself on the industry.

Exxon, BP, Shell, etc. don't control the crude market. They are consumers of the product.

Oil companies pay for the crude they refine. They pay market prices for the crude. They get incremental profits on crude in their pipelines between the time they buy it and the time they sell it. They are at risk for losing money if the price of crude drops between the time the buy it and the time they sell it.

Also, oil is traded internationally. America imports oil or oil products from 190 countries. America also exports oil or oil products to 173 countries. For example, plastic is an oil based product and we do a lot of import/export in plastics. There are around 150 non-oil producing countries who import all the oil they consume. All of this is being traded in a global market of which America is a large part.

The thing is, if we don't keep in there punching and bidding and competing for the oil then we suck hind teat and those some 150 non-oil producing countries and the other 173 countries that import oil are going to cut us out of the crude market and get rich at our expense.

The world runs on oil. Get used to it. There is not alternative to oil that is going to affect the global marketplace enough to cut global demand for oil. Even if the supply is good, oil is sold basically in a big non-stop auction. Perception of a possible problem in supply will drive the price up because if you don't have oil then your economy grinds to a screeching halt.

RR
adaydream at 01:29 AM JST - 23rd May

Thanx Madverts.

That re-enforces my past posts that the US motorists are paying a greater amount of their gas prices to the oil companies than the Europeon.

I'm not saying that Europe isn't paying too much for their gas prices. But when other posters start crying that Europe pays higher prices for their gas. Sure they are, but the greatest cost of their gas are taxes. A smaller portion of our gas price is taxes.

We're getting screwed by big oil.
RomeoRamenII at 01:40 AM JST - 23rd May

george bush was going to bring all this cheap Iraqi oil to the US.

Oil is the life blood of the world economy. It does not matter what side of the political fence you live on in America. If you think this is a political matter you are the one getting fooled.

RR
ca1ic0cat at 01:45 AM JST - 23rd May

There's some truth behind the supply and demand arguement as China and India consume more oil. But the irony is that the US government is handing the oil companies billions in subsidies for "exploration" while the oil companies rake in record profits. This is the absolute farce of the senate taking the oil execs to task in a public hearing. It's all just a sham for the cameras while both sides line their pockets at the expense of the public.
RomeoRamenII at 01:56 AM JST - 23rd May

We're getting screwed by big oil.

So, you wouldn't complain about the ensuing unemployment of millions of people who made their livelihood by working in oil-related industries across the country or gasoline costing, say, $30 a gallon if "big oil" decided to relocate out of the U.S. to a more coprporate tax friendly nation?

RR
adaydream at 02:13 AM JST - 23rd May

Wouldn't you love that? If the US oil industry moved outside the US. They'd get rid of all these US employees, have cheaper labor and costs and still charge us the same costs that they have been. Then really getting behind us and giving us all they got.

Why isn't oil being pumped from the Gulls Island fields?

Why was the Prudhoe Bay pipeline reduced from a 36 inch pipeline to an 18 inches pipeline?

The oil fields we have tapped is more than enough to last the next 200 years and we've only tapped into 3% of the available oil.

This is a scam of monumental size and we're paying out the ass for this.
adaydream at 02:33 AM JST - 23rd May

It costs no more to pump and refine petroleum into gasoline now then it cost 5 years ago and the costs of gasoline has jumped exponentially (sp). We're just being bled to death.
Badsey at 05:11 AM JST - 23rd May

most of these oil fields are under longterm contracts = they don't pay spot price for this oil. = very little reason for these high prices since I don't see a shortage.
adaydream at 06:15 AM JST - 23rd May

Then in the congressional hearings the oil ececutives wanted to talk about they only make $.04 at the pump. WHAT???? $.04 at the pump for each gallon.

Liars.

Then... We need to be allowed to drill more!!

Hell, they got wells that they don't even pump from.

Where are all the posters who support the theft of American dollars by the oil companies.

Pssssst.... Where are you? We know you're there.
Nessie at 10:14 AM JST - 23rd May

...who are funded by oil companies.
Eulji_Mundeok at 01:26 PM JST - 23rd May

I would probably agree that government subsidizing oil exploration is a waste, but why all the restrictions on drilling? Is the Peoples Republic of China really drilling for oil off the coast of Florida in a more eco-friendly manner than the Americans would be?
And I don't think the number of wells is always the issue- California went through an energy crisis a few years back because they refused to increase refinery capacity.
Also, it's my understanding that America's railroads are in disrepair largely because post-WWII "windfall-profit" taxes discouraged railroad companies from further investment in infrastructure.
skipthesong at 02:19 PM JST - 23rd May

An alternative fuel source, preferably a much cleaner one" Oh believe me, we have alternative fuel sources, but there are not cleaner, in fact more dirty.. So, what do you want? an alternative or a cleaner alternative because for the short term, you really don't have a choice. Americans want both and you ain't gonna get it in the short.

government subsidizing oil exploration is a waste, but why all the restrictions on drilling?" the subsidies have a use, but if you are going to take them away from oil companies, you are gonna have to take it away from other industries..

"it's my understanding that America's railroads are in disrepair largely because post-WWII "windfall-profit" taxes discouraged railroad companies from further investment in infrastructure." Best comment yet. after WWII, America started heavily investing in roads and autos and let the rail roads basically go to rot. It is one of the biggest blunders of American economic history.
adaydream at 02:29 PM JST - 23rd May

but why all the restrictions on drilling?

There are oil wells drilled and capped on Gulls Island. More than enough for 200 years. But it's not pumped out and used.

Why should the oil magnets be allowed to continue to drill and hold oil in reserve and away from the ones who they say they are drilliung for?
super delegate at 07:44 PM JST - 24th May

More faux outrage and grandstanding. Dems aren't serious about this problem. If they were they'd allow the same US companies to drill in Alaska and off our southern coast.

http://bp3.blogger.com/of9ue2vob2g/Rd4Uy37yRI/AAAAAAAADJc/zoEOOZOe86A/s1600-h/supplyanddemand.jpg
Zaphod at 02:32 PM JST - 25th May

The idea to legislate low oil prices is ridiculous. Food prices are also rising, maybe next the democrats claim a world-wide conspiracy by farmers? There is no end to the stupidity and short-sightedness of these political demagogues.