Obscene profits

[The Scribe]

Shell's 'obscene' £13.9billion profit is biggest ever by British company.

Shell smashed all-time British company profit records today, posting 2007 earnings of $27.5billion (£13.9billion), and immediately ran into a storm with union leaders, who are demanding the Government hits the oil giant with a windfall tax.

Shell's profit surge - it is now making a staggering $75million (£38million) a day - on the back of a booming oil price that touched $100 a barrel this winter, was labelled as "obscene" by Tony Woodley of Unite, the UK's largest trade union, as Britons struggle with soaring energy costs.

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With all the money they are making, what are they doing to help the oil "crisis?"

Are they building any new oil refineries?

 

[Rubato 1]

Article

With all the money they are making, what are they doing to help the oil "crisis?"

Are they building any new oil refineries?

Better be careful. Best to let the supply-demand principle drive the economy. In the case of oil, though, it might be too late for that.

 

[sag38]

The can't build new refineries. The eco-nuts want let them.

 

[cowboymatt]

Their profits are crazy...but why are people so mad? We in the West take part in a capitalistic society and Shell, Chevron, Exxon, et al are simply doing what any business would do: namely, make money!

(I am one of those who gets mad by the way...so I'm talking mostly to me here!)

 

[bapmom]

of course, if it were me making the profit then it wouldn't be "obscene"

:tonofbricks:

 

[Palatka51]

If the price is too high don't buy it. When demand goes down so will the price.

Anyone ever think of just who has determined what the price of a barrel of oil should be? Like gold oil is a "world commodity." It's price is not determined by any one company. If Saudi Arabia decides to reduce production the price will rise. So if oil is taken out of the North Sea by Shell, BP or Exxon the price of oil remains the price set by the Saudi's production level. If Shell's production is very efficient and is able to pump oil out of the North Sea cheaper than the going price of it's commodity then Shell is going to post record profits.

Think of oil as being pumped into a giant pool where speculators wrangel over it's value by how deep the pool of oil is. It does not matter who has pumped it or where it was piped or shipped from (Alaska's North Slope, Gulf of Mexico, Texas, North Sea or from the deserts of the Middle East). The price will be determined by the level of the pool, not by any one company or government.

 

[just-want-peace]

The price will be determined by the level of the pool, not by any one company or government.

And if you (citizens, not you P51), are outraged by these "obscene" profits, then park your van, SUV, green car or whatever, and do absolutely NO (NADA NONE ) driving except that which is totally, unequivocally, unquestionably necessary for your needs; not wants!!!!

If you aren't willing to do such, then you're just bellyaching for exercise when you condemn the oil company.

Just like all these big-wigs travelling in their private jets & complaining about carbon emissions - much ado about nothing.

The more demand there is for a product, the more it will cost to get it. Lessen demand, lessen the cost; other variables remaining constant.

Just let bicycles become the prefered method of transportation for jaunts of, say, 3 miles or less, and watch the price of bikes skyrocket.

Price is always going to match demand, and when it (whatever it may be) becomes too expensive and demand goes down, so will the price.

So if you do ANY unnecessary driving, you are one of the reasons the price is where it is.

Oh, for the record, I'll take the higher prices over price controls any day. Anybody remember the gas lines back in the mid 70's?

The price held constant, WHEN YOU COULD FIND A STATION THAT HAD GAS!!!!

Yep, that was a real governmental boondoggle from the git-go. (Just like most things the gov't messes in that ain't constitutional!)

 

[I Am Blessed 24]

And if you (citizens, not you P51), are outraged by these "obscene" profits, then park your van, SUV, green car or whatever, and do absolutely NO (NADA NONE ) driving except that which is totally, unequivocally, unquestionably necessary for your needs; not wants!!!!

I own a small 6 cylinder car and I have been doing what you suggested for over two years. Since I have COPD and cannot walk or ride a bike anymore, this is virtually keeping me a prisoner in my own home.

Yes, I'm outraged!

 

[Baptist Believer]

The can't build new refineries. The eco-nuts want let them.

Actually, I happen to know that Valero is expanding their refineries to increase production capability (the one in Port Arthur, Texas is expected to double in size) and I'm sure other companies are either actively working toward the same thing.

 

[Ps104_33]

Oil companies have as much control over the price of oil as farmers do over the price of corn.

 

[Gold Dragon]

I am not upset with Shell, Walmart or any other corporation making huge profits. Shrewd business practices should be rewarded with good profits. What we as consumers need to do is keep these corporations accountable in their business practices with respect to the environment, treatment of workers, business partners, competitors, communities, etc so that they remain ethical in their quest to make more profits.

 

[swaimj]

I don't understand it. We complain that our good-paying jobs are going overseas to low-wage countries. Then when we have an industry that makes money, pays good salaries, and turns a profit, we complain about that and think their profits are obscene.

Here's a tip: The oil companies, for the most part are publicly owned companies. Buy some of their stock and share in the profits.

 

[just-want-peace]

I don't understand it. We complain that our good-paying jobs are going overseas to low-wage countries. Then when we have an industry that makes money, pays good salaries, and turns a profit, we complain about that and think their profits are obscene.

Here's a tip: The oil companies, for the most part are publicly owned companies. Buy some of their stock and share in the profits.

Reason? The liberal influence that says big business is evil, and must be disciplined by the (shudder--) government.

A little story to illustrate:

A young woman was about to finish her first year of college. Like so many others her age, she considered herself to be very liberal, and, among other liberal ideals, was very much in favor of higher taxes to support more government programs; in other words redistribution of wealth.

She was deeply ashamed that her father was a rather staunch conservative, a feeling she openly expressed. Based on the lectures that she had participated in, and the occasional chat with a professor, she felt that her father had for years harbored an evil, selfish desire to keep what he thought should be his.

One day she was challenging her father on his opposition to higher taxes on the rich and the need for more government programs. The self-professed objectivity proclaimed by her professors just had to be the truth and she indicated so to her father.

He responded by asking how she was doing in school. Taken aback, she answered rather haughtily that she had a 4.0 GPA, and let him know that it was tough to maintain, insisting that she was taking a very difficult course load and was constantly studying, which left her no time to go out and party like other people she knew. She didn't even have time for a boyfriend, and didn't really have many college friends because she spent all her time studying.

Her father listened and then asked, “How is your friend Audrey doing?"

She replied, "Audrey is barely getting by. All she takes are easy classes, she never studies, and she barely has a 2.0 GPA. She is so popular on campus. College for her is a blast. She's always invited to all the parties, and lots of times she doesn't even show up for classes because she's too hung over."

Her wise father asked his daughter, "Why don't you go to the Dean's office and ask him to deduct a 1.0 off your GPA and give it to your friend who only has a 2.0? That way you will both have a 3.0 GPA and certainly that would be a fair and equal distribution of GPA."

The daughter, visibly shocked by her father's suggestion, angrily fired back, "That's a crazy idea. How would that be fair? I've worked really hard for my grades! I've invested a lot of time, and a lot of hard work! Audrey has done next to nothing toward her degree. She played while I worked my tail off!"

The father slowly smiled, winked and said gently, "Welcome to conservatism".