Oh, to be an oil company

[SunMo]

Oil Company Executives Defend Profits

By H. JOSEF HEBERT
The Associated Press

WASHINGTON - The chiefs of five major oil companies defended the industry's huge profits Wednesday at a Senate hearing where lawmakers said they should explain prices and assure people they're not being gouged.

There is a "growing suspicion that oil companies are taking unfair advantage," Sen. Pete Domenici, R-N.M., said as the hearing opened in a packed Senate committee room.

"The oil companies owe the country an explanation," he said.

Lee Raymond, chairman of Exxon Mobil Corp., said he recognizes that high gasoline prices "have put a strain on Americans' household budgets" but he defended his companies huge profits, saying petroleum earnings "go up and down" from year to year.

ExxonMobil, the worlds' largest privately owned oil company, earned nearly $10 billion in the third quarter. Raymond was joined at the witness table by the chief executives of Chevron, ConocoPhillips, BPAmerica and Shell Oil USA.

Together the companies earned more than $25 billion in profits in the July-September quarter as the price of crude oil hit $70 a barrel and gasoline surged to record levels after the disruptions of Hurricanes Katrina and Rita.

Raymond said the profits are in line with other industries when profits are compared to the industry's enormous revenues.

[stillupfront]

Are profits bad?

[Diomedes]

Are profits bad?

These profits are.  Next question, please.

[stillupfront]

Ah Dio, we agree about Fraley but disagree here. I can't see how any profits are bad. Why be in business if not to make money. A key term is "Maximize your profits". The boards of directors of these companies are beholden to the stockholders to maximize their ROI. Why is this wrong or immoral? If you were a stockholder, you would be happy when dividends are announced. I seriously can't see how the government has any business questioning these issues.

[SunMo]

they make 10 BILLION in one quarter and we're paying, at times, $3 a gallon.  you question why this is wrong?

[PhillyGirl]

they make 10 BILLION in one quarter and we're paying, at times, $3 a gallon.  you question why this is wrong?

I can't believe they showed that kind of a profit after this quarter.

[SunMo]

i know, me too.  I'm all for companies making money.  but when their profit is so obnoxious in a time when fuel costs are farging up the economy, something has to be done.

[PhillyGirl]

i know, me too.  I'm all for companies making money.  but when their profit is so obnoxious in a time when fuel costs are farging up the economy, something has to be done.

but no, they weren't price gouging.  While some of us were paying almost 4.00 a gallon (and in other areas, SIX dollars a gallon for regular grade), the oil companies are laughing all the way to the bank.

"farg those hurricane victims, we made us some money!"

[Father Demon]

Ah Dio, we agree about Fraley but disagree here. I can't see how any profits are bad. Why be in business if not to make money. A key term is "Maximize your profits". The boards of directors of these companies are beholden to the stockholders to maximize their ROI. Why is this wrong or immoral? If you were a stockholder, you would be happy when dividends are announced. I seriously can't see how the government has any business questioning these issues.

You're arguing two different points.  From a strictly business perspective, any and all profits are good.  You are correct -- that is the fidiciary duty of teh BOD.  However, from an ethical standpoint, I can't agree that raising prices to a level that impact almost every other industry, and impacting almost all peoples budget, to the point that certain segments of society must choose between buying gas and buying medications is a good thing.

The strategy of the oil business is to raise prices as high as they can, then lower them to "affordable" rates that are still double what they were 18 months ago.   

[stillupfront]

i know, me too.  I'm all for companies making money.  but when their profit is so obnoxious in a time when fuel costs are farging up the economy, something has to be done.

Who should make these decisions? That is ridiculous! I don't consider 10B obnoxious. I consider it the benefit of good business.

[SunMo]

i know, me too.  I'm all for companies making money.  but when their profit is so obnoxious in a time when fuel costs are farging up the economy, something has to be done.

Who should make these decisions? That is ridiculous! I don't consider 10B obnoxious. I consider it the benefit of good business.

ok, good for you.

[stillupfront]

I just have total disdain for the legislation of morallity. Whether it's pornography, free speech or corporate profits.

[PoopyfaceMcGee]

I can't defend the oil companies.  Farg 'em.

[stillupfront]

I can't defend the oil companies.  Farg 'em.

Not defend. Just leave them alone.

[rjs246]

The entire reason the american people have been told for paying so much at the pump is that the price of crude oil has gone up with the war/weather/etc. If that were actually the case the oil companies wouldn't be showing this kind of profit. We've been lied to on a massive scale and this sort of number proves it. Arguing to the contrary is idiotic.