[Mb-civic] Oil Company Profits
ialterman at nyc.rr.com
Wed Nov 9 09:47:10 PST 2005
As you may know, the oil companies are showing a 2005 3rd quarter profit of over $25 billion. It is not coincidental that it was the 3rd quarter in which the oil companies jacked up the price of gasoline to over $3/gal, ostensibly due to losses suffered as a result of Hurricanes Katrina and Rita.
Some quick history. In 2003, oil company profits for the entire year were $53 billion. In 2002, it was $21 billion. In 2000, $38 billion.
This means that by unnecessarily jacking up gas prices in the third quarter this year, oil company profits for the 3rd quarter of 2005 exceeded the total annual oil company profits of 2002, and were 2/3 and 1/2, respectively, of the total annual profits of 2003. For ExxonMobil alone, the difference in third quarter profit between 2004 and 2005 was $6.2 billion versus $9.9 billion. Thus, "price gouging" allowed EM to increase its third quarter earnings by more than 50%.
I could ask "where is the outrage," but I know that I am "preaching to the choir" here. Yes, Congress is looking into this obscene third quarter profit and "grilling" oil company execs about it. However, we all know that this is an exercise in futility, if not an outright farce. Nothing will change, no one will lose their job, no oil company policies will be affected, and things will continue status quo.
What a joke.
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