High gasoline prices have to be good for someone, and in news that will shock few, those fortunate men and women appear to work for Big Oil. Chevron, America's second largest oil company announced Friday that its first-quarter profits hit four billion dollars, a dramatic 49 percent increase over last year. With a profit of $1.80/share, that beat the Street by two cents.
Between ExxonMobil, Chevron and ConocoPhillips, America's top three oil companies raked in more than 15 billion dollars in profits this quarter.
[Source: San Jose Mercury News]
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Reader Comments (Page 1 of 2)
Emor8t @ Apr 30th 2006 3:23PM
In other news Gas went up another 50 cents a gallon today... for no apparent reason.
Phil @ Apr 30th 2006 3:37PM
lol
That One Person @ Apr 30th 2006 4:01PM
not a surprise...
50 cents? Are you bein facetious? Its gone down around here...
Bike @ Apr 30th 2006 4:13PM
Hm, after this post I realised that we all were just a toy in a hands of one gasoline monopolist. But who is it? Who raised up prices at once on all gas stations?
jordan @ Apr 30th 2006 4:16PM
There was a comment from someone in the past week or so about how gas is actually cheap and that no one realizes all the work that goes into refining oil into a usable product, etc, etc. I'd like to direct them to the following article. That's a 49% INCREASE in PROFIT. No, not in total revenue (where you'd have to subtract labor, mfg costs, etc), but PROFIT.
Richard Warren @ Apr 30th 2006 4:32PM
"People really count along the Chevron way" A line from and advertisment for Chevron in the 70's, great tune, great visuals.
I've got a new one for them, same tune, different words.
"Profits really count that's the Chevron way" The visual? A red White and Blue dollar sign.
At least we could say it was truth in advertising.
Andrew @ Apr 30th 2006 4:33PM
Oil industry profits are good, but as % of sales other industries are higher. People don't realize this and/or don't care, they just like to complain.
As an Exxon stockholder I say: good profits, but more next year.
Also from oil industry to all you full-size truck and SUV drivers out there: Thanks - you don't have to push the extra ton of steel down the road, we appreciate it!! Don't listen to those whackos, SUV's are cool, small cars are for losers.
Sid @ Apr 30th 2006 4:47PM
I agree with Andrew. If people are dumb and adamant enough to opt for large SUVs and then drive them with a maximum of one person in it 80% of the time, why should'nt the oil companies cash in? If we REALLY wanted to stick it to them, we'd realize that and start opting for vehicles according to actual needs. All of Europe gets along fine (not to mention the rest of the world) with small, efficient vehciles for even large families. In North America, you got one kid on the way and apparently you have to buy a Caravan.
donald douglas @ Apr 30th 2006 5:43PM
aaahhhh we might have a hurricane this summer so we better raise gas prices .25 cents ! IM so sick of just speculation alone and then bam gas prices go up here in california, and we do our own refining here in cali, not in the southern states but that doesn't matter at all. in so cal we are around $3.30 a gallon everywhere, and its gone up 1 dollar a gallon since xmas why ? so george bush's friends will take care of him after he leaves office !
If you ask me i think the oil companys should give us all a rebate check and take it out of there very EXTREME profits they been making latey !
mike @ Apr 30th 2006 6:58PM
I have to say that, before Andrew and Sid, I was blaming big Oil too. But actually it is as much the fault of people who are buying the gas. Small cars, motorcycles, and even bicycles will solve most peoples' woes. But that won't happen because Americans are too interested in carrying all of their sh*t around with them everywhere so riding a motorcycle is out of the question. And they are too fat and lazy (or scared of what women will think of them) to ride a bicycle once in a while.
Emor8t @ Apr 30th 2006 7:07PM
Yes guys because motorcycles and bicycles are practicle in America like they are in Europe!
Lets see 10 mile bike ride to work means instead of waking up at 6 am, i wake up at 4 am, so i can shower, bike, and then shower to be at work on time. Hmmm I wonder how early my dad will have to get up to make his 40 mile one way commute to work.
Because motorcycles are FRIGGIN SAFE too! Cause they don't get wiped up in when i Semitruck makes a lane change.
Only you idiots could get the shit beat out of you, and go well golly its my fault cause i walked out of my house tonight.
JR @ Apr 30th 2006 7:29PM
6. Oil industry profits are good, but as % of sales other industries are higher. People don't realize this and/or don't care, they just like to complain.
As an Exxon stockholder I say: good profits, but more next year.
Also from oil industry to all you full-size truck and SUV drivers out there: Thanks - you don't have to push the extra ton of steel down the road, we appreciate it!! Don't listen to those whackos, SUV's are cool, small cars are for losers.
Posted at 4:33PM on Apr 30th 2006 by Andrew
-----------------
Your FOS, People are not to forced to buy a video game with XX profit margin but they sure are F'd over in buying gas.
Gas is a byproduct of oil, its a freebie and then some crap is added in ( ooh wait 11 million illegals are hand mixing it).
5 billion bucks a month profit just in the sale of gas to what about 50 million cars in this country is one hugh F'ing profit margin for doing nothing but screwing camels to get them to raise crude prices so the oil vendors can have an excuse to make that much profit a month only says they get away with it not because how we drive but who they are blowing in the whitehouse.
It figures a stockholder would come up with a lame excuse as to the profit you make sitting on your ass playing the stock market and what a SUV eats in gas is still nowhere what cars back in the 1970s getting less then 10 MPG and gas then was like 30 cents a gallon !
Sid @ Apr 30th 2006 7:43PM
JR represents the America/Canada today. This is the same bunch which buys a Highlander or Explorer for personal use and while fueling at the pump every three days, they complain to equally dumb TV reporters covering the oil-crisis.
And the excuses for the use of big vehicles are equally stupid. As if they don't have high-speed highways, semis and toddlers in Europe.
Bob Schindler @ Apr 30th 2006 7:57PM
Four billion dollars extra profit sounds impressive. Now tell us how many gallons of gasoline they sold Divide $4,000,000,000 by the number of gallons ans see what the cost per gallon the consumer is being hit with. I suspect it is a few cents per gallon.....prove me wrong.
Aki @ Apr 30th 2006 9:01PM
Some posters don't have a clue. SUVs don't account for a 50% increase in profits. It's oil company greed that's causing the hike in prices.
JR @ Apr 30th 2006 9:28PM
12. JR represents the America/Canada today. This is the same bunch which buys a Highlander or Explorer for personal use and while fueling at the pump every three days, they complain to equally dumb TV reporters covering the oil-crisis.
And the excuses for the use of big vehicles are equally stupid. As if they don't have high-speed highways, semis and toddlers in Europe.
------
Why not explain to all of us why over in S.A they all drive SUVs and they just cut the price of gas by 25 % to around 60 cents a gallon !
Now how come they can make it cheaper then a chevron or exxon ?
Abhi @ Apr 30th 2006 10:13PM
Actually, from what I've heard, it's true that American oil companies' profits are nowhere near those of the huge state-run companies in the rest of the world. While the American market is low on competition, American oil has to be vertically integrated in order to compete in the international market.
And, while it's equally true that SUVs can't possibly account for a 50% increase in profits, consumers are definitely to blame for their driving and car buying practices. It's a simple matter of economics--supply and demand.
Also, it's unfortunate that someone has to feel unsafe driving a compact car, forget a subcompact hatch, because of the comfortable and safe, but hugely excessive SUVs on the road.
naugahyde @ Apr 30th 2006 11:00PM
Fallacy: People are "forced" to buy gas at high prices.
The reason it seems this way is because American cities have developed since World War II with the underlying assumption that gas is cheap and supply is limitless. This led to sprawl and people working and shopping far from their suburban enclaves. It's a choice that consumers have made over a long period of time - no one is "forced" to do anything.
It's been 60 years since the end of WWII, so it might be a while until we develop viable alternatives. Yes, not everyone can ride a bike to work - if they live in a suburb 30 miles from the office. But the next 40 or 50 years of high fuel prices will encourage a different kind of development in our cities, as well as alternative fuels and transportation modes, so your grandkids might think nothing of walking or riding a bike a few blocks to their jobs - just like your your grandparents did!
Sid @ May 1st 2006 7:30AM
No one is saying that what Big Oil is doing is right, but the point is if we become smarter consumers and start screwing them for a change, they'll realize they can't get away with changing prices anytime they want.
You got a family of four? Buy a Civic or Mazda3. You live on a farm and need towing etc? Buy a truck. Simple enough.
Loren @ May 1st 2006 10:05AM
This is pathetic, we only have ourselves to blame for high fuel cost. We drive huge SUV's that most do not need. Unless you have family of 8 you dont need a Suburban. I am tired of people bitching about the oil industry making a profit. How can we punish them for turning a profit when say Microsoft does the same thing? Each company has a right to make a profit, thats what this country was founded upon. If you want to make a difference, don't drive as much or leave earlier when there is no traffic for morning commutes. I understand there are people out there that need large SUV's and Large trucks and I totally respect that because there job requires them to use a vehicle of that type, but I dont think the everyday soccer mom needs a suburban, truck, tahoe, or whatever.