They also pay huge tax bills. Reading about Exxon 2008 2nd Quarter they paid 32.26 Billion Tax Payment. One story reported that would be 4,114.00 per second.
Well, I think the current theory to why gas prices are increasing is due to a sense of an economic turn around, or so it seemed the economy might be turning around due to more stimulus packages and such. As you know, when the economy was spiraling down, people became much more conservative in their spending, including purchasing gasoline. To me it seems that the increase in gas prices might be a little premature since the last numbers were released last week and were terrible as expected(economically).
What's going on up in the executive offices of some of these oil companies is what I wonder. I'm not sure how much you've read recently, but Shell and ConocoPhillips reported huge quarterly losses last week whereas Chevron reported a 1% gain last quarter (a rise of 28% for the year).
So what about America's largest oil company, Exxon? Bad news is that their 4th quarter income fell 33%. Good news is that Exxon made $7.8 billion last quarter and $45.2 billion dollars total last year and beat the record set in 2007 as the most profitable company in the world... by the way, the 2007 record was set by Exxon. Seriously, what is Exxon's business model (besides raping the coastal Alaskans)?? Damn.
What is Exxon doing with all this record setting cash? Over $40 billion goes back to shareholders, whereas only $26 billion of it goes into a shared pot for new drilling project and alternative fuel sources.
The price of a barrel of oil peaked last July at $145 and is now currently sitting at $42 a barrel (thats a decrease of over 70%). It's no wonder the service companies have to lay off their workers... even though the barrel of oil is still at a reasonable price. I guess when the price of a barrel can be driven sky high into record dollar amounts by the most wealthy companies and executives in the world, ANY downturn can seem catastrophic.
It seems that the oil industry is the most volatile industry I've ever looked into... and the same old patterns keep repeating themselves.
-- Edited by Jibslider at 00:14, 2009-02-01
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"When the going gets weird, the weird turn pro." -Dr. Johnson
Do nothing out of selfish ambition or vain conceit, but in humility consider others better than yourselves. Each of you should look not only to your own interests, but also to the interests of others. – Philippians 2:3-4
Do nothing out of selfish ambition or vain conceit, but in humility consider others better than yourselves. Each of you should look not only to your own interests, but also to the interests of others. – Philippians 2:3-4
Wishing you and your families the best during these difficult times. I just hope Washington will cut thru their crap and get the job they were hired to do done.
I feel ya....my hubby's hours were cut also, and he's a foreman!!! The end of next month we were supposed to look into selling our home and getting a new one........
OH man...this oil thing reminds me of the 80's. Hubby came home today at noon stating his hours were cut. Better than layoff...but now what to keep... Keep Health insurance or 401 ....ugh... What the hell happened to Rockin The Bakken? I know alot of you that arent in oil field or what have you don't care... but eventually...it will trickle down to you. I'm glad I didnt buy a home here.
