I can NOT understand this...

[RazBerryBeret]

Maybe someone here can help, I've never been able to figure this out.

OK, I get that barrels of oil are costing more and more, and that affects the price of gas--but if the hike in crude is equal to the hike in gas, WHY the big GIANT record profits?

BP has reported a 63 percent jump in profits in the first quarter compared to the same period a year ago.
Royal Dutch Shell said Tuesday that first-quarter net profits leapt 25 percent.

FORGET the "Gas Tax Holiday" I think someone OWES me more than that!!!
We are getting screwed here, aren't we?

[Horse with no Name]

1. There is only ONE way to get record profits from oil

That is to charge record prices. But also notice that NOT one cent of those record profits are being put into infrastructure maintenance or new refineries. Nosiree.
The record profits are lining the boardmember's pockets.

[RazBerryBeret]

3. or better question...

why aren't record profits going to research to end oil dependance? oh wait, I know the answer to that.
Bastards are trying to make all the money they can while they're in power.

hey, whose Idea was is to put an Oil Family in charge of the US? Crazy!!!

[RB TexLa]

6. What would new refineries do? There is no shortage of processed gasoline

I have seen no stations out of gas.

[pinkpops]

16. I haven't either - but someone told me today that a station here was

out of regular. I'm thinking people are cutting back on driving where they can. More people where I work seem to be car pooling. And with employment down people may be driving less...

[DS1]

2. Yes. We are.

I don't have the most accurate explanation, but here's it in my nutshell. Oil prices you see today are forecasts, therefore gas companies up their prices to everyone in order to cover them. It doesn't mean the prices will be at 120/barrel when they actually buy them. So if they keep jacking up the forecast price, while still paying the actual real dollar amount, and charge us for prices they're going to pay in the future, then they've got a hell of a business plan.

I don't think it's that simple, and I could be way off...

[RazBerryBeret]

5. any way you look at it,

it sucks!

[TheCowsCameHome]

10. It's a matter of how deep, and I'm not talking about wells, either.

Of course we're getting screwed. It's the American way.

[RazBerryBeret]

18. ouch.....

[lligrd]

4. It Costs $5.00 To Produce A Barrell Of Oil

They are raking in profits from the oil they produce, alone.

[panader0]

7. Exxon/Mobile had the largest corporate profits in history last year

and they keep setting new marks. cheney's secret energy commission was the start. The war is for oil. The oil of Iraq was supposed to pay for the war. Instead, that cost is passed to people who make under "X" amount. The rich don't pay, their kids don't die. Yeah, we're getting screwed, and it's not the good screwed.

[Canuckistanian]

23. The war was to PREVENT Iraqi oil from getting out

Thereby driving prices UP.

Mission accomplished.

[thunder rising]

8. getting screwed? naahhh, what's happening here is too vulgar to be depicted by porn

[baldguy]

9. The hike in oil prices is all due to speculation.

It still cost the same to pump a barrel out of the ground today as it did 7 yrs ago - about $15. The oil co.s then trade it several times among different business units - jacking the price each time - until it costs $120.

[RazBerryBeret]

11. it just kills me that they have the nerve

to talk about a gas tax holiday....and reporting profits like this....

(like your sig lines)

[baldguy]

21. Why doesn't anybody talk about an oil PROFIT holiday?

[Art_from_Ark]

24. Jimmy Carter imposed a "windfall profits tax" in the '70s

Of course, I wouldn't expect 2 oil men to do the same thing in the 00s

[pinkpops]

12. The way it works is this:

(I think)
As demand for oil products increases, the sellers cannot meet demand. They cut off sales to purchasers who pay the least, and sell at a higher price. This price increase works its way down through the brokers, refiners, all of whom get a piece of the action. The refiners form a bottleneck due to capacity constraints. Below them in the chain there are pumping constraints, as well as some reluctance to pump more for fear that prices will go down.
It is true that those making profits could be nicer and take less of our money, but they are not those kind of people. As long as we demand oil they will get what they can for it. Our best option is to not buy their product and make them come courting.

[RazBerryBeret]

13. Man, I wish we had that option!

[scarletwoman]

14. All I can tell you is that today, there was actually a sensible segment

on this very topic on NPR, on "All Things Considered": Is the Weak Dollar to Blame for High Oil Prices?

I think it might answer some of your questions.

sw

[sandnsea]

20. Yep, the dollar and speculation

We're just being fucked and idiots who believe that we're in a current supply and demand crunch will keep the real problems from being fixed.

[Booster]

15. This is why I think Congress is such a God damn joke.

They "investigated" the oil companies to see if any gouging was going on and apparently found nothing. They could have at least fined the oil companies a billion (what's a billion when you profited 35 billion), so in this respect Bush is right about Congress not doing anything about the problem. He doesn't even have to say he and Cheney would have shot down any fines they imposed - Congress didn't have the balls to do it anyway. I am just thoroughtly disgusted with ALL politicians on both sides.

[RazBerryBeret]

17. I agree,

and I heard today that our "reserve" is at 97% capacity...when do you think they may pull out some of that reserve? maybe when they manage to raise the price over $5 a gallon???

[SammyWinstonJack]

19. Congress isn't going to bite the hand(s) that feed them, EVER!

So we get nothing! And like it! x(

[Muttocracy]

22. Don't worry - we're borrowing $$ from China to send out surplus checks

So we can spend $$ on stuff made from China, and gas whose price is drive up in some part by demand in China! Yay!!!!!11

[and-justice-for-all]

25. Think of the Oil companies as Vampiers...

that never stop sucking the money out of your wallet.

[El Pinko]

26. There is some gouging going on, IMO...

...and the oil companies have deliberately created bottlenecks at the refining level to increase prices as well.

They claim that they need the extra profits for increased exploration/discovery costs, and there is also some truth to that. The days of cheap, easy extraction are pretty much over.

I think the government really should intervene a little more ti incure price stability so at least the increases at the pump will be more incremental so that people and businesses can gradually absorb the inevitable increases.

But $1.50 gas ain't coming back, sorry.

[FormerOstrich]

27. I think getting screwed sums it up....

Instead of answering your question I'll expound on it...

I have been told the cost of groceries is so high because of the increased cost of fuel.

Then why are so many independent truckers hurting because of the increased cost of fuel.

Then why are so many independent gas station owners hurting because they have decreased margins because of the increased cost of fuel.

So how many of us are covering the increase???

[scarletwoman]

28. "So how many of us are covering the increase???" Great points. (nt)