UPI Poll: Oil companies too profitable

[MtnBiker]

Jan. 24, 2007 at 9:17AM
Nearly three-quarters of U.S. residents told a UPI-Zogby International poll oil companies make too much profit.
The issue of oil company revenues grabbed attention when gas prices in the United States recently soared to the $3 a gallon range and oil companies soon reported record profits.
While some said the consumer price rise was linked to speculation on the international oil market and tighter supply, others saw oil companies taking advantage of U.S. drivers.
Some 70.8 percent of those respondents said the companies "make too much profit," 21.3 percent said they "make the right amount of profit" and 2.2 percent said the companies "make too little profit."
Even the so-called investor class sees things too good for the oil companies: 57.2 percent of those participants said the companies make too much profit and 35.2 percent said it's about the right amount.
As to whether profits beyond "normal" should be taxed, 64.3 percent of those asked said it should be and 28.7 percent said it shouldn't.
The interactive poll of 6,882 people in the United States was carried out Jan. 16-18 and has a margin of error of 1.2 percentage points.


http://www.washtimes.com/upi/20070124-090132-1413r.htm

Any other industries too profitable?

[Mr. P]

Maybe these folks don’t know about the government profit on gas per gallon..
I’ll bet if they did they would be pissed.
http://www.energy.ca.gov/gasoline/statistics/gas_taxes_by_state_2002.html

[5stringJeff]

There's no such thing as too profitable, especially when one is a stockholder.

[jillian]

There's no such thing as too profitable, especially when one is a stockholder.

Even when they're price gouging?

[MtnBiker]

Even when they're price gouging?

When exactly was that? Who investigated the gouging?

[5stringJeff]

I'll second Mtnbiker's question.

[Mr. P]

Even when they're price gouging?

Interesting. I really haven’t ever thought of this from a business stand point..

If I have a product and price it by demand, when does my price become gouging?

Would it be when people are upset about the price?
When only a certain percent can buy my product?
When I make more profit than people ‘think’ I should?

If I have a product am I not free to set my price? Are my prices determined by opinion or the market?

[avatar4321]

Even when they're price gouging?

yeah well if you are tired of the government gouging us with the oil prices support a tax cut on gasoline.

[Insein]

Never heard of a company being TOO profitable. All that means is that you better buy some stock in that company. Do people say Google is TOO profitable? No they just keep buying their stock at the outrageous prices they offer. Is ben and Jerry's TOO Profitable when they sell their Ice cream at twice the price as their competitors?

Any time people advocate the government taking a companies money away for being TOO Profitable, they just basically say "I don't like my money, i wish the government would help me by making the rich corporations charge more for everyday products by taxing them more." Idiots.

[Mr. P]

Never heard of a company being TOO profitable. All that means is that you better buy some stock in that company. Do people say Google is TOO profitable? No they just keep buying their stock at the outrageous prices they offer. Is ben and Jerry's TOO Profitable when they sell their Ice cream at twice the price as their competitors?

Any time people advocate the government taking a companies money away for being TOO Profitable, they just basically say "I don't like my money, i wish the government would help me by making the rich corporations charge more for everyday products by taxing them more." Idiots.

I made a few thousand in 5 minutes on a Yahoo option, I'm a BAD guy. :)

[jillian]

Interesting. I really haven’t ever thought of this from a business stand point..

If I have a product and price it by demand, when does my price become gouging?

Would it be when people are upset about the price?
When only a certain percent can buy my product?
When I make more profit than people ‘think’ I should?

If I have a product am I not free to set my price? Are my prices determined by opinion or the market?

Sometimes it depends on whether your product has societal implications beyond supply and demand... like people needing heating oil; etc. The real question that should be asked is, if things like Katrina caused supply to diminish, this would result in the price going up, but not in the increased profit margin. If there's an increased profit margin, then there's something else operating.

Also, why should it be that Exxon/Mobil has the highest profits of any corporatin ever but FOR the fact that we're being railroaded? This is not even mentioning the fact that I think oil dependence is a security issue. The more money we spend on oil; the more money goes to oil producing states which support terrorist organizations; the more money there is that's available to those organizations to, in turn, attack us.

[Mr. P]

Sometimes it depends on whether your product has societal implications beyond supply and demand... like people needing heating oil; etc. The real question that should be asked is, if things like Katrina caused supply to diminish, this would result in the price going up, but not in the increased profit margin. If there's an increased profit margin, then there's something else operating.

Also, why should it be that Exxon/Mobil has the highest profits of any corporatin ever but FOR the fact that we're being railroaded? This is not even mentioning the fact that I think oil dependence is a security issue. The more money we spend on oil; the more money goes to oil producing states which support terrorist organizations; the more money there is that's available to those organizations to, in turn, attack us.

People don't 'need' heating oil, they can burn coal or wood. Wait, not anymore the left has ended that. All that warming stuff ya know.

As far as profit goes, maybe their running an efficent operation. :dunno:

BTW what is the profit margin for Exxon? It's a trick question sorta.

[Dilloduck]

I'll second Mtnbiker's question.

I'll third Mtnbikers question !

[Hobbit]

When oil prices went up, Exxon's profit margin did not increase. If I remember correctly, it actually decreased and the huge profit was caused by idiots panicking and buying enough gas to fill their cars 5 times while the price was inflated by Katrina.

[red states rule]

Even when they're price gouging?

Jilly, the only gouging is the government

Average profit for the oil companies on a gallon of gas is ten cents

Average tax on a gallon of gas (federal and state ombined) 60 cents

But with Dems profit is bad and taxes is good

[MtnBiker]

Also, why should it be that Exxon/Mobil has the highest profits of any corporatin ever but FOR the fact that we're being railroaded?

What does the FTC have to say about price gouging? You know it would make some bureaucrat's year to prove any wrong doing with oil companies.

[red states rule]

The FTC has one word for that - NONE

[eighballsidepocket]

The FTC has one word for that - NONE

That lady(Hillary) wants to sieze the profits?

Not that I'm pleased with the pump price, but Hillary? No Marxist for me............
*****
Never thought I'd say this, but Adolph Hitler even had more smartz than this lady.

With all his power, he never once threatened to take over Krup Munitions of Germany, Folker, Junkers, BMW, Daimler Benz, Heinkel, Folkwulf, Porsche, Audii, etc.. He didn't want to bite the hand that fed him and his regime.

The analogy isn't a perfect fit, but does fall apart a bit, I know, but Hillary is talking like a pure Marxist.

Do these big profits bother me? Yes they do. I would like to see Exxon put a lot of that money into stateside energy development...i.e. exploration, and hardcore lobbying efforts against the folks opposed to drilling in the Arctic National Wildlife Refuge. I don't mean using the money to bribe global warming scientists into shutting-up, but use the money to promote what their company does; develop, and provide fossil fuel based energy for the masses.

I'm the masses, and I really resent paying $2.89/gallon for diesel in the San Jose, Ca. when the price of a barrel of crude is hovering around $52.00/a barrel.

Yes, Exxon has the right to get as much profit as they can squeeze, but am I, Mr. average, middle class American, being bopped in the head by a monopoly of sorts? Seems that all the brands of fuel or stations are selling at pretty close to the same price. Why isn't there a little bit of a price war going on like there was back 30 or more years ago?

Why are the fuel prices actually going up right now. Is it because we have a shortage, or what? I don't see lines at the gas stations. The barrel price is lower than it's been in over a year, yet the pump prices reflect a previous barrel price closer to a $70.00+ per barrel?

I totally agree with the libertarian concept that we must becareful to not mess with the right to make a legal "buck". I'm not a conspiracist of any degree, usually, but this fuel pump price is not computing with the current and ongoing barrel price. We, the consumer are being squeezed, and we don't have some other source for buying fuel that's more competitively priced to force some competition. The price variance between brands is next to nil. Something stinks here, and I do feel that some kind of governmental oversight needs to be hinted at to put a little "scare" into these oil corporations. I know you anti-gov folks will quiver at my suggestion, but in times like these, me, Mr. average, middle class guy needs an advocate when I stick my visa card into the gas pump.

In some ways, this is reminiscent of the effects of a Monopoly.......even though we have an Exxon, Shell, BP, Chevron, Arco......etc.. We don't have an AT&T type monopoly, but have several fuel companies, yet they are selling or offering/selling their product to the American consumer in a way that screams, "monopoly!". There's no competition. I realize that a big hunk of our pump price is taxes, but since last year and when the barrel price was this low previously, the fuel taxes have not risen at all or appreciably to justify the current prices. We are just helpless sheeple who just need energy to go to work and home, and maybe a little recreation if they will allow us.

Isn't the very definition of a monopoly, when the consumer has no allternative but to purchase from one source, one brand, with the stifling of competition to the detriment of the consumer? We are not talking about a proprietary product with a special patent here. Are we?

I may be conservative, but I've got brains enough to know that fuel prices affect Americans in different ways. The wealthy won't buy that $30 million ocean cruiser this year, but will have to buy the $20 million one. The middle class guy or gal, will have to car pool more, buy a surloin instead of a t-bone, maybe a cheaper bottle of wine too(lol), if it's possible, cut back on some family expenses, and maybe even hesitate about buying those plane tickets for that long awaited trip too. The lower middle class to poor as defined in the our Western society, will possibly not be able to drive that car to work, or will not have enough money to insure their vehicle, or register it. They maynot be able to make that medical insurance premium either. They will need to concentrate on feeding their family, paying the rent, yet they will be squeezed at the pump so hard that getting to work will even be harder. No work, no $$$.

Ok.....I'm not a crying liberal, but I do see this scenario objectively, I believe. Sometimes us Conservatives, and Libertarians in the name of freedom do get a little "hard necked" about how some other folks around us are fairing. I'm not talking about those who are welfare cheats, or those who work the welfare "teats". They should get their collective butts in gear and work.

I'm talking about those who do work hard, but aren't blessed with high paying jobs......maybe because of a lack of previous education or things they didn't do earlier in life......etc. The poor will always be around us. Even Jesus said that. Some are poor by their own choice, but many are "proud" in the vain that they are still trying to survive. These poor have ethics like you and me. They want to survive, and they want to do it honestly. They don't want to be called victims, but they would like a fair "shake", not unlike my immigrant Swedish grandparents on both sides who came through Ellis Island in the late 1800's. So many came to our country at the end of the 19th and beginning of the 20th century from Europe. They didn't want handouts, they just wanted freedom to start over, and assimmilate their progeny into the new culture and reap some benefits of working hard.

I don't like using the word, "Big Oil", but again, fuel is a strategic commodity for a nation as a whole. I don't want to stop these companies from making a decent buck, and being rewarded for their expertise, engenuity, and hard work in their field of endeavor, but they are dealing in a commodity that makes or breaks a nation's back. It is not unlike our power grid. I can't buy my electricity from anyone but Pacific Gas and Electric co. out here in Silicon Valley. Now if I have tons of money, sure, I can build my own power plant and provide myself with my own power and even sell it to P.G. & E., but that's ludicrous for most of all Californians. We are at the Mercy of either P.G. & E. or Southern California Edison, if you live in the Southern part of the state.

They are utilities.........they are regulated..........yet they do make a profit, and they do make enough to perpetuate their entity, and pay their stock holders some good steady profits.

Oil companies presently are artificially, holding the price higher than they need too, because they want to make more profit. Makes sense from their stand-point, but their product isn't too far from being similar to what a utility provides. 99% of us Americans cannot build a Bio Diesel refinery in our tract home backyards, nor can we drill for oil there either, as our mineral rights are almost never owned by home owners in the urban areas.
****
Ok, this was a mish-mash of eighballs thoughts......It may not seem like I
'm a purist conservative with my diatribe above, but I don't care. I think about people. I think about humanity a lot. I want everyone who works decently and hard to have some kind of decency of life. I'm not promoting utopian Marxism, just some fairness when it comes to the those that provide the basic essentials(and are the only source for that essential) to the populuous. That's all.

I do not agree with Hillary's approach even 1%, as she just promotes disdain and hatred for capitalist entities.........or a type of class warfare mentality, that isn't right in my book. These types of liberals are not humanitarians at all. It's all power and politics........Anyting will be said to get or garner a vote. In fact Hillary's last spout, just shows how much she falls back on those old talking points about the big mean old rich and us poor old others. If that gal makes president, maybe it will finally be time for a mass exodus from this country, but going to Canada isn't an upgrade is it? Oh, God, we're stuck. We can't threaten or actually run-off to a more politically agreeable country like the Liberals did/or wanted to when GWB won. We have nowhere to go. lol

[Yurt]

Sometimes it depends on whether your product has societal implications beyond supply and demand... like people needing heating oil; etc. The real question that should be asked is, if things like Katrina caused supply to diminish, this would result in the price going up, but not in the increased profit margin. If there's an increased profit margin, then there's something else operating.

Also, why should it be that Exxon/Mobil has the highest profits of any corporatin ever but FOR the fact that we're being railroaded? This is not even mentioning the fact that I think oil dependence is a security issue. The more money we spend on oil; the more money goes to oil producing states which support terrorist organizations; the more money there is that's available to those organizations to, in turn, attack us.


Do you believe that US oil companies are responsible for high oil prices? yes or no.

Do you believe monopolies are bad?

Do you believe that a certain cartel(s) meets annually and agrees to set prices, e.g., what we in the states call "monopolize" the price.

Do you believe that is bad?

[eighballsidepocket]

Do you believe that US oil companies are responsible for high oil prices? yes or no.
Partially responsible. Also OPEC, and the God Awful taxes on a gallon of fuel too.

Do you believe monopolies are bad?
They sure hurt the middle class and poor. When there's no competition, no price wars, no bargains......etc.

Do you believe that a certain cartel(s) meets annually and agrees to set prices, e.g., what we in the states call "monopolize" the price.
That I don't know. I'm not an obsessive compulsive who sees or senses comspiracies under every tree stump, but there's seems to be something very fishy about all of the gas stations having basically the same prices for a gallon of fuel regardless of brand. Adding to that, the barrel of crude price has been going steadily down and is at a low that shouldn't reflect the current prices at all. The current prices should be down from from .50 cents to a dollar depending where you live geographically in the U.S.. What's holding the price per gallon at this current level? One little spike in the barrel price and the pump price responds. Large downward spikes and little or no reponse at the pump. I think there is some manipulation going on, and should be investigated.

Do you believe that is bad?
Do I believe, what is bad? The profits? The current price at the pump.......? As said before by myself. If they will turn that profit around and drill, drill, drill, and push hard with lobbyists to free up the stalling being done by the liberals in respect to developing the mammoth oil fields of the National Arctic Wildlife Preserve, I would applaud them. We need to end this stupid moratorium on building oil platforms off the Southern California coast too. Lets even get heavy into those oil shales of the Rockies and the Oil sands of Canada where there is more oil reserve than the whole of the Middle East.

[Yurt]

Do I believe, what is bad? The profits? The current price at the pump.......? As said before by myself. If they will turn that profit around and drill, drill, drill, and push hard with lobbyists to free up the stalling being done by the liberals in respect to developing the mammoth oil fields of the National Arctic Wildlife Preserve, I would applaud them. We need to end this stupid moratorium on building oil platforms off the Southern California coast too. Lets even get heavy into those oil shales of the Rockies and the Oil sands of Canada where there is more oil reserve than the whole of the Middle East.


bold:

Wrong.

That will not change things.

Drill, drill, drill? Ok. But the big problem is the ME cartel. Which you have not answered whether it is good or bad.

[jillian]

Do you believe that US oil companies are responsible for high oil prices? yes or no.

Do you believe monopolies are bad?

Do you believe that a certain cartel(s) meets annually and agrees to set prices, e.g., what we in the states call "monopolize" the price.

Do you believe that is bad?

Yes.

Yes.

Yes... we all know OPEC sets its prices.

Yes.

But then again, I also think energy conservation is a security issue.

[Yurt]

Yes.

Yes.

Yes... we all know OPEC sets its prices.
Yes.

But then again, I also think energy conservation is a security issue.

This conflicts with your thoughts concerning the US. OPEC sets prices.... Do you not see?

[jillian]

This conflicts with your thoughts concerning the US. OPEC sets prices.... Do you not see?

I see where you're going. Saw it when you were asking the questions. If the prices being charged to us were based on the prices set by OPEC, Exxon/Mobil wouldn't have just had the highest profits of any corporation in U.S. history.