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Oil executives defend profits before irate U.S. senators

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We know that there are oil wells drilled, tested, proven and capped. Never a drop drilled.

We also know that the Prudhoe Bay repair job reduced the pipeline from 36 inched to 18 inches. Forced supply slowdowns and we're supposed to beileve market supply and demand.

Now please scream about drilling more wells, like in ANWR.

We have wells drilled and the oil magnets refuse to release oil that is already there.

Please my republican posters tell me why we should drill more wells then we have oil here in country that could reduce our dependency on foreign oil and we're being forced to get screwed by big oil.

Should I remind you also about the subsidies that they receive.

What about the fact that they don't pay just royalities to the US.

We're being screwed.

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Profits have been huge “in absolute terms,” conceded J Stephen Simon, executive vice president of Exxon Mobil Corp, but they “must be viewed in the context of the massive scale of our industry.” And high earnings “in the current up cycle” are needed for investments in the long term, including when profits will be down.

Hell is going to be chock full of oil men in a few years.

Taka

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The conversation was a dog and pony show. I do not like the oil companies at all, but why should they sacrifice their profits? What happens when they are down? What about the investments they are REQUIRED to invest in, such as social programs and what not?

What should have been said in this conversation, which who ewer wrote this article knows nothing about is the subsidies the government pays the oil companies. That is an issue where the American public can and do have right to complain.

If they don't like paying the high price, perhaps they should buy "Living with Ed". A millionaire movies star who has ridden his bike for 20 years. Since I moved to Tokyo, I either ride my bike or walk to and from work. I have only had to use a car on several occasions in the last five years. Local governments in major cities need to crack down on drivers and make more way for buses and trains. So, if you live in Staten Island, Brooklyn or Queens and work in the city, you do not need a car and personal cars should be banned during working hours.

Bitch all you want at the oil companies, but they do have a right to make profits. No one is complaining about the entertainment companies making their profits, no one is complaining about food companies, beers, etc.. The are singling out the oil because they feel they have a right to hve cheaper gas. Drill for more or suck it up.

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This is a dog and pony show. Senators confronting big business to look like they really care about the working class families that are slowly slipping beneath the economic waves. The corporations could not care less about Joe and Jane average and their family's economic situation as long as they keep spending. And the government only cares as much as they have to due to public opinion and potential impact to their re-election.

It is not only oil companies that are raping the working class. Just about everything is overpriced and even more so when you account for the decreased size and quality of many items.

As long as we let the market economy people drive the world just so they can make a short term buck, nothing will improve. They are inherently short sighted and care just about stock values and profit opportunities. Until we directly impact those areas, they will gladly watch us suffer. So I say let's find ways to make them feel it.

Pressure your political representatives to do something. Even if it is just symbolic. Stop buying things that are overpriced. Start supporting companies that do care and have demonstrated so. Organize commuities to avoid support for companies that harm everyday people. Workers organize and use your labor power to invoke change.

Otherwise the little guy will just keep getting smaller while the big guys get richer.

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One thing about oil. We are lucky in Tokyo that we can use trains and bikes to get around. But most of us have family in places where no such infrastructure exist. For them driving is like water in being essential to their lives. The have to drive for work, to take kids to school and to shop. And many cities have no money or plans for proper public transport.

One way we can fight the oil companies is to demand more public transportation in places that don't have it. Sadly this is a long and often losing proposition.

Maybe government price controls on an international level are required to reign in oil prices. And all nations should be looking to viable alternative solutions.

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As long as we let the market economy people drive the world just so they can make a short term buck, nothing will improve

I think you're trying to say that market forces encourage bad business, when in fact that's not the case. There are plenty of examples of companies who are making profits now by solid, long term thinking, such as Toyota. In the end it's the choice of the company, not market factors. If anything market factors would encourage long term stability and planning as evidenced by the companies that are on top and very well respected.

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"Hell is going to be chock full of oilmen in a few years"

Yes! These evil oilmen, in charge of the stuff that powers the world economy, how dare they make a profit, thus providing countless jobs!

Sarge

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So they try to legislate the oil companies into making oil cheaper. And then they turn around and want to legislate CO2 output.

Honestly, this is so ludicrious one could not make it up.

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Add restricting domestic oil drilling, and discouraging oil shale....

Oh, and buy up a lot of subsidized corn to turn into biofuel while your at it...

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PULEAAAAAAAAAAAAAAAAAAS

Like when proffits are down, yeah right the goverment jumps in to bail them out just like the airlines, banks and what ever, do they ever bail you and me out. Im amazed that dubya wasnt there defending them. You know gotta keep my daddys life style above the tax bracket.

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These oil execs should level with the American people and point the finger right back at these jerks we call our representatives. It is the actions of a few congressman that has prevented nuclear energy from being utilized across the nation, prevented new drilling in the artic and off the coast and it is these people who have failed to move the country away from its dependence on foreign crude.

Because oil companies are profitable, they are evil? I know evil when I see it, and its those people who are spending tax dollars that I'd like answering some questions.

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I arrived (this time for the long term) in Japan in September 2001, on the first flight after 9/11 allowed out of US airspace. Gasoline, in my local Esso station, cost Yen 69 a litre on that day. I checked today and it was Yen 169 a litre. Cui bono? FOLLOW THE MONEY!

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Oil Execs do not set the price of oil; world speculators do. They do not control the supply of oil and they do not tell America, "You cannot go after your own oil" to relieve the problem; that would be democrat-controlled Congress.

Now, if democrats were to allow the oil companies to explore off our own coasts and to build more refineries and they refused? Then there would have a valid arguement about price gouging. Until then, people need to look at the very people holding these so-called hearings - the dog and pony show they are putting on to deflect the real blame for this - the democrat-controlled U.S. Congress.

RR

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Why explore? When there are oil wells that have been drilled and capped and refuse to pump, why give the oil magnets the opportunity to scarf up more oil fields that they leverage and hold oil that they refuse to release.

Giving the oil drillers and magnets access to more oil fields only allows them to stockpile more assetts. It doesn't mean we'll ever see it.

Just look at Prudhoe Bay where they reduced the pipeline to reduce supply and this way they can cry supply and demand. They did this right under the nose of the American people and basically said, screw you.

Sure the congressional hearings were a dog and pony show. Remember the democrats have only had the congress for a year and a half. The six years before allowed the oil industry to pull off the Prudhoe Bay reduction. Remember folks, the price of gas has skyrocketed since Prudhoe Bay pipelines were reduced.

Oh, just as a small reminder. george bush was going to bring all this cheap Iraqi oil to the US. We were going to benefit from george bush's attack of a virtually defenseless country. Then he also wants to attack Iran, also.

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"The company leaders tried to shift attention from motorists’ anger over $4-a-gallon gasoline to a debate over new areas for drilling."

Heh - get in line Americans. Your price of petrol is still nothing in comparision with Europe. $4USD a gallon is around 88 cents a litre in real money. 88 dollar cents is around 56 euro cents a litre, whereas it's topping 1,50€ a litre here today. That's $10,60 ish a gallon.

The oil companies have been spanking us all for years - time to tighten the screw a bit methinks.

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Madverts - what is the percentage of taxes on that Europeon oil? The federal taxes are $.18 per gallon in the US.

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ramen,

Short-term solutions for non-renewable fuel sources that could even damage wildlife sancturies are at best myopic. As is blaming the democrats simply because they trounced the repubs in the '06 Landslide.

More oil is not the solution. An alternative fuel source, preferably a much cleaner one - to get us away from the fatter than fat cats in the global oil industry is the way forward IMO.

Wait till soccer mom's are struggling to fill up their poorly engineered SUV's that are stinking on juice at $10USD plus a gallon...the day can't be too far now.

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Adaydream,

E N O R M O U S :(

http://www.petrolprices.com/fuel-tax.html

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daydream;

It's clear you won't accept the fact that the oil companies are making higher profits on the volume of oil sold and only incrementally on the higher price of crude.

Do yourself a favor and educate yourself on the industry.

Exxon, BP, Shell, etc. don't control the crude market. They are consumers of the product.

Oil companies pay for the crude they refine. They pay market prices for the crude. They get incremental profits on crude in their pipelines between the time they buy it and the time they sell it. They are at risk for losing money if the price of crude drops between the time the buy it and the time they sell it.

Also, oil is traded internationally. America imports oil or oil products from 190 countries. America also exports oil or oil products to 173 countries. For example, plastic is an oil based product and we do a lot of import/export in plastics. There are around 150 non-oil producing countries who import all the oil they consume. All of this is being traded in a global market of which America is a large part.

The thing is, if we don't keep in there punching and bidding and competing for the oil then we suck hind teat and those some 150 non-oil producing countries and the other 173 countries that import oil are going to cut us out of the crude market and get rich at our expense.

The world runs on oil. Get used to it. There is not alternative to oil that is going to affect the global marketplace enough to cut global demand for oil. Even if the supply is good, oil is sold basically in a big non-stop auction. Perception of a possible problem in supply will drive the price up because if you don't have oil then your economy grinds to a screeching halt.

RR

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Thanx Madverts.

That re-enforces my past posts that the US motorists are paying a greater amount of their gas prices to the oil companies than the Europeon.

I'm not saying that Europe isn't paying too much for their gas prices. But when other posters start crying that Europe pays higher prices for their gas. Sure they are, but the greatest cost of their gas are taxes. A smaller portion of our gas price is taxes.

We're getting screwed by big oil.

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george bush was going to bring all this cheap Iraqi oil to the US.

Oil is the life blood of the world economy. It does not matter what side of the political fence you live on in America. If you think this is a political matter you are the one getting fooled.

RR

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There's some truth behind the supply and demand arguement as China and India consume more oil. But the irony is that the US government is handing the oil companies billions in subsidies for "exploration" while the oil companies rake in record profits. This is the absolute farce of the senate taking the oil execs to task in a public hearing. It's all just a sham for the cameras while both sides line their pockets at the expense of the public.

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We're getting screwed by big oil.

So, you wouldn't complain about the ensuing unemployment of millions of people who made their livelihood by working in oil-related industries across the country or gasoline costing, say, $30 a gallon if "big oil" decided to relocate out of the U.S. to a more coprporate tax friendly nation?

RR

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Wouldn't you love that? If the US oil industry moved outside the US. They'd get rid of all these US employees, have cheaper labor and costs and still charge us the same costs that they have been. Then really getting behind us and giving us all they got.

Why isn't oil being pumped from the Gulls Island fields?

Why was the Prudhoe Bay pipeline reduced from a 36 inch pipeline to an 18 inches pipeline?

The oil fields we have tapped is more than enough to last the next 200 years and we've only tapped into 3% of the available oil.

This is a scam of monumental size and we're paying out the ass for this.

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It costs no more to pump and refine petroleum into gasoline now then it cost 5 years ago and the costs of gasoline has jumped exponentially (sp). We're just being bled to death.

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most of these oil fields are under longterm contracts = they don't pay spot price for this oil. = very little reason for these high prices since I don't see a shortage.

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Then in the congressional hearings the oil ececutives wanted to talk about they only make $.04 at the pump. WHAT???? $.04 at the pump for each gallon.

Liars.

Then... We need to be allowed to drill more!!

Hell, they got wells that they don't even pump from.

Where are all the posters who support the theft of American dollars by the oil companies.

Pssssst.... Where are you? We know you're there.

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...who are funded by oil companies.

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I would probably agree that government subsidizing oil exploration is a waste, but why all the restrictions on drilling? Is the Peoples Republic of China really drilling for oil off the coast of Florida in a more eco-friendly manner than the Americans would be? And I don't think the number of wells is always the issue- California went through an energy crisis a few years back because they refused to increase refinery capacity. Also, it's my understanding that America's railroads are in disrepair largely because post-WWII "windfall-profit" taxes discouraged railroad companies from further investment in infrastructure.

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An alternative fuel source, preferably a much cleaner one" Oh believe me, we have alternative fuel sources, but there are not cleaner, in fact more dirty.. So, what do you want? an alternative or a cleaner alternative because for the short term, you really don't have a choice. Americans want both and you ain't gonna get it in the short.

government subsidizing oil exploration is a waste, but why all the restrictions on drilling?" the subsidies have a use, but if you are going to take them away from oil companies, you are gonna have to take it away from other industries..

"it's my understanding that America's railroads are in disrepair largely because post-WWII "windfall-profit" taxes discouraged railroad companies from further investment in infrastructure." Best comment yet. after WWII, America started heavily investing in roads and autos and let the rail roads basically go to rot. It is one of the biggest blunders of American economic history.

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but why all the restrictions on drilling?

There are oil wells drilled and capped on Gulls Island. More than enough for 200 years. But it's not pumped out and used.

Why should the oil magnets be allowed to continue to drill and hold oil in reserve and away from the ones who they say they are drilliung for?

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More faux outrage and grandstanding. Dems aren't serious about this problem. If they were they'd allow the same US companies to drill in Alaska and off our southern coast.

http://bp3.blogger.com/_of9ue2vob2g/R_d4Uy37yRI/AAAAAAAADJc/zoEOOZOe86A/s1600-h/supplyanddemand.jpg

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The idea to legislate low oil prices is ridiculous. Food prices are also rising, maybe next the democrats claim a world-wide conspiracy by farmers? There is no end to the stupidity and short-sightedness of these political demagogues.

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