Roland Hulme

I'll push my Lincoln home, then.

Bluegrass Lass

I understand all about competition. In reference to the discussion, you are relatively limited regarding your choice of oil companies to buy from. And the prices are always within pennies of each other. For all we know, there could be a bit of illegal price-fixing going on here. The fact that their profits are increasing implies their overheads are decreasing. And most of the oil companies were announcing record profits (not just this one), which implies, IMO, that overheads are dropping, inferring the price of crude is dropping, but the price is not dropping to reflect that. As Ray mentioned, I would need to see all the details to get the whole picture, but on the surface it appears to me that there's some lying going on.

Oh yes, and most projects are all about cost cutting, or new equipment that will reduce costs, which gives more jobs to people like me (an engineer). Maintaining your profits does not mean you're stagnating, it implies you are maintaining your market share. Which implies you are employing more people to reduce those costs, expanding your R&D to introduce more products, expanding warehouses, assembly plants, etc. And of course, the consumer may have to eat the price increase for all the add'l overhead, but that doesn't mean that you keep charging increasingly more just to make more money. What is wrong with keeping your profit % increase to stay in line close to inflation? I'm not saying that you can't reasonably expect there to be growing profits, but when is enough, enough?? You can only buy so much shit with your millions, and you can't take it with you to the grave.

TBH, I wasn't aware that anyone actually monitored the savings rate. All I ever hear about is the % rise in GDP, increase foreclosure rate, % increases in profits for retailers. I have yet to hear one economist express concern about the level of savings in this country. Hell, our esteemed president wants to give us more money so we'll just go out and spend it.

I didn't pay much attention to news during that time, but I don't remember oil companies announcing record profits during that time. Some don't have the luxury to drive less. Some can't afford to live closer to the employer due to cost of living. And some don't have access to public transpo or carpooling. This works for you, but probably not the majority.

I'm not jealous per se. Would I like $150m bonus? Sure, I'd probably take it, but then feel guilty afterward. But as you said, it's not being tied to performance, which I completely disagree with. OH and I have had debates about making those sorts of bonuses illegal. I don't entirely agree with it, but the idea has merits. Imagine if the $150m bonus was used to build a new oil refinery instead. At least that would help the threat of shortages.

Yes, that's true. I'll have to think of a suitable reply and come back.

I won't go there. I think it could be a strong likelihood. He wanted to go into Iraq after all didn't he?? Since we now know there were no WMDs, what other reason did he have to go into Iraq except for oil. That doesn't mean I have enough info to realisticly prove it though.

I believe in some version of capitalism, but not the form we have today. I've not spent any time studying diff types of economies, but I don't think a pure capitalistic market can survive forever - eventually it'll burn itself out. But I will admit that economies and the study of economics is a bit beyond my ken. I just try to think of things in the simplest terms possible - which may not be feasible with regards to economics.

Roland Hulme

I'll admit, I'm probably guilty of what a lot of Americans are.

I drive a gas-guzzling car because it doesn't break the bank and it's nice and convenient and comfortable - so I guess I'm willfully contributing to Exxon's profits by using more of their product than I need to.

If I'm low on gas, I'll pull over to the nearest station - I never really look at the prices to see if it's going to be more or less than aother nearby station because I stupidly figure 'it'll all roughly be the same price' - so I'm willfully contributing to Exxon's profits by not going to a cheaper gas pump.

So, really, I've got nobody to blame but myself.

I think millions of Americans do exactly the same as me - hence Exxon's profits.

BritGuyTN

india and china's use of petroleum products is expanding massively, supply and demand means that prices go up since there is less to go round, not that overheads are actually dropping

keeping your profit increases in line with inflation is only maintaining it and means you are potentially LOSING market share compared to competitors if your market is growing

as my other post said, company directors have a legal duty to look after their shareholders

this means increasing profits and shareholder returns

chicagojlo

Here's an idea, don't fill up at Exxon if you don't like it!

Bluegrass Lass

It's not just Exxon CJ. The majority of them have high profits. If I follow this logic, how am I to get to work if I don't buy the gas. Unfortunately this industry has us by the balls - we can't not consume it (until we can all afford hydrogen cars).

BGiT, I understand the legal obligation to shareholders. Shareholders can mean you and me, if we own stock. Yes, I would expect to see a return on my investment, but making money at the expense of others would not make me cozy and warm inside. That's how I view these insurance companies - but I understand for some that it's all about the $$.

Tracym

Well heck, if all you want companies to do is maintain their profits, year after year - I guess you won't be wanting a raise then ever - you should just maintain your salary year after year.

Capitalism is about making profit. And it's the shareholders that profit - the company is doing what they're supposed to do. Any money made is "at the expense of others" - one spends it, one makes it.

Communism didn't turn too well.

And Exxon can't be charging radically more than all of their competitors - or they'd be out of business. If you think they're horrible and awful and worse than their competitors - don't buy their product.