Yes . Needs to be one.
No. Drilling and exploration costs have risen faster than oil producers’ profit margins, and most of those costs are capitalized, and most rigs last 15-20 years, which is why the costs show up on the cash flow statement rather than the income statement. And if they’re not on the cash flow statement it’s because the company is slowing down its drilling and reserve-acquisition, which means that you basically have an annuity that will run dry in 15 years. These reasons are why the “big oil” stocks trade at extremely low PE multiples relative to the rest of the market.
Oh wait, I’m talking about GAAP and valuation with a liberal. This is like talking about calculus with a 3 year old.
In a capitalist society competiton is supposed to control prices, not government fiat. High gas prices encourage consumers to seek more fuel-efficient vehicles which have less environmental impact, and alternative energy sources. Those things may help to cap prices even if competition among oil companies doesn’t. The taxpayers shouldn’t be asked to step in and pay billions to Exxon if there were record losses by the company, and the government shouldn’t move to cap profits when there are record profits, either.
Carter tried that and it led to gas lines.
Exxon made 10.5 billion last quarter, a large profit yes but not as huge as you may think for a corporation of it’s size. Exxon is by far the largest oil company, why do we look at profits of the industry instead of profits of the individual companies ?
Pepsi co made 1.5 billion and Coca Cola made 1.9 billion, does that mean we should start capping the price of soda ?
Walmart made 2.53 billion, do we then say put more American made products in your store and give your employees better insurance and lets cap your profits.
The oil industry is going to drop like a rock in 20 years, do we subsidies them after the oil market starts to disappear?
Big oil should be investing in alternative energy sources cause there will be very little oil left in 50 years. Seems they would want to corner the next energy market instead of re-investing in a market that is about to turn the corner.
Heck no. why punnish a company for doing well, So many people think the profit is going into the comapy pocket, Yes some does, but even you can buy stock. as long as the american public is willing to pay the price. they will make money. People who want to do somenthing need to use less gas. and not just complain when gas is over $3 a gallon. whould you like limits on how much money you make?
Don’t you think so too? Dems are working on a draft to stop big oil W has helped from doing the public like this anymore…I’ll be watching!
No. Regulation shouldn’t go that far. They earned that money and hopefully it will trickle down to its employees. Their employees do the hard work and the white collars exec. get all the credit and money. Meanwhile, working Americans struggle to deal with skyrocketing health care and home heating costs
But the govt. should end corporate welfare and providing unnecessary tax loopholes for these giant corporations.
Hell no!!! There is a huge difference between gross profits and profit margins. I you calculate how much they spent to make the gross profit and subtract all the bill they had to pay you get their profit margin. The gross profit is not what they get to stick in their pockets.
I think we need to find other sources we depend to much on foreign companies as it is now and if we don’t need their oil then we don’t need to be there..