Oil Companies are making 600% Profit? Thats what I heard. Is this true?
Will congress and new President address the price gouging?
Hey Tex Coach, I have an advanced degree in Political Science. How about you give the sheep a break?
Jeff Smoker, It is "Who is screwing whom?"
Gentle Giant....... Lets' say it is 8%. Those are huge profits due to the volume of gas that American's use. Grocery Stores only net about 2% profit, and you do not see them going out of business everyday. What we are witnessing in the oil industry is pure greed.
Drill here, drill now? We the American People own its resources and minerals.....including oil. Perhaps the government should contract the job out, pump the oil for us and sell it at a fair price. Oil companies are ruining our economy.
Just Plain Tim...........You are well on your way for the 10 points!!!! Great answer.
Heavy M. We do not all use the products and industries you listed, but we all use oil.
B.S.........Pretty darn good answer. Perhaps one of the better ones.
Ringo Larry....... The force is strong with you.
- Anonymous1 decade agoBest Answer
If that were true, even I, who wants America to nationalize the oil industry would be investing in oil stocks.
I believe the oil companies need to be nationalized and the profits go back to the people in the form of lower taxes.Same with our communications systems.
Where I live in China as a transplanted American, both are nationalized and a gallon of gas costs about a buck less, and my cell phone bill is obscenely little. About $15 a month and I use it extensively.
Plus, I pay zero sales tax, and tax on a home is very small to non existent, plus I have no income tax, despite that I make considerably more then the average person.
There is a lot of revenue to be made off of both which gives the people more disposable income. A win for the government, a win for the people, a win for our economy. It will just pizzzz off the fat cats, one that some love to support, yet they don't give a rats behind about their supporters.
We often hear that the oil companies have a vested interest to give alternative energy only lip service. What better way to take care of that problem then put energy in the hands of the people. We need a Manhatten type of program to help eliminate our dependance on foreign oil while putting on the fast track alternative energy sources. The oil companies will fight both till all we will have left is a drop in the bucket of what we really need, all while we, the tax payer, continues to give them welfare bucks.
What I fail to understand, people will fight tooth and nail to support the oil companies while continuing to pay high energy prices (at a profit that lines the pocket of the fat cat, who doesn't give one hoot about them.) and pay high taxes to boot. Kind of like, shooting themselves in the head just to prove they can. Makes no sense whatsoever.
I'm a capitalist, but when it comes to this, I must put my foot down and say, enough is enough.
Case in point, in Venezuela, who has nationalized oil, they pay 13 cents a gallon.
Think about it.
Oil is a commodity that the country can not live without, nor can the people. It is the countries life blood. It is not like cement, magazines, software, etc. Oil goes by the wayside and so does everything else..........that is one of the reasons I am for nationalize it.
Life is so simple, but we insist on making it complicated
551 - 479 BC
- 1 decade ago
Oil companies as a sector of the economy pulled an 8% profit margin. This is a record for the oil industry, and has led some to call for reinstituting the windfall profits tax that Jimmy Carter espoused during his term.
The idea of a windfall profit tax is that it would discourage oil companies from making profits over a certain level, because they would be obscenely taxed on profits above a specific amount. However, all that would cause oil companies to do would be to raise their prices even more so they can maintain an even profit margin -- thereby raising cost of gas at the pumps even more in the end.
More troubling, however, is how up-in-arms people are about a simply 8% profit margin. That's actually not extremely large. Compare the oil companies' profit margin with other industries' profit margins for a better perspective on the issue:
* Periodicals (19.1%)
* Railraods (13.9%)
* Resorts & Casinos (12.0%)
* TV Broadcasting (9.7%)
* Machinery Companies (13.1%)
* Industrial Electrical Equipment (9.0%)
* Cement (8.4%)
* Wineries (14.1%)
* Breweries (10.3%)
* Soft Drink Companies (10.0%)
* Footwear (9.8%)
* Toys & Games (8.7%)
* Software (22.1%)
* Internet Providers (12.1%)
* Long Distance Carriers (15.2%)
* Business Software (9.8%)
Next time you want to go after "Big Oil", you might consider going after "Big Soda" instead. Or maybe "Big Cement." They're price gouging, too, evidently.
Or, this is a great example of a free market economic system at work and needs to be left alone.
- ?Lv 44 years ago
There is a great difference between the profit of Oil Companies and the profit margin of gas stations. The Oil Companies are very greedy and always have been.We can thank our so called friends in Saudi Arabia and Kuwait for the price of Oil being so high. They have used the USA for their purposes and exploit us after we saved Kuwait. They are no friends of our country and the sooner we realize it, the better we will be off. We need to drill for Oil in Alaska etc.
- 1 decade ago
Wrong. By a ridiculous margin.
Average oil company profit margin: 8.2% in the 3rd Q. '05.
Compare this to Microsoft (32%) and Coca-Cola (21%).
The Oil Indusrty's average profit margin is just 1.4% more than the average margin of other Industries.
Going further, about 50% of an oil company is owned by stockholders. 49% is owned through 401Ks--RETIREMENT ACCOUNTS FOR COMPANIES. If you look into your 401K, if you have one, you will likely find that it includes an oil company. That's right: YOU LIKELY OWN AN OIL COMPANY. That means that increased taxes on oil companies means less money towards your retirement.
Less than ONE PERCENT of an oil company is owned by the "evil oil company bigwigs" that liberals always whine about.
And by the way, Jim: you live in a Communist country. Gas prices there are artificially low to get ready for the Olympics. The government uses subsidies to bring down its price.
In addition, Venezuela pumps its own oil and can afford to have 13-cent-a-gallon oil. The US, on the other hand, exports a trivial 20,000 barrels of oil every day.Source(s): http://www.gravmag.com/oil.html
- How do you think about the answers? You can sign in to vote the answer.
- 1 decade ago
you can't make a 600 dollar profit
most of the "profits" that are made are by the government that tax the gas up to 60 cents on the gallon and they also plan to tax the actually small profits the gas companies do get
Taxing profits is Socialist
and you don't buy gas from countries by the gallon you buy it by the Barrel
Drill here Drill now
- amber 18Lv 51 decade ago
No, that is just plain ridiculous
They make a lower profit margin then most of the products you use every day... (soda, clothing, hygiene items, etc.)
However, the gov't makes 15% profit on the gas you use... maybe you should ask them what they're doing with their cut of the pie...
- Anonymous1 decade ago
No, it is not true.
Oil companies are making a profit of about 8% on sales.
Oil comlanies net 1/5th as much, per gallon of gas, as the government does.
Oil companies profit rate is less than that of most major industries.
- annie wLv 61 decade ago
They make an 8-9 cent profit per dollar. Better to address your government who is making 5 times that amount, at 40-45 cents per dollar. ***
- needmorestuff2Lv 41 decade ago
I heard that Iraq has .35 a gallon for gas. They are the cheapest country for fuel. So the math sounds about right 600%
- darrin bLv 71 decade ago
it's close to being true.
yet, we are constantly paying these companies CEO megabucks to rip off this country.
and their profits are not being taxed heavily because they insist that they're using their profits to develop alternative energy fuels.
obama wants to stop subsidizing the oil industry. he wants to tax their profits. because after all this time, and after billions and billions of profits, if the oil indiustry haven't found an alternative fuel method now, they never will.
and we all know that they don't want to find one. why should they when they're making a killing off the public.
and why are they sitting on 68 million acres of leased land and not drilling on it?
because they want to continue to milk the public for every penny they can get.