Oil Profits Suggest Big Oil May Be Gauging Americans

AP:

Historic oil prices and $3-a-gallon gasoline have been contributing to fears of a recession, but they've yet to cause the hue and cry that some might expect. Americans may simply be growing more accustomed to high fuel costs, analysts say.

All that may change beginning Friday, when oilfield services giant Schlumberger Ltd. kicks off earnings season for the oil sector. Companies may not post record profits, but certainly may report big enough earnings to raise some eyebrows.

Given the weakening economy and prospects for $4-a-gallon gasoline, hefty oil profits are almost sure to renew debate over whether Big Oil is profiting at the expense of most Americans.

Read the whole story: AP

Comments

[loki]

Daaa, ya think???

But what will anyone do about it?

NOTHING

[jashu51]

You say "gauging", I say "gouging".

[totaldisbelief]

WELL.....DDDDAAAAHHHHH !!!! Do you think???

[SmolderingRuin]

Gee, ya think?

[realitytrumpsbull]

A parked car consumes no fuel.

[mediamarv]

Why the qualifier "may" when it is obvious they are.

[godlessclif]

"Worldwide demand is up. We're using 20 million bbl/day in the US alone, that's about $1.8 billion per day."...dendroica
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Yeah, F-15s and M1-A1 tanks use a lot of fuel. The wars are increasing oil demand and diverting the engineering talent that could solve the energy problem to weapons industries.

[mrcontinental]

Wow, who would have ever thought such a thing possible.

[americaforme]

Lucky you jerks dont live in Alaska then you'd know how it hurts to buy 150 gal fuel oil...Try ($525.00) At an average of -20 that does'nt go very darn far...Electric is produced by oil, now were looking at another ($275.00) I'll take my tent and head out this spring,to the lower states,I'd rather not freeze in my old age. Food is so expensive, and you have to eat more calories in -20 temps. I never thought I'd ever see such greed and unpatriotic americans...outsourcing our country,starving its people of their rights,it makes me ashamed to be an American.

[Dunnage]

Well at least in the 70,s when we were told, and by the way believed, that oil was going away -- they made us wait in line to buy.

This time they don't even pretend it is supply and demand. See any shortages anywhere?

There is freaking fossil fuel everywhere and we will choke to death on the fumes before China and India ever place real pressure on supply.

[Troubledgoodangel]

Economy, stupid! Economy stupid! Economy stupid! Today, as I write, the gallon of gasoline is 7 dollars in Poland. This for U.S. retirees leaving on 765 dollars a month spells doom, when coupled with falling dollar nightmare of the past years! The dollar keeps falling each day, until the point where thousands of these Americans will die! Is this the "sound economy fundamentals" you were talking about, Mr. Bush, ... or have you been deceived? For me, the U.S. economy is gasping its last breath and needs urgent fixing, or else the whole of America will go begging for bread as during the Depression! I hope that we don't have to pay our ticket to China, to beg there!

[fact finder]

bu-duh

[jsj20002]

First of all. The word is "gouging", not "gauging". Second, there are at least three reasons for our having to pay $3.00 or more for a gallon of gasoline. 1. The value of the dollar has fallen 36% against the euro since Bush was inaugurated. 2. The demand for gasoline, and other oil products, has continued to increase. 3. The world market price for oil incorporates a high risk factor. The Bush Administration is directly responsible for all three events. 1. The national debt has increased from $5.7 trillion to $9.1 trillion so far, because of Bush tax cuts for the rich and failure to budget for the Iraq war. 2. The Iraq war has increased our military's demand for oil products to wage that war, but we have done nothing to address the general public's use of gasoline as we did in World War II. 3. Bush's inflamatory comments regarding Iran directly threatens both the supply and the transportation of oil from the Persian Gulf.

[thegreatgiginthesky]

What a freaking surprise.

[billu]

The problem is not the price at the pump, it's the price of the barrel. Most oil companies are involved in oil exploration and extraction. They get a piece of that pie. So when those prices baloon, their profits baloon as well. The refining costs plus profit margin are pretty much the same at 100$ a barrel oil as for 40$ a barrel oil.