Oil company tax credits Topping the list for repeal are: Tax breaks for refinery expansion and for geological studies to help oil exploration.

The size of Oil Company profits is such they do not need tax brakes for refinery expansion or other forms of energy. By the way what new refineries has big oil opened in the past 20 years?

As usual, it all comes back to increasing taxes on people who make more money than him.  Go ahead gene, increase taxes on "oil" and let us know how that works out.

LOL.

 

LOL.  By the way, who are the people that are opposed to new refineries?

 

what he is too stupid to know is that the oil companies would just pass those taxes on to us and him.

Why thanks SanChonino, I'll try not to disappoint!

And in reply to Moderateman-



  

My Gods, sometimes you crack me up. I would ask you to take a chill pill but then you wouldn't say things like this that make me laugh.

Reply By: danielostPosted: Thursday, November 08, 2007As usual, it all comes back to increasing taxes on people who make more money than him. Go ahead gene, increase taxes on "oil" and let us know how that works out.what he is too stupid to know is that the oil companies would just pass those taxes on to us and him.

The excess profits tax would then take back any price increases the oil companies would add and they would learn increasing prices to add to their profits would not work and the added tax revenue would help us become more energy independent as we built non-oil energy facilities!

The so called market is not moving us to anything close to be more energy independent. All it is doing in adding to the huge profits of the energy companies and the average person and all companies are paying the higher prices for energy which will increase inflation. Bush himself has said we have a major problem but refuses to change our policies to resolve the problem.

Oil Company Profits: Just Who Is Gouging Whom?
by Alexander Green, Investment Director, The Oxford Club


The new speaker of the House, Nancy Pelosi, calls oil company profits "obscene."

And at first blush, many would agree. Over the past 12 months, for example, ExxonMobil has made pre-tax profits of $164 billion on sales of $369.5 billion. That's a lot.

But are big oil company profits bad?

Hardly. Companies exist to maximize profits. Profits are what keep workers employed. They keep companies innovating, creating new products and services. They keep the economy humming and the country strong. And they allow you and I to invest and secure our financial future.

Even the school teacher who plunks some of her retirement account in an S&P 500 Index fund benefits from Exxon's rising share price - which is a direct result of Exxon's rising profits.

Many will argue that there is nothing wrong with an oil company's profits, per se. It's just that Exxon is gouging us at the pump. They're making too much.

But are they? After all, Exxon can't dictate gasoline prices. Markets determine the price of oil. It's supply and demand that sets the price at the pump.



Oil Company Profits

The Investment U e-Letter: Issue # 653
March 23, 2007

Oil Company Profits: Just Who Is Gouging Whom?
by Alexander Green, Investment Director, The Oxford Club


The new speaker of the House, Nancy Pelosi, calls oil company profits "obscene."

And at first blush, many would agree. Over the past 12 months, for example, ExxonMobil has made pre-tax profits of $164 billion on sales of $369.5 billion. That's a lot.

But are big oil company profits bad?

Hardly. Companies exist to maximize profits. Profits are what keep workers employed. They keep companies innovating, creating new products and services. They keep the economy humming and the country strong. And they allow you and I to invest and secure our financial future.

Even the school teacher who plunks some of her retirement account in an S&P 500 Index fund benefits from Exxon's rising share price - which is a direct result of Exxon's rising profits.

Many will argue that there is nothing wrong with an oil company's profits, per se. It's just that Exxon is gouging us at the pump. They're making too much.

But are they? After all, Exxon can't dictate gasoline prices. Markets determine the price of oil. It's supply and demand that sets the price at the pump.

Oil Companies, Profits, and the Courts

Some Americans are skeptical on this point, I know. So I direct them to last year's Supreme Court decision. The court ruled unanimously that oil companies have not been colluding to set prices.

Oil prices are high today because the economies of huge nations like China and India are developing rapidly. More oil is being demanded in the world market and there are few new sources of supply.

Hurricane Katrina destroyed a lot of oil processing capacity around the Gulf of Mexico too, so there has been less oil being processed. When less oil is supplied, gasoline prices rise.

What does the average oil company make today on the sale of a gallon of gas? Ten cents.

The federal tax on gasoline, on the other hand, is nearly twice that. Then there's state gasoline taxes. (If you live in New York, for example, you're paying 68 cents a gallon in taxes.)

If Exxon is gouging us at ten cents a gallon, what exactly is the federal government doing to us at 18.4 cents a gallon?

Who Is Gouging Whom?

After all, Exxon has to compete with other oil companies both here and abroad. It has to spend billions on exploration, billions more on development, and further billions on refining and transportation.

As a result, it's hardly making money hand over fist. Earnings at Exxon rose 9% last year but fell 4% in the fourth quarter, underscoring the challenges of rising costs and lower commodity prices.

And Exxon's profit margins are only 10.7%. Profit margins at Microsoft, on the other hand, are 26%. Perhaps we should pass a windfall profits tax on software companies.

Because that's what Big Oil's opponents really want: a bigger federal gasoline tax. Why? To fund the search for alternative sources of energy, such as ethanol and nanotechnology


in other words they want to steal money from the oil companies to put them out of business. this also includes gene.

Markets determine the price of oil. It's supply and demand that sets the price at the pump.

That is a LIE. The current supplies of gas are high relative to demand but the price of gas is at an all time high! Oil companies can set prices apart from supply and they also can control supplies and create artificial shortages to increase prices. Anyone that argues the free market is working in the oil business is simply not telling the truth!

Something people like gene just don't understand.

 

Reply By: Island DogPosted: Thursday, November 08, 2007Companies exist to maximize profits. Profits are what keep workers employed. They keep companies innovating, creating new products and services. They keep the economy humming and the country strong. And they allow you and I to invest and secure our financial future.Something people like gene just don't understand.

Profits do keep companies viable but the profit levels of oil are FAR beyond what is needed to keep people working. You failed to explain that if it is supply and demand that sets the price in the oil business then the high level of supply would be driving DOWN prices not sending them to all time highs.

the only problem is the demand is also high. and the higher the demand the higher the price.

Don't confuse poor Gene with such advanced economic concepts as Supply & Demand. That is at least 10th grade level stuff, and that's just a bit out of Gene's league.

Reply By: danielostPosted: Thursday, November 08, 2007You failed to explain that if it is supply and demand that sets the price in the oil business then the high level of supply would be driving DOWN prices not sending them to all time highs. the only problem is the demand is also high. and the higher the demand the higher the price.

Prices increase when DEMAND is HIGH relative to supply in a normal market situation. The supply of Gas now is high compared with demand and the prices should be going DOWN but are going up and are at an all time high. The oil industry is controlled by large and powerful companies that can manipulate the price and supply and the market has very little to do with it. The option of switching to another producer is not viable and the nature of the product is that for most people it is essential. That is why Government needs to offset the power of Big Oil to protect individuals and business from the predatory power of BIG OIL.

Supply and demand are working because of the control oil has over supply and price.

oil is high. our ability to make gas has been maxed out for over a year. so demand is higher than the supply of gas.

Reply By: danielostPosted: Thursday, November 08, 2007oil is high. our ability to make gas has been maxed out for over a year. so demand is higher than the supply of gas.

The Fed says there is no current gasoline supply problem. This is not a time of high travel.