Originally posted by MxRacer:
Originally posted by XKontour98:
You would think with 8.4 Billion in profits in the 1st quarter they could afford to upgrade their refineries on their own! That's 8.4 billion above and beyond all operating costs.



why would they?? they have no reason to do so.

and jato... your comparisons are weak. i have to believe you know better.



Given that it would take over a decade to get through the regulatory hurdles that the idiots at the EPA have put in place, why would they invest in something that gives them an UNCERTAIN single-digit return 10-15 years out when they can sink that same amount of money into bonds today and get a GUARANTEED return in the single-digits?

Even better, why wouldn't they sink that money into low-risk stocks (dividend-paying bellwethers) and probably see a double-digit return across that same period of time?

The price of oil does correlate to the price of gas; it's not rocket-science though many components do go into setting the price. The comparisons, though rudimentary and basic, try to show that Exxon's CEO isn't sitting in Houston yanking on the "screw the consumer" lever next to his mahogany desk.

If you want to b!tch about getting screwed, complain about something valid; yes, the current prices suck compared to where they used to be, but for a society to piss and whine about paying a buck more a gallon for gas (somewhat of a necessity) when they are paying around $100 a month for luxuries like a signal being piped down to their TV's via a satellite link or shot through coax to their cable modems, there's a problem...

Yes, the cost of gas has close to doubled over the past few years; have oil company margins or profits doubled, despite climbing to record levels (only by a few percentage points)?

NO.

The price really hinges on speculation in the energy market; if you want to set artifical price controls, talk to your Congressman about nationalizing all trading markets and see how hard you get laughed at.

The cost of inputs are climbing, but speculation takes into account more than just these hard costs; there are "soft" costs to consider as well and it is a combination of these with the hard costs that are causing the discomfort in terms of price.

Then again, since the average American has debt up to their eyeballs and more interested in getting Oprah piped into their idiot box at home, it's no wonder they can't adjust their budgets to reflect a spike in certain necessities...

JaTo e-Tough Guy Missouri City, TX 99 Contour SVT #143/2760 00 Corvette Coupe