# BP Soaring Profits



## GTO JUDGE (May 14, 2005)

Just read in the local paper here...............

*BP Profits surge to record $7.3 BILLION on soaring oil, gas prices​**
BP reported a 7.3 billion 2nd quarter profit. A 30% increase from last year, DESPITE reduced output and rising costs.

"BP's record performance EXCEEDED the expectations of Wall Street analysis who anticipated 2nd quarter profits from the worlds 6th largest publicly traded oil company to surpass 36 BILLION in profits." (I think they meant 36 million, not billion)

Conoco Phillips is set to release their 2nd quarter profits today...

Get this >>> BP Chief Executive John Browne announced Tuesday higher tax rates are cutting into the company's profitability.. NO SH$T. 

The gov't restructures their tax rates hoping to slow down the rising costs of gas prices and these BAS$$$S raise the price to counter it.

Imangine that........ 7.3 BILLION in 2nd quarter profits......

I am glad I have a part in their gross gluttony.*

*
Can't wait to hear what Exxon, etc is going to report..........*


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## CrazyAL (Jan 30, 2006)

The oil companys' profit margin's are in line with many other industries and are WAY lower than some others such as resturants. That's all I am saying b/c I don't like debating about things like this.:willy:


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## GTO JUDGE (May 14, 2005)

*This was reported after I posted the first one.......

EXXON reports only a 10 BILLION profit for the 2nd quarter.....Highest profits on record ever reported anywhere.(according to CNN)

GOD BLESS THEM*


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## The_Goat (Mar 10, 2005)

I wish our goats ran on Ethanol...


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## GTO JUDGE (May 14, 2005)

The_Goat said:


> I wish our goats ran on Ethanol...




*Ya know.... IMO.... Ethanol will NOT take off.... we went through this in the 70's during the oil embargos...Ethanol was the answer, it didn't pan out. Now all this hysteria and rushing to build Ethanol refineries is surfacing again. The oil companies know this won't happen, and they will proceed with their game plan and rake in obscene profits. Already there is opposition to building ethanol plants in people's back yards.... In PA where there is a proposed site, people are banding together to fight it, reminiscent of the fight people are putting up against Wall-Mart. 

Our dependence on oil will never cease. Although Ethanol will be around it will not replace oil or even put a dent in the demand. When all this hysteria dies down people will all resign themselves to the fact that we are all powerless to do anything about it. If we all conserve, then the oil companies will decrease output and raise the price, if we use as we have been they will raise the price anyway.

There is one E-85 filling station in my area and people are using it for a few cents a gallon cheaper than gas... A FEW cents cheaper. A few cents a gallon cheaper than gas IS NOT the answer......

Long term effects on the internal parts of engines as a result of using Ethanol is not fully known. Putting Ethanol in your engine now and running it may end up damaging the internal works. Corrosion will eat it up the insides. We're screwed no matter how you look at it... The only recourse we have is to make the best of it

The only way in my opinion to neutralize the Oil Companies is to regulate them. I don't think that will ever happen because Oil Companies are a Special Interest Group. When you have politicians in your back pocket you can do anything you want. .*


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## Kanding (May 29, 2006)

GTO judge said:


> *The only way in my opinion to neutralize the Oil Companies is to regulate them. I don't think that will ever happen because Oil Companies are a Special Interest Group. When you have politicians in your back pocket you can do anything you want. .*



:agree


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## Groucho (Sep 11, 2004)

Socialism sucks.


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## noz34me (Dec 15, 2005)

What pisses me off nearly as much as spending $50 to fill up a car, is the Towel Heads over in the MidEast read this crap, and it justifies them gouging us as well!

Hell, if our own companies can screw us over, how can we expect our enemies not to as well?


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## fergyflyer (Apr 18, 2005)

Groucho said:


> Socialism sucks.



Dead nuts on. :agree


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## fergyflyer (Apr 18, 2005)

noz34me said:


> What pisses me off nearly as much as spending $50 to fill up a car, is the Towel Heads over in the MidEast read this crap, and it justifies them gouging us as well!
> 
> Hell, if our own companies can screw us over, how can we expect our enemies not to as well?


The run up in oil prices has the middle east scared. With prices at the level they are people start to make lifestyle changes. Those changes involve long term reductions in the amount of oil consumption. The high price of oil also acts like a tax and causes recessions and economic slowdowns. The two combined causes a massive price freefall. In addition oil exploration is on the rise again which means there will be more sources for oil which again reduces their control of the oil market.


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## b_a_betterperson (Feb 16, 2005)

If people had any idea how much oil is around -- they'd really get P.O.'d. 

For example, stated OPEC reserves are for light crude only. They don't even bother projecting heavy crude -- or even looked at pumping any of it yet -- and that's pretty much all that has been pumped in the United States for 20 years. The Saudis just granted Chevron the right to test steam injection just to see how much of the stuff they can draw out of the ground. And Venezuela has more heavy oil in its Orinoco Belt that's ever been pumped in history. Think about that.

Sooner or later, hopefully sooner, these B.S. prices will collapse. I remember people running around in the 70's like idiots saying we were about to run out of oil. Yeah, right.


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## Russ Schaeffer (Jun 3, 2006)

Free market baby. Take the 50 cents of tax off every gallon and the price wouldn't be so bad. The only problem with gas is there is no competing product, they won't let us drill anywhere, we have 60 different EPA grades and building a new refinery is impossible due to government and environmental demands. What did you think that was going to do to the price of gas?

Thanx,
Russ


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## GTO JUDGE (May 14, 2005)

Russ Schaeffer said:


> The only problem with gas is there is no competing product
> 
> Thanx,
> Russ



*Now wait a minute....... Yes there is, it's coming..... ETHANOL.....​:rofl: :rofl: :rofl: :rofl: :lol: :lol: :lol: :lol: :lol: :lol: *


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## Don (Sep 20, 2004)

It is not like we are not helping them along every time we mash the go pedel. 
I ride my bicycle to work fairly often which save me about $10.00 a week plus helps keep me in my current size cloths. If you don't like how much you are paying for fuel do something to change your consumption habits.


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## b_a_betterperson (Feb 16, 2005)

Russ Schaeffer said:


> Free market baby.


BS alert! BS alert! BS alert!

Taxes: Remove U.S. taxes from gasoline -- and we pay more at the pump than the Europeans do after their huge taxes are removed. Yet countries like France import 100% of their oil -- while we still provide about half of our oil needs domestically. BS. BS. BS.

They Won't Let Us Drill Anywhere: Tracts just sold off the Louisiana and Texas coasts. True, the oil companies can't drill EVERYWHERE -- but they're getting rights. Besides, Alberta has Saudi-like tar sands reserves -- and no American oil companies are buying any oil from them. BS. BS. BS.

60 Different Grades of Gas: Yep -- and one or two formulations can cover all of them -- if the oil companies just wanted to adopt an all-encompassing standard. But they don't. As a result, they can gouge Californians because of their "special" grade of gasoline -- yet all they have to do is sell the cleaner California grade of gas in Washington, Oregon, Nevada as well. Then again, if they were to do that -- they couldn't overcharge us. BS. BS. BS.

Building a New Refinery is Impossible: Actually, they could build as many refineries as they want -- on Indian reservations. In fact, a Utah tribe just decided to have nuclear waste stored on their land -- and the State of Utah and Federal Government can not stop them. If Indian tribes can do that -- they can do ANYTHING. Refineries aren't being built because the oil companies don't want to build them. In fact, oil companies have funded anti-refinery campaign when outside investors file plans to build them. BS. BS. BS.

Free markets can be manipulated -- just like California's market for spot power was manipulted by Enron, Mirant and Duke a few years ago. The oil companies are doing it now. "Oops, a bird crapped on this refinery -- gotta close it for a week." Price of gas and oil futures goes up. 

And why have one-half of U.S. refineries been closed since the 1980's? Those nice people at the oil companies couldn't have closed them all to reduce capacity and create a bottleneck now, could they?

That's OK. OPEC has decided enough's enough -- and is going to build additional refining capacity -- effectively cutting the throats of the multinational oil companies. I hope they go even farther and establish their own chains of branded service stations -- thereby cutting BP and ExxonMobil off from the distribution chain altogether. I would love it.

You should send your resume to the Bush Administration -- because you sound just like all the energy industry apologists that work for it.


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## fergyflyer (Apr 18, 2005)

Don said:


> It is not like we are not helping them along every time we mash the go pedel.
> I ride my bicycle to work fairly often which save me about $10.00 a week plus helps keep me in my current size cloths. If you don't like how much you are paying for fuel do something to change your consumption habits.


Funny you should suggest riding a bike. In the middle of May I bought a bike with plans to start riding a little. I was getting the bulk of my exercise riding an exercise bike. I started riding the 10.5 miles each way twice a week. In 2 1/2months of riding I've paid for the bike and lost an inch off my waist. It takes me about 35 minutes instead of 20-25 minutes and I have made it in 25 minutes once. ( I almost posted it in the racing kill section. My Trek combo moutain/road bike beat another guy on a dedicated road bike. Pissed him off). I'm now riding 3-4 days a week. I also hop on it to go to the post office bank and a bunch of other short trips. My fuel bill is less than half what it was 3 months ago.


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## Russ Schaeffer (Jun 3, 2006)

betterperson,

Quote: "You should send your resume to the Bush Administration -- because you sound just like all the energy industry apologists that work for it."

The personal attacks are a weak argument, lets talk about the issue, instead. If you want to see the oil companies as a big evil menace, knock yourself out. If you think they are making too much money, why don't you share in the wealth? Go out and buy all the oil company stock you can afford and get rich. But let me give you some investment advice, oil company stocks don't return much revenue, traditionally. Maybe that will change but I'd bet on Starbucks before that. Let's see, brew a cup of coffee and sell it for three bucks a half pint and you don't have to drill for coffee beans. I think I see a profit center.............

Thanx,
Russ


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## b_a_betterperson (Feb 16, 2005)

Russ Schaeffer said:


> The personal attacks are a weak argument, lets talk about the issue, instead.


Great. Instead of giving out crappy investment advice, try addressing the counterpoints which have blown gigantic holes in your lame attempt to justify the high price of energy.


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## Russ Schaeffer (Jun 3, 2006)

Be a better P,

The price of gas is what it is. It's the current market price. For prices to get lower a few things will have to happen. Less demand, more supply, less regulation and more competition. It's the same for any business. Restrict trade through agressive regulation and prices soar. I don't see any of change in demand anytime soon. Blame the "Robber Barons" if you wish but if one oil company could gain a market advantage by cutting gas prices, they would. The Free Market rules and sets the current price, believe it or not. 

Thanx,
Russ


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## Mickey21 (Jun 18, 2006)

No to get involved because it is really pretty pointless, but I am in favor of commerce and letting your dollar do the talking. Supply and demand and all the jazz... Let the price and availability speak for itself. Oh well...


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## noz34me (Dec 15, 2005)

Russ Schaeffer said:


> Be a better P,
> 
> The price of gas is what it is. It's the current market price. For prices to get lower a few things will have to happen. Less demand, more supply, less regulation and more competition. It's the same for any business. Restrict trade through agressive regulation and prices soar. I don't see any of change in demand anytime soon. Blame the "Robber Barons" if you wish but if one oil company could gain a market advantage by cutting gas prices, they would. The Free Market rules and sets the current price, believe it or not.
> 
> ...


The "current market price" is being driven up by speculators, who, along with OPEC help set the price for crude. Every time somebody farts, or it rains on a refinery, the price is going to jump.

Even though gas is twice the price it was not long ago, demand is up from last summer. There's no logical reason for it other than price gouging and excessive profiteering. 

Yes, our country and economy are based on a free market. Unfortunately, the number of oil companies in this country, and refineries doesn't support competition. When I see prices within a 100 mile radius where I live go up, then down, then up, then up, all in a completely orchestrated way among EVERY gas station, don't talk to me about a free market.

Frankly, as someone said, if the towel heads want to build refineries that's OK with me. When it comes to getting screwed on gas, I'm all for the guy that makes it less painful. Another thing, I haven't heard of many hurricanes in Saudi Arabia, so I guess the speculators will need to focus on sandstorms to drive the price up when those refineries go on line.

My rant.


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## Russ Schaeffer (Jun 3, 2006)

noz34me,

You are 100% correct. Oil is traded as a commodity. The high prices today are based on speculation. The market may or may not support the high price but indicators are that the current pricing is about right. 
There is no conspricy on gas pricing, gas stations respond instantly to the high market price and base their pump price on future gas costs. The oil companies notify the gas stations what the price will be on the next delivery and they instantly change the price based on that information. 
The lack of competition is not so much due to the limited number of players in the gasoline selling business but due to the fact that there is no competing product for gasoline. If and when a cheaper fuel becomes available the entire market will switch and gasoline will have some competition. This would be like our home heating fuel that has gone from wood to coal to fuel oil to natural gas. The market will instantly embrace a new and cheaper product.

Thanx,
Russ


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## missouriGTO (Jul 1, 2006)

I lease about 6 million gallons of storage to ConocoPhillips, so in fairness I'd like to look at Exxon as an example. First quarter of 2006 Exxon reported 8.4 bil in profits. If you look at thir throughput and profit in all phases of the production of that gallon of gas, their profit is around 28.5 cents / gallon. Maybe the government can come in and slash their profits in half. Your 3$ gas now costs you 2.85. Not what I would call cheap. It is important to remember that when we try to put the squeeze on a publicly traded company, we are not "sticking it to the man". We are sticking it to every person who invests in that company and has facilitated those profits. Check most company 401k plans, mutual funds, etc., and you will find investments in these oil companies. Exxon employs 86,000 people and pays very good salaries, and these are the people that will suffer to save us a few cents on the dollar.
Maybe the government could make a few sacrifices on their end. Exxon invests and works to get their product to the market and makes 28 cents a gallon. The various government entities do absolutely nothing for the process but regulate, regulate, regulate, and are rewarded with an average of 46 cents per gallon. First Quarter 2006, Exxon Mobil paid $25 BILLION (!) in taxes, which is three times what the same legislators decry as "obscene" profits.
As far as closing refineries for no reason, thank the government again. Due to fines and penalties that can creep into the tens of millions per incident, the refiners will not hesitate to put the facility on standby to make repairs/changes that 15 years ago would have required only a short production drop. Statistically speaking, refineries have some of the shortest downtimes and highest operating efficiencies of all industrial processes. As to the half of refineries being closed since the 80's, most of those were lower bpd output refineries that would have required major changes to get into compliance to meet regulatory requirements. The oil companies simply invested in moving that production to the larger refineries.
It takes somewhere around $4.60 to get a barrel of oil out of Arab ground. You have them to thank for your markup. By the way, the new refineries our friends at OPEC countries are building are not for us. They are intended to meet the expected demand increases by our pals in China. Thanks


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## fergyflyer (Apr 18, 2005)

:agree 

Great post with good insight into the industry.


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## b_a_betterperson (Feb 16, 2005)

missouriGTO said:


> Exxon employs 86,000 people and pays very good salaries


Yeah, like the retired CEO who got a $400M exit package. 

I'm done here. No point in wasting my time with a parrot that is trained to squak "free markets, baby" yet has no answers to previously made counterarguments against his gross oversimplifications to justify what's going on.

As for oil company margins -- I'd buy that argument if refinery margins were the same now as they were a few years ago -- but they're not. They gone up exponentially. All those mergers happened for a reason.

As for refinery capacity, you can blame the government and environmentalists for their penalties, blah, blah, blah -- but if they wanted to build refineries, they could. Just make enough campaign contributions and the rest would take care of itself. But why should they? Why spend the money for additional capacity when you can create the impression among consumers that they should be damn lucky to have gasoline at all -- so they'll gladly paying anything just to get their hands on it? I know some hedge fund guys that wanted to buy a few of those refineries that were being closed -- made a bunch of enquiries -- but their calls weren't returned. Hmmm. As for OPEC building new refineries to only serve China, etc. -- that's pretty damn funny. Like their spigots are going to say "To China Only" on them. LOL.

Bottom line? If you're OK paying double or triple what you should be for gasoline, fine. Doesn't affect my finances in the least. Just don't tell me it's right -- because it's not. This is identical to how the State of California was looted for billions by the energy companies a few years ago -- and the government, dominated by energy industry lackies, stood by and said that's OK. It's free markets at work, baby. It's continuing to buy oil from Middle Eastern crazies when all we need to do is buy it from Canada. But when you do that -- you give people the impression that we'll have a stable supplier -- so when some Mullah falls off his perch -- nobody will care. But we can't have that -- because it will cause prices to drop.

Long-term, this whole thing will blow over -- just like it did in the 70's and 80's. Every boom's followed by a bust.


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## missouriGTO (Jul 1, 2006)

Am I the squawking parrot or another poster?? I actually don't go for the free markets thing. If the industry was more friendly to competition, or at least didn't outwardly sabotage it, then it would be a free market. Currently, I think both the industry AND our government boobs are equally culpable in the current lack of a free petroleum market. 
If I owned a refinery and closed it to move production elsewhere, I would try my best to keep someone else out of it too. Same as if you shut down a gas station to move across the street, you wouldn't sell your old one to another gas marketer.
I am somewhat in agreement with you that if these companies REALLY wanted to build in more capacity, then they would. Unfortunately, our tax and regulatory structure is punitive, at best. That is why these guys are investing so much money.....overseas. Note that of the 8 bil first quarter profits, 6.1 bil came from overseas markets. All in all, I think we can agree on the basics- too little competition, not enough markets being tapped, etc etc. We just part ways on who is most at fault.

By the way, you are right on the CEO thing. I am not one to place a value on someone else's worth, but at least don't advertise such nonsense when many of your customers are struggling to buy your product. I appreciate your informed viewpoint. Hey, I'm going to read some stuff about GTO 's This stuff sucks


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## LS2 - Light SpeedX2 (Nov 10, 2005)

I love all these arguments about gas. I get the same BS answers from some of my stupid ass coworkers. It's not the oil companies fault. There is nothing they can do. hahahahaha. I tell you what I did and the rest of you can do. Instead of whining a crying, I went out and bought a used honda insight. I get 75 miles to the gallon. That's right 75!!! My Goat was my daily driver and I drive 78 miles round trip between home, to the gym and then to work and back. My monthly gas bill went from 350 dollars a month to around 60 and I fill my goat up once a month now. About 45 dollars. so do the math I spend about 110 to 115 a month now. And man have I noticed the difference each month in fun money. By the way. Now I am getting performance parts for the beast with my extra money. So quit cha bitchin about these stupid cocksucking money hungry sorry ass oil companies and do something about it. nuff said.


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