It's ok if you are rich ....
- Thread starter singist
- Start date
And now I know
When I see something along the lines of billions of pounds made in profit it does make me think whose pocket it goes in to, but I guess shareholders get some of it and the rest goes back into the whole process...
Caporegime
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to be fair they could drop prices, but I don't see why they should. People should pay more for gas to persaude them as much as possible to use it less. The cheaper it is the more people would drive out, especially in winter to buy a paper or a pint of milk.
We're not particularly close to exhausting supplies of oil, but as time marches on its getting harder to find, the easier to access sources are drying up and it costs a LOT of money to find new sources and then the costs involved in testing, checking the quantities involved to see if its worth it and building oil rig's/derricks and drilling into harder rocks to get at different sources. Its better to have higher prices now that discourage and slow our use, than ridiculously cheap, no sustained investment and at some point down the line prices increasing so much our way of life will be changed overnight when the oil companies can't afford to drill for new oil.
At the end of the day, they found a good product, sold it and are now the people that can afford to find new oil and few others have the expertise of the money to get in the game. I'd think something like Google makes far more profit for far less effort and capital outlay, percentage wise though, not total profit. You wouldn't ask them to pay for your internet though. intel have plenty of money, why not give me a free chip, is there any valid reason oil companies should be forced to sell us oil cheap, not really.
We're not particularly close to exhausting supplies of oil, but as time marches on its getting harder to find, the easier to access sources are drying up and it costs a LOT of money to find new sources and then the costs involved in testing, checking the quantities involved to see if its worth it and building oil rig's/derricks and drilling into harder rocks to get at different sources. Its better to have higher prices now that discourage and slow our use, than ridiculously cheap, no sustained investment and at some point down the line prices increasing so much our way of life will be changed overnight when the oil companies can't afford to drill for new oil.
At the end of the day, they found a good product, sold it and are now the people that can afford to find new oil and few others have the expertise of the money to get in the game. I'd think something like Google makes far more profit for far less effort and capital outlay, percentage wise though, not total profit. You wouldn't ask them to pay for your internet though. intel have plenty of money, why not give me a free chip, is there any valid reason oil companies should be forced to sell us oil cheap, not really.
Soldato
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Supply and demand, supply and demand.
Unfortunately things aren't, and rarely are, priced at what they're worth.
Unfortunately things aren't, and rarely are, priced at what they're worth.
yeah its so unfair that companies can make money - would be much better if they made a loss and had to sack loads of their workers now wouldn't it?????
Did I say anything about a loss? "Half" insinuates you still have the other half left over.
Soldato
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I like how much Exxon are making....our Xmas party is being paid for fully by them and includes an open bar all night, plus overnight accomodation
Not going to cost too much?
Even our company is paying for the Xmas night out and drinks, and we just lay flexible pipelines... (basically)
Imagine having to write the tax bill for that sum!!
Fair enough to them though, if they can still produce record breaking profits in a time of world economic crisis, they must be doing something right time and time again!
Fair enough to them though, if they can still produce record breaking profits in a time of world economic crisis, they must be doing something right time and time again!
BP turned over $300billion and made $24 billion up to Q3. The profit margin is nothing compared to most other industrys.
During this period $18billion was paid in taxes! This is going to go up as who do you think will be bailing out the government after they bailed out the banks?
Also £1 out of every £6 in UK pensions is invested in BP and it will be similar for USA with Exxon, it is in most peoples interest to see oil companys do well.
As Jez says, they make hardly any money on fuel. Always makes me laugh when i see this un educated comments where people are moaning saying that they should take 5p off a litre of fuel as profits are so high
During this period $18billion was paid in taxes! This is going to go up as who do you think will be bailing out the government after they bailed out the banks?
Also £1 out of every £6 in UK pensions is invested in BP and it will be similar for USA with Exxon, it is in most peoples interest to see oil companys do well.
As Jez says, they make hardly any money on fuel. Always makes me laugh when i see this un educated comments where people are moaning saying that they should take 5p off a litre of fuel as profits are so high
I like how much Exxon are making....our Xmas party is being paid for fully by them and includes an open bar all night, plus overnight accomodation
Welcome to the oil industry
indeed.....
Village of 50 - 100 ppl
Theres one well from which everyone gets their drinking water supply.
Richest person in the village is they who own the well. Can pretty much charge whatever they like and rest of the village *has* to pay even village council elders.
Basically they are in a position to bleed that small community dry
They say if they put their prices down they have to sack some of the water carriers employed by the company. (of course the person starts up a company because that way they will be able to take advantage of tax loopholes and dodge responsibility if someone suffers from a disease that was caused by the impurities in the water)
So the village can do nothing. The company doesnt care as that person has long ago made enough money to live where they like so it isnt their home.
Necessities in life should not be ransomed off to the highest bidder.
Soldato
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What do people excpect when we operate under Capitalism? Screw to average guy to get rich is the motto of the day.
Clearly my intricate knowledge of oil companies has failed me
What? This is General Discussion what did you expect?
indeed.....
Village of 50 - 100 ppl
Theres one well from which everyone gets their drinking water supply.
Richest person in the village is they who own the well. Can pretty much charge whatever they like and rest of the village *has* to pay even village council elders.
Basically they are in a position to bleed that small community dry
They say if they put their prices down they have to sack some of the water carriers employed by the company. (of course the person starts up a company because that way they will be able to take advantage of tax loopholes and dodge responsibility if someone suffers from a disease that was caused by the impurities in the water)
So the village can do nothing. The company doesnt care as that person has long ago made enough money to live where they like so it isnt their home.
Necessities in life should not be ransomed off to the highest bidder.
World oil price has very little to do with an individual oil exploration/refining company, so i really cannot see any meaning to that post whatsoever? Are you relating the well owner to the whole of OPEC?
yes they are always priced at what they are worth. Somthing is only worth what someone is willing to pay.
eg a 2L bottle of water to you is probbably worthless at the moment, if i find a man dying of thirst in the desert i can probbably get his house, car and his pension fund for it.