Big oil awash in big profits - $97,000 Million for 2004

[Analog]

Big oil awash in big profits

Four biggest firms have earned $23 billion for the first three months of the year.


SAN FRANCISCO -- Pumped up by persistently high energy prices, the oil industry maintained its streak of massive -- and growing -- quarterly profits last week, aggravating motorists and amazing financial analysts.

"I have been following this industry for 18 years and I have never seen anything like this," said Oppenheimer & Co. analyst Fadel Gheit. "It's like they're printing money."

The results of the world's four largest oil companies illustrate just how well the industry has fared lately. Since the end of 2003, Royal Dutch/Shell Group of Cos., BP Group PLC, Exxon Mobil Corp. and ChevronTexaco Corp. have earned a combined $97 billion, including $23.8 billion during the first three months of this year.

http://www.detnews.com/2005/autosinsider/0505/01/B01-167247.htm

 

[MustISO]

Yep, they'll keep ripping off the country until the gov't decides to get involved. Oh, wait, there's no incentive for the gov't to get involved...

 

[Amused]

Oil is a commodity.

Just as gold and gem traders make more money when market prices on their products go up, so do oil companies.

Just as farmers make more money when their commodity prices jump, so do oil companies.

They do not control the market. OPEC does.

 

Originally posted by: Amused
Oil is a commodity.

Just as gold and gem traders make more money when market prices on their products go up, so do oil companies.

Just as farmers make more money when their commodity prices jump, so do oil companies.

They do not control the market. OPEC does.

QFT

 

[tm37]

97 billion in profit? :Q

OK what kind of revenue are we talking ?

 

[lobadobadingdong]

Good for them, I wish I could afford to buy some stocks.

 

[Siddhartha]

The price of oil has something to do with supply and demand. The demand for oil does not respond to price increases as quickly as the demand for walnuts.

 

[dmcowen674]

Originally posted by: tm37
97 billion in profit? :Q

Horay for Dick Cheney, Haliburton, Bush and the rest of the Oil Barons :thumbsup:

 

[QuitBanningMe]

Oh no, they are making too much money.:roll:

They have an 8% profit margin. That is below most other industries.

 

[StageLeft]

Obviously it doesn't piss people off enough to drive lighter/slower vehicles.

 

[Kipper]

Originally posted by: Siddhartha
The price of oil has something to do with supply and demand. The demand for oil does not respond to price increases as quickly as the demand for walnuts.

It also has to do with the percieved supply disruptions by oil traders. There is an estimated $7-8 price premium at any given price point (or greater) which factors in the possibility of a terrorist attack disrupting supply at any given point.

Combine that with the general neuroticism over oil prices, fears over US inflation (which raises oil price since it is calculated in USD) AND demand and you have $$$$$$ for the oil companies.

 

[Spike]

Originally posted by: tm37
97 billion in profit? :Q

OK what kind of revenue are we talking ?

They "earned" 97 billion, thats revenue not profit. The actual profit is probably in the low billions, still nice but not quite so shocking. Anyone want to post the revenue of the computer industry? Or the software industry? since we are looking at whole industries here this number does not suprise me.

-spike

 

[Kelemvor]

Originally posted by: MustISO
Yep, they'll keep ripping off the country until the gov't decides to get involved. Oh, wait, there's no incentive for the gov't to get involved...

Actually it's all incentive for the gov't to let them do this since they make big donations to political parties and have tons of power. That's why I'm so hoping that Fuel Clel cars work out and I have no need for gas any more.

 

[jagec]

Originally posted by: yellowfiero
"I have been following this industry for 18 years and I have never seen anything like this," said Oppenheimer & Co. analyst Fadel Gheit. "It's like they're printing money."

Ah-yup.

 

[QuitBanningMe]

Originally posted by: MustISO
Yep, they'll keep ripping off the country until the gov't decides to get involved. Oh, wait, there's no incentive for the gov't to get involved...

Who exactly are they ripping off and how?
Their profit margins haven't changed much. The price of crude and demand have.

 

[QuitBanningMe]

Originally posted by: Spike

Originally posted by: tm37
97 billion in profit? :Q

OK what kind of revenue are we talking ?

They "earned" 97 billion, thats revenue not profit. The actual profit is probably in the low billions, still nice but not quite so shocking. Anyone want to post the revenue of the computer industry? Or the software industry? since we are looking at whole industries here this number does not suprise me.

-spike

Exactly.
The whole artcle:
http://www.taipeitimes.com/News/biz/archives/2005/05/01/2003252719

 

[Kipper]

Originally posted by: QuitBanningMe

Originally posted by: Spike

Originally posted by: tm37
97 billion in profit? :Q

OK what kind of revenue are we talking ?

They "earned" 97 billion, thats revenue not profit. The actual profit is probably in the low billions, still nice but not quite so shocking. Anyone want to post the revenue of the computer industry? Or the software industry? since we are looking at whole industries here this number does not suprise me.

-spike

Exactly.
The whole artcle:
http://www.taipeitimes.com/News/biz/archives/2005/05/01/2003252719

Nope, that is profit, boys. Article reads: "Since the end of 2003, Royal Dutch/Shell Group of Cos, BP Group PLC, Exxon Mobil Corp and ChevronTexaco Corp have earned a combined US$97 billion, including US$23.8 billion during the first three months of this year."

If that was total REVENUES from 2003-present, then that is a grossly misstated number because Exxon-Mobil's revenues are close to 300 billion alone over the last fiscal year.

Edit: Wal-mart pulls in about 300B a year as well - that's just revenue, though. Profit is a completely different issue. Microsoft pulls in around 35, maybe 40 billion.

 

[Kipper]

http://biz.yahoo.com/ap/050428/earns_oil.html?.v=6

XOM had REVENUES of 82 billion this past quarter. The 92 billion figure (since 2003) is profit, clearly.

 

[QuitBanningMe]

Originally posted by: MadCowDisease

Originally posted by: QuitBanningMe

Originally posted by: Spike

Originally posted by: tm37
97 billion in profit? :Q

OK what kind of revenue are we talking ?

They "earned" 97 billion, thats revenue not profit. The actual profit is probably in the low billions, still nice but not quite so shocking. Anyone want to post the revenue of the computer industry? Or the software industry? since we are looking at whole industries here this number does not suprise me.

-spike

Exactly.
The whole artcle:
http://www.taipeitimes.com/News/biz/archives/2005/05/01/2003252719

Nope, that is profit, boys. Article reads: "Since the end of 2003, Royal Dutch/Shell Group of Cos, BP Group PLC, Exxon Mobil Corp and ChevronTexaco Corp have earned a combined US$97 billion, including US$23.8 billion during the first three months of this year."

If that was total REVENUES from 2003-present, then that is a grossly misstated number because Exxon-Mobil's revenues are close to 300 billion alone over the last fiscal year.

Edit: Wal-mart pulls in about 300B a year as well - that's just revenue, though. Profit is a completely different issue. Microsoft pulls in around 35, maybe 40 billion.

I was quoting (mistakingly) for the actual profit margins. I don't care how much they make. They are not ripping people off.

That is industry profit.

 

[jpeyton]

That is profit. There are only a handful of companies in the $10 billion/year profit club...but BP, for example, made over $5 billion profit in one quarter.

 

[GroundZero]

Originally posted by: MustISO
Yep, they'll keep ripping off the country until the gov't decides to get involved. Oh, wait, there's no incentive for the gov't to get involved...

the fvcking government is involved...

This administration bends the public over and fvcks us in the ass for their big oil buddies.

 

[QuitBanningMe]

Originally posted by: jpeyton
That is profit. There are only a handful of companies in the $10 billion/year profit club...but BP, for example, made over $5 billion profit in one quarter.

There are even fewer companies that are worldwide and have something everyone wants.

 

[QuitBanningMe]

Originally posted by: GroundZero

Originally posted by: MustISO
Yep, they'll keep ripping off the country until the gov't decides to get involved. Oh, wait, there's no incentive for the gov't to get involved...

the fvcking government is involved...

This administration bends the public over and fvcks us in the ass for their big oil buddies.

How the fvck are they bending anyone over. What do you suggest? They can't make a fair profit?

 

[ElFenix]

Originally posted by: GroundZero

Originally posted by: MustISO
Yep, they'll keep ripping off the country until the gov't decides to get involved. Oh, wait, there's no incentive for the gov't to get involved...

the fvcking government is involved...

This administration bends the public over and fvcks us in the ass for their big oil buddies.

you should bitch more about MS than oil companies, MS makes a much higher profit margin

 

[Wheezer]

Originally posted by: lobadobadingdong
Good for them, I wish I could afford to buy some stocks.