Funny that you'd rather point at people, when big oil is having such a heyday at our expense.
Funny that you think that our young should pay for almost 16 trillion dollars in debt.
If you cared to look up facts ( you can go to any of their web sites where they post their earnings of losses and profits, like Exxon.com) instead of talking points you would find that oil companies are not having a heyday.
We hear all the time about oil company record profits from people who want to blame them for prices at the pump. The fact is that oil company record profits are a result of high gas prices, not the cause of them. Is an 8% profit margin on your product too much to ask? If an oil producerÂ’s cost is $1.00 per gallon of gas, they sell it for $1.08 per gallon. Then the government adds on up to 65c tax before it goes to the pump. The oil producer makes 8c on that gallon, the real profit goes to the government.
Now consider, if the cost of crude oil doubles as it has recently, and say the refinery can produce a gallon of gas for $2.00, they sell it for $2.16. Still an 8% profit margin for the oil company. If their cost goes up again and now it costs them $3.00 to produce a gallon of gas, they sell it for $3.24 and still maintain their 8% profit margin but now theyÂ’re making 24c per gallon instead of 8c per gallon. As a result, their profits go up. The oil companies do not set the price for a barrel of crude oil. They are merely the buyers and the victims of OPEC. The oil company's responsibility to the stockholders, the real owners, is to make a profit.
As with any business, the increase in their costs is passed along to the consumer. Remember that the next time Nancy Pelosi and Hillary Clinton talk about raising taxes on the oil companies and stealing their profits. They are really talking about stealing from the American people. Any company that canÂ’t make and keep their profits will quickly go out of business. But then that seems to be what the Democrats want when it comes to the oil companies.
