Anybody who says that the oil companies "price gouge" are pinheads.

[gonzomax]

[QUOTE=Uzi]
Missed the part about how much tax they pay, didn’t ya? And how much their employees pay, and the services companies they use, etc.

Again, you must not understand the ‘International’ part of ‘International’ Oil Company’.
Companies are mostly loyal to their shareholders, or as loyal to the country in which they work as the people who work for them are as members of that particular country. Pretty much like every other type of international company, btw.

Here is some advice for those that want to get back at the big oil companies and half the price of the cost of gas:

Buy a car that gets twice the gas mileage of your current car. This will effectively drop the cost of gas you use per mile in half.
So, If you drive a car that gets 20 miles a gallon, buy a car that gets 40 miles a gallon. Instead of paying $3.40 you’d effectively be paying $1.70. Or split the difference and buy one that gets 30 miles a gallon. You’d pay $2.55/gallon based upon the same amount of travel that you do today. Simple. Too bad you didn’t think
Oil is a huge business with huge numbers. The amount of taxes would be relevant if they were at all burdensome. Quarter after quarter, they set new profit records. They make incredible amounts of money and pay their board and bosses obscene salaries and bonuses. Perhaps you are at peace with that ,but I think when they are looting the system for all it is worth. they should be metered a bit. They are ,at least now. a vital industry. The prices they charge are having a huge dampening effect on the economies of the world. They are a perfect example of a company that requires regulation.

[Uzi]

@gonzomax

The prices they charge are having a huge dampening effect on the economies of the world. They are a perfect example of a company that requires regulation.

Well, then the solution is to pony up the millions of dollars to start your own oil company and, if you manage to find any oil, sell your product for less than your competitors. We’ll see how many employees you get to help you if in order to do so you have to pay them less than the industry standard. Good luck to you.

[Algher]

@IAmNotSpartacus

Except he’s comparing apples to oranges and suggesting that companies that are not capital intensive are better “performers” because of their profit margins. If anything I’d say it led to further ignorance since the margins that Microsoft achieves have nothing to do with the margins an oil company achieves.

He posted the entire DJIA - not just Microsoft.

Ignorance Fought, and Fought Well - for those who read the WHOLE post.

[IAmNotSpartacus]

@Algher

He posted the entire DJIA - not just Microsoft.

Ignorance Fought, and Fought Well - for those who read the WHOLE post.

Which makes it an even poorer comparison. Net margins offer no correlation to performance across industries. Net margins offer a good correlation to performance within an industry.

I make no argument regarding whether price gouging occurs. All I am saying is that comparing the net margins of the oil industry to any other industry is no indicator of whether gouging exists or not. Time will reveal whether or not the rampant speculation is simply a natural market at work, or if manipulation reminiscent of Enron is occurring.