Thursday, April 28, 2011

Profits soar as oil companies victimized again by high gas prices #p2 #tcot

http://www.dailykos.com/story/2011/04/28/971025/-Profits-soar-as-oil-companies-victimized-again-by-high-gas-prices

Yesterday, ExxonMobil complained that they had no control over prices, blaming everything that's happening at the pump on the owners of their local stations.

And today we learned just how badly they've been victimized:

Exxon Mobil, the largest American oil company, said net income rose 69 percent to $10.7 billion, or $2.14 a share, in the first three months of this year, from $6.3 billion, or $1.33 a share, in the same period last year.

The earnings beat some analysts' expectations, and marked the fifth quarter in a row that Exxon reported an earnings increase.

69% profit jump! The horrors! Such a sad story! Congress must not even consider ending their oil tax subsidies! $10.7 billion is puny!

But ExxonMobil is not the only victim in this sad story:

Shell reported earlier on Thursday that its profit for the period rose 30 percent.

Oil companies are benefiting from a rise of more than 30 percent of the price of oil over the last twelve months. Concerns about political unrest in North Africa and the Middle East had pushed up prices to heights some analysts said were not justified by the level of demand. Continued growth in economic demand is expected to support a relatively high price of oil but there are signs that rising gasoline prices are keeping some consumers in the United States from filling up their tanks.

Meanwhile, the sad story of oil company victimization was balanced out by great news for U.S. consumers who are experiencing the joys of record high gas prices which continue to threaten the faltering recovery even as GDP growth registered at an anemic 1.8%. Good times all around!


No comments:

Post a Comment