Stock Up People !!!!
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The ones that froze were all on outside walls. The farthest from the 13, and the PE is on an upper level, so no help there.
Meanwhile, Exxon doubled its profits in Q1 from a year ago. Chevron wasn't far behind. This is not inflation, it's extortion.
Exxon, Chevron post massive Q1 profits amid soaring gas prices
Energy giants Chevron Corp. and Exxon Mobil Corp. on Friday posted huge profits bolstered by sky-high gas prices and told investors that they plan to keep oil production mostly flat. Chevron raked in $6.3 billion in the first quarter, quadrupling its profit from the same period last year, while...
Meanwhile, Exxon doubled its profits in Q1 from a year ago. Chevron wasn't far behind. This is not inflation, it's extortion.
Exxon, Chevron post massive Q1 profits amid soaring gas prices
Energy giants Chevron Corp. and Exxon Mobil Corp. on Friday posted huge profits bolstered by sky-high gas prices and told investors that they plan to keep oil production mostly flat. Chevron raked in $6.3 billion in the first quarter, quadrupling its profit from the same period last year, while...news.yahoo.com
I'm sure domestic producers would have gladly drilled more wells, built more pipelines, built more refineries to produce more and lower oil prices. But at every step of the way there has been restrictions on new development permitting, restrictions and outright refusal by banks to loan money, moritoriums on new oil and gas development.
Environmentalists have been pushing for reduced use of fossil fuels for years, including increasing the costs of them to make their use prohibitive. Yes oil companies have used this strategy to their advantage, but they're not going to willingly give anyone a break, especially not when there has been a concerted effort to bankrupt them over the last decade.
brenndatomu
Minister of Fire
That may be true, but that does not take away that the current situation has been used for extortion. Given the record profits there is no reason to jack up the prices so much. Yes, prices increase due to the situation in the world. But not to this level.
On a local level, heating oil is now 5.99 for 100-150 gallons here. Diesel is 5.75 a gallon including far higher taxes.
On a local level, heating oil is now 5.99 for 100-150 gallons here. Diesel is 5.75 a gallon including far higher taxes.
The problem is they didn't. They cut back to drive prices up to increase their profits.
You are correct. But many are resistant to any development of alternatives. I get why oil companies are but for the general public to be resistant doesn't make sense to me
Lol. Like everyone else did during Covid, due to uncertainty in the market and predicted low commodity prices?
Funny how we can have a discussion on here about lumber prices or any other prices increases and the blame can firmly be placed on supply chain issues, inflation, or increased demand or decreased supply. Yet none of those reasons can explain high oil prices, it's clearly due to extortion.
But for the most part the oil companies are the producer and supply chain. And you have to look at the profit increases the oil companies have had. What other industries have seen that percentage of profit increase? I know ours is way down and we raised prices mainly due to increased fuel and freight costs.
Most other industries cut back due to shutdowns or issues getting material due to other shutdowns.
Clearly there are lots of other factors contributing to oil and gas price increases beyond the control of oil companies. But the could certainly help bring prices down if they wanted to.
Most lumber companies had their best year ever in 2021.
Many oil companies had significant losses in 2020 and early 2021, so it would be expected to see large profit increases when they return to profitability.
You won't see that though. The writing is on the wall, oil companies are going to have a hard time financing future development with funds from outside sources. Oil companies are going to use these profits to pay down debt and buy back stocks to ensure their survival into the future.
They are also investing deeply in plastics refining and manufacturing, especially in SE Asia. The goal is to increase the consumption of plastics and in turn oil and gas. The planet can not sustain this linear, extractive mentality. In the least, these companies should not be subsidized in the form of large tax breaks for MLPs, intangible drilling costs, royalty payment reductions (on fed lands), depletion allowances, & foreign tax credit.
Yes lumber companies were as bad if not worse than the oil companies. That doesn't mean we should excuse the actions of either
Yeah the poor oil companies. They could Be putting money into transitioning to alternatives as well if they really wanted to ensure their survival as well.
... just like the writing was on the wall for stove companies when the discussions about EPA standards were ongoing...
brenndatomu
Minister of Fire
Like these guys...they diversified into stinkin everything...no need to sweat the EPA anymore! (that and just make all your burners "coal")
Yes plastics are a problem, but definitely not all oil companies are investing in plastics, or southeast Asia.
I don't have an issue with pulling the subsidies. If I'm not mistaken the value of the US subsidies works out to $60 per Capita per year, which overall is a large sum, but wouldn't bankrupt those companies.
But many of these lumber companies have also struggled for the last decade due to low prices, others closed entirely. So I'm not sure how it's the fault of the mills that managed to remain.
It would be like me trying to fault you for installing a lot of wood stoves in a year with high propane prices and turning a higher than average profit. Obviously you can't control propane prices, and are just able to take advantage of the situation.
Some are, at least many of the large Canadian firms are investing in renewables.
Oil companies are responsible to shareholders, who are ultimately seeking profits. The fact is oil and gas is more profitable than renewables. Until corporations exist for a purpose other than wealth generation this trend will continue, and I might add this is an issue universal to all corporations, not just oil and gas.
I absolutely agree it is a problem with all corporations in general but oil companies seem to be in a position where they can inflate the price of their product more than most. I don't fault anyone for making a profit. It is when industries make a clear effort to inflate the price of their product that I take issue with.
Yes if oil and gas prices increase I will sell more stoves. But as long as I don't just double my price because I can due to demand I don't see an issue there.
But it's not necessarily the oil company that sets the price, most pricing is now set by the big commodity exchanges. Diesel (and fuel oil) inventories are very low at the moment and has driven up prices. The result of transportation companies burning extra fuel trying to catch up with supply chain issues, and NA fuel being shipped to Europe to ease their shortages.
I get that people are frustrated with fuel prices, I'm not a fan of paying $1.65/liter for diesel either. But an oil company or retailer isn't going to sell me diesel for less than market rate when they can just sell it for market price elsewhere.
No they don't set the price at all and I wouldn't expect them to sell below market value. But they do control it by cutting production to drive up prices.