Oil industry unapologetic for profits
Breitbart is reporting that the nation's three largest oil companies are unapologetic about their huge, record profits of the past quarter.
The writer of the article justifies it in terms of profit to sales ratio: Taken together, Exxon, Chevron and ConocoPhillips made a profit of $8.19 on every $100 in sales. In contrast, Internet bellwethers Google Inc., Yahoo Inc. and eBay Inc. collectively turned a $19.20 profit on every $100 of their combined revenue.
Like what most apologists say, however, this is disingenuous. None of those companies sells a physical product, particularly a product that most of us need to simply go about our lives. In fact, Yahoo and Google don't sell much at all. I would guess that most of their revenue is based on advertising, not sales.
The fact remains is this: oil companies making record profits at a time when the average household is seriously stretched thin just to heat its home and fill the tank to drive to work is not very good for national morale. In fact, it makes the oil companies look evil, even if business anyalysts think they are not.
The link: http://www.breitbart.com/news/2006/04/29/D8H9NEGG0.html
The writer of the article justifies it in terms of profit to sales ratio: Taken together, Exxon, Chevron and ConocoPhillips made a profit of $8.19 on every $100 in sales. In contrast, Internet bellwethers Google Inc., Yahoo Inc. and eBay Inc. collectively turned a $19.20 profit on every $100 of their combined revenue.
Like what most apologists say, however, this is disingenuous. None of those companies sells a physical product, particularly a product that most of us need to simply go about our lives. In fact, Yahoo and Google don't sell much at all. I would guess that most of their revenue is based on advertising, not sales.
The fact remains is this: oil companies making record profits at a time when the average household is seriously stretched thin just to heat its home and fill the tank to drive to work is not very good for national morale. In fact, it makes the oil companies look evil, even if business anyalysts think they are not.
The link: http://www.breitbart.com/news/2006/04/29/D8H9NEGG0.html
One wonders, ok One may not, I wonder whether the connection between people's general level of economic awareness. I.e it's not apologist behaviour pointing out that static or slight increases in the cost of the acquiring oil coupled with more demand for the oil leads to higher prices being used as a control in lieu of pumping/refining more is going to lead to greater profits. These are public companies ,and to believe they owe an allegiance to one nation over other is naive and er illegal given their duties to maximise profits for their stockholders.
While there are always marginal cases where the price rise of heating/ fuel will cause a disproportionate hardship re the extra $12 or so in gas per week over the last two years in most cases people have chosen to live in a manner which exacerbates rising energy costs and rather than reevaluate their position demand the status quo be maintained. If people paid more attention to their voting patterns these last thirty years, their refusal to increase refinery capacity or invest in alternates that would have been nice
Where do you think google gets the money to pay people for hosting their adverts? Their advertising is what they sell not a separate item.
Google do sell physical products such as the Google appliance as well as spending a vast sum of money on hardware and talent which is paid for below the line but we're all still paying for it.
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