(OT:) The price of a barrel goes up...

That, IMHO, is a stupid comment.

Gee, the oil companies, including refineries, are in business to make money.

And the money isn't getting made in refiners, right now, look for that to change.

Pesky reality. :-)

However, the gist of the article is correct: Oil companies are not making as much money at refining oil, and they will do what is necessary to make more money.

Personally, I don't see a problem with this. This is what they are in business for.

Jeff

Plus there are only minor fluctuations in *percent* profit. Example to illustrate the basic concept: A business that starts out as one store and expands to a chain of many stores would not keep their profits at the same dollar amount with the many stores as they previously did with the single store, else they are extremely vulnerable (to certain and rapid bankruptcy) at the slightest downturn in business.

Anyone who has at least one ounce of business sense knows that you have to work in percents - not in real dollars - to reflect scaling. I consider anyone who doesn't recognize this fact to be ignorant or dishonest. And one does not have to own a business to grasp the concept (of scaling) unless they are grossly mentally deficient or dishonest. Percents are how scaling (relative fluctuation - large or small) is reflected. Talking only in raw dollars does not do that except for a single point in time.

Bill Putney (To reply by e-mail, replace the last letter of the alphabet in my address with the letter 'x')

Well, of course they are. And they certainly are, aren't they?

I don't care what anyone says, "Record Profits" is record profits. It's pretty amazing it's also happening when the consumer is being squeezed harder almost every day.

Remember, the oil companies say they need to raise prices to keep up with costs.

If this were the case, profits would stay about the same.

And they are - around 9 to 11%. As I said before, profits generally should be spoken of in terms of percentages so that things are automatically scaled (normalized). What part of that don't you understand? If you own a store and you expand to a chain of 3 stores, do you try to maintain the same dollar profit for your entire business as you did when it was just one store, or do you scale it by looking at percentages? Come on. Wake up.

Bill Putney (To reply by e-mail, replace the last letter of the alphabet in my address with the letter 'x')

You talking about the oil industry as if it is one industry. It is really several, drilling and transporting oil, refining oil and marketing gasoline and other products.

I don't agree that the profits should necessarily be a proportion of the revenues, though.

However, I have not seen anyone give a good explanation of what oil company profits should be.

Jeff

Snoozing is more fun.

I'm waiting for this quarter's balance sheets to hit the streets. Thanks for the 9-11% range, though. We'll see if it's the same for this 1/4

Your attitude towards oil companies is amazing, considering we mostly sit on opposite sides of the table.

If you recall as post I made the other day, I mentioned the ultra-Liberal Senators and Congressmen we have here in my state. Today, *I* of all people got a 'letter' from one of the most Liberal Congressmen this state has ever seen.

In it, he detailed how the Democrats in Congress were going to 'bring the oil companies to their knees!' (My paraphrasing, but that's about what it said), and also how they were going to sue OPEC.

Your take on this is quite opposite what your 'leaders' are saying.

Actually, I like McCain for his most of his environmental stands.

I am guessing that this is a letter sent to all the people of his district, not just those of his political bend.

Not only is this a waste of paper, but, if the voters understood how much money the oil company executives gave to Congressmen, Congresswomen and Senators, as well as the nearly complete inability of Congress to regulate oil prices, other than to fix any regulatory issues related to markets and possible speculation, it would be an insult to them.

Plus, Bush isn't going to sign much of anything, even if Congress could get something passed.

They're not exactly my leaders, then, are they?

Jeff

Had my name on it! I almost hit the floor.

I would guess not. But you speak like a dyed in the wool Liberal, and you don't get a lot more Liberal than the Congress/Senate members from Mass.

Except maybe Pelosi, Boxer and Waters, who *talk* like they want to dismantle the oil companies.

If I haven't burned that newsletter from Olver I'll make some direct quotes. Sure sounded like "Hate the oil companies" to me...

It has nothing to do with refineries, Arab states, or consumption: