In article ,
"OneTwoThree" wrote:


the story is sadly lacking in analysis. for example, is that 8.3 cents the
net profit? let's say it is. what was the net a year ago? two years ago?
Their profit margins recently have run in the 10-11% range, about
average to a little below the S&P 500. It has been within that range
for at least 5 years and IIRC (always a concern) for around the last 15
or so.

I am guessing but confident that the oil company net has no where near
increased at the rate that the retail price of gasoline has, or more
accurately, at the rate that the cost of a barrel of oil has.

Profit margins have stayed the same (although I must admit to having
looked for sure since the first of the year). In fact some indications
are that they make LESS money during high prices.
"After review, we find that the accounting
profitability of the major, integrated oil companies is actually lower
on average
during periods of extremely high gas and oil prices (and, in fact, are
even lower
than in times of extremely low gas and oil prices). Large oil companies
are most
profitable during periods of moderate gasoline prices. Yet, small
vertically
integrated oil companies and firms primarily in the business of refining
purchased crude oil exhibit a consistently inverse relationship between
profit
margins and retail gas prices‹as gas prices increase, these firms become
less
profitable. We find no evidence that the accounting profitability of oil
companies
(measured using gross profits) increases during episodes of very high
retail
gasoline prices. Our findings are consistent with the notion that high
gas prices
are primarily a cost-driven phenomenon, rather than just a consequence of
demand shocks or collusion. While we do not attribute any altruistic
motivation
to the oil companies, the evidence intimates that the burden of gas
prices is
partially shouldered by the industry, thereby reducing the burden on the
consumer.
www.phoenix-center.org/pcpp/PCPP26Final.pdf
"As reported in the Wall Street Journal:
"It is Congress and state governments that take 59 cents a gallon on
average of fuel taxes at the pump ¤² almost six times the average of 10
cents per gallon profit that the oil companies make."
So, even if all of the oil industry profits were taxed away, a $3.00
gallon of gasoline would only drop to $2.90."