To give or not to give…that is the question

This son used to send money home to his father to help pay for his medication but since the increase in gas prices he can no longer afford to do so.

Perhaps he ought to speak to the oil company executives whose companies are posting profits, asking them to contribute to help the poor.

Exxon Mobil posted the second largest first quarter earnings total ever on record.  Article can be found here.

In February Chevron posted “the annual profit to $18.7 billion in 2007, the fourth consecutive year that the San Ramon company made record amounts of money.”  Article can be found here.

I just can’t wait to see what kind of lovely bonuses the top level executives of the oil companies get this year while I, and many many others, try to figure out how to adjust our budget to accommodate the $3.69/gallon hit.

Can you tell this irritates me?  Don’t answer that!

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3 thoughts on “To give or not to give…that is the question

  1. The oil companies earn $0.06 / gallon in profits in California. When you hear “largest profits ever” it simply means they sold more gallons, not that they made more cents per gallon.

    So, where does the other $3.50 -$3.80 (depending on your area of the country) go to? Try:
    federal taxes: approx 18 cents/gallon
    state excise taxes: approx 18 cents/gallon (depending on the state)
    state and local taxes: 29 cents/gallon (depending on the state)
    manufacturing and refinery costs: 25 cents/gallon (depending on the state)
    Crude oil costs: $2.96 per gallon
    Distribution, marketing costs and profits 6 cents per gallon
    These numbers are the latest available at this time from the official California Energy Commission website:
    http://www.energy.ca.gov/gasoline/margins/index.html

    Don’t blame the oil companies. 6 cents per gallon to cover distribution, marketing costs AND profits is pretty paltry, if you ask me. They are spending $2.96 per gallon in raw material, paying 65 cents taxes per gallon, and 25 cents per gallon (total $ 3.86/gallon) in order to reap 6 cents profit per gallon??? That is NOT a case of the “bad” oil companies ripping off the good people of the country.

    They have a huge investment in time, in personnel, in wages, in equipment, in contracts. How much profit should they be permitted to make? 2 cents per gallon? 3 cents? That isn’t enough to make the effort worth it. They would just fold up and quit.

    What would your time, effort and materials be worth if you were manufacturing tablecloths for sale? The materials for each tablecloth cost you $50. The time it takes you to sew and embroider and finish the tablecloth is 45 hours. How much are you going to charge for your time?? The cost of mailing is $10. What is your reasonable profit going to be? Are you going to be “gouging” your customers if you make a **profit** of $10 per tablecloth? At what point will you decide that you aren’t making enough money to make this effort “worth it” to you, and you “fold up” your business?

    What? you say that tablecloths are not “necessary” and gasoline is? So what! Just because gasoline is a necessity does not mean I have to manufacture it.

    The rather general term “profits” can mean many things. Look at what it *really* means, though – the money made after *all* the expenses, *all* the salaries, *all* the costs, have been paid.

    If the stocks do well, that has little to do with the actual business costs. That has to do with people buying and selling pieces of paper on the stock market. And that’s for another discussion.

  2. I tell your Father when he starts to rant and rage. Try to look at things from my perspective. These guys are old, their wealth can’t last forever and best of all they can’t take it with them when it’s time to go.

  3. So are we all!!

    (Not happy about the mess we’re in with gas and the rest of it!)

    The really deep issue is that we’ve known for at least the last 30 years that something had to been done. But, we’ve relied on short term markets to fix long term infrsatructural (sp) problems! Never worked before, no reason to believe it will now!

    Oh, and when you get it, please be so kind as to post the Irish lit reading list. It would be interesting to see!

    Cos Ken

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