Connect and get the inside scoop on Airline Companies

Welcome to Airline Pilot Forums - Connect and get the inside scoop on Airline Companies

If this is your first visit, be sure to check out the FAQ. Join our community today and start interacting with existing members. Registration is fast, simple and absolutely free.


User Tag List

Post Reply
 
Thread Tools Search this Thread
Old 02-01-2007, 11:09 AM   #1  
Gets Weekends Off
Thread Starter
 
Linebacker35's Avatar
 
Joined APC: Jan 2006
Posts: 335
Default 2006 record profit

http://www.msnbc.msn.com/id/16922298/

EXXON made a record setting profit of $39.5 billion in 2006. You know oil is over priced when ONE oil company makes 40 billion in profit for the year.
Kinda makes Americans $231 million profit look like chump change.
Linebacker35 is offline  
Old 02-01-2007, 11:17 AM   #2  
Tri-tanic operator
 
CactusCrew's Avatar
 
Joined APC: Jul 2006
Position: Doggie
Posts: 2,375
Default

And if I heard correctly on the news, that wasn't just a record for EXXON/MOBIL ...

It was a NATIONWIDE record for ANY company in the US !!!

FWIW

CactusCrew is offline  
Old 02-01-2007, 11:24 AM   #3  
Gets Weekends Off
 
ryane946's Avatar
 
Joined APC: Dec 2005
Position: FO, looking left
Posts: 1,054
Default

Not advocating socialism here, but how about a 70% tax on the profits that ARE NOT reinvested into oil exploration and drilling.

The United States has the largest known reserves of oil shale in the world (At about one terabarrels (thats a million, million barrels), it is larger than any of the countries in the middle east). Oil shale is more expensive to produce than regular oil, but that is because the technology has not been adequetly invested in. Take $40 billion dollars and reinvest something like $10 billion of it into technology to turn oil shale into oil, and the United States will not have to import a single barrel of oil for hundreds of years!!

I don't mind the high profits. I would rather that money be reinvested into something that is beneficial for every american.
ryane946 is offline  
Old 02-01-2007, 11:55 AM   #4  
With The Resistance
 
jungle's Avatar
 
Joined APC: Jan 2006
Position: Burning the Agitprop of the Apparat
Posts: 6,055
Default

Let's see, Uncle Sugar(State, Local, and Federal) takes over 40 cents a gallon and Exxon makes 10 cents a gallon. Ungle Sugar takes no risk and produces nothing and you want more tax so that consumers can pay a higher price at the pump, since any cost increase will be passed directly to the end user.
Oh, that's a good plan.
jungle is offline  
Old 02-01-2007, 12:05 PM   #5  
Gets Weekends Off
 
kronan's Avatar
 
Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,087
Default

Of course we should take all the mean oil companies money. After all, 40B of profits on sales of 378B totally excessive. Shoot, thats an 11% profit margin. of course that's the same profit margin apple makes, so maybe we should tax apple's grossly excessive profits at 70% too

GE's profit margin is at 13%, maybe we should tax GE at 75%.

BOA profit margin is at 31%, how about 75% up to 13, 85% up to 20, and everything above that

How much money do these greedy companies really need to make?

And since we're doing that, maybe we should ask our representatives to get to work on the income inequality as well

The median income in the us for 2005 was $46,236. To be fair, let's create a tax that will fairly distribute the overall productivity of the US.....how about, 35% on the income 47-94k
50% on 94-138k
70% 138-184k
85% above 184
kronan is offline  
Old 02-01-2007, 12:11 PM   #6  
With The Resistance
 
jungle's Avatar
 
Joined APC: Jan 2006
Position: Burning the Agitprop of the Apparat
Posts: 6,055
Default

Komrad, allah be praised, you have seen the light!
jungle is offline  
Old 02-01-2007, 12:16 PM   #7  
Gets Weekends Off
 
MWright's Avatar
 
Joined APC: Sep 2006
Position: SWA F/O
Posts: 145
Default

Quote:
Originally Posted by Linebacker35 View Post
http://www.msnbc.msn.com/id/16922298/

EXXON made a record setting profit of $39.5 billion in 2006. You know oil is over priced when ONE oil company makes 40 billion in profit for the year.
Kinda makes Americans $231 million profit look like chump change.
American's $231 million IS chump change. Profitable, but chump change.
MWright is offline  
Old 02-01-2007, 12:25 PM   #8  
With The Resistance
 
jungle's Avatar
 
Joined APC: Jan 2006
Position: Burning the Agitprop of the Apparat
Posts: 6,055
Default

Well they could almost buy two nice aircraft with that.
jungle is offline  
Old 02-01-2007, 12:45 PM   #9  
Gets Weekends Off
 
ryane946's Avatar
 
Joined APC: Dec 2005
Position: FO, looking left
Posts: 1,054
Default

Here is a link to a thread about a year ago (See post #17). See me defend oil companies.
http://www.airlinepilotforums.com/sh...?t=2835&page=2
Quote:
Originally Posted by ryane946
I am as mad over high oil prices as anyone, but it is a misconception to think that oil companies are "gouging" everyone. Oil is a commodity traded on the open market, and prices are governed by supply and demand.

It is easy to look at an oil company that made a billion dollar profit and say they are overcharging. But that several billion dollar profit come on over $100 billion dollars in sales. Oil companies take a % percentage of profit from oil sales, and naturally as the price increases, the % percentage becomes a larger chunk of $$ money. Oil companies are monster corporations (remember they are vertically integrated) that makes huge profits, but look at their profits as a percentage of revenue, and it is like 8%. Imagine a pizza company, it cost them $0.92 cents to make a pizza, and they sell it for $1.00. Ya right!!! Most companies double or tripple the "cost" of the product and sell it for that price.
I don't mind paying $2.00 a gallon for gas. I pay more for milk, orange juice, etc... And I don't mind these companies making $40 BILLION dollar profits. I think it is great for the oil industry.
But our country is facing serious problems. HALF of our HUGE trade deficit comes from purchasing oil! And where do you suppose most this money goes... THE MIDDLE EAST!

Where do you think Iran is getting money to build a nuclear bomb? OIL.
Where do you think all these terrorists are getting money for guns/ammunition/rocket propelled grenades/surface to air missiles? OIL
Where do you think Hugo Chavez (Venezuela) is getting money for his weapons? OIL
Here is a list of countries with the largest (proven) oil reserves in the world:
1. Saudi Arabia
2. Canada
3. Iran
4. Iraq
5. Kuwait
6. United Arab Emirates
7. Venezuela
8. Russia
9. Libya
10. Nigeria

Gee, most of those are sworn enemies of the United States. HMM! And most of these countries are members of an organization called OPEC which we all feel so strongly about. They have a choke hold on our economy. All they need to do cut production just a little, and then oil prices go up, gas prices go up, our economy slows down, discretionary spending goes down, airlines especially take it up the @$$. Houston... We have a problem!

I am a conservative, but even so, I know a BIG reason why we are in the Middle East is to protect our country. Not just against terrorists, but against any supply disruptions in oil.
If there is anything our country learned from September 11th, it is not just that our freedom is vulnerable, but the fact that our economy is vulnerable! It is a lot easier to attack. If we have no dependence on foreign oil, we wouldn't have to fight so much in the Middle East.

It is in our national interest to reduce our dependence on foreign oil. PERIOD!
Our economy would not be subjected to sudden swings in oil prices.
We would not be funding all these countries that are our enemies.
And we could stop fighting half of these wars in the Middle East!!!


Ok, so how do we reduce our dependence on foreign oil. There are several ways, but one simple way is to produce it all domestically. Yes, the United States has a finite amount of proven oil, but we have the WORLD'S LARGEST supply of oil shale. One Terabarrel (or a million, million barrels, enough to supply our country for well over 100 years) Oil shale is oil that can be produced given either 1) high enough prices to justify using it, or 2) an advance in technology to make it cheaper to produce.
Here is where my comment about reinvesting HUGE oil company profits into technology. If we invested 1/4, just 1/4 of the $40 BILLION dollars ExxonMobile made this year, we would be able to develop oil shale at the same cost as conventional oil. And our problems would be solved.

I believe these oil companies need a motivation to reinvest this money into technology that makes oil easier to find, cheaper to produce, and better for our country. So say, hey oil companies, any profits over $1 BILLION dollars we will tax at 70% UNLESS you reinvest it back into technology to do what I mentioned above. Ultimately this investment will NOT be passed along to the consumer because it will lead to cheaper/easier/better ways of finding/producing oil, and that will translate into lower prices. Not to mention OPEC, Iran Venezuela, etc... jacking up prices whenever they feel like it.

Invest these profits! Turn it into something useful. It is good for all Americans. Ok that's my rant. Let me leave you with a useful thought.

Science call solve problems a lot easier than politics can!!!
ryane946 is offline  
Old 02-01-2007, 12:59 PM   #10  
With The Resistance
 
jungle's Avatar
 
Joined APC: Jan 2006
Position: Burning the Agitprop of the Apparat
Posts: 6,055
Default

Let me leave you with a useful thought. Free markets tend to bring out the cheapest, most effective solutions long before a scientist can get a pencil out of his pocket protector.
When an invention or scientific advance proves viable and economical, it will be embraced. You cannot legislate technology.

Last edited by jungle; 02-01-2007 at 01:05 PM.
jungle is offline  
 
 
 

 
Post Reply
 



Thread Tools Search this Thread
Search this Thread:

Advanced Search


Related Topics
Thread Thread Starter Forum Replies Last Post
JetBlue Announces Fourth Quarter and Full Year 2006 Results Gman JetBlue 23 02-09-2007 06:16 AM
AA 231 million profit for the year AAflyer Major 24 01-23-2007 12:39 PM
NWA expects $240M 2006 profit Sir James Major 6 10-04-2006 03:29 AM
US Airways: $305 million profit! RockBottom Major 5 07-30-2006 08:25 PM
J.P. Morgan sees 2006 profit at CAL, AMR Sir James Major 0 10-25-2005 11:40 AM


All times are GMT -8. The time now is 05:56 AM.