Big oil defends its big profits

[Jim Warren]

NEW YORK (CNNMoney.com) - Big Oil defended its record profits Wednesday, saying they weren't that out of line with other industries, and that recent consolidation in the sector was essential for the U.S. to remain competitive in the global oil business.

The statement was a clear bid to head off antitrust concerns voiced recently by several members of Congress. There is currently a bill moving through the Senate that would limit future oil company mergers, and some Senators have publicly called for the break-up of some companies.

Looks like a guy we can trust!












http://money.cnn.com/2006/04/26/news/economy/oil_profits/index.htm

[Hubert Flottz]

1. "Big oil defends its big profits"

Wouldn't you? If you were raking in those sums of cash you'd claim you were living at the foot of the cross too, wouldn't you? You wouldn't want ANYTHING to EVER change would you?

[Jim Warren]

3. I get your point

Thought the rumblings about monopoly break-up were interesting, not that that will ever happen.

[Orrex]

2. Their whole argument is bullshit

The outrageousness of a profit-level shouldn't be determined as a percentage of one industry's take versus another's. Instead, it should be measured as a gross dollar figure based on how vital the relevant industry is.

Offer this comparison to our friends in big oil:

My friend stuck to a strict program of diet and exercise and lost 12.8 pounds, or 8% of her starting weight, and she's healthier as a result. According to oil execs, then, it must be healthy to lose 8% of one's weight. Let's say that the oil exec weighs 200 pounds, so 8% is 16 pounds. Therefore, we would be doing his health a favor by hacking off 16 pounds from his body, which coincidentally is about the weight of his head.

After all, such a weight loss "isn't out of line" with other healthy losses of weight, right?


War profiteers, the lot of them.

[Jim Warren]

4. Amen nt