Isn't it ironic that their profits are still over 10 billion dollars when sales are down? So much for supply and demand. The huge oil company CEO's should be sent to prison for many years for gouging americans. But, our congree has no guts!!!
David Akerson
of MN
@
May 03, 2008 12:39:46 PM
Paradox of decline in production versus increased profit
The decline in oil production, and still generating a 25% profit almost defies all economic policies. As the article states some of the profit was derived from sell of some of its oil fields. Was this do to poor production or was it to aquire more revenue.
The article further states that 73% of the profit was used to buy back some stock. All of these are good for the company , but may be deleterious to the economy and country as a whole.
The law of deminishing returns that says if I raise the price of a commodity enough the number of purchases will not result in same revenue for the increase in price. That has held throughout the 20th century, but is apparently not applicable to oil.
It is realized that since oil is not a limitless commodity, we must allow the oil companies to obtain an amicable return on their investment. However if we don't conserve and work together with both the CEO's, stock holders, and the public, the economy may go into recession/depression that may take years to recover.
David Akerson of MN @ May 03, 2008 12:39:46 PM
John W. Epperson of CO @ May 01, 2008 17:28:14 PM
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