The Gulf Spill, Who Really Pays For It?

[jdmidwest]

Actually, if capitalism and free enterprise and competition really worked when it comes to multi-national companies, of course BP would go out of business and our price at the pump wouldn't raise much. The other companies would keep getting "their" oil out of the ground for the same cost and get the same or similar price for it (well, maybe for a short time they'd get a higher price because for a while oil would be a little scarcer since one big company wasn't pumping oil anymore, but the other companies would soon ramp up to take up the slack). Or BP would try charging more for theirs to recoup THEIR loss, but we'd just go to a cheaper quick shop. But we all know that won't happen. When was the last time you saw ANY difference in the price of gas depending upon the brand name on the pump?

Exxon-mobil made $52 billion in gross operating profit last year, according to Forbes Magazine.

Exxon-mobil paid zero U.S. income taxes last year.

BP is a big conglomerate, and they are involved in all stages of production, exploration, drilling, transport, pipelines, mineral rights, refineries, and probably the smallest part, but I am not positive, the local gas pump. If we lose BP, it would not be as simple as just going to a cheaper quick shop for a fix in the supply of fuel. It has been a while since I have had close friends in the petroleum business, but 10 years ago, BP was one of the major players. Like most of the big petroleum companies, they are foreign based, I really don't know who the American Based companies are anymore. The chances of a British Corporation paying US taxes may be pretty slim.

[Al Agnew]

All true. My point is the oil business is not classic capitalism. I think it used to be. If you're my age you can remember gas wars. That was when all the gas stations were actually competing for your business.

And I don't know whether BP paid any U.S. taxes or not. But Exxon-mobil USED to be a U.S. based company, and I'd bet they still have offices and infrastructure in the U.S. as well as doing a LOT of business in the U.S.

[Thom]

Quote: Agnew

All true. My point is the oil business is not classic capitalism. I think it used to be. If you're my age you can remember gas wars. That was when all the gas stations were actually competing for your business

Absolutely correct. Politics has allowed the companies to manipulate the markets to their advantages. I marvel as I read the reasaons why gas prices go up in the market reoports. One day they tell you it is because the supply is low and the pricew at the pump goes up immediately usually 24 cents. Then the supplies are large and it takes two weeks a penny at a time for it to go down. Why do all of the stations go down and up at the same time. Can you say "monopoly"?

Gas futures also cause a rise in gas prices at the pump overnight however futute makets can be easilly maiipulated by large companies with creative bookeeping figures. It is not a free market but a manipulated market that takes what the traffic can bear.

[jdmidwest]

I can remember the gas wars, we still have them around here. Non branded stations selling cheaper low quality fuel with no additives a few cents cheaper. Then there were the cash only places, of course he went bankrupt.

I also remember the gas shortages of the 70's where there were long lines at the pump waiting for fuel.

[gotmuddy]

Expect? No. But in all fairness, Tony Hayward or whatever his name is - and all the rest of the BP and Halliburton millionaires - should be sleeping in cardboard boxes before we have to pay a penny more for a gallon of gas. I said "should."

Those are dangerous words. Using your logic if you get a raise the person below you has a right to one before you. Its all this talk of fairness that caused this mess

[gotmuddy]

Another thing to consider is this well was not a "producing" well yet. BP is based in Britain and very likely pays more taxes there than they would here

[ness]

Exxon-mobil made $52 billion in gross operating profit last year, according to Forbes Magazine.

Exxon-mobil paid zero U.S. income taxes last year.

Al, I'm looking at their financials. ExxonMobile (XOM) is US-based and paid $15 billion in taxes in 2009. Net income of $19 billion. That's a lot of money, but they're a huge company. 9% after-tax profit margin.

[ness]

Quote:

Absolutely correct. Politics has allowed the companies to manipulate the markets to their advantages. I marvel as I read the reasaons why gas prices go up in the market reoports. One day they tell you it is because the supply is low and the pricew at the pump goes up immediately usually 24 cents. Then the supplies are large and it takes two weeks a penny at a time for it to go down. Why do all of the stations go down and up at the same time. Can you say "monopoly"?

Gas futures also cause a rise in gas prices at the pump overnight however futute makets can be easilly maiipulated by large companies with creative bookeeping figures. It is not a free market but a manipulated market that takes what the traffic can bear.

Tom,

If you owned a gas station and the guy across the street was a nickle higher or a nickle lower, wouldn't that enter into the equation when you set your price? The gas stations are typically not owned by the oil companies, but rather small & medium-sized businesses.

[eric1978]

Those are dangerous words. Using your logic if you get a raise the person below you has a right to one before you. Its all this talk of fairness that caused this mess

??? Ya lost me.

[Al Agnew]

Ness, that blurb came from Forbes Magazine originally. I kinda assumed they wouldn't say something so flat out wrong. Apparently I was wrong.