Shell reaps record profit of $11.6B

[Lambo]

AMSTERDAM, Netherlands (AP) -- Royal Dutch Shell has booked a record net profit of $11.6 billion (€7.45 billion) in the second quarter, up 33 percent from the same period a year ago, thanks to high oil prices and the weak dollar.
Shell's CEO attributed the results to good operating performance, combined with increased oil and gas prices.

Shell's CEO attributed the results to good operating performance, combined with increased oil and gas prices.

The year ago figure was $8.67 billion.

The company says its selling price per barrel of oil was around $112 (€72), up from $64 a year earlier.

Chief Executive Jeroen van der Veer in a statement Thursday called the results "competitive."

He attributed the results to "good operating performance, combined with increased oil and gas prices" that offset weaker results from refineries.




I work for shell, but they pay me bread crumbs for the amount of money they rake in...this is why entrepreneurship is the way to go.

[chrispalko]

Competitive? More like greedy.

Good find.

[ron komorowski]

Why doesn't the general public understand the math and do something about it? Oil companies work on a percentage. They make about 7% on the oil they bring in, refine and get to us through the pumps.

In the year 2001 they were getting us a gallon of gas for a profit of $.07 They were making their money. Today, 7 years later they want $.28 to bring us one gallon in our tanks.

Why do they need to make 4 times the amount. It wasn't their oil for the most part anyway. They didn't dig it out, we know where that comes from. The refinery system is still the same....so trucking is a little bit more...not much.

Things go up, maybe they should scrap their percentage and maybe raise the profit they want up a penny or two a gallon to maybe $.09 The oil companies are just playing along in the game and reaping the profits because the public can't do some simple math.

It would be ok if they were looking for oil domestically which they are starting to do, invest the profits in that...but that is not the case.

The oil companies need to work with the general public more. Record profits once again in such troublesome days is unacceptable. Rape, robbery...and sad.

Ron Komorowski
Inventor of Handi-Straps
Handi Straps Lifting System Home

[tazman9r]

Let them keep making money, and lots of it.

Maybe Obama was right, its not bad that we are paying this much at the pumps, just unfortunate that it went up so quickly.

We have all these programs we want in this country, and the sad truth is that for all the good intentions of these programs and "bridges to nowhere", and contracts to companies that are run by family members, we can't afford them. So, since we "have" to have these programs and such, we put all of it on credit, then sell off our assets to other countries who want the assets and are willing to pay the price, which is our debt. By the way, the cost of the war is often mixed in with the total cost of the military. Though, expensive, the cost of the war itself is much less than some other programs. It is part of the problem, but far from the largest expense.

We to continue to refuse to drill in ANWR and off our coast (so we have those assets to sell off to other countries who will buy them to pay our debt, because that's how we pay this country's debt), and we continue to refuse to build nuclear plants (because that would interfere with the trade commitments we already have, to pay our debt).

Maybe if we get too uncomfortable with gas prices long enough, we'll get smart, get off our collective 4th points of contact and develop another inexpensive fuel source, that burns in current technology engines, to compete with oil. That is the fastest way to bring the price of oil down. I only wish a had a sure fire way to do it, and if I did I'd sell the heck out of it and make lots of money.

The "Gas Tax Holiday" has been called a gimmick. Sounds to me like the $0.28 cents mentioned above is about $0.15 less than the total tax burden on a gallon of gas. How then is the oil companies making less money any different than the Government making less money. We've been so effective at restricting our gas use that the government wants to raise the gas tax, by the way.

Sometimes I'm surprised that this is an entrepreneur's forum. It's not like profit is a bad word. If you think it is, good luck running a business. All that money you get for selling your widget that you use to buy your fancy cars and toys, or use to give to charity,...

That's profit.

[Ultimatum Dynamics]

Maybe if we get too uncomfortable with gas prices long enough, we'll get smart, get off our collective 4th points of contact and develop another inexpensive fuel source, that burns in current technology engines, to compete with oil. That is the fastest way to bring the price of oil down. I only wish a had a sure fire way to do it, and if I did I'd sell the heck out of it and make lots of money.

You make it sound ever so easy. It's not. Hydrocarbons are an almost perfect energy conveyor from a consumer's standpoint. You can't just pay your way to new inventions.

[tazman9r]

You make it sound ever so easy. It's not. Hydrocarbons are an almost perfect energy conveyor from a consumer's standpoint. You can't just pay your way to new inventions.

If it were ever so easy easy I would do it myself and then do what I said in my post, makes LOTS and LOTS of money off it. Hydrocarbons are a very convenient energy conveyor, I would stop short of calling it "perfect". It's convenient for the customer, the oil company, and the government. Oil supports an enormous system with thousands of employees and is one of the largest single sources of revenue for the government in both corporate and individual payroll taxes. There is no real motivation to find another viable energy source, especially if that energy source does not require such a large system and provide as large a tax base. It would seriously endanger the revenue stream not only to the oil companies, but also to the government.

ExxonMobile may have made record profits, again, but what they don't tell you in the news is that while those profits are after tax numbers, ExxonMobile paid nearly the equivalent in taxes on those profits.

In a press release dated yesterday, 7/31/08, from ExxonMobile -

http://www.exxonmobil.com/Corporate/...rnings2q08.pdf

"'The effective income tax rate increased to 49% versus 44%."

In a quote from The Washington Post -

washingtonpost.com - nation, world, technology and Washington area news and headlines

"Exxon noted that its capital expenditures, which include exploration costs, were $7 billion in the second quarter, up 38 percent from a year earlier."

In a quote from the New York Times -

http://www.nytimes.com/2008/08/01/bu...hp&oref=slogin

"Exxon’s profits were nearly $90,000 a minute over the quarter, but it was less than Wall Street had expected. Exxon’s shares fell 4.6 percent, to close at $80.43. (The company calculates that it pays $274,000 a minute in taxes and spends $884,000 a minute to run the business.)"

Oh, by the way, that $11.68 Billion translates to $2.25 increase per share. That's right, while ExxonMobile makes a lot of money, they are paying shareholders with that money.

The way I see it, these are the questions we should be asking -

Should ExxonMobile be penalized for making a lot of money, after paying nearly the equivalent in taxes (over $11 B..B..B..Billion)?

Should the oil companies pay even more in taxes just because they make lots of money?

Would the oil companies paying more in taxes really benefit the American people, or give more revenue to a government that already cannot and will not control its spending?

And another item of interest. From CNN -

ExxonMobil to sell 2,220 gas stations - CNN.com

"(CNN) -- Oil giant Exxon Mobil Corp. plans to sell its company-owned gas stations, saying they aren't profitable enough even with gasoline selling at $4 per gallon."

There is a "Paul Harvey" here, a "rest of the story" that is not being told here.

[chanson]

Its a game right. the biggest one in the world. There is more to it then a great big number of 11.68B in quarterly profits. The preceding post is a good one, and IMO i say let them rake in the cash, but instead of bitching about the gas prices get on board and make your gas money back(stocks, dividends, create a business to service oil companies, get a JOB with an oil company). IF YOU CANT BEAT THEM JOIN THEM right

[Lambo]

Its a game right. the biggest one in the world. There is more to it then a great big number of 11.68B in quarterly profits. The preceding post is a good one, and IMO i say let them rake in the cash, but instead of bitching about the gas prices get on board and make your gas money back(stocks, dividends, create a business to service oil companies, get a JOB with an oil company). IF YOU CANT BEAT THEM JOIN THEM right

i have a job with an oil company....yeah the entry level salaries are okay, but if you want to be making the big bucks you definitley have to start a biz

[ron komorowski]

I really think that the oil companies and the gov't work very closely and in confidence. I think it's all bull what the public knows, what the public hears.

Energy runs countries. The vital element. Ofcoarse the gov't is involved although energy manufacturing is a business.

I think the oil companies are just another form of taxing the people and everything is "set up" with guidelines from the gov't.

We know in Europe the high prices of fuel are because of taxes. There fuel sales are a form of taxation.

It's not supply and demand, speculators, it is about the private talks between the gov't and oil companies. The oil/energy companies do need alot of money right now for research and development for new forms of energy. We know this.

I just believe the real reasons energy companies do the things they do with the gov't is secret as it is very important and directly relates to worldwide security. What we know, we don't know, the real story only very few know behind closed doors. Less riots that way.

Ron Komorowski
Inventor of Handi-Straps
Handi Straps Lifting System Home

[tazman9r]

I really think that the oil companies and the gov't work very closely and in confidence. I think it's all bull what the public knows, what the public hears.

Energy runs countries. The vital element. Ofcoarse the gov't is involved although energy manufacturing is a business.

I think the oil companies are just another form of taxing the people and everything is "set up" with guidelines from the gov't.

We know in Europe the high prices of fuel are because of taxes. There fuel sales are a form of taxation.

It's not supply and demand, speculators, it is about the private talks between the gov't and oil companies. The oil/energy companies do need alot of money right now for research and development for new forms of energy. We know this.

I just believe the real reasons energy companies do the things they do with the gov't is secret as it is very important and directly relates to worldwide security. What we know, we don't know, the real story only very few know behind closed doors. Less riots that way.

Ron Komorowski
Inventor of Handi-Straps
Handi Straps Lifting System Home

If you haven't already read this, I highly suggest you do. I speaks directly to what you were just mentioning. It is the verbal outline of the book "The Energy Non-Crisis".

The Energy Non-Crisis by Lindsey Williams

Then watch this. It is a recent presentation from the same person.

The Energy Non-Crisis

Take it as information, a piece in a cog in ballance with everything else you know.

[ron komorowski]

Very interesting Taz...I only watched 5 minutes...out of time for now but as all realize now, energy reserves equal world power. In one way or another, through wars economies or other ways, that is what it boils down to.

Don't tell me in all our vast land and our closest allies that we don't have oil and gas reserves or even raw materials such as minerals and metals.

A sand pit on the other side of the world has it all when we know oil runs like rivers all throughout the earth's crust? Oh it's closer to the surface. Bullshit! How far is Mars? We can go all the way there to find ice but we can't go a little further to find some oil???

How about we want to suck the Middle East dry of oil for world power and save our resources? I recently heard on the news that Iran can run out of oil in 4 years.

The other truth is, you, me and the rest of us MUST stop wasting energy for economic reasons as well as environmental. I live in NJ, flat as a board. We have more SUVs than probably anyone in the world. We have a pizza chain here, small, 5 stores, but they were using a Hummer to deliver pizza for a spectacle for advertising. DISGUSTING!!!

You, me and the rest of us needed these high prices to force us to conserve even for the sake of the environment. Not only are we reckless with fuel consumption in our vehicles but they way we maintained our homes which doubled in size in 30 years.

Let's hope we are all smart enough to manage our way out of this mess. Thank you for the video. I will watch it all and pass it on. Good conversation...nice to talk to you again...it's been a while. Hope all is well.

Ron Komorowski
Inventor of Handi-Straps
Handi Straps Lifting System Home

[tazman9r]

Let's hope we are all smart enough to manage our way out of this mess. Thank you for the video. I will watch it all and pass it on. Good conversation...nice to talk to you again...it's been a while. Hope all is well.

Ron Komorowski
Inventor of Handi-Straps
Handi Straps Lifting System Home

Thanks, good to see you too. Doing well, finished my CE 650 type rating, common to the Citations III, VI, and VII. I am also managing the airplane now, as well as the fuel farm and hangar facility, which is a fancy way of saying I mow the lawn outside the Hangar and mop the floor inside. Now I just need to complete my move to the left seat in the eyes of the owner.

As far as your other points go, I totally agree with much of it. I, to, don't by that the only reason for relying on the Middle East is due to the ease of retrieval. Not sure about I Iran running out in 4 years, but I think that sentiment has to do with governments not leveling with us about what's really going on. There are many who are now of the belief that oil is a renewable resource, a result of a mineral process from deep within the Earth's crust. I can't speak intelligently about that, but seeing as how people are even still having these debates is an indication that we don't know enough about what we are talking about to even suggest the planet is running out of oil.

Regardless, there is something to be said for the intelligence (or lack there of) of gross over usage for the sake of marketing. I am from southern California, I can't tell you how many Hummers I have seen in traffic with one person in them. I think the H3, being a smaller vehicle than the monstrous yuppie shopping cart, the H2, was a smart way to go, though it still has a considerable fuel consumption rate. My wife is eyeballing the new Camaro, which is supposed to have a version with the V8 that runs on 4 out of 8 cylinders during operations that don't require more than that. Now that is a smart V8.

Austin Martin has an electric car that has the equivalent of 700 hp, certainly an import I would drive. And I have already made my affection for the American built Tesla known.

Can't speak to the housing. I have been living in roughly 800 sf to 1200 sf for almost ten years now, but I must admit that if I had a large home I would be curious to find other ways to keep it comfortable than running the A/C or the heat all the time.

Those things being said, I conducted an interesting experiment. I had an opportunity to drive a Buick Park Avenue yesterday for an hour and a half to Midland across pretty flat terrain. This car, a mid to late '90s model I believe, had an electronic mpg indication. A V6 of moderate displacement, I got about 32 mpg at 65, which translates to about 2 gallons per hour. At 75, the current speed limit in Texas on that particular road, I was getting about 29 mpg, or about 2.58 gallons per hour, and at 55 I got 35 mpg, or about 1.57 gallons per hour. In the automobile world, fuel burn per hour is not as big a deal as miles per gallon, but this is what I found interesting. If you go 100 miles at 55 in that Park Avenue, you get there in 1 hour 42 minutes, and burn 2.9 gallons. At 75 mph, this car would go 100 miles about 1 hour and 16 minutes, nearly a half an hour earlier, burning 3.4 Gallons. So, I get to have 30 minutes more at my destination for spending, if the average is about $4.00 per gallon, $2.00 more in fuel. Certainly this is still too much for gas. It wasn't long ago I was walking to my Mall Security job, 5.5 miles each way, because I didn't want to pay $3.50 for a gallon of gas back in 2006.

Aviators manage their fuel in terms of time, so to run the numbers this way for a car made sense to me, once I could get a real time indication of fuel consumption. I bring this up in the light of suggestions that we return to a national speed limit of 55, and our democrat candidate suggesting that we can save the amount of oil that would be replaced by drilling by keeping our tires inflated and getting regular tune ups.

I got two older cars, 92 and 89. We just got a tune up for one, and the other is due. There are newer cars that don't require an oil change for 100,000 thousand miles, and I am not aware of any scheduled maintenance they require ahead of that, which leaves tire inflation as the common thing all drivers can do, and I don't think that alone is gonna do the job. Sometimes I think that Obama's common sense low level light is on, and he just isn't checking his instruments.

I whole heartedly agree with your sentiment about managing our way out of this. Smart energy usage will certainly help, but the cost must be brought down to effect the growing price of groceries, or anything else that is now more expensive because of growing trucking costs, which is ... everything.

[1entrepreneur]

Oil companies make a profit independent of the economy.

[ron komorowski]

Taz....thanks for taking the time to explain your information to me...very interesting.

I am on a forum called Edison Nation for inventors Edison Nation - Inventors helping inventors. From the producers of PBS' Everyday Edisons Very cool place...I will be posting the info here as many have asked me questions on inventing.

I put up a thread just about your video you showed me. We got a great reaction and one guy that lives in Alaska verified it to the best of what he hears "on the streets"

You should see the thread... I start of "The Damn Truth About Energy, Power, Greed, Economy"

Talk again Taz....thanks so much for the lesson! Your welcome to come say hello on the Edison Nation forum too!

Ron Komorowski
Inventor of Handi-Straps
Handi Straps Lifting System Home

[tazman9r]

I will definitely come check it out, Ron. Read you again soon!