It's good news for shareholders, including mutual funds and retirement plans for millions of Americans, but no help to drivers already making drastic cutbacks to offset the high cost of fuel.
The five biggest international oil companies plowed about 55 percent of the cash they made from their businesses into stock buybacks and dividends last year, up from 30 percent in 2000 and just 1 percent in 1993, according to Rice University's James A. Baker III Institute for Public Policy.
The percentage they spend to find new deposits of fossil fuels has remained flat for years, in the mid-single digits.
RE: Oil Companies Profits Not Going For Exploration
That's because they are very smart right now. Number one, they don't have access to the easy oil out there, we blocked them from drilling it. No sense in investing in the hard to come by oil when the market is in so much turmoil right now. They could spend a lot right now and then watch it all evaporate when oil drops back to 50 a barrel. They need steady 150/barrel to go after it. Then lastly, they should buy back their stock at such low dollar value when the forcast is the stock will have a very bright future because energy is looking very important on peoples radar. We only have to look no farther then a company called Budweiser to see this. Imbev bought them because they were cheap when looked at in regards to exchange rates and brand name in the market place. Exxon right now has a very well known brand name and a very under priced stock in the terms of exchanged rates. Plenty of bigger oil companies out there with even more cash sitting around. I'm sure you would have posted something like this though eventually since after all, you do have several 600 level econ course.
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RE: Oil Companies Profits Not Going For Exploration
In one year the cost has risen 70% and that was after the recent drop was calculated in. The real kicker though is found in this, do a search on the amount they gave to help the katrena disaster. Last I saw it was less than 10 million, more like 1.5 mil.
RE: Oil Companies Profits Not Going For Exploration
Quote:
ORIGINAL: nodog
In one year the cost has risen 70% and that was after the recent drop was calculated in. The real kicker though is found in this, do a search on the amount they gave to help the katrena disaster. Last I saw it was less than 10 million, more like 1.5 mil.
How much did you give?
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RE: Oil Companies Profits Not Going For Exploration
Quote:
ORIGINAL: nodog
In one year the cost has risen 70% and that was after the recent drop was calculated in. The real kicker though is found in this, do a search on the amount they gave to help the katrena disaster. Last I saw it was less than 10 million, more like 1.5 mil.
Since when is itan obligation of private corporationto bail people out of natural disasters? That is just a monumentally stupid argument.
And, I'd bet that if you factored in the amount of tax dollars that were paid by all of the oil companies, including income taxes paid by their employees, which ultimatelygot channeled from the general fund into Katrina relief, the amount you cite would be ridiculously low...
RE: Oil Companies Profits Not Going For Exploration
FM, So none of the millions of acres they have leased have easy access to oil, it's only in that one spot in ANWR and off the coast where they haven't leased nor have they drilled exploritory wells or done any tests?
When oil drops back to 50$ a barrel, lol, you should be on stage. You really think oil companies will let that happen?
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RE: Oil Companies Profits Not Going For Exploration
Quote:
FM, So none of the millions of acres they have leased have easy access to oil, it's only in that one spot in ANWR and off the coast where they haven't leased nor have they drilled exploritory wells or done any tests?
I guess you never read my post a few months back explaining exactly what is going on in those leased lands? Exploration has been going on. Why exactly would a company fork out all the money to buy the leases and also to renew the leases and BTW there is a use it or loose it clause already built into those leases. There are many many hoops they must jump through in order to begin production and the one of the worst hoops are the greeny wennies.
Quote:
When oil drops back to 50$ a barrel, lol, you should be on stage. You really think oil companies will let that happen?
FYI, they don't have the power to stop it.
__________________
John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
RE: Oil Companies Profits Not Going For Exploration
Quote:
ORIGINAL: Charlie P
Quote:
FYI, they don't have the power to stop it.
It seems like every time it goes down OPEC and other countries reduce supply and the price goes back up,that's not control?
It's not speculation right?
So do they or don't they have access to any easy oil?
I'm sorry, my bad. I didn't know we were letting OPEC bid on our leases. Let me ask you this, how much control did they have when oil fell below $10/barrel and I paid $.71 cents a gallon less than 10 years ago?
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Oil Companies Profits Not Going For Exploration
