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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (54073)	7/31/2006 11:42:56 AM
From: Chispas	Respond to of 116555

"Oil barons: Profits rise while consumers fall" : Here's something to think about while you are filling up your vehicle and watching the dollars add up on the pump: ExxonMobile Corp. posted its highest-ever second quarter profits last week - up 36 percent to $10.36 billion. Revenue rose 12 percent to $99 billion. Exxon was not even at the top in percentage gains. Conoco Phillips posted a 65 percent increase and Royal Dutch Shell a 40 percent hike. BP Oil was a mere 30 percent. Then there is poor Chevron. Chevron earned $4.35 billion, an 18 percent increase over last year and the largest three-month profit in the company's history. Yet, that still didn't meet investors' expectations for even higher profits and shares fell. Meanwhile, consumers expectations for some kind of relief from high fuel prices continue to be dashed with gasoline around the $3-a-gallon mark. Exxon says it is investing more in efforts to bring more fuel to the market, but don't expect much help with prices. With unrest in the Middle East and growing demand worldwide, the future does not look any better. Meanwhile, the high gas prices are affecting the economy and government costs, which are supported by the same consumers' taxes. While the price continues to rise, Americans still are not altering habits that much. Demand is up 2 percent from last year. The real impact is on low-income workers who are spending more of their income on fuel. In a rural state like Mississippi where there are long commutes for many, the price is impacting quality of life. Still there is little serious talk of energy policy in the current congressional elections. With record profits, Congress should be considering windfall profits taxes to offset costs for developing alternatives to America's oil dependence. Consumers watch the costs go up at the pump, while Exxon is raking in more than $1billion a day. Candidates need to do the math and work on the policy. ............................. clarionledger.com