Minnesota to try and ban gas powered equipment

[otlski]

I also worry about Big Oil being greedy

4 oil companies had total sales of $1 trillion last year​

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By Irina Ivanova

February 2, 2023 / 4:36 PM / MoneyWatch


'Global oil companies have rebounded since the pandemic to post their highest ever profits since people started using petroleum.

Chevron, ConocoPhillips, Exxon and Shell all reported record profits in 2022 — a year in which Russia's war on Ukraine collided with the post-pandemic economic recovery to drive oil prices to their highest levels in history.

Together, the four companies saw $1 trillion in sales last year, a sum greater than the total economic output of Colombia, South Africa or Switzerland."

Disingenuous article. Who cares what the total sales (revenue) was? A better article would have informed us regarding what the quantitative revenue, profits, and margins were, and how they compared to historical norms. This article did not. Lots of wasted words trying to invoke negative feelings in the reader. Give us the facts, we will decide for ourselves.

 

[airbiscuit]

 

[dstig1]

Oh it is hard to beat "The State" when they are h-e-double hockey sticks bent on doing something. First they ban the sale of gas cars. Next they refuse to register them. Next they tell insurance companies they are not allowed to insure them in the state through the state insurance board. And as someone mentioned ban gas stations at some point. Probably start by adding a few bucks per gallon tax to help force people more on their own. That will also help kill off gas stations as they can't make money on gas anymore so in the end there are fewer they will have to buy out via eminent domain or the like.

The screaming about oil company profits comes up anytime prices spike at the pump. The thing to look at is percent margins - operating income. Did the percent change? If they were making 10% (example) when gas was 2 bucks, and they are making 10% when it is now 4 bucks, then their profit dollars may well double (if they sold the same number of gallons) but the % margin is unchanged. That is not gouging, it is just responding to higher input material costs. Was anyone offering them more money when they were taking losses in 2020 during the pandemic? Right.

 

[Citydude]

Simple, invest in energy stocks and quit complaining.

 

[cqaigy2]

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I wonder what the average is when compared to a few years ago when the price for oil was so bad that they were paying people to take it and store it.

 

[jyoutz]

Oh it is hard to beat "The State" when they are h-e-double hockey sticks bent on doing something. First they ban the sale of gas cars. Next they refuse to register them. Next they tell insurance companies they are not allowed to insure them in the state through the state insurance board. And as someone mentioned ban gas stations at some point. Probably start by adding a few bucks per gallon tax to help force people more on their own. That will also help kill off gas stations as they can't make money on gas anymore so in the end there are fewer they will have to buy out via eminent domain or the like.

The screaming about oil company profits comes up anytime prices spike at the pump. The thing to look at is percent margins - operating income. Did the percent change? If they were making 10% (example) when gas was 2 bucks, and they are making 10% when it is now 4 bucks, then their profit dollars may well double (if they sold the same number of gallons) but the % margin is unchanged. That is not gouging, it is just responding to higher input material costs. Was anyone offering them more money when they were taking losses in 2020 during the pandemic? Right.

When I took economics in school, profits was what is left over after all those expenses you mentioned. Yes, the margins are what is important to track, but those did indeed increase. The shareholder reports for the large petroleum companies show this. The head of my state’s petroleum association talked about increased profit margins on the local business news show. He also mentioned that shareholders would be recouping their 2020 losses with dividends and stock share prices. There’s nothing wrong with that business model to increase profits to compensate for prior year losses. But let’s be honest about what the situation is.

 

[Torvy]

Yes, lets be honest. Cherry picking a selection of oil companies and lumping their 'profits' together is called sensationalism. There are two primary reasons why profits are generally up. 1) Inflation. It lifts prices in the present, but past purchases do not change. Same reason that homes are considered a hedge against inflation. The value of the assets goes up, but the price you paid , even if it is borrowed money, stays the same. 2) Companies have R&D money that has been idle or down shifted because of the uncertainty caused by a hostile approach taken by governments.

Of course, when someone actually looks at the cyclical nature of the oil business and includes all of the companies, not just the most successful ones, the picture becomes less newsworthy.

The part that is interesting to me is that if the push towards electrification is actually successful, it will lower the cost of oil and make operating ICE vehicles cheaper. The only way that does not happen is if governments artificially mess with the economy. The more they do that, the more problems happen downstream (regardless of the industry that is being manipulated).

 

[Hay Dude]

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The large font and sensationalized headlines don’t convince me of anything.

 

[Hay Dude]

I think they will start not registering ICE vehicles within about 10 years of the ICE sales ban and outlaw the sale of gasoline a few years later. Diesel will be a different matter. I can imagine a commercial permit to buy on road diesel and a special ag permit to buy dyed diesel, at least for a few years.
Washington is fast moving to a one party totalitarian state in which the needs and wants of only those in the Puget Sound Basin will be considered. Eastern Washington is already treated like the proverbial red-headed-step-child.

Reminds me of the Netherlands. One of my daughter’s college hockey team mates is from there. She said the lower part is all farmlands and the farmers are treated like criminals there.

I hope these jackasses doing this stuff to their constituents get what they deserve. They are evil smart. They have created animosity between city and country, knowing they have the masses of votes on their side.

When the food gets too expensive or scarce, you’re gonna see riots turn to wars. Then the rulers will take the farmland by force “for the good of the people”. Then food prices will triple.

 

[Oaktree]

Washington is fast moving to a one party totalitarian state in which the needs and wants of only those in the Puget Sound Basin will be considered. Eastern Washington is already treated like the proverbial red-headed-step-child.

Moving toward? I spent a couple years in the Seattle area (actually, closer to Everett) in the mid 70s and I found it way too socialist for my tastes even then.

The eastern vs western Washington situation is quite common in states where the majority of the population lives in one region, and the rest of the state is rural. Majority rules.