Comments on: $236 Per American Driver: Big Oil’s U.S. Profits From The Last Year http://wonkroom.thinkprogress.org/2008/07/31/big-oil-236-per-driver/ Thu, 26 Nov 2009 16:42:01 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: stateofthedivision http://wonkroom.thinkprogress.org/2008/07/31/big-oil-236-per-driver/comment-page-1/#comment-1788 stateofthedivision Thu, 31 Jul 2008 20:29:34 +0000 http://thinkprogress.org/wonkroom/2008/07/31/big-oil-236-per-driver/#comment-1788 The other reason the last quarter is so instructive is Americans cut back their driving, i.e. demand fell. It speaks to the inelastic nature of energy markets, much like healthcare. That means Bush's efforts to tweak market forces will result in one thing, greater profits for health insurors and big oil. The other reason the last quarter is so instructive is Americans cut back their driving, i.e. demand fell. It speaks to the inelastic nature of energy markets, much like healthcare.

That means Bush’s efforts to tweak market forces will result in one thing, greater profits for health insurors and big oil.

]]> By: stateofthedivision http://wonkroom.thinkprogress.org/2008/07/31/big-oil-236-per-driver/comment-page-1/#comment-1786 stateofthedivision Thu, 31 Jul 2008 20:00:52 +0000 http://thinkprogress.org/wonkroom/2008/07/31/big-oil-236-per-driver/#comment-1786 The news is the massive improvement in profits in the 2nd quarter with "through the roof" gas prices. Exxon's rose only 10% the last three months. Other companies garnered 27% to 31% bottom line increases in 90 short days. Those are loan shark increases in returns. And no, they aren't spending that money on alternative energy research or exploration. It's going to dividends and stock buybacks. The news is the massive improvement in profits in the 2nd quarter with “through the roof” gas prices. Exxon’s rose only 10% the last three months. Other companies garnered 27% to 31% bottom line increases in 90 short days.

Those are loan shark increases in returns. And no, they aren’t spending that money on alternative energy research or exploration. It’s going to dividends and stock buybacks.

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