Oil Giants Profits Up

Several months ago, when the price of oil hit $40.00 U.S. a barrel and our gasoline prices went through the roof, I wrote that we would see what was really happening by the end of the 2nd quarter. Well, the oil giants are releasing their figures and what should be a surprise to no one is that they made billions of dollars profit.

How could they do that, if they had to pay $40.00 U.S/barrel? Would they simply charge us more at the pumps to make up for the money they had to pay for the raw material?

Yes and no.

Look at the figures for the second quarter financial reports Exxon, the largest oil company of them all, who says its 2nd quarter profits were up 39 per cent. Their revenues were $70.7 billion. That is 24% higher than the 2nd quarter a year ago.

The story is much the same for Shell - a 16% hike in profits. British Petroleum and Conoco Phillips were also right up there. The next time you see, or hear, or read that an oil executive is blaming high oil prices, write a letter. Write a nasty one! It won't do much good but you might feel better.

In the meantime you can be sure that the price of gasoline at all Kelowna service stations will go up again all at the same time and all boosted the same amount.

After all, the price of a barrel of oil has set another record - over $43.00!

-S.M.