Finally Dave Sykuta and the Illinois Petroleum Council have the nerve to tell us that they are making themselves rich at our expense. The Saudia’s, the Russian’s and the Venezuela’s are making billions, and the Oil Refiners are making 100s of millions of $$$ and he shuffles out the old “percentage of profit” arguement. Which any rich person does to make it look like they ain’t ripping you.
** The final factor in gasoline prices are earnings. Major oil companies earned a little above the U.S. industrial average, 8.3 percent, on gasoline for 2007. No doubt, 8 percent earnings represent billions in profit. However, consider that oil companies are large due to their financial commitments, such as alternate fuels ($100 billion since 2000) and clean fuel technology ($65 billion since 1999). Moreover, between 33 percent and 37 percent of gross industry revenues are paid back to government in taxes. And while conspiracy theorists love to think dark thoughts about 8 percent earnings, the reality is that over 65 percent of oil industry assets are held by pension plans, IRAs and 401(k)s. Industry executives hold less than 2 percent. When the “Who owns Big Oil?” question is raised, the answer is usually “You do!”
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When in fact the Oil Companies themselves were saying something different:
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http://www.iht.com/articles/2008/02/17/business/rnrgoilcos.php
Despite record profits, oil companies find little comfort in high prices
Published: February 17, 2008
PARIS: As crude oil prices topped $100 a barrel in January, some of the world’s major oil companies rang up annual profits that beat the bottom lines of any other company, in any other line of business. Yet, despite appearances, industry analysts are not rushing to pat the majors on the back.
Exxon Mobil, the largest oil company, reported at the start of this month a record 2007 profit of $40.6 billion, earnings that trounced any other company. Royal Dutch Shell reported the largest earnings of any company in Britain, at about $31 billion.
But amid rising consumer resistance to high prices of gasoline and other refined products, analysts and even some oil company executives have a hard time putting a positive spin on the future.
“As far as the outlook, it is pretty horrible,” said Peter Hitchens, an oil analyst at Seymour Pierce in London.
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So why is Dave using the figure 8.2 %. Well because he knows that NO small business could get by on that. Heck not even a multi-state or a medium sized business could make it for long. So he knows that business men and women will cringe. But a for a world-wide international Corporation the size of Chevron or BP that is incredibly wrong. They made so much money that they don’t know what to do with it and it’s all coming out of MA and PA America.
Then he has the gall to say that they pay taxes, when what he is actually counting are Taxes that you pay at the pump as their taxes.
Finally he ends by claiming that WE the American People own the oil companies. While some long standing pension funds have oil stock. The price of Big OIL stocks has been out of the range of the middle class and modest investor for years. Only the supper rich trade those stocks now. For instance:
query.nytimes.com/gst/abstract.html?res=FB0712FC3F5F13738DDDA90B94D1405B868DF1D3
ROCKEFELLER GAINS $8,000,000 MORE; Yesterday’s Advance in Standard Oil Stocks Shows an Increase of $32,000,000. THEIR VALUE $2,027,516,000 Market Worth of All Subsidiaries at Close of Day Is Double the Debt of the United States. ROCKEFELLER GETS $8,028,000 IN DAY
http://seekingalpha.com/article/24347-oil-vs-energy-stock-prices-something-s-gotta-give
The charts below show the ratio between the price of the S&P 500 Energy stock sector and the price of crude oil per barrel. The ratio is clearly at its highest level in the past three years, meaning that oil stocks have not fallen as fast as the price of the actual commodity during the current decline. So either the stocks are due to play catch up, or the decline of oil is a bit overdone. 
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