Gas prices have been high for so long because of decreased refinery output and the high cost of crude oil, right? Well, if that's true, why is ConocoPhillips showing a record 89% increase in profits?

ConocoPhillips, like other major oil companies, has reaped a windfall from soaring crude oil prices -- which touched a record $70 a barrel in the quarter -- and better refining margins, as powerful hurricanes blew through the Gulf of Mexico, severely disrupting energy operations.

The Houston company's net profit in the third quarter rose to $3.8 billion, or $2.68 a share, compared with $2.01 billion, or $1.43 a share, a year earlier.

ConocoPhillips isn't alone. BP, one of the world's largest oil companies, posted a 39% increase.

BP PLC, one of the world's largest oil companies, reported a 34 percent rise in quarterly profit Tuesday as record energy prices more than outweighed hurricane damage to its rigs and refineries.

BP said net profit for the three months ended Sept. 30 rose to $6.53 billion, up from $4.87 billion in the third quarter of 2004. Revenue jumped to $97.73 billion from $66.73 billion.

Can some good economist out there explain to me how the fuck this is working? Is my wallet actually getting fucked at the gas pump, or is there some crucial piece of information I'm not understanding here? Why exactly has the price of gas been so high for so long?

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One word: Greed

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Fascinating discovery. Please, tell us more words?

Yes, you're getting butt-raped at the pump, and there is really nothing you can do about it.

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I was under the belief that some natural disaster caused some major problems at the companies oils sites thus putting up the costs to cover thier own asses. not sure if its true, but thats the news going round here.


EDIT: found a couple of stories from our national news program....has bearing to this.



Oil rises as US output crawls back 30/09/05
http://seven.com.au/news/topstories/110445


Oil rises over $US66 on fuel crunch fear 29/09/05
http://seven.com.au/news/topstories/110203

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Since I live in a regional area, we pay way more for our fuel than the Cities do. Though being where you are bart, you're probably getting hit worse than we are. Where I am, petrol is 129.9 cents a litre. It was as high as 141.9 last month. I was under the same assumption as bart was, that natural disasters such as Hurricane Katrina and the war in Iraq had a bearing on Oil prices, and therefore fuel. Or maybe we are just getting a bit of what for at the bowser, just for the amusment of Shell, Mobil and Co.

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wouldnt surprise me splinter. yep im in what they class as 'country town' even though we are on the coast, we aint far from the desert either. last i looked we pay round 137.0 to 139.9. i havent seen it reach over that yet, but our government is expecting a rise in fuel again. lately its been a matter of use the car for emergencies only and walking. 1 because i have a 6 cyclinder car, hence she tends to use up more fuel and 2 because $20 dont go as far as it used to. i cant keep affording petrol at the rates its going.

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Personally I believe t might be that all along the oil companies have been planning to increase prices(it has increased every year since the very first pump). But with all these hurricanes(not to mention the fuckers at Opec) this has been an excuse to hike up the prices higher than the usual annual increase.

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Its funny how we're occupying Iraq, yet gas prices continue to rise.

You guys want to try paying UK fuel prices, almost £1 a litre at the moment, $1.50US or $2.50AUD roughly. I'm not sure about the rest of the world but i Know that we pay something like 67 pence tax on every litre of fuel. Thats pillaging at the pumps.

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no thanks swampy. i think ill put up with our prices.

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