Is it a coincidence that oil prices spiked last couple of years and the Oil Companies made record Profit?

To you Bush Supporters: In case you are so gung ho to think Bush is a good moral man when he and Cheney are both involved in Oil businesses, think again! Add up the facts and see if it doesn't add up to Bush being selfish and uncaring toward Americans!





1. Bush/Cheney are both oil biz owners on the side along with their many many rich oil buddies. So why would he care to lower the price, logically speaking.





2. Yes, you Bush supporters kept saying he can't do anything about oil prices. Baloney! Oil prices are based on speculations so when Clinton threatened OPEC to use our own oil reserve, the price of the oil went down right away!





3. Bush never ever threatened the OPEC anything like that! Why? Cuz he's in the business? Duhhhh.





4. Bush lowered income taxes for the wealthy when we have such enormouse deficit due to IRAQ war and how are we paying for it??? Hmm comes back to spike in oil prices doesn't it. How convenient!Is it a coincidence that oil prices spiked last couple of years and the Oil Companies made record Profit?
Its not a concidence, it is called orgnanized crime.Is it a coincidence that oil prices spiked last couple of years and the Oil Companies made record Profit?
Ignorance is bliss, I suppose. Report Abuse

Take an Economics course.





Gasoline is cheaper than bottled water for crying out loud. How much does a 12 ounce cup of coffee cost at Starbucks? Or even Dunkin Donuts or McDonalds? How does that per gallon price compare to a gallon of gas? Which product is more difficult to produce?
Please name me the oil companies that either Bush or Cheney own ?





Heck, Cheney has been a career politican, except during the Clinton years, when Clinton made him rich, by giving halliburton a no bid contract in the Balkan's





And why do you fail to remember the record oil profits made during the Clinton years ?? back when the oil companies were making 11% profit, instead of the 8% profit they are making today ?





I provided you with some links from the clinton days to remind you of the record oil profits back then.
oil/gas prices are a result of supply and demand. sounds innocent enough and true enough when someone is trying to convince you that our governmnet and more importantly, our President cannot effect oil or gas prices.


but here are several facts including a description of how that supply and demand actually works:





1) major conflicts always increase oil prices because use of war machines increase demand.


2) maintaining filled strategic reserves always decreases supply and increases price.


3) when an invester spots a potential future increase in value of a commodity they will buy it in order to make money. this increases the value of that commoditiy when numerous investers buy much of the supply in order to make $$ via speculative trading.


4) wars are one of those potential increases of revenue that oil investers look for to make profit.


5) refining capacity influences the price of gas, more than the price of oil does.


6) higher refining capacity increases supply driving down pump prices, and profit margin of the refiners.


7) there is no economic incentive for refiners of gasoline to increase refining capacity and lower gas prices.


8) the President is the person who orders troops into conflict whether it is a war, or police action.


9) some oil producing nations also support terrorism. which in turn create conflict in areas where the largest oil deposits are, driving up oil prices so there is no incentive to end terrorism or conflict to drive down oil company profit margins.


10) the incentives to fight terrorism are


a. a promise of security makes happy voters


b. might make a little more security for some people


c. wars require equipment that are purchase from weapon manufacturers


d. some weapon manufacturer stock holders are also oil company and gas refiner stock holders


f. the conflict as a result of terrorism and fighting terrorism make the people in D a whole lot of $$$$.





so no, there is no coincidence.





#11 for jeeper_peeper321, since 1999, oil refiner's(which many are also oil companies) profit margin have shot up more than 8-11%


http://www.eia.doe.gov/emeu/aer/pdf/page鈥?/a>
Actually, it's pretty close to a coincidence. Oil companies sign long-term, complex, contracts with the various nations that control most of the world's oil reserves. It happens that the terms of many of those contracts didn't anticipate the huge run-up in oil prices this millenium, so they're reaping a massive windfall. It's likely that, when oil prices finally drop substantially, the industry will be in worse trouble than it was in the 90s, when prices were low, but stable.
Is it not the reason we went to war with Iraq? In doing so, we fabricated claims of WMD and never concentrated on Bin-Ladin. Because of that, we have lost our freedom and government has become a police. What democracy are we trying to put in place in Iraq? I'm sorry, it is all about business and New World Order. How this government can explain the gas price going up on Friday and coming down on Tuesday?
No it is not a coincidence. The american people are being robbed blind and they really don't care. ';they hate us for our freedom';
totally coincidental.
Oil companies make about 9 cents for every gallon of gasoline sold. Government makes four times as much. Seems to me the government is the one making obscene profits.
uh.... duh?