A number of years ago, oil company profits were set by government and oil company agreement and legislation at no more than 10% of the cost of a barrel of oil. So, if oil sells at $30.00 a barrel, the oil company can take a $3.00 profit maximum.
Currently oil trades at $72.00 a barrel with the expectation of $100.00 by the end of the year. $10.00 a barrel profit maximum.
Some expect the $200.00 barrel price within two years. Profit would be $20.00 a barrel.
The windfall profits of exxon come from this situation; it has nothing to do with exxon DOING ANYTHING.
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Should exxon and other companies be allowed to keep the massive profits due to no action on their part, in fact, the four manor oil companies refuse to build more refineries??????? |
