Friday, November 11, 2005

Big Evil Oil Companies: Those evil profits wind up in some interesting pockets. Like California public employees. According to Rich Galen, Calpers,

according to its latest annual report, owns about 28 million shares of
ExxonMobile; about 9 million shares (after a stock split) of Chevron; and some
5.6 million shares (also after a split) of ConocoPhillips.

The value of Calpers' holdings in those three companies has increased - since they closed the books at the end of their last fiscal year - by one billion dollars.

Meanwhile Barbara Boxer leads the charge in calling for an "investigation" into oil company profits. There's more disingenuous hostility towards oil companies than anyone can keep track of, but that just stands out as really top shelf hypocrisy.

Via Common Sense and Wonder.


Razor said...

VikingPundit had a post on this a few days ago. I made a comment there that the oil companies make something like $.09 in profit per dollar of revenue, while McDonalds makes closer to $.15 per dollar. I then closed the loop by noting that since the Big Mac is under threat of being legislated away, we should not be surprised that Congress is finally going after Big Oil.

By way of further comparison, cigarette manufacturers, despite Congress' best efforts, make about $.22 off of every dollar, while Merck makes over a quarter. Citigroup is around $.15 also.

Flyer said...

And all their profit margins are less susceptible to short term fluctuations of the extreme variety that oil companies face. They have legitimate claim that "we need to make profits now to provide sufficient capital when prices drop."

No matter the governments efforts, the price of a Big Mac isn't going to drop by 25% in 3 months (actually, GovCare will drive it up).