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all - Oil company profits - make you sick - HGV ~ P Valentine

Good morning,

Bp have announced a 5 billon Uk Pound profit, twice as much as the same period last year they expect Shell to announce the same.

Really REALLY annoys me.

[amended subject - mod]

Edited by Xileno on 04/05/2022 at 08:54

all - make you sick - Will deBeast

Were you as concerned when BP made pre-tax losses of £18 billion in 2020?

That's the nature of running businesses - you get some good years, some bad years.

all - make you sick - FoxyJukebox
We should be pleased the rise in the cost of petrol is not as much as the obscene prices of energy and hence gas/electricity profiteering?
all - Oil company profits - make you sick - Xileno

I've amended the subject to make it a bit more specific what the thread is about.

I think most of the issues have been covered recently:

www.honestjohn.co.uk/forum/post/index.htm?t=160272...4

all - Oil company profits - make you sick - Terry W

BP have also lost £25bn investment in Russia due to Ukraine invasion.

They operate in a world market and their profits are driven by market pricing. Sometimes they win, sometimes they lose.

For companies to make long term plans and invest, they need a stable business environment. Changing tax arrangements just because this year they happen to have made more than expected is a serious demotivator.

Imagine you have a "windfall" - a 100:1 winning horse, a large work bonus, or a legacy. The taxman decides it is unfair and takes an extra chunk of tax (because you can afford it).

Happy and fair would be unlikely to best describe your emotions!

all - Oil company profits - make you sick - Falkirk Bairn

OIl & Gas makes profits & losses.

BP has announced plans to spend £18Bn in UK on projects - Generating wind p wer, supplying a secure new gas supply, Charging stations etc - hopefully enabling bills down the line to be reduced and safe from blackmail by some countries - Russia cut supplies, prices rocketed - the whole of Europe is paying for Putin's war.

I know of a smaller oil company who make £2Bn last year, lost £1.2Bn the year before - they have tax credits of £5Bn - so no tax needs to be paid! They will pay some tax and carry over some of the previous loss.

all - Oil company profits - make you sick - Speedbird 747

Two years ago the oil companies were making huge losses, as the price of oil went negative.

The profits are linked to a shortage of oil. Oil was cheap during the presidency of Donald Trump, where the price per barrel ranged from U$25 to U$45.

Biden’s anti-fossil fuel agenda has caused the price to double even before Putin invaded Ukraine.

all - Oil company profits - make you sick - Ethan Edwards

Please let me know when Sir Beer Starmer is going to destroy the oil companies. I need to get my Pension funds out of them before the i**** ruins them. As I suspect do many people.

all - Oil company profits - make you sick - Andrew-T

The profits are linked to a shortage of oil. Oil was cheap during the presidency of Donald Trump, where the price per barrel ranged from U$25 to U$45.

We are all being asked to use less fuel, so that may be one factor persuading users in the right direction ? I won't comment about Trump, but I suspect many of us think he was a sad waste of 4 years. I just hope he doesn't have a comeback, but his electorate is certainly dumb enough.

all - Oil company profits - make you sick - Gibbo_Wirral

When I started driving in 1992 petrol was 49p a litre. It doubled to £1 in 8 years.

22 years from that its only gone up 60p in all that time.

all - Oil company profits - make you sick - Falkirk Bairn

My first car was bought in 1966 - 4shillings & 8d (24p) for a GALLON for 4 star

all - Oil company profits - make you sick - Terry W

Why focus only on the historic price of petrol going back 30-60 years. So much else has changed it is irrelevant - eg:

  • a typical mid range hatch a will do ~50mpg. Now much better equipped and with much more performance, a comparable car in decades past may have done 30mpg.
  • lots of other purchases have gone down in price - TVs, budget air fares, food costs, consumer electronics, white goods, phone costs etc
  • others have gone up faster - house prices, old masters, etc

Also bear in mind pay has risen by far more than inflation - so although petrol may over some periods have increased faster than inflation, it may be slower than pay increases.

all - Oil company profits - make you sick - alan1302

I thought people would be happy a British company was doing well...it's what Brexit was all about ;-)

all - Oil company profits - make you sick - thunderbird

Also bear in mind pay has risen by far more than inflation - so although petrol may over some periods have increased faster than inflation, it may be slower than pay increases.

When I passed my test in 1974 petrol was about 40 pence a gallon. Locally its 1.609 a litre at Tesco, £7.31 a gallon. That's an 18 x increase.

As a 17 year old apprentice in 1974 I was paid about £30 a week. So to keep the relationship between petrol and wages multiply that by 18 which is £540 a week.

Would a 17 year old apprentice get £540 a week these days?

all - Oil company profits - make you sick - Terry W

In 2000 the price of petrol was ~77p per litre. Adjusted for inflation price today would be ~£2.00. 22 years later (after the recent price rise) it is ~160p per litre - 20% less than RPI inflated cost.

In 1974 a CRT 25 inch colour TV cost ~£300. If prices since then had risen (say) 10 fold (perhaps a little like 17 year old apprentice pay) the price today would be ~£3000.

Price in ££ terms has barely changed. You now have a flat screen TV, multitudinous channels, internet connected etc etc. So in affordability terms TVs are less than 10% of what they were when you passed your test. Most folk still watched B&W in 1974!

No particular point other than by being selective with data and memory it is possible over so long a period to prove almost anything you want.

all - Oil company profits - make you sick - MGspannerman

I certainly don't subscribe to the hysteria surrounding "outrageous" profits. I don't see similar concern when these companies report losses. It is the nature of business and the opportunity for profit encourages people to invest their cash, directly or indirectly, in such firms in the hope of making a better return. Profit is the rewards for risk and if you want more of one then you run the risk of more of the other.

Labour has said that a windfall tax, last time I looked anyway, would raise £1.2 billion. By comparison the recent rise in NI will raise around £11bn (all of which is bound to be swallowed up by an unreformed NHS). In that context the windfall tax is a drop in the ocean, a relatively meaningless political gesture.

If we really wanted to be serious about freeing up cash to help "hard working families" then we would reorganise the NHS where there is a mountain of money being wasted. As a nation we spend £200bn a year on the NHS. Privatise the NHS? Certainly, and Singapore provides an excellent model of how. This encourages personal responsibility with incentives and penalties passing responsibility back to individuals. Is there a cost to you if you don't turn up for an appointment? If you smoke and drink to excess then its the NHS's problem and not yours. With increasing state-ism we absolve ourselves of personal responsibility and it is always somebody else's fault.

The NHS was bust from the day it started and represents the single biggest opportunity the country has to redirect funds. It is not just a sacred cow but a sacred, elephantine dinosaur that has become so politicised and with a momentum of its own that makes change very difficult.

This is capitalism folks, if you don't like it try socialism/communism.

all - Oil company profits - make you sick - Chris M

I can agree in part with a lot of what you are saying MGspannerman but "If you smoke and drink to excess then its the NHS's problem and not yours." could be extended to anyone who participates in a risky sport or pastime, drives or rides recklessly, eat an unhealthy diet or even get pregnant. The NHS picks up the pieces and aren't we lucky it does.

all - Oil company profits - make you sick - Terry W

The NHS is not the hospitals, doctors, nurses, managers etc. It is a commitment by the state to provide healthcare to all free at the point of use. The hospitals etc are merely the means by which the NHS is delivered.

We generally accept that large parts of healthcare delivery are through the private sector - eg: construction, manufacture of drugs and medical equipment, catering, cleaning etc. Dental, opticians, elderly care is already substantially provided.

So I see no reason why healthcare cannot be delivered by the private sector so long as it is very clear the "buck stops" with the government.

There are clear examples of failure in the public health service arising from a lack of proper governance, resistance to change and arrogant assumption they know best. To balance - they also have world leading top class capabilities.

A positive policy of transitioning (say) 15-30% of healthcare to the private sector would be healthy. They may then both learn from each other to implement best practice.

all - Oil company profits - make you sick - RT

The NHS is not the hospitals, doctors, nurses, managers etc. It is a commitment by the state to provide healthcare to all free at the point of use. The hospitals etc are merely the means by which the NHS is delivered.

We generally accept that large parts of healthcare delivery are through the private sector - eg: construction, manufacture of drugs and medical equipment, catering, cleaning etc. Dental, opticians, elderly care is already substantially provided.

So I see no reason why healthcare cannot be delivered by the private sector so long as it is very clear the "buck stops" with the government.

There are clear examples of failure in the public health service arising from a lack of proper governance, resistance to change and arrogant assumption they know best. To balance - they also have world leading top class capabilities.

A positive policy of transitioning (say) 15-30% of healthcare to the private sector would be healthy. They may then both learn from each other to implement best practice.

The problem with transferring part of any service to the private sector is that they cherry-pick the profitable parts and don't get involved in costlier aspects - the Royal Mail is a prime example, forced to continue with the universal franchise at standard price while private alternatives can charge extra for longer distance or not accept them at all.

Private healthcare providers aren't queuing up to treat long-term chronic illness patients.

all - Oil company profits - make you sick - sammy1

"""A positive policy of transitioning (say) 15-30% of healthcare to the private sector would be healthy. They may then both learn from each other to implement best practice.

The problem with this at the moment is that not that many consultants and GPs work solely in the private sector but feed of it by being in both camps and if things go wrong patients often end up back in the NHS. Private health care also relies a lot on agency staff which again work in both camps, Very often NHS patients go through all the diagnostics such as scans MRIs etc get the diagnosis, and are given the waiting list. They then elect for private treatment and all the scans etc are then available to the same consultants. One could argue than the NHS saves money by not performing the last stage but has incurred costs. I have nothing against this but the same consultants doctors could be performing this on the NHS and the more they devote to private clinics the more the NHS suffers a loss of staff. The way things are heading if private healthcare should expand than there would be far fewer medical staff for people who could not afford the private clinics. Have you tried getting an NHS dentist, they have nearly all gone private.

all - Oil company profits - make you sick - alan1302

Have you tried getting an NHS dentist, they have nearly all gone private.

They get paid more privately and get to pick and choose better patients - would you not do that if you were a dentist?

all - Oil company profits - make you sick - RT

Have you tried getting an NHS dentist, they have nearly all gone private.

They get paid more privately and get to pick and choose better patients - would you not do that if you were a dentist?

We use a non-NHS dentist who charges NHS rates - some of the private dentist charge rates are obscene.

all - Oil company profits - make you sick - Xileno

The NHS dentist I was trying to join wanted to see me every six months whereas the private one was happy with twelve months, so the costs were about the same for me.

all - Oil company profits - make you sick - Manatee

A positive policy of transitioning (say) 15-30% of healthcare to the private sector would be healthy. They may then both learn from each other to implement best practice.

That's an attractive idea, and is happening by accident or design. But I doubt if the learning actually happens - one group is trying to work within budgetary constraints, the other is looking to increase its turnover.

But I'm wary of privatising provision even when the government is paying. Especially the kind of government we have at the moment. It's pretty obvious that what they are for is finding "investment" opportunities for their clients, the owners of capital. And the private sector runs rings around government as evidenced by PPI, an invention of the Conservatives not withstanding it was raised to an art form by Labour, consequent on them hamstringing themselves by pledging to reduce waiting times while remaining within Conservative spending limits.

Running the NHS efficiently is an elusive ideal. Targets directed at governing the internal market have in many cases been counterproductive. A number of trusts employed costly 'consultants' to recode patients, especially dead ones, so they hit their measures - difficult cases were retrospectively shifted into 'palliative care' among other fiddles. GPs hit their appointment lead times by simply refusing to book anything more than 48 hours in advance, obliging patients to join a phone queue daily until they got one - within the target window. I remember Blair professing shock at this this when somebody told him live on TV, our practice had been doing it for a couple of years by then.

Private providers have the profit objective to motivate them to find efficiencies. But of course the aim of doing the best for patients at the same time creates a conflict, so you have regulation, which is always gamed as it is by the successors to nationally owned utilities for example.

Thatcher's determination to make healthcare operate like business was at odds with how it had developed as the NHS. Hospitals had in effect been run by senior medical staff, supported of course by clerical and menial oompa loompas. Professional managers were nowhere in sight. There was rationing of course which was manifest in the waiting timse for elective procedures. Decisions as to who was treated and when were made on the basis of a set of largely unwritten shared values and ethics, rather than being based on cost benefit ratios with the benefits measured in theoretical QALY's (quality adjusted life years).

The NHS is not safe in the government's hands. There is plenty of evidence that privatisation by stealth is on the agenda even if a privately operated NHS has to remain largely state funded for another decade or two..

We must remember nothing is unthinkable when there's money to be made. Thatcher's 1982 plan to introduce an insurance-funded system only foundered because of untimely leaks. Even a Labour government might not be able to stave this off without appearing to be spendthrift. Getting the electorate fixated on the idea that tax is bad plays right into creating those profit opportunities, just cut the taxes and let people choose the level of insurance they want to pay for...

all - Oil company profits - make you sick - Engineer Andy

In 2000 the price of petrol was ~77p per litre. Adjusted for inflation price today would be ~£2.00. 22 years later (after the recent price rise) it is ~160p per litre - 20% less than RPI inflated cost.

Apart from the last 5 months, I wasn't aware that inflation over the past 20 years was that high, even RPI. Normally for a 2-3% inflation rate, prices double roughly every 20-25 years, which would represent a fuel price of about £1.50 or so a litre, which isn't that different from what it is now.

In 1974 a CRT 25 inch colour TV cost ~£300. If prices since then had risen (say) 10 fold (perhaps a little like 17 year old apprentice pay) the price today would be ~£3000.

Indeed. I paid all of £400 for my 23in LCD TV back in 2006. Even now, with higher prices for electronics due to the 'chip' shortages, you can pick up a comparable one (resolution-wise) for about £150.

Back then, a colour telly of that size was quite a luxury - my parents rented theirs.

Price in ££ terms has barely changed. You now have a flat screen TV, multitudinous channels, internet connected etc etc. So in affordability terms TVs are less than 10% of what they were when you passed your test. Most folk still watched B&W in 1974!

More (expensive) things for everyone to spend their hard-earned on these days. Also back then, very people owned a credit card (never mind PCP or other lines of cheap credit), which makes it very easy to spend big (including cars) without properly reaslising the long-term implications - including overborrowing to buy a home.

No particular point other than by being selective with data and memory it is possible over so long a period to prove almost anything you want.

For example, even now, food is far cheaper than it was comparatively speaking 40+ years ago.

Many people have either forgotten how to be thrifty (but still be fine otherwise) or never were taught as youngersters.

all - Oil company profits - make you sick - Sofa Spud

We're not all happy about Brexit.

all - Oil company profits - make you sick - sandy56

We should appreciate large profitable companies like BP, a lot of British pensioners rely on their regular dividends from co's like BP. The other side of that business is BP, like all the major O&G companies have to invest huge sums to find, develop, produce and maintain their oil and gas fields that we rely on. A large investment whose profits may not appear for years. The money must be put up front, unlike the rest of the energy industry eg nuclear and wind, which wants huge government subsidies and support before they spend a penny.

all - Oil company profits - make you sick - Manatee

Resource businesses cyclically make super profits when prices rise because their costs of production don't rise in proportion. Conversely profits are smaller when prices are low, and although they can cut production when it is unprofitable they tend to have high fixed costs.

Banks make more money when interest rates rise, for similar reasons.

The answer is sensible tax regimes that work. Then more profits = more tax. Unfortunately globalisation has made tax easier to avoid, and some or our own ministers well understand that from personal experience.

all - Oil company profits - make you sick - movilogo

I don't get why people get upset because someone else made profit etc.

The sole purpose of a business is to make profit. Doing business is a risk. 90% of new businesses fold before 5 years. Those who can take the risk can reap the rewards.

Of course, there are some fat cat directors who are paid £££ for doing nothing but that's separate issue.

We all have the freedom to buy shares in profitable companies and get rewarded as shareholders :-)

UK is considered a rich country. We are all probably richer than 90% of the world population.

all - Oil company profits - make you sick - Andrew-T

The sole purpose of a business is to make profit. Doing business is a risk.

I don't accept it is quite that simple. A business exists to provide something that enough customers are willing to buy to make it viable. That is clearly a risk, perhaps because the number of likely customers or the cost of providing the product, have been inaccurately estimated. But there has to be a product of some kind, or there is no 'business'.

I remember hearing exactly the above statement while I was employed by a large chemical company, and thinking it was a misleading oversimplification at the time. If making money is the only object, go into some kind of 'trade' which consists simply of moving money around. That meets your suggested criterion.

all - Oil company profits - make you sick - alan1302

If making money is the only object, go into some kind of 'trade' which consists simply of moving money around. That meets your suggested criterion.

Not everyone could do that though...there always needs to be a mix of ways to make money.

If a business is not there to make a profit then what is it there to do?

BP is there to make money from drilling oil and then selling it.

all - Oil company profits - make you sick - Andrew-T

If making money is the only object, go into some kind of 'trade' which consists simply of moving money around. That meets your suggested criterion.

If a business is not there to make a profit then what is it there to do? BP is there to make money from drilling oil and then selling it.

You forgot to include the need to keep shareholders (mostly inanimate pension funds) happy with big divvies. That tends to unbalance the simple 'business' story a bit.

all - Oil company profits - make you sick - Manatee

I don't get why people get upset because someone else made profit etc.

They get upset when they feel they are the ones being exploited for profit. Home energy prices are regulated but the system is gamed enthusiastically. As for risk, the fat cats make sure they are still rich when the business fails. There isn't as much downside risk as people think, and plenty of what there is is borne by employees and creditors.

The "wealth creators" don't make money out of thin air. They make it from the economy as a whole, of which we are part. Warren Buffett sees this and said something like "stick a wealth creator in a desert on his own and he isn't going to make much money".

Public spending on services provided privately has very assymmetric risks, as with privatised rail where profits accrue to the franchisee but if they get it wrong it can end up costing the taxpayer to pick up the pieces.

I think the answer is to make sure that tax is paid, that is how we get our share of the profits Sadly globalisation has spawned many ways of avoiding tax.

Trickle down doesn't work. What we have now are significant numbers of people who are really quite poor, and a significant minority who are absurdly wealthy. The wealth that should be circulating more freely is hoarded and if it reaches the working population it is mostly by way of loans - millions have been trained that the must borrow many years' salary to acquire a house, and successfully persuaded to change their cars every 3 or 4 years on tick.

all - Oil company profits - make you sick - madf


Trickle down doesn't work. What we have now are significant numbers of people who are really quite poor, and a significant minority who are absurdly wealthy. The wealth that should be circulating more freely is hoarded and if it reaches the working population it is mostly by way of loans - millions have been trained that the must borrow many years' salary to acquire a house, and successfully persuaded to change their cars every 3 or 4 years on tick.

The problem with the British economy is low productivity, an innumerate badly educated workforce, and an ageing population. Not helped by large scale immigration of unskilled labour,

all - Oil company profits - make you sick - Manatee

Are British people inherently lazier than e.g. German ones? I don't know, but I suspect it has more to do with levels of investment.

The country is loaded to the gunwales with debt, both public and private, which is a massive drag.

all - Oil company profits - make you sick - _

A perfect example of that today.

Asked at Asda petrol station Colchester, why so many pumps coned off, No fuel,

No sir pumps faulty for months, too expensive to repair.

There are many more examples, but lack of investment is in my opinion one of the reasons.

UK too hasty to make staff redundant at airports and airlines during pandemic, and can't re-employ ,

Hence misery at airports in recent days

Edited by _ORB_ on 10/05/2022 at 14:55