Wow, China wins, I'm moving there.
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Wow, China wins, I'm moving there. - 4/29/2008 2:23:28 PM
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RyansQuick6
Posts: 2973
Joined: 12/15/2006
From: Lafayette/Gulf of Mexico, LA
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That's right, of all places, China has a law that makes it illegal for oil companies to pass the rises cost of crude on to it's customers. It seems that they got at least one thing really right, oh and the fact that they control $1.3 trillion U.S. dollars in securities over there. Way to go democrats!!!! Keep selling us out.
 Chinese oil giant Sinopec says 1st quarter profit drop 69 percent on price controls
The Associated Press Monday, April 28, 2008 BEIJING: China's second-biggest oil company, Sinopec, says its first quarter profit fell 69 percent due to government controls that bar it from passing on record crude costs to consumers.
Net profit for the three months through March was 6.1 billion yuan (US$871 million; 560 million), the company, whose full name is China Petroleum & Chemical Co., said late Sunday.
Chinese gasoline and diesel sales are soaring due to rising incomes and a boom in car ownership. But at a time when global oil giants are reporting record profits, Chinese producers are being squeezed by controls that have frozen retail prices, forcing them to absorb the rising cost of crude. The companies have been subsidizing refining losses out of bigger profits from their oil drilling units.
The government says it will pay subsidies to help make up Chinese refining losses. But Sinopec said profits still were down despite a 7.4 billion yuan (US$1 billion; 676 million) subsidy that it counted as part of its quarterly revenues.
Sinopec said its sales of gasoline, diesel and other refined products jumped 10 percent to 211 million barrels.
"The prices of international crude oil continued to go up. The prices of oil products in China were still under tight control," the company statement said.
The report gave no details on Sinopec's refining losses. But the company said earlier its refining unit lost 13.7 billion yuan (US$2 billion; 1.3 billion) in 2007 due to price controls.
Beijing froze retail gasoline and diesel prices in September as part of efforts to contain rising inflation. It raised prices by about 10 percent in November to curb surging demand but has rejected appeals by the oil companies for more increases.
Sinopec, Asia's biggest refiner by volume, has been especially hard hit because it refines more oil than it produces. China's biggest oil company, China National Petroleum Corp., produces more than it refines and has benefited from soaring crude prices.
Both companies said last week the government would pay them subsidies to cover refining losses an indication that Beijing has no plans to ease price controls in the near future.
The Finance Ministry said earlier that both companies would receive a rebate on taxes for importing refined fuel to ease shortages.
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Here's another article to show you how rediculous our legislators are. They actually wanted to pass a bill to give the oil companies $35 BILLION IN SUBSIDIES when Exxon ALONE profited $36 BILLION last year.
Profits, Prices Spur Oil Outrage
Exxon Mobil Posts First-Quarter Rise
By Steven Mufson and Shailagh Murray
Washington Post Staff Writers
Friday, April 28, 2006; A01
Exxon Mobil Corp. reported $8.4 billion in first-quarter profit yesterday, as members of Congress outraged over high gasoline prices hastened to propose measures that would boost taxes on oil firms, open new areas to drilling and provide rebates to taxpayers but would not necessarily alter prices at the pumps.
The earnings outstripped the oil giant's profit in the first quarter of last year. Given current oil market conditions, analysts said, that puts Exxon Mobil on track to break the $36 billion record profit it made last year.
Meanwhile, President Bush sought to show that he was responding to calls for action in the face of rising gasoline prices. While visiting a gasoline station in Biloxi, Miss., Bush renewed his call for Congress to give him the authority to "raise" mileage standards for all passenger cars. White House officials said later, however, that they didn't know when or how the president would use that authority.
Congress has the authority to approve changes in mileage standards for passenger cars, and the executive branch can set them for light trucks without approval from Congress. But neither Congress nor the administration has shown much interest in raising passenger car standards, which were set in the 1970s and haven't changed since 1985. In March, the Bush administration said it would raise average fuel economy standards by 1.9 miles a gallon for sport-utility vehicles, pickups and vans for models in 2008 through 2011, a long-awaited move that environmentalists said was too modest.
In Congress, anger over gasoline prices brought action in the Senate to a screeching halt yesterday, with Democrats interrupting debate over an emergency military spending bill to protest a key oil company subsidy. In a highly unusual move, Sen. Ron Wyden (D-Ore.) waged a solo filibuster on the Senate floor in an attempt to force a vote on a provision that would halt support for what Wyden said was about $35 billion for oil and gas companies. "This is the big one, folks, in terms of energy subsidies," Wyden said during the five-hour standoff. "This is the one where there is no logical case . . . when oil is $70 per barrel."
Various committees and individual lawmakers scrambled to offer relief to consumers, punish suppliers and promote favorite energy-related provisions, most of them offering little or no immediate relief at the gas station pumps.
Senate GOP leaders rolled out a fat package of energy measures, including a $100 rebate to most taxpayers, and reaffirmed authority for state and federal officials to fight price gouging. The proposal also would allow drilling in the Arctic National Wildlife Refuge in Alaska; Democrats called the controversial idea a deal-killer for the rest of the package.
Democrats unveiled their own ideas, including various windfall-profit rebates, a temporary suspension of the federal gas tax and alternative energy investments.
For all the criticism from Congress, Exxon Mobil's earnings fell slightly short of analysts' expectations, and company shares fell 68 cents to close at $62.42 a share.
In an attempt to simultaneously impress investors and calm politicians, Exxon Mobil spokesman Ken Cohen stressed that compared with the year-earlier quarter, the company had increased its worldwide oil and gas production by 5 percent, boosted capital spending by 41 percent and paid worldwide taxes that amounted to a 46 percent rate.
But analysts, while impressed by the production numbers, noted that much of the increase in capital spending came from sharply rising costs for oil services and that the high tax rates were a result of high crude oil prices. In many countries, sliding-scale tax rates rise as prices do; Norway taxes some portion of output at rates as high as 70 percent, and Libya's effective tax rates can go as high as 90 percent, analysts said.
Exxon also said it spent $5 billion buying back its own shares, more than the $4.1 billion spent on exploration and production. The company said it expected to spend $6 billion repurchasing its own shares in each of the remaining quarters this year.
Wall Street analysts discounted the likelihood of congressional action against oil companies. "As someone in the industry for more
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RE: Wow, China wins, I'm moving there. - 4/29/2008 3:50:06 PM
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josmoe5000
Posts: 42
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What happens when they decide to stop selling gas since it is no longer profitable? Or out of spite/protest?
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RE: Wow, China wins, I'm moving there. - 4/29/2008 4:10:27 PM
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GStam66
Team MF Member #066
Posts: 1301
Joined: 6/19/2006
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BIG WALL O TEXT!!! 
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1999 Mustang GT Auto (Flowmasters, Pypes Catted X-pipe, 4r70w with shiftkit and 2500 stall, Diablo Tuner, 275/40/17 Nitto 555r''''s.)
Best time (1/8th): 9.07 @ 78mph
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RE: Wow, China wins, I'm moving there. - 4/29/2008 4:14:43 PM
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josmoe5000
Posts: 42
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Cliff notes...
China won't let gas companies pass cost of high crude oil on to customers, therefore cutting into gas companies profits.
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2000 Mustang GT 5 speed
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RE: Wow, China wins, I'm moving there. - 4/29/2008 4:37:34 PM
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Lord Ashram
Posts: 386
Joined: 12/25/2005
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The Dems? Whoa random.
Ryan, you DO understand how the government works, right? What with you defending the constitution and all?
Seven or so years of a legislative and executive that worked hand in hand, with not a single veto ever coming down, makes policy that is long-standing.
A year or two of a legislative and an executive that cannot get anything through, where the executive vetoes everything the legislative puts out there, and the legislative won't even vote on some of the executive recommendations, does NOT make policy that is long-standing.
And to top it all off, you think all that debt magically appeared in the last two years?
Jeez, seriously. It is amazing how some people refuse to take responsibility for things, and simply say the opposite of what is true.
Lemme try...
"Damn Polish people. All their fault, since they have so much power, that we are in debt to China!"
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420 RWHP, 425 Tor
quote:
ORIGINAL: jewel91lx5.0
I don't dislike blacks, jewish people, and mexicans as a whole. I only dislike the majority that I have met or know of.
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RE: Wow, China wins, I'm moving there. - 4/29/2008 4:49:43 PM
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RyansQuick6
Posts: 2973
Joined: 12/15/2006
From: Lafayette/Gulf of Mexico, LA
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No I believe that certain things should be regulated, energy being one of them. When the constitution was written, the forms of energy and dependance were nowhere near what they are now. While I believe in defending the constitution, I am also aware that it was written a long time ago, in a land much different that the one we live in now. Bartering was still a means of everyday survival, it didn't matter what the cost of tea in China was.
Police, firemen, most civil services in general, are regulated by the government to prevent a collapse of the infrastructure. FDIC also insures that the financial infrastructure doesn't collapse like it did during the depression.
There are certain things that the western world needs in order to properly function. Energy being the biggest. Many countries DO NOT allow/have private oil companies and do just fine, just look at some of the small ultra-wealthy middle eastern countries.
While I generally do agree that the government is pretty good at taking a good thing and making it worse, sometimes it is required, and believe it or not, the government DOES control energy production, hence the $35 billion subsidies.
If the government gave you $35 billion, would that possibly affect the way you do business?
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RE: Wow, China wins, I'm moving there. - 4/29/2008 4:52:28 PM
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SXGT
Posts: 2254
Joined: 4/3/2004
From: Louisville, Ky
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i predict china will go to war with the middle east with a thirst for oil. China has a 100000000000000000000000000 billion people , imagine them with wealth and military. Unstoppable. and the US has no choice but to take it in the ass or hide behind them.
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Don''''t be too proud of this technological terror you''''ve constructed. The ability to destroy a planet is insignificant next to the power of Big Oil.
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RE: Wow, China wins, I'm moving there. - 4/29/2008 4:56:55 PM
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RyansQuick6
Posts: 2973
Joined: 12/15/2006
From: Lafayette/Gulf of Mexico, LA
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The greatest thing about being a superpower is never having to use it. I worry about north korea more than anything. Nothing like a crazy prick with a finger on a button and nothing to lose.
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RE: Wow, China wins, I'm moving there. - 4/29/2008 4:58:56 PM
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RyansQuick6
Posts: 2973
Joined: 12/15/2006
From: Lafayette/Gulf of Mexico, LA
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Oh and if you read the article carefully, china only give subsidies when the oil companies LOSE money, not when they break record pofits 1/4 after 1/4.
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RE: Wow, China wins, I'm moving there. - 4/29/2008 5:07:41 PM
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SXGT
Posts: 2254
Joined: 4/3/2004
From: Louisville, Ky
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quote:
ORIGINAL: Lord Ashram
Uh dude... maybe I am reading it wrong, but it sounds like a democrat is the one trying to FORCE a vote on getting rid of the subsidies. Soooo... why is that wrong? Those subsidies are leftovers from a republican controlled legislative branch. Are you trying to say those companies NEED those subsidies, when a SINGLE company made a 36 billion dollar profit? Did you misread the article?
Republicans tend to not want to regulate business and let profits sore. "Go capitalism!!"
Democrats tend to want to regulate business and make large corporations share the burn-dons of life with tax on dividend and such, there logic? they are the only ones that can afford it.
One isn't right or wrong. One just favors different groups then the others.
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Don''''t be too proud of this technological terror you''''ve constructed. The ability to destroy a planet is insignificant next to the power of Big Oil.
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RE: Wow, China wins, I'm moving there. - 4/29/2008 5:53:29 PM
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hemi_04d
Posts: 180
Joined: 1/19/2008
Status: online
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"oh and the fact that they control $1.3 trillion U.S. dollars in securities over there. Way to go democrats!!!!"
WTF are you talking about, the Democrats haven't been able to pass anything they have wanted because they don't have republican support and Bush vetos it. The only things getting passed are what the Republicans and Bush agree to...
One more thing, who the fuk do you think is paying for the Iraq war? CHINA is financing the war that BUSH wanted before he got into office. So every single day China is getting richer off the US to the tune of $410 million dollars. As of now CHINA has financed close to 600 BILLION DOLLARS for the war, that again, BUSH WANTED BEFORE HE EVEN GOT INTO OFFICE...
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