Here is an example of an absurd news story... see if you can figure out what is wrong with this 'reported' story and why we're in trouble. Hint: If the rising prices at the pump reflect the rising costs that ExxonMobil are seeing themselves, then their profits will not be going up. However, if ExxonMobil are simply charging more and more without their costs (the cost of crude oil) going up, then their profits should go up. So let's see... which is it?
Surging oil prices helped drive quarterly profits for US energy giant ExxonMobil to 10.36 billion dollars, the latest in a string of mammoth profit reports that have drawn fire for the industry.
The second-quarter profit was up 36 percent from a year ago and approached the company's all-time record profit of 10.71 billion dollars that was believed to be one of the biggest for any company. Stoked by skyrocketing crude-oil prices, ExxonMobil's net profit in the quarter to June came to 1.72 dollars per share. That handily beat Wall Street forecasts for an earnings figure of 1.64 dollars.
Total revenues in the three months rose 11.8 percent from the same quarter of 2005 to 99 billion dollars.
In Congress, Democratic lawmakers said the sky-high profits reflected misplaced policies by the adminstration of George W. Bush.
"Americans are paying near-record gas prices, oil companies are reaping billions in profits, but the response from the Oil Men in the White House and the Republicans in Congress has been billions for Big Oil and a backhand to the American people," Senate Democratic leader Harry Reid said Thursday.
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