Profit companies

Oil and gas companies under fire as billion-dollar profit figures come to light – NBC Bay Area

Oil and gas companies are under fire as billion dollar profit figures were released on Wednesday. Among those leading the criticism is the former United States Secretary of Labor.

Secretary Robert Reich, now a professor at UC Berkeley, says oil companies are simply making too much money, to the detriment of consumers.

“Americans are paying too much, companies are getting too profitable,” he said of rising oil company profits – profits he calls excessive.

“If these companies were competing with each other, they wouldn’t raise prices,” Reich said. “The thing is, they don’t have to worry about competition. They raise prices because they’re so dominant in their industries.”

And the money is flowing. In the past three months, Shell has made more than $9 billion in profit, Exxonmobil nearly $9 billion and Chevron $6.5 billion.

On average, these companies made $1.2 billion more in profit than in the same period last year.

“These integrated oil companies and refineries are doing pretty well right now, there’s no doubt about that,” Tom Robinson said.

Without denying the profits, Robinson, the chairman of Robinson Oil – owner of Rotten Robbie petrol stations – said it was important to also consider current events.

Including a choked oil supply, at the same time more people suddenly want to travel.

“I think it’s important to recognize that not too long ago we had oversupply and demand was low and prices were low and now it’s just the reverse – we have greater demand and we have supply issues… Definitely the most recent is Russia,” Robinson said.

Oil trackers say prices are unlikely to drop anytime soon. After all, we are just entering the summer travel season.

Reich suggests an additional tax on oil company profits, with that money passed on to consumers.

NBC Bay Area’s Jessica Aguirre spoke to Robert Reich, a UC Berkeley professor and former secretary of labor, about what we can do to fight inflation.