Currently reading: BP profits soar – again
Oil giant posts 148 per cent increase in profits, totalling nearly £6.4bn

Oil giant BP has announced another record rise in profits. The company made nearly $10bn (£6.4bn) between July and September, an increase of 148 per cent compared to the same period last year.

BP’s chief executive, Tony Hayward, acknowledged that high oil prices had helped to boost results, but also claimed that more efficient refining and cost-cutting were partially responsible.

The company’s downstream operations, including its petrol sales business, reported a 70 per cent increase in profits.

BP and other major oil companies have faced heavy criticism from UK consumers for not passing on quickly enough the falls in the price of crude oil.

The price of petrol and diesel has been falling on British forecourts over the last two weeks, but industry analysts have warned that the price is likely to rise again in the run-up to Christmas.

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Vidge 123 28 October 2008

Re: BP profits soar – again

I agree, i had 05 plate MINI Cooper and due to a slightly heavy right foot struggled to get more than 30MPG, on a long run even driving carefully i wouldn't get much past 35MPG.

now with the Diesel i am getting 42 over all (worst case, normally average 44-45) and 50-53 on a long run, thus the diesel is still cheaper to run than the MINI.

Also from a personal point of view i couldnt afford the insurance on a 125i and certainly not a 135i (though i would have loved one!) so the 123d made sense, as the tax and insurance is considerably less. but performance (relitive to the 125 is pretty much the same)

perusal 28 October 2008

Re: BP profits soar – again

Some of this rubbish just shows how ignorant people can be of the world around them.

Look at the results more closely and you will see that almost 90% of the profits came from the Exploration Division whilst 10% came from Refining & Marketing which is the bit where the fuel stations (and refineries) sit. Conclusion the profits have been driven by the price of a barrel of oil i.e. a commodity product subject to world demand which drives the price - look what has happened to the price of crude since the global recession kicked in. Oil is traded on global markets and the price cannot be controlled by one company or even the oil majors together.

Having heard another moronic trade union leader on TV going on about the need to enforce windfall taxes etc. consider this. How much tax do you think BP has paid on this profit? If the profits and hence taxes decline where do you think the government will come for the tax shortfall - yes, Joe Public, one way or another. Also consider that bp shares make up to 10% of the nations pension funds and so their well being has a direct impact on anybody with, or working towards, a pension (and the taxes towards state pensions)

Yes, by all means boycott BP if it makes you feel good and buy your fuel from Esso (USA) , Shell ( 50% Dutch) or Texaco (USA) and contribute to their profits and hence US pensions etc. The phrase 'cutting one's nose off to spite one's face' comes to mind

So come on, wake up, smell the roses and just think a little more about what this means to the UK

of course, it's probably those people who are complaining loudest who were stupid enough to vote the current tax-grabbing clowns that inhabit Parliament into office.

Rant over - time for a blood pressure pill :-))))

coolGav 28 October 2008

Re: BP profits soar – again

I'm just thinking through the whole price, supply & demand thing... BP have a limited capacity to refine oil into various products. They have costs to find/get or buy their raw materials. That cost rises, so they have to increase their selling price, otherwise there will come a point they don't make money. However, raise it too much and less will be brought, leaving an excess. Conversely, don't raise the price enough and everyone will be beating a path to buy it. There's no point selling the months supply in a day, but they want to sell that months supply in the month. Thus, BP must raise their price in line with everyone else, or they'll have a problem.

I believe that diesel now costs significantly more per litre than petrol is in some regard due to increased demand from motorists. As they have become more popular (lower CO2 tax, better economy, able performance), more buyers have brought diesel engined transport rather than petrol. So the demand for petrol is lower, but for diesel it's higher. With my 15k annual milage last year I decided to get a diesel engined car, when prices were the same. Even now it's still cheaper per mile with my diesel car than it ever was with the similar size/performance petrol car I had before - becasue I go 40% further per volume of fuel. It's not the case for everyone who's joined on the diesel bandwagon, so hopefully in the not too distant future there will be a return to petrol for some people.