Headlines...

One of the lefty blogs I visit posted this headline with the commensurate condemnation of corporate greed and ill gotten gains of oil companies.

AP
ConocoPhillips 2Q Profit ClimbsWednesday
July 26, 2:43 pm ET
By Kristen Hays, AP Business Writer

ConocoPhillips Reports $5.1 Billion Profit for 2Q, Shares Rise 3 Percent

So there's your headline. But what does is really mean? Lets look closer...

"ConocoPhillips closed its $33.9 billion acquisition of Burlington Resources in the first quarter, expanding its gas reserves and boosting its North American natural gas production."

So, last year they spent 34 billion dollars. Even at the current income levels, it would take nearly 2 years to pay off that acquisition.

"ConocoPhillips' chairman and chief executive officer Jim Mulva said Burlington Resources' assets contributed $385 million to the exploration and production segment's $3.3 billion in net income..."

At the rate the acquisition is contributing to the bottom line, it would take over 7 years to break even on what it cost them.

"Mulva said changes in tax laws in Canada and Texas added $363 million to the company's second-quarter profit."

Those dang Canadians! You'd think they'd have a better handle on taxing greedy companies than this. Tsk...

"The company produced slightly more than 1 million barrels of crude oil per day in the second quarter, up from 932,000 barrels a day a year earlier. Its natural gas output totaled 5.5 billion cubic feet a day, up from 3.2 billion cubic feet a day a year earlier."

Ohhh, and they actually worked harder this year than last, to make more money. Well, that just tears it for me!

All about greed and oil? You bet it is. That's why 20% of my retirement money is in that sector. Please don't consider that advice or a recommendation, BTW.

You want to pay less for gas? Slow down. Drive less. That's what i do. If everyone did, the demand, and price, would go down.