Quote:
Originally Posted by raymor
I see you've been watching Michael Moore. I can tell because virtually every word of that sentence
show a different misunderstanding fostered by Moore and his crew..
What's funny, and what really betrays the fact you've watching too many Michael Moore films,
which he eventually had to admit are "fiction", is your mention of " their insane margins".
The oil industry has one of the lowest profit margins of all industries. DP, specifically, had a
profit margin of 7.6% last period. To put that into terms you can understand, that's the same
as if you sold $100 of memberships and had a $92.40 hosting bill. That's like if your site brought
in $10,000 / month, but after paying for content, hosting, etc. you brought home just $760
for the month. They actually have very low profit margins, and when you add in those years
where they LOSE billions, like BP will this year, it's even slimmer. It's like if you got hacked
every ten years or so and had to pay your customers $1,000,000 because their information
was leaked. Offset against the slim margins in normal years, it's not really a great business.
It is an EXPENSIVE business - they pay $400 million dollars to build a deep sea rig and HOPE
that it will provide $450 million in oil. If, as often happens, it only produces $300 million, they are
out $100 million.
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If you hate Michael Moore why are you using the same techniques? incomplete, bits of information to suit your story.
The world's 5 most profitable companies in the world are oil & gas companies. Who is number 6? Yes also an oil company.
When you look at margins you also have to look at the top line.
Your porn membership example isn't a valid one either, I would welcome a 7.6% margin in porn if every human being on the planet virtually had to buy porn every day.
It is an expensive business though, I give you that, but it suits these oil companies just fine, ensures nobody can break into the market.
BTW over the years how many oil companies have "lost billions"?