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Post by Big Blue on Feb 2, 2023 13:36:58 GMT
It’s that time again: year end profits and quarterly profits that exceed all precedent.
No matter how much I tell people on Twitter that this is how the economics of Supply (OPEC, Russian restrictions etc,) and Demand (winter, reduced supply chain, market sentiment etc) works they don’t understand. Telling them that selling the commodity below market rate would reduce share price, dividends and therefore pension fund values thus annuities reduces pensions which people use to heat and power their homes doesn’t help.
People are so blinkered the news on this kind of announcement should be tempered or withheld altogether.
Apparently it’s Shell’s fault domestic electricity is tied to the price of gas as well…..
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Post by michael on Feb 2, 2023 14:02:57 GMT
The other thing that is not understood is the difference between global profit and what can be taxed here. 80billion vs. 2billion in the case of shell.
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Post by PetrolEd on Feb 2, 2023 15:01:25 GMT
It’s that time again: year end profits and quarterly profits that exceed all precedent. No matter how much I tell people on Twitter that this is how the economics of Supply (OPEC, Russian restrictions etc,) and Demand (winter, reduced supply chain, market sentiment etc) works they don’t understand. Telling them that selling the commodity below market rate would reduce share price, dividends and therefore pension fund values thus annuities reduces pensions which people use to heat and power their homes doesn’t help. People are so blinkered the news on this kind of announcement should be tempered or withheld altogether. Apparently it’s Shell’s fault domestic electricity is tied to the price of gas as well….. All good and valid points but come on, you can't be surprised that people who are struggling to pay their bills are miffed at a company making "obscene" profits. Its all very nice that there are record divis and the profits are holding up pension fund values but it isn't helping those people today that have seen their discretionary income all but disappear. Its not as if they hold direct shares in Shell. The restaurateurs, publicans etc who I and many others would rather give their income are no longer getting it as its going to Shell. How depressing. I'd rather my pension was invested in brewers and the airlines cause we can all afford to go out and have it large rather then V-Power being so expensive. |
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Post by Big Blue on Feb 2, 2023 15:38:17 GMT
I can see the annoyance but it’s not Shell making the price for open market commodities. If the market decided it didn’t want any oil or gas and Shell had to stop producing it or send its sales team out to sell knock off barrels of crude in Kingston market square for £5 that would also be just the way it is.
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Post by michael on Feb 2, 2023 16:40:37 GMT
Shell in the UK is subject to an elevated level of taxation along with other oil and gas companies. So their profits are a good soured of income for the government. We’ve seen what happens when they are subject to windfall taxes, they stop investing.
This isn’t the fault of Shell, the high energy cost is a political choice. We could extract more oil and gas but we choose not to, preferring imports instead - out of sight, out of mind. As the cost of fuel underpins the price of everything, our political choice to make it more expensive also drives up the cost of everything else.
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Post by Alex on Feb 2, 2023 17:13:38 GMT
Essentially if we don't like it we can always abandon capitalism and move to a communist regime. I know it's not as simple as that but you get the point. We like these companies when we're benefiting from cheap commodities and low lending costs but it comes at the risk of high living costs when something or someone upsets the apple cart such as by starting wars or accidentally causing a global pandemic. No point moaning about it we just have to ride it out as best we can.
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