"Chevron Corp. said first-quarter profit jumped 49 percent on surging prices and production gained from last year's purchase of Unocal Corp., capping a week of record earnings by the five largest U.S. oil companies.
Net income rose to $4 billion, or $1.80 a share, from $2.68 billion, or $1.28, a year earlier, San Ramon, California-based Chevron said today in a statement. Revenue at the second-largest U.S. oil producer climbed 31 percent to $54.6 billion."
Ok, just to sum up:
1Q 2005 net income: $2.68 billion
1Q 2006 net income: $4.00 billion
Increase: $1.32 billion (+49%)
1Q 2005 revenue: $41.7 billion
1Q 2006 revenue: $54.6 billion
Increase: $12.9 billion (+31%)
Typically, when your income increases due to outside causes (new business successes, new production) drop a large share of your expenses and they outstrip your other expenses (higher oil prices) you can afford to drop or at least maintain your end product prices.
But they didn't, just as everyone else did. As oil prices increased so did gasoline prices. At a fairly even and matching rate.
What this means is the gasoline prices could have been maintained at manageable prices without hurting the oil companies. While everyone wants to make money, it's irresponsible to gouge the public and hope they don't notice.