Add Chevron to the long list of oil companies banking record revenues and profits. Their Human Energy produced a $6 billion bottom line for the second quarter, up 11% from a year ago and 17% from the first quarter.
Demand fell, even as profits soared. Americans drove 40 billion fewer miles in 2008. A marked decline of 1.8% occurred in April. It accelerated to 3.7& in May. Fuel consumption in the past 12 months was the lowest since 2004-2005, according to the Energy Department.
Chevron's earnings report noted, "refined products sales declined 8%" from a year ago. Branded gasoline sales fell 5%.
Industry analysts note Exxon and Chevron will have to pump a lot more gas to meet their production forecasts, but you can't sell what people aren't buying. Might big oil have priced itself out of the market? It's doubtful, but it's time for some shared pain. That means the end to the three year record profit run.
Demand fell, even as profits soared. Americans drove 40 billion fewer miles in 2008. A marked decline of 1.8% occurred in April. It accelerated to 3.7& in May. Fuel consumption in the past 12 months was the lowest since 2004-2005, according to the Energy Department.
Chevron's earnings report noted, "refined products sales declined 8%" from a year ago. Branded gasoline sales fell 5%.
Industry analysts note Exxon and Chevron will have to pump a lot more gas to meet their production forecasts, but you can't sell what people aren't buying. Might big oil have priced itself out of the market? It's doubtful, but it's time for some shared pain. That means the end to the three year record profit run.
