Kleptopia

[nowty]

https://www.taxresearch.org.uk/Blog/202 ... increases/

Kerr-fuc*ing- ching


Incandescent with rage is how we should be feeling, but no-one seems to care and will vote the wankers back in next time

Desp

The table they show is a little bit exaggerated.

1) Distribution costs have gone up and will increasingly go up due to the upgrades requires to use more renewables.
2) The levies due to Supplier of last resort (SOLR) have actually gone up massively and don't even include the losses which are going to be incurred from the collapse of Bulb.
3) I doubt the production costs include the capital depreciation if being made by renewables. Think of the ripple wind farm, returns are actually quite low once you strip out the capital depreciation. There has been a 3 fold increase of return (in the first year) from WT1 compared with the original share offer but no where near a 40 fold increase in returns.

But the biggest exaggeration is the baseline where they are starting from when energy companies (especially FF) were losing massive amounts of money from the Covid energy depression,

BP 24 billion dollar loss.
Shell 27 billion dollar loss.
ExxonMobil 22 billion loss.

So if you compare when there was practically no profit and compare when there is going to be a normal profit, its going to look very exaggerated.

[Adokforme]

Thanks Mike!

Thanks guys, having read Rachael Maddow's book "Blowout" which follows the history of the oil industry in the US which is described as "Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth" I wouldn't have thought there wasn't much left to uncover. I'll be interested to get alternate/additional views on the subject when having a read of these as well.

https://www.nytimes.com/2019/10/30/book ... addow.html

[spread-tee]

Nowty, I agree the FF companies had to tighten the belt during the pandemic, but how come Shell, BP et al have just announced record breaking profits then? Sure the FF companies profits go up and down like a yo-yo, but with wholesale prices going up hundreds of percent there is undoubtedly huge profits being made .

Desp

PS

As you see BP weren't doing too bad before Mad Vlad went on the rampage and sent the market price rocketing

https://www.theguardian.com/business/20 ... ndfall-tax

[nowty]

Nowty, I agree the FF companies had to tighten the belt during the pandemic, but how come Shell, BP et al have just announced record breaking profits then? Sure the FF companies profits go up and down like a yo-yo, but with wholesale prices going up hundreds of percent there is undoubtedly huge profits being made .

Desp

PS

As you see BP weren't doing too bad before Mad Vlad went on the rampage and sent the market price rocketing

https://www.theguardian.com/business/20 ... ndfall-tax

I am not saying they are not making record profits, just don't agree with publications which are very biased and based on half truths. The article I was talking about specifically mentions SSE as an example. They make roughly 50% leccy from renewables and 50% from burning gas but they are no longer a gas producer so gas has to be bought in the market, so not a hope in hell of them making 40x an average years profits.

And from the guardian article you link to,

Once you account for inflation it is not even an 8 year high and the previous years earlier to 2013 which they conveniently don't show were even higher profits than the latest year even without inflation adjustment.

If BP were to make 40x their normal average profit, that would be near to half a trillion dollars, if they actually did I would certainly support a windfall tax.



Share price of BP over last 10 years does not look that great either, so I doubt 40x profits are going to happen.