Monday, September 19, 2005

Who Would Have Guessed War Could be so Profitable?

I have compiled a comparison of stock prices of mostly Texas based (coincidence?) companies in the oil industry before the Iraq war, and as they are today. Before the war in 2003 oil was under $30 per barrel and it is now over $67 dollars per barrel. And just a couple of years ago in 2002 when the US hit a 20 year oil stock low, prices were hovering around the $26 dollar per barrel range; that's a 157% increase in just 3 years. Higher prices typically mean more room for mark ups and profit margins for sellers and processors.

Exxon Mobil-Irving, Tx
Exxon is #2 on the Forbes Fortune 500 list, the biggest oil company in the US and 2nd in the world. It is the most profitable company in Forbes Fortune 500 list. One month before the war in Iraq started their stock was trading at $33.44 per share. Today Exxon’s stock closed at over $64.33 per share; a 91% increase since the onset of the Iraq war and oil prices have increased more than 160%.

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Chevron Corporation-San Ramon, Ca
Chevron, who now owns Texaco, is the 2nd largest oil company in the US. One month prior to the start of the war in Iraq their stock was trading at around $34 per share. Today Chevron Phillips stock price closed at $64.31 per share; an 89% increase since the lead up to the war.

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Conoco Phillips- Houston, Tx
Conoco Phillips is the 3rd largest oil company in the US. One month prior to the start of the Iraq war their stock was trading at $24 per share. Today Conoco Phillips stock price closed at $70.18; a 188% increase since just before the Iraq war began.

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Halliburton-Houston, Tx
Halliburton, who seized many no bid contracts that had nothing to do with their connection to Vice President Dick Cheney, saw their stock price increase from $19.19 in February of 2003 to a close today of $66.73; a 247% increase. 99% of Halliburton’s political donations go to Republican candidates.

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Ok, I know that the DJIA historically goes up over time, not as much when there is a Republican President, but these companies I have mentioned far out paced the Dow Jones industrial average which has grown 40% since the 1st quarter of 2003 before the Iraq war. If you want to compare apples to apples we can look at another Fortune 500 company like Ford who has only seen a 14% increase in their stock price over the same time period.

DJIA:

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Is it just a coincidence that Cheney and Bush come from oil industry backgrounds, as does Bush senior? Is it just a coincidence that Iraq, an OPEC nation (not for long), was about ready to switch the sale of their oil from the Dollar to the Euro? Is it just a coincidence that in 2000 the oil and gas industry contributed 7 million dollars to Democratic candidates compared to 26.7 million (78%) that went towards Republican candidates? Was the war in Iraq motivated by money and profit? I report, you decide.

19 comments:

NewsBlog 5000 said...

Yes, all these things are coincidences. Studies have shown that in the past five years the number of total coincidences has gone up 1400%.

Sandi said...

Of course the war was motivated by profit. This is after all an oil man first and foremost. Hence the reason he falls apart when he has to show any leadership skills.

Toad734 said...

Well, it was actually a rhetorical question.

Justin said...

Did the same hapen in '91 when we went into Iraq? Just curious... there's a lot of stuff happening in this world, not just the US going into Iraq. Since the US has previously gone into Iraq we've got a nice little test case to see if that's the sole reason that oil companies are doing well.

You'd probably be better off showing profits coming out of defense contractors rather than oil companies.

United We Lay said...

We all know that war is good for the economy. Usually. In this case it seems to be good for corporations only. Wait until construction on New Olreans starts. War and Building Projects are always profitable.

Neemund said...

World War 2 was very profitable for pretty everyone in the US. Maybe all of our major military contractors paid off FDR to declare war on Germany even though the Nazis never directly attacked us.

Nölff said...

Interesting.
I should have bought stock in flag kits when the terrorists attacked the trade center.

Toad734 said...

Yes I have learned an important lesson; I should have invested in Halliburton before the war.

RE: Justin

Well we didn't occupy, nor rebuild Iraq the first time around. It did do wonders for oil prices though.

United We Lay said...

Invest in Halliburton and construction companies.

BRUISER said...

Stop confusing Republicans with facts Toad.

Best Quote Ever-

"George Bush Doesn't Like Facts People."-me..like Kanye West only poor and white

Tom Harper said...

I'm sure it's all just a coincidence. Karl Rove said so.

BRUISER said...

Karl Rove ...who is that ? Has he been in the news lately? Wait is that James Guckert / Jeff Gannon's beau?

Ryan said...

Purely coincidence- sure. Nice work Toad, with facts like these its hard for the corporate crowd to hide behind the stated goals of this war. Its all about Iraqi Freedom, and if Bush's cronies get rich in the meantime so be it. Liars and war profiteers.

Two Minutes J said...

Uhh, dude its no secret that war is extremely profitable...not to mention the fact that no president has ever been ousted while we were at war,...at least I don't think.

Toad734 said...

Again, this was kind of a rhetorical question.

Karenpuppy said...

This makes me wish that Vanguard had a "War Profiteering Fund" for my 401K!

Toad734 said...

Agreed, Imagine putting $2000 in Conoco stock 2 years ago; today it would be worth $5845.

Claire said...

I missed the part where you demonstrated causality.

Toad734 said...

What do you mean causality? Bush, Bush Sr., and Cheney all want to get rich and keep their rich voting buddies who contribute to their cause rich as well, so what better way to do that than double the price of oil and give Halliburton no-bid contracts to rebuild Iraq. It's pretty simple.