Oil Profits

I see how higher oil prices mean higher gas prices, but I still don't understand why higher oil prices mean higher and higher profits for the oil refining companies like Chevron and Exxon. If someone had a lemonade stand, and all of a sudden the price of lemons went through the roof, wouldn't you figure that their margin would go down? Usually raw materials being expensive is a bad thing, right? Someone will have to explain this to me.

While you're at it, explain to me why these same oil companies enjoying record profits need multi-billion dollar government subsidies to go look for oil. I wouldn't want to see any special tax on ultra-high profits (as if profits can get too high), but I can see no good reason at all why Joe Sixpack working 10 hours a day should be forced to make donations to the most profitable industry on earth.

If R & D is too expensive, well golly gee maybe we should give that ol' capitalism thing a try and see what alternatives emerge. Maybe use some of those billions to build some subways in some of our major cities. You know, get people out of their cars, reducing demand for gas, and (presto!!!) lowering the price of oil.