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milkmania
07-27-2006, 04:09 PM
I just don't understand why all the profit

Sparks fly as ExxonMobil profit tops 10 billion dollars

http://www.breitbart.com/news/2006/07/27/060727163841.2s8pljtq.html

DrJ
07-27-2006, 04:19 PM
This is one topic I would usually not touch. But, here goes.

It's a simple game of supply and demand. I know it seems to simple but here in the US of A it's true. We all love love love our GAS. We love it in our SUV's and our Mastercraft's with huge engines in them.

But look on the bright side, we still enjoy some of the cheapest gas in the world, Even at $3 per gallon. So the next time you go to the lake just ask your buddies for some gas money.

I can already tell this one is going to get rowdy.

Tryin-again
07-27-2006, 04:33 PM
That is 10 bil profit on 99 bil rev.... about what maybe 10%..

Great profit - but realize that the banks Citibank and some others are 17%, Phizer (Viagra) was at 27% profit, Alot of the major newspapers Times, Post Etc.. were in the 30%...

They are just working with smaller revenues....

What about the years that Exxon was still heavy investing when they only made a few percent?? Early 90's they had to plow money in so they could supply now..... Oil prices sucked...

I know it's a lot but they spend a lot, they employ a lot of people, they take a ton of risk...

Also their competitors are mostly state owned oil companies meaning Saudi, Venezuela, Russia, Iran, China....

At least some american companies can compete with those goverments..... Otherwise we might be paying a lot more...

Just my 2 ......

milkmania
07-27-2006, 04:39 PM
This is one topic I would usually not touch. But, here goes.

It's a simple game of supply and demand. I know it seems to simple but here in the US of A it's true. We all love love love our GAS. We love it in our SUV's and our Mastercraft's with huge engines in them.

But look on the bright side, we still enjoy some of the cheapest gas in the world, Even at $3 per gallon. So the next time you go to the lake just ask your buddies for some gas money.

I can already tell this one is going to get rowdy.

your explanation rings very true, but why is one company profiting from all these billions of dollars?

Yes, we love our SUV's and we love our MC's.

My wife just had a loan approved for a Pontiac Montana, but I refused to allow her to buy it. She said it'd get better gas mileage than out 97 Suburban.... I told her yes, it would, but then you've got to have full coverage insurance, and a car payment. So, the big green sub started looking pretty good to herhttp://www.mastercraft.com/teamtalk/images/smilies/wink.gif

same thing applies for my suburban, no payments or full coverage insurance.

so, my only real cost is preventative maintainence, unscheduled maintainence, and fuel. they've both got 38 gallon tanks.

can't pull the boat and camper without themhttp://deephousepage.com/smilies/Disappointed_anim.gif

92 190 PS
07-27-2006, 05:44 PM
OK...I would normally aviod this subject as well, but what the heck. The reason we pay $3+ for gas isn't the $10 billion profit for Exxon it's the 50 to 60 cents a gallon that the government taxes us on every gallon of gas. Exxon takes on all the work and risk for about 8 cents a gallon profit and our government takes 50 cents for nothing......That to me is the problem......Probably best if this board doesn't become a political bashing board though so I'll stop now...

milkmania
07-27-2006, 06:20 PM
I'm hearing some really good explanations and it's remaining civil, so I don't see the problemhttp://www.mastercraft.com/teamtalk/images/smilies/tongue.gif

6ballsisall
07-27-2006, 06:42 PM
92 190 has a VERY valid point.

Honestly, my crystal ball says within 2 years or less we'll be paying equal to what the european countries pay for fuel. :(

Upper Michigan Prostar190
07-27-2006, 06:46 PM
92 190 has a VERY valid point.

Honestly, my crystal ball says within 2 years or less we'll be paying equal to what the european countries pay for fuel. :(
Be a buyers market on boat and SUV's if that happens! We will all be skiing behind a 14ft jon boat with a 25 hp Evinrude on it!

DrJ
07-27-2006, 06:51 PM
My father in-law (who works in oil and gas) has a great line. It's 100% true and I will steal it from him and use it now.

If gas were $10 per gallon it would still be a bargain!! Some of you who are saying, NO WAY!!!
Just think what you get for your $3 gallon of gas. You can take you, your family and friends, your beloved MC and all your stuff another 15-20 miles down the road. If you don't like it. Try to walk.

The first time I heard him tell someone that I almost fell over I was laughing so hard.

slink976
07-27-2006, 07:28 PM
hey looking at it(and i live in SD where it is 3.50 a gal.) with all the work that goes into a gallon of milk (****'ing it and de-germing and what ever. I think 3.50 is about right.

slink976
07-27-2006, 07:28 PM
**** was short for homoginizing(sp) lol

JimN
07-27-2006, 07:44 PM
I heard one of the higher-ups from an American oil company say that they raised the price to keep the American public from using too much gas. What a line of crap! Or should I go to him and kiss his ring for saving me from myself?

They raise the price because they know they can get whatever they ask. Yes, the law of supply and demand is in effect but in the absense of a shortage, the price should be more stable than it is. They don't realize (or don't care) how much it's affecting the other markets. Any company that uses vehicles to move anything, whether it's people or products has higher costs because of this. That means they have to charge more to make the same profit. Which means their customers have to charge more to make their profit, which means the added cost keeps getting passed down the line to the end user. There are a lot of people and small companies who were just getting by before, now they're either breaking even or losing money. Heating oil is affected by this as much as gas.

The stations are limited in their price increases and profits. As much as I want the government to stay out of business, I think the oil companies should be held to some fair standards. Citgo is pulling out of the American market in the next year or two- their 18% of our imported oil will have to come from somewhere and I'm not going to be happy if the American oil companies (Exxo-Mobil just reported that their profit increased by 36%, after record profits last year) tell us that there's a shortage and they need to raise their prices again.

Maybe they'll drop the prices like they did last time they reported record profits.

A lot of the gas tax is supposed to be used for new roads and repairs to old ones (mostly the interstate highway system). Apparently, they're adding roads to places that either didn't have them or they're just ignoring a lot of the ones that really need work. Anyone driven in Milwaukee? WI has some of the highest gas tax in the country and we have some really bad roads, which have been bad for a long time.

PendO
07-27-2006, 11:19 PM
OK...I would normally aviod this subject as well, but what the heck. The reason we pay $3+ for gas isn't the $10 billion profit for Exxon it's the 50 to 60 cents a gallon that the government taxes us on every gallon of gas. Exxon takes on all the work and risk for about 8 cents a gallon profit and our government takes 50 cents for nothing......That to me is the problem......Probably best if this board doesn't become a political bashing board though so I'll stop now...

they take 50 cents for infrastructure, Exxon and the others are just bending us over because they can

Hoosier Bob
07-27-2006, 11:19 PM
MILKY! What are you saying? What is the price of Milk these days? OK not quite as high but it won't get me to work!:D

Leroy
07-27-2006, 11:20 PM
I heard that Exxon actually invested in wells earlier when gas was $25 a barrel, but only now is it profitable to pump out so they are making most of the money on the barrels they are pumping out of the ground and that price is set in a market similar to corn or wheat. They said the people pumping out and selling barrels are the one's making the money.

JimN
07-27-2006, 11:38 PM
Gas prices fall under the heading of BOHICA.

Workin' 4 Toys
07-27-2006, 11:46 PM
Profits are that way because they can. I ain't happy about it.
Look at what happens to the guys trying to stay ahead and get out of big oil. By using grease. Guys get messed with by the EPA and/or Gov. Now that just ain't right.

JEREMY79
07-27-2006, 11:52 PM
Dont forget the work and money that it takes to get the oil out of the ground. I personally bust my *** six, sometimes seven, days a week for it. Also dont forget about the years that everyone in the oil business was trying to feed their family anyway they could, because oil wasnt worth anything. Its feast or famine out here.

quote from bradamerry:

If any of you want to pay me what I make in the oil field now, I will glady ***** about price with you