Exxon Profit surges 55%.... And gas prices are up.

[Nick R]

http://money.cnn.com/2010/10/28/news/companies/exxon_mobil/index.htm

This REALLY ticks me off. Gas prices are higher than they've been in over a year, and still going up. They are up 30 cents here from a month and a half ago (2.93 vs 2.67 where they stayed for several months). I hate it. Nobody says anything, nobody notices that while gas prices rise (oil companies citing "low supply" or what have you, profits are rising dramatically. Lower supply my fanny. It's pure, unadulerarated, blatant, price gouging. Why has noone called them out on this?

 

[Kestas]

The oil industry is the only industry I know where, when the price of raw material goes up, so do the profits. All other industries absorb these costs until they can figure a way to pass them on to consumers.

 

[ctc]

Ok so in 09 when prices dropped below $2/gal because demand was low, that was a conspiracy too?

Oil company profits are always going to increase as long as demand increases....

 

[grampi]

Have you ever noticed the energy industry is the only business sector of the world's economy that's guaranteed to make huge profits no matter what happens? Oil rigs go down and prices go up. Foggy habors prevent freighters from docking causes prices to go up. Basically, the energy industry can have any type of screw-up and they're still guaranteed to make big profits on the deal no matter what happens. Maybe if all businesses operated in a cartel like the energy industry does the economy wouldn't be in the dumper?

 

[eljefino]

Exxon was smart enough to lease spots that turned into profitable wells. Unlike many state owned oil companies, we get a peek at XOM's books... and can even participate by buying stock.

Could you imagine how lousy oil supply would be without a profit motive? Think Russian bread-line bad.

 

[tenderloin]

"Oil prices were up about 12% from the same period last year, while gasoline prices have risen about 6%.

While gasoline and oil prices were on the rise, Exxon increased production in the third quarter. Oil and natural gas production were up 11% compared to the first nine months of 2009.

Why is no one complaining about the money Apple is making? It seems a lot harder to me to get oil out of the ground, ship it to the US, refine it and get it to my gas station.. then design and have China make some phones etc. ...but that is just me.

Apple

 

[Curious Kid]

If I had to guess...I'd say because a lot of people are invested in this industry. Energy and money - it's all fundamental to our economy and way of life.

No stocks here, so I'm with you in regard to some distress over the cost/profit story.

Peace.

 

[Burt]

Nick - The fact is the majority of the world's oil production is controlled by national oil companies who are operating as a cartel and using the money to fund social programs in their countries. You can rail at the management of western oil companies, as well as medical insurance companies etc, but they do not control market prices to any degree. If they did they would make much more profit than they do You may think that Exxon makes a lot of money, and they do, but it is truly peanuts in relation to what Saudi's Aramco and other national oil companies make. I think that Exxon owns about 1% of the world's oil reserves, most is owned by the countries themselves - think about that for a moment.

 

[rshaw125]

Silly. Oil has gone up because the dollar has been sliding in value. Federal and State governments take in more on a gallon of gas than Exxon-Mobil can only dream about.
I suggest you buy XOM stock and write your representatives to lower the gas taxes.

 

[JHZR2]

If profit margin is a set percentage, and the commodity costs drive the cost up, then the percentage of a larger number is more than the percentage of a smaller number. I'm not aware of a situation where profit is a flat fee, though Im sure they do exist.

If EM had a flat profit, say, 20c/gallon of product produced, then people would cry foul of an exhorbitant PERCENTAGE when fuel prices were lower.

Much of the profit is payed out in dividends, and they are subsequently taxed again at 15% at least...

Im not saying that I like high fuel prices or that any of this is good for the general population, but at the same time it is what it is in a way. Would you recommend an excessive profit tax? In dollars or what about as a percentage? IMO text messages are far more of a ripoff than EM's profits... Text messages are marked up at least 6500%, which is the same as truly excessive profit. Why not go after the cellphone companies instead?

 

[Trav]

What really ticks me off is so called news organizations demonizing everything in this country.
What would you want to do, nationalize the oil companies?

The figures speak for themselves.
Oil prices were up about 12% from the same period last year, while gasoline prices have risen about 6%.

While gasoline and oil prices were on the rise, Exxon increased production in the third quarter. Oil and natural gas production were up 11% compared to the first nine months of 2009.

Capital and exploration expenditures were also up, increasing by 35% from the third quarter of 2009 to $8.8 billion.

Look at Washington to cut the gasoline taxes and stop using it as a milk cow for every mickey mouse program some politician wants funding for.
The oil companies dont make as much profit on a gallon as the government does and the government does absolutely nothing for it just impose a tax.

 

[d00df00d]

Originally Posted By: eljefino
Exxon was smart enough to lease spots that turned into profitable wells. Unlike many state owned oil companies, we get a peek at XOM's books... and can even participate by buying stock.

Could you imagine how lousy oil supply would be without a profit motive? Think Russian bread-line bad.

Shhh! You're disrupting the uniformity of the narrative.

EDIT: Haha, hadn't read the rest of the posts. Glad to see even more people are talking some sense.

 

[IndyIan]

Originally Posted By: tenderloin
"Oil prices were up about 12% from the same period last year, while gasoline prices have risen about 6%.

While gasoline and oil prices were on the rise, Exxon increased production in the third quarter. Oil and natural gas production were up 11% compared to the first nine months of 2009.

Why is no one complaining about the money Apple is making? It seems a lot harder to me to get oil out of the ground, ship it to the US, refine it and get it to my gas station.. then design and have China make some phones etc. ...but that is just me.

Apple

Apple makes electronic trinkets, that no one really needs to buy... If people think an iphone is worth what they charge, good for apple... I couldn't care less.
Energy/oil on the other hand, is necessary for food and shelter and transportation. So its an issue for nearly everyone.
Exxon's profit of around 10% of revenue isn't really that remarkable but it does show how much money is funneled into these companies by us.

 

[addyguy]

A company raising prices to make more money - imagine that!

What? You mean they/re not just here for the betterment of all?

How horribly self-centered of them!

 

[Jimmy9190]

I don't kow about everyone else but my own demand for oil and gas sure is not on the increase. I don't drive any more than I absolutely have to now. I try my best to drive as little as possible so I use less gas.

Gas prices keep going up here. I don't buy Exxon or Mobil gas because of the record profits EOM posted a couple years ago when gas went over $4.00 a gallon. IIRC they made the highest profit ever made by any company in history that year, and they did it on the backs of people who were already struggling to get by and survive. Now the economy is worse, unemployment is up and it keeps rising, there is no work around here where I live, but the fat cat oil execs keep on making huge profits, hand over fist.

The whole situation just makes me sick. I think the reason no one calls them out on their price gouging and record profits is there are people in the USA who won't allow it. I can't say who I think it is because then the thread would be political and get locked. But does anyone ever wonder why they don't allow the higher MPG and more effiecient small displacement diesel vehicles here like they have in Europe? Why has the production of a cheap and reliable electric car been on the back burner so long here?

The answer is very clear and easy: RECORD PROFITS FOR THE OIL INDUSTRY AND THOSE PEOPLE ASSOCIATED WITH IT.

It makes me want to vomit.

 

[tenderloin]

Originally Posted By: IndyIan
Originally Posted By: tenderloin
"Oil prices were up about 12% from the same period last year, while gasoline prices have risen about 6%.

While gasoline and oil prices were on the rise, Exxon increased production in the third quarter. Oil and natural gas production were up 11% compared to the first nine months of 2009.

Why is no one complaining about the money Apple is making? It seems a lot harder to me to get oil out of the ground, ship it to the US, refine it and get it to my gas station.. then design and have China make some phones etc. ...but that is just me.

Apple

Apple makes electronic trinkets, that no one really needs to buy... If people think an iphone is worth what they charge, good for apple... I couldn't care less.
Energy/oil on the other hand, is necessary for food and shelter and transportation. So its an issue for nearly everyone.
Exxon's profit of around 10% of revenue isn't really that remarkable but it does show how much money is funneled into these companies by us.


Trinkets? Apple earned $4.31 billion profit last qtr

Market cap
1. Exxon Mobil $329.44 billion

2. Apple $272.73 billion

 

[Joseph_S37]

Originally Posted By: tenderloin
Originally Posted By: IndyIan
Originally Posted By: tenderloin
"Oil prices were up about 12% from the same period last year, while gasoline prices have risen about 6%.

While gasoline and oil prices were on the rise, Exxon increased production in the third quarter. Oil and natural gas production were up 11% compared to the first nine months of 2009.

Why is no one complaining about the money Apple is making? It seems a lot harder to me to get oil out of the ground, ship it to the US, refine it and get it to my gas station.. then design and have China make some phones etc. ...but that is just me.

Apple

Apple makes electronic trinkets, that no one really needs to buy... If people think an iphone is worth what they charge, good for apple... I couldn't care less.
Energy/oil on the other hand, is necessary for food and shelter and transportation. So its an issue for nearly everyone.
Exxon's profit of around 10% of revenue isn't really that remarkable but it does show how much money is funneled into these companies by us.


Trinkets? Apple earned $4.31 billion profit last qtr

Market cap
1. Exxon Mobil $329.44 billion

2. Apple $272.73 billion


Yes, but you can go out and buy any old cheap cell phone, and windows basted computers, any other music player, and still live life just fine. They make that much profit because people like shiny expensive toys, you cant blame the company for making something people want.

Oil and gas however will always be oil and gas, you NEED it for everyday life... to go to the grocery store, for trucks to get food to the store, everything. I don't think the profit of these two companies can be judged fairly, seeing as how the products they provide are on very different playing fields. One makes expensive toys, one basically provides life as we know it...

 

[bullwinkle]

If you don't like it-don't buy it!! Walk, ride a bike, ride public transportation, or-wait for it...-BUY AN ELECTRIC CAR! As long as there is no alternative-the gasoline price gouging is going to continue!

 

[JHZR2]

I find it hard to believe that people NEED energy. Yes, that is kind of a joke, but let's face it... 100 years ago, people used a LOT less energy then they do today...

Go ahead and walk/bicycle to the grocery store, work, etc. Wanted to live out in the boonies? Well, I dont know what to tell you.

Again, Im not necessarily justifying excessive profits, but I do not see the profit as excessive. You make a certain amount on what you sell, they sell a lot, they make a lot. You add profit on the top of the finished product cost, it comes to something. So long as it is reasonably taxed without lots of loopholes, Im OK with it... and doubly so when the profit is returned to the shareholders. Guess what, everyone on this thread could be a shareholder and share in that profit.

Need it or not, what business sets their profit amount and then changes their margin based upon their costs to ensure that the profit remains constant?

Would anyone posting on here NOT want their salary to increase if true inflation and cost increases were actually zero?

 

[tig1]

Good to see an American company making money instead of loosing and going out of business.