Gas price rant...aka Exxon is Evil

[JetSwing]

exxon has topped walmart as the top fourtune 500 compnany.

here are some staggering figures on exxon:

• raked in $340 billion in revenue
• 25.5 percent increase from 2004
• had $36.1 billion in profits
• the most by any U.S. company in history

and let's see how other oil companies have been doing...

chevron texaco corp had 28 percent jump in revenues. conoco phillips saw their revenues jump by 37 percent. chevron climbed two spots to no. 4 on the fortune 500 list. while conoco edged up to No. 6 on the list.

http://www.msnbc.msn.com/id/12131795/

[oramac]

Oil companies know they have us by the scrot.  They know that there is nothing we can do to combat higher prices because many of us HAVE to drive or ride.  It's great the inner-city areas have busses and mass transit options, but many of us are commuters so we're screwed.  There will be no change without boycott, but boycotts hurt us more than them. 

[Grainbelt]

How about Exxon is Evvil? 

I'm waiting for biodiesel to take hold, low sulphur style. Then I'm ditching my car and getting a diesel something or other, we should get the better diesels once we switch to low sulphur diesel.

[dbNnc]

I don't like Big Oil and the cozy relationship it has with our government. But while the revenue and profit totals are huge, the margin -- profits expressed as a percentage -- is actually a little tame:

# In fairness, Market Dispatches should note that Exxon's net profit margin (10.7% for the quarter and 9.7% for the year) is actually fairly moderate. Consider:
# Despite disappointing Wall Street with its fourth-quarter report, chip-maker Intel's (INTC, news, msgs) net profit margin was 24.5% for the fourth quarter and 22.4% for the year.
# Internet giant Yahoo! (YHOO, news, msgs) had a net profit margin of 36% for the fourth quarter and 34% for the year.
# Standard & Poor's estimates the 2005 net profit margin for the S&P 500 at 8.2%.

http://articles.moneycentral.msn.com/Investing/CNBC/Dispatch/060128markets.aspx

One option is to buy stock in oil companies. At least that way you get to share in the revenues. Maybe your profits will be enough to pay for your gasoline.

[3imo]

One option is to buy stock in oil companies. At least that way you get to share in the revenues. Maybe your profits will be enough to pay for your gasoline.

HEY!!! don't tell them everthing!!!!!....Gosh.



don't hate the player....Play the game!!

[3imo]

in fact I was talkin about finances in another thread.

But if you take that mentality for everything. you will see how every year you start to pay less and less for things.

How many people you know can by groceries from WALMART for a family of four with $80 every two weeks?



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I've yet to get into Suzuki cause the wife knows where I'd go with that.

[Jace009gs]

just don't put all your eggs into one basket

[Chris_B]

Since when do the oil companies control the cost of gas?

[Egaeus]

Since when do the oil companies control the cost of gas?

They don't completely control the cost of gas, but they do control their fair share. 

When oil was $8/barrel back (in what, 98?) you could get gas for about 80 cents per gallon here.  Seeing as $8/barrel is around 15 cents per gallon, the added cost by the oil companies+retailers is 65 cents. 

Now oil is around $60/barrel.  That's around $1.10/gallon.  Adding that 65 cents, plus say 10 cents for increased transportation costs due to fuel prices, and 10 cents for additional additives, and you get 1.95.  It's now around $2.65 here.  Retailers' profits haven't increased, so who's making that extra 70 cents per gallon?

[pantablo]

how much of that $0.70/ga is adjusted for inflation from 1998?

[Egaeus]

Why do you need to adjust for inflation.  70 cents is 70 cents.  It may not be worth as much, but it's still 70 cents. 

If you really want to add inflation to a back-of-the-envelope calculation, feel free

[fodder650]

Really dont forget all the gas taxes as well. Here in Pennyslvania this ads up to around 45c a gallon.

And I'm really of two minds about this. Mobil became the number 1 company this year topping Walmart with 1 billion a day in gross. But we are a free market economy. And its supply and demand. If we continue to pay it, mostly because we don't really have a choice, then theres no reason not to keep it increasing.

But the second part of this is that we were told it jumped that high because of Katrina. And we find out that it had nothing to do with it.

So free market vs being lied to. Saying its the governments fault is more a case of fiquring the tax side in. Oil is a business and we are just consumers. Outside the US gas has always been high. Thats why diesel is so popular in Europe. But we as americans feel we deserve $1 a gallon gas.  Its a rather cocky attitude really.

[mi_dude]

An example of how the oil companies control the price of gas is through controling the quantity of refined gas.  The large oil companies have reduced the refining capacity in the US by closing their best refieries.  The reason for this, it creates a shortage in the market and the price goes up.  Basic supply and demand.  If somehow they reifne too much in a particular month, they ship the excess to Mexico or other Central American contries and sell it at very low prices.  It has very little to do with the futures prices for crude oil, which is the price you see quoted in all the media.  The real problem is the relationship between big oil and Washington.  The politicians get their money in exchange for not putting any real pressure on the oil companies to play fair with us.

I am as right wing in economic policy as just about anyone, but I think it is time for us to demand that price controls go into effect.  This would be an easy way for a Democrat to win the White House, forego the oil money and run on a platform to put controls on the oil companies.  I have never voted for a Democrat but I would if they would go after the oil companies.

[yamahonkawazuki]

they wont i can almost guiarantee it

[yamahonkawazuki]

the oil companies, along with the tobacco lobby along with guns, rule the political system here. although ive nothing against guns 

[pandy]

the oil companies, along with the tobacco lobby along with guns, rule the political system here. although ive nothing against guns 

Did I ever mention that I'm a pretty good shot?  

What amazes me is that every time we have a significant increase in gasoline prices, the politicians start promising "full investigations." So...how many results of these "full investigations" have YOU heard about?

Our nation is led right now by an oil man. It's hardly surprising that the oil industry is doing so well. But...remember....we'd never go to war for oil... Former President Clinton was impeached for getting a bj. Perhaps if our current president had access to the same....uh...presidential....PERKS....we might not be in the state we're in. 

[3imo]

CLINTON is a Presidential Rockstar!!!!

even though he sucks as a pres.   Rockstar nonetheless.

[flyingbeagle71]

Our nation is led right now by an oil man. It's hardly surprising that the oil industry is doing so well. But...remember....we'd never go to war for oil... Former President Clinton was impeached for getting a bj. Perhaps if our current president had access to the same....uh...presidential....PERKS....we might not be in the state we're in. 

I'm thinking the perjury may have caused the almost impeachment than the bj...

[3imo]

I'd a lied too.  freakin rockstar i tell ya!!

[pandy]

I'm thinking the perjury may have caused the almost impeachment than the bj...

Hmm...which is worse.... lying about a bj...or lying to take a country to war.....