Exxon Mobil profits

chromiam

Strangest Tribe wrote:

If the demand exceeds the supply then that causes prices to jump....right?

but... Increased demand would mean that the oil people would have to try meet the demand with proportional spending right?

Why would they have to keep up with demand??? Let's say supply stays constant (which we know isn't true), how would a company refine more of something that is in constant supply, whether it was enough to meet demand or not???

Strangest Tribe wrote:

Simple economics... The oil people would have to do more work to keep up. Thus, they should be spending a relatively proportional amount toward the supply side. This logic would indicate that the oil people would be reporting average to above average profits. Not record profits and not exponentially higher every year.

Why would costs go up?? As was noted, it depends on where the oil is drilled from and refined. If those facilities are relatively close, there are not much added costs to refining or shipping.

Strangest Tribe wrote:

Record profits indicate to me that the shortage of oil is merely a myth and the investors (speculators) have hyped a bonafide scare globally.
This is apparent if you would study the costs of oil production verses the price of gas in the global markets.

And China? Only 1 in 1500 people have vehicles. Ten years ago only 1 in 1600 had vehicles. Not that drastic of increase when you consider the average American family has almost 2 vehicles. Most of the increase in China comes from manufacturing which has tripled in the last 20 years thanks to our need for cheap labor and our outsourced industry.

No, it's not as simple as just Supply and Demand, that's what they want you to believe.

I'd agree that speculators have driven the price of crude to where it is today based on fear and speculation. However, it is not the only or even main reason for the higher price of gas and oil.

China may only have 1 in 1500 people with cars but with a population of over 1.3 billion, that accounts for almost 900,000 automobiles and I bet that this figure does include all of the construction equipment which is being used to fuel China's building boom. Most of the oil which China is using and in extreme demand is in the form of diesel fuel.

It's not as simple as supply and demand but its pretty damn close.

Kel Varnsen

Strangest Tribe wrote:

I compare the price gouging during national disasters to the current oil debacle except there's not enough anger. Everyone just accepts it and goes on.

How are people "just accepting it"? I don't know about where you live, but in my location, transit ridership is at an all time high. People aren't flying as much because of higher airline costs due to fuel, and I think it was also reported that the number of people taking road trips is also down (either people aren't going anywhere or they are not travelling as far). I would hardly call any of those things just accpting it.

Kel Varnsen

Strangest Tribe wrote:

And China? Only 1 in 1500 people have vehicles. Ten years ago only 1 in 1600 had vehicles. Not that drastic of increase when you consider the average American family has almost 2 vehicles.

Care to cite your source for the 1 in 1500 number? I found this article from the BBC from 2007 that said it was more like 6 out of 100 people had cars and that it grew by 25% in the year before (and is expected to keep growing). It also said that the vehicle sales for that year were 8 million. Now how would 8 million new customers for gasoline not make the price go up?

http://news.bbc.co.uk/1/hi/business/6658583.stm

SundaySilence

War is profitable.

oldfannewposter

...and the stock went down like $4, thus fucking the shareholders.

Strangest Tribe

Kel Varnsen wrote:

Care to cite your source for the 1 in 1500 number? I found this article from the BBC from 2007 that said it was more like 6 out of 100 people had cars and that it grew by 25% in the year before (and is expected to keep growing). It also said that the vehicle sales for that year were 8 million. Now how would 8 million new customers for gasoline not make the price go up?

http://news.bbc.co.uk/1/hi/business/6658583.stm

Sorry, had to double check those numbers.... and that appears to be Asia ...not China alone ....my bad...

SpreadtheJAM

Strangest Tribe wrote:

If the demand exceeds the supply then that causes prices to jump....right?

but... Increased demand would mean that the oil people would have to try meet the demand with proportional spending right?

Simple economics... The oil people would have to do more work to keep up. Thus, they should be spending a relatively proportional amount toward the supply side. This logic would indicate that the oil people would be reporting average to above average profits. Not record profits and not exponentially higher every year.

Record profits indicate to me that the shortage of oil is merely a myth and the investors (speculators) have hyped a bonafide scare globally.

This is apparent if you would study the costs of oil production verses the price of gas in the global markets.

And China? Only 1 in 1500 people have vehicles. Ten years ago only 1 in 1600 had vehicles. Not that drastic of increase when you consider the average American family has almost 2 vehicles. Most of the increase in China comes from manufacturing which has tripled in the last 20 years thanks to our need for cheap labor and our outsourced industry.

No, it's not as simple as just Supply and Demand, that's what they want you to believe.

well it also has to do with middle east countries along with china and india. their thirst for oil has been growing with their influx of money. That region is the biggest producer and less and less of their oil is coming over here in order to build their own industries.

"The oil people would have to do more to keep up"....

What can exxon mobil do, its not like they have the authority to drill on their own terms. They're not the ones controlling output. That is a global problem caused by governments and economies, Not one single U.S. corporation.

Pacomc79

I believe Exxon Mobil paid around 32 billion in taxes in that same period so take that how you will.

11 billion in profit 32 billion in taxes.


There absolutely is no oil shortage but it is a finite resource and market fluctuation and consumer habits do tend to have an effect, that's why it generally is more expensive at some times of the year (vacations in the summertime) and during production change overs for Heating oil etc.


I appreciate that people are upset over energy, but it's pretty hard to take people seiously when they are complaining about gas from the window of a 50K vehicle that gets 12MPG. Only now is the market interested in buying fuel efficient cars. They are only now feeling actual pain economically from energy.

Who told American's it was a good idea to live on average 8 grand in debt. Most of this.. we did to ourselves.

Kel Varnsen

Pacomc79 wrote:

I believe Exxon Mobil paid around 32 billion in taxes in that same period so take that how you will.

11 billion in profit 32 billion in taxes.

Wow 32 billion that is really sticking it to the working man, since it is not like tax revenue goes to pay for anything that the average person might use.

Pacomc79

Kel Varnsen wrote:

Wow 32 billion that is really sticking it to the working man, since it is not like tax revenue goes to pay for anything that the average person might use.

this is a pretty interesting article.

http://www.marketwatch.com/news/story/exxon-mobil-corporation-announces-estimated/story.aspx?guid=%7B2DAD9C6F-21A9-4D4D-A7C0-A7C31F91514D%7D&dist=hppr

Kel Varnsen

Pacomc79 wrote:

I appreciate that people are upset over energy, but it's pretty hard to take people seiously when they are complaining about gas from the window of a 50K vehicle that gets 12MPG. Only now is the market interested in buying fuel efficient cars. They are only now feeling actual pain economically from energy.

Who told American's it was a good idea to live on average 8 grand in debt. Most of this.. we did to ourselves.

I know exactly what you mean. It seems here that every time one of the local nightly news shows needs some filler they do a "what does the person at the gas station think about prices". It always seems between that and the people I know, the people who complain the most either 1) drive gigantic cars or 2) live in the suburbs and have like 40 minute or longer commutes. But the gas company controls neither of those things. That said gas prices where I live (in Canada) earlier in the summer were the equivalent of over 5 bucks a gallon.

CityMouse

the oil companies are benefiting from the high prices, but they aren't the ones who caused them. it's those hedge fund guys, mostly, plus some scarcity issues (that tie in with the hedging).

CityMouse

Kel Varnsen wrote:

I know exactly what you mean. It seems here that every time one of the local nightly news shows needs some filler they do a "what does the person at the gas station think about prices". It always seems between that and the people I know, the people who complain the most either 1) drive gigantic cars or 2) live in the suburbs and have like 40 minute or longer commutes. But the gas company controls neither of those things. That said gas prices where I live (in Canada) earlier in the summer were the equivalent of over 5 bucks a gallon.

I COMPLETELY agree.
You make your bed, you lie in it.
I was saying this to my mother the other day and she was like, "but people didn't know beforehand when they made their decisions that gas was going to be so expensive."
BS! If you have 2 brain cells you would know better than to assume we'd always have cheap oil to burn and destroy the earth.

Open

Kel Varnsen wrote:

I am not sure they have people by the balls as much as you might thing. I mean I keep hearing that with these higher gas prices, transit ridership has increased drastically. For the same reason I keep hearing stories that people are taking less vacations or not driving as far when going on vacations. People are making these choices, and if they keep doing it revenue is going to start to decrease.

I am not sure why you don't think it has anything to do with supply and demand. There are millions of new drivers in China every year. These are millions of people who are brand new customers for gas companies that never owned a car before. What industry wouldn't raise their prices if they had millions of brand new customers every year. Metals prices have increased for the exact same reason.

Enron Loophole..look it up.

slightofjeff

Kel Varnsen wrote:

Didn't you know Exxon is owned 100% by Bob Exxon. When the company makes profit all of the profit goes right to him and he keeps the cash in a giant Scrooge McDuck style Money Bin.

Come on now ... he uses some of that money on his army of personal baby-seal clubbers.

CityMouse

hartamh wrote:

Well isn't that just great for them.....and to rub it in our faces.....when we barely can afford for or gas..........

hahaha they're not rubbing it in our faces, it's a publicly traded company, they have to announce their profits.

unsung

If you don't like what they are doing don't buy from them, it is that simple. See I refuse to shop at Wal-Mart because I think they destroy this country and most of the people who work and shop there need to go back into their caves. Yet there are some people who go there because they want to save a dime on some Chinese made t-shirt, then come onto forums like this and complain that these corporations make too much money.

This can be solved in the easiest of ways, don't spend your money there.

Oh and I personally love that Exxon/Mobil is doing well. I bought in when gas was around $2 a gallon.

The funniest thing is there are people who believe electing an empty suit like Obama will change things like this. And they are probably right. He will come in and tax them more so they don't make any money and some illegal alien gets free health care. You know because he is poor and all. The corporation is the one who suffers.

Dems have been in control of things for some time now and nothing has changed.

yoke

I live and work in the same town. I have no gas issue and I have a 2001 F150 V8.