What The **** Big Oil

[dapokerbum 0]

http://www.signonsandiego.com/news/busines...exxonmobil.htmlI am sure you can find this story anywhere but seriously there is something really really wrong about this and it seems that no one is taking action. My favorite excerpt is this:But even at $10.9 billion, the profit ranks as the second biggest for a U.S. company – the only bigger result in a three-month period was the $11.7 billion Exxon Mobil posted in the final three months of 2007. This means that in the last 6 months they have PROFITED 22.6 BILLION dollars. Meanwhile the average person (me) is struggling to buy food, gas, and the basic necessities of life. I wouldn't be so angry about it if they were making a modest amount of money, but this boils down to greed plain and simple by anyone in the oil industry. While the rest of us have to basically sit here and take it in the butt. Well I am going to start showing them that I don't need their stupid oil ... as much. I am riding my bike to the trolley station and taking that to work now because I can't even afford to drive to work anymore.So maybe I should thank big oil for getting me back on a bike and getting in shape....Nah i'll just be irritated that they get to live off of the money that the average joe is shelling out. **** you big oil. I will B my L all over your boardroom./rant

[nhlfan 0]

.....6 months they have PROFITED 22.6 BILLION dollars. Meanwhile the average person (me) is struggling to buy food, gas, and the basic necessities of life. I wouldn't be so ang.......

While I totally agree gas prices are WAY out of control, this is funny. You are struggling to get basic necessities but have time and resources to post on a poker forum.Just sayin'.......

[dms26 3]

Do you think the people at Exxon are the ones that set oil prices? They aren't the ones that get to choose what it costs, otherwise oil wouldn't have been $40 a barrel 4 years ago.Getting on a bike more often and using less oil is the only thing that is going to bring down prices. It really isn't the oil companies fault. They have a resource that can't be pumped out fast enough, especially with China and other developing nations in competition for same oil.If you think they are making too much money, invest in their stock.

[solderz 0]

So sick of the ignorant. Yes, they posted a multi-billion dollar profit. No, it is not outrageous. Unless you view 7.25% profit margins as outrageous. They are huge operations with budgets in the hundreds of billions and the recent profit number was a 7.25% profit based on gross margins. Just because gas goes up at the pump does not mean mobil should surrender all its profits. And the worst part is Hillrod wants to hit them with a 50% windfall tax. This is still the U.S. right? Capitalism still reigns here?

[dapokerbum 0]

While I totally agree gas prices are WAY out of control, this is funny. You are struggling to get basic necessities but have time and resources to post on a poker forum.Just sayin'.......

Okay maybe I overstated the "basic" necessities as I do have internet at my house and a job, but there are still a lot of things that I am having to give up this year and driving is apparently one of them.To the other posters ... I guess you don't mind paying more for gas and more for food and more for goods, because whether you like it or not the cost of gas does affect all these things. I'm not saying a company can't make money but that is a little outrageous don't you think ... or are you holding stock and getting rich off it. either way I guess I am the only one outraged so whatever.

[dms26 3]

To the other posters ... I guess you don't mind paying more for gas and more for food and more for goods, because whether you like it or not the cost of gas does affect all these things. I'm not saying a company can't make money but that is a little outrageous don't you think ... or are you holding stock and getting rich off it. either way I guess I am the only one outraged so whatever.

It's not that I enjoy paying $3.50 a gallon, I just don't blame the oil companies for the high prices.

[dna4ever 2]

It's not that I enjoy paying $3.50 a gallon, I just don't blame the oil companies for the high prices.

QFT

[AmScray 355]

Little Oil is obv the solution.

[Balloon guy 158]

Remember when Super Size Me came out.McDonalds saw the Tobacco lawsuits, then the movie, and they said: "We better head this off before we get sued for fat people."so they removed Super size drinks ( which I still can't stand 32 oz is for skinny Canadians )brought in salads good for you food etc.They saw what was coming and decided to change their image to protect themselves.Why doesn't Exxon do the same?I obviously don't want Hillary to steal the money, but do they not have any consultants telling them, "Hey you guys should invest in new trucks or something so that your net is more in line with previous years so it takes the spotlight off you."Maybe I should tell them? I would charge them a lot for this advice. And I don't think you understand that when I say a lot, I mean a lot.

[El Guapo 8]

Blame OPEC.Also these oil companies are sitting on cash, waiting for the ability to drill in new areas. Alaska, Canada, etc.

[El Guapo 8]

Hello

[ShakeZuma 585]

you guys are blind.GOD DAMN YOU BIG OIL!

[mtdesmoines 3]

Little Oil is obv the solution.

Obv you know there's more truth to that than most people think.

[hblask 1]

1) 7% profit margins are not that good. Most businesses like to try for at least 10%, although it varies by industry. I'm not sure what is "typical" for oil companies.2) The raw profit number is meaningless, it is only relevant in regard to the assets it took to generate that profit.3) Oil is also an extremely risky industry; if the risk is not rewarded, production will be reduced and prices will continue to climb.4) The nature of the industry is huge swings in profitability; nobody cries for them when oil companies have billion dollar losses, therefore nobody should be envious when they have billion dollar profits.5) Anyone who thinks they are making excess profits should start their own oil company and take a share of it. And no, laziness and lack of startup capital is no excuse, because if you are right both of those can easily be overcome.

[ShakeZuma 585]

1) 7% profit margins are not that good. Most businesses like to try for at least 10%, although it varies by industry. I'm not sure what is "typical" for oil companies.2) The raw profit number is meaningless, it is only relevant in regard to the assets it took to generate that profit.3) Oil is also an extremely risky industry; if the risk is not rewarded, production will be reduced and prices will continue to climb.4) The nature of the industry is huge swings in profitability; nobody cries for them when oil companies have billion dollar losses, therefore nobody should be envious when they have billion dollar profits.5) Anyone who thinks they are making excess profits should start their own oil company and take a share of it. And no, laziness and lack of startup capital is no excuse, because if you are right both of those can easily be overcome.

but gas is really expensive!

[finztotheleft 0]

And no, laziness and lack of startup capital is no excuse.

I think laziness is a pretty damn good excuse !

[chrozzo 19]

not only do they make lots of money...but they dunk birds in the shit!

[mk 11]

5) Anyone who thinks they are making excess profits should start their own oil company and take a share of it. And no, laziness and lack of startup capital is no excuse, because if you are right both of those can easily be overcome.

imo

[speedz99 145]

Remember when Super Size Me came out.McDonalds saw the Tobacco lawsuits, then the movie, and they said: "We better head this off before we get sued for fat people."so they removed Super size drinks ( which I still can't stand 32 oz is for skinny Canadians )brought in salads good for you food etc.

Then BK ingeniously went in the complete opposite direction, introduced the Enormous Omelet Sandwich, and started their turnaround with a 20% increase in breakfast sales.

[Jeepster80125 0]

Okay maybe I overstated the "basic" necessities as I do have internet at my house and a job, but there are still a lot of things that I am having to give up this year and driving is apparently one of them.To the other posters ... I guess you don't mind paying more for gas and more for food and more for goods, because whether you like it or not the cost of gas does affect all these things. I'm not saying a company can't make money but that is a little outrageous don't you think ... or are you holding stock and getting rich off it. either way I guess I am the only one outraged so whatever.

It's not that you're the only one who is outraged, it's that you're pretty much the only one who is making threads without knowing what's really going on.Since you seem astute enough to find your own links, how about you find a figure that discusses how much those same bigoil companies paid the government in taxes during the same periods that you are talking about. I don't think you'd be complaining as loud if you read up on the subject before you make a insulting thread.

[BigDMcGee 3,352]

Little Oil is obv the solution.

LOL I was just about to post this, damn you for beating me to it. Is there ever such a thing as little oil at this point? can we just say "Oil" instead of "big oil" please?

[BigDMcGee 3,352]

5) Anyone who thinks they are making excess profits should start their own oil company and take a share of it. And no, laziness and lack of startup capital is no excuse, because if you are right both of those can easily be overcome.

Lack of startup capital isn't an excuse? LOL

[dapokerbum 0]

It's not that you're the only one who is outraged, it's that you're pretty much the only one who is making threads without knowing what's really going on.Since you seem astute enough to find your own links, how about you find a figure that discusses how much those same bigoil companies paid the government in taxes during the same periods that you are talking about. I don't think you'd be complaining as loud if you read up on the subject before you make a insulting thread.

Please enlighten me. Is it because OPEC has decreased production by 1%, or because there are constant threats in Russia and Venezuela, or because Iraq doesn't have it's own infrastructure yet, or is it a combination of all of the above. I get that and I get that a company can make money, that is what capitalism is all about ... what I don't like is a company that makes billions of dollars in RECORD profits all after the gasoline prices have risen $1.50/gallon in the last 2 years. You would think that there might be some kind of break for "normal" folk. But I guess that breaks into Communism which I am almost a fan of except that it would only work in a perfect world and there are way too many people who can take and abuse that type of system.I have been thinking about it all day. And if Apple posted an 11 billion dollar profit I don't think I would be angry ... unless of course they were charging $1,000 / Ipod. Then I would say that they are being rediculous and I can't believe that we are still buying IPODS. Of course this really doesn't work because not everyone needs an IPOD. In a way everyone needs gas, whether we like to admit it or not. I guess we need to get those damn electric cars back on the market and get less dependent on oil, but that probably won't start to happen until gas reaches $6-$7 / gallon.

[Asimo 1]

From a business owners point of view, the oil companies have a product that is in high demand and short supply and they are going to charge whatever the customer is willing to pay. Once you stop buying they will have to decrease their price.If I have a product that I buy for $1.00 and people are willing to pay $100 for it does that mean that I should sell it for $10.00 because that's a fair deal? I got what you want and I'm going to charge the price that I want. Obviously, I don't like high gas prices as I drive an SUV and it cost me now almost $100 a fill up which is on a weekly basis. So, my next car is going to be a hybrid. Problem solved.If you don't like their product or their price you don't have to buy it, no one is holding a gun to your head.The reason why you're not used to seeing pricing go up on products other then oil is because it becomes easier to manufacture/produce as the products life line increases. As costs come down and unit sales go up the companies bring down their prices. With oil they are going to eventually run out of product, so why not make as much as they can while they still got it.

[El Guapo 8]

Right now in CA about $.94 of the $4.00 a gallon is going to taxes.Plus the stations are limited to how much they can mark up the gas from the supplies (I beleive its only a few cents a gallon).OPEC controls the oil in the middle east

The Organization of the Petroleum Exporting Countries (OPEC) is a permanent intergovernmental organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962); Socialist Peoples Libyan Arab Jamahiriya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) -- suspended its membership from December 1992-October 2007; Angola (2007); and Gabon (1975–1994).

They pretty much set supply and demand. Not to go off on an anti green party thing here, but if we were allowed to drill in our own backyard, this would not be an issue. In addition, the cost of surveying and drill test wells, after getting through the red tape in areas that allow it (Canada) the oil companies are not putting the dollars into R&D or new exploration, like they had in the past. This allows OPEC to continue their stranglehold on Oil supply and costs per barrell.Only about 40% of the oil we use is domestic, and some of that we sell off and much of it is bought by the government as US oil supply is wharehoused.A 42 gallon barrel of OIL, currently selling for $120 produces ~20 gallons of gas. So that oil costs $2.85 a gallon to purchase, and they are selling it for $3.06 a gallon. (See first line for gas taxes). There is $.21 a gallon to ship, process and reship, advertise, pay other COGS. So if you look at everything here, don't get mad at the Chevrons and Unocals of the world, their increased profit is just bloated because of the increased costs, subsequent increased sales price. As Hblask pointed out, their profit margin is not that impressive.I hope that helps you out a bit.