Are Oil Companies really making money off the high gasoline prices?

M

maxmk8

Registered
Of course they are :7 !!!!!.
A cool 100 BILLION in revenue and 10 billion in profit, yay! Looks like I am working for the wrong company.
"
Check this out IRVING, Texas - Exxon Mobil Corp. had a quarter for the record books. The world's largest publicly traded oil company said Thursday high oil and natural-gas prices helped its third-quarter profit surge almost 75 percent to $9.92 billion, the largest quarterly profit for a U.S. company ever, and it was the first to ring up more than $100 billion in quarterly sales.

Net income ballooned to $9.92 billion, or $1.58 per share, from $5.68 billion, or 88 cents per share, a year ago.

Excluding certain items, earnings were $8.3 billion, or $1.32 per share, versus $6.23 billion, or 96 cents per share, in the 2004 quarter.

Analysts polled by Thomson Financial, on average, predicted earnings excluding items of $1.38 per share.

Revenue grew to $100.72 billion from $76.38 billion in the prior-year period.

Howard Silverblatt, equity analyst at Standard & Poor's, said both the net income and sales figures are all-time records for publicly traded U.S. companies.

The hurricanes slashed Exxon Mobil's U.S. production volumes by 50,000 barrels of oil equivalent per day, down nearly 5 percent year-over-year, costing the company $45 million before taxes. The company said total daily production slipped to 2.45 million barrels of oil equivalent from 2.51 million barrels.

"Following the hurricanes, Exxon Mobil maximized gasoline production from all of our refineries which were operating in the U.S., and increased imports from overseas affiliates to meet U.S. demand," said Chairman Lee R. Raymond.

Earnings from U.S. upstream operations increased by $498 million to $1.67 billion, while U.S. downstream earnings jumped $548 million to $1.11 billion. In the U.S. and abroad, income from the company's chemicals segment declined by $537 million to $472 million, as raw materials costs squeezed margins.

The company cautioned that reduced volumes and higher costs will also hurt the fourth quarter.

Shares of Irving-based Exxon Mobil rose 56 cents, or 1 percent, to $56.76 in early trading on the New York Stock Exchange. The stock has traded in a 52-week range between $48.25 and $65.96.

"

http://news.yahoo.com/s/ap/20051027...rrvnV6s0NUE;_ylu=X3oDMTA3ODdxdHBhBHNlYwM5NjQ-
 
RE: Are Oil Companies really making money off the high gasoline prices?

I think the solution to the problem is institute for oil companies the same reimbursement system as doctors have in this country.

As it stands now to give a Bicillin (a type of penicillin) injection that costs a physician $80, the insurance company pays $50. For a chicken pox vaccination that cost the physician to buy $70, the insurance company reimburses $12. Oh, the physician get an additional $10 to do the injection. Somewhere in that reimbursement system, the physician is supposed to earn a living. Usually you need to buy at least 10 of the vaccinations or antibiotic, which you may not use up before the expiration date.

The oil companies would do well with the same system. The consumer pays whatever they feels like no matter what the cost of oil is. The oil companies should be smart enough to figure out how to make a profit out of that.

Alexander
Board of Directors
Lincolns of Distinction
 
RE: Are Oil Companies really making money off the high gasoline prices?

I believe the government did step in by giving refineries the "needed" tax breaks.
 
RE: Are Oil Companies really making money off the high gasoline prices?

All these solutions sound great but the truth is oil companies are international companies selling their product on an international market. Now I don't claim to be an expert on the oil industry but if the market in China & India calls for $4.00 a gallon gas, do you think they will sell it here for $2.00 a gallon?


 
RE: Are Oil Companies really making money off the high gasoline prices?

The gas price in Europe was at $6 for a looong time. It was always double what we paid. It wasn't the oil companies selling it to them at a higher price it was the governments taxing the gasoline at high rates. Gasoline prices around the world are pretty much the same once you strip them of taxes and transportation costs. The reason Venezuela and Indonesia were paying little to nothing is because the government was subsidizing the gasoline in order to prevent people from going broke. (Remember in those countries people might spend a month worth of pay for a tank of gas at $3). The demand for Gasoline is inelastic, in other words if the price goes up the demand will still stay approximately the same. Other products like this are Cigarettes drugs etc, people will still pay the price because it has no substitutes.
But what the recent price surges are yet to translate themselves into the economy. You might think that it is no big deal for you to pay the extra $10 for the tank of gas (believe me it isn’t for me either), but other large corporations will have to adjust prices due to higher costs and lower profits, this will result in layoffs and higher inflation (did you check the recent inflation rate and the value of the dollar?). And that is just the beginning. It is all just simple economics they know what they are doing, this is why they are making this kind of money, but prices should NOT go up any more, or else we will be facing a national disaster.
 
RE: Are Oil Companies really making money off the high gasoline prices?

[div class="dcquote"][strong]Quote[/strong]
The gas price in Europe was at $6 for a looong time. It was always double what we paid. It wasn't the oil companies selling it to them at a higher price it was the governments taxing the gasoline at high rates. Gasoline prices around the world are pretty much the same once you strip them of taxes and transportation costs. The reason Venezuela and Indonesia were paying little to nothing is because the government was subsidizing the gasoline in order to prevent people from going broke. (Remember in those countries people might spend a month worth of pay for a tank of gas at $3). The demand for Gasoline is inelastic, in other words if the price goes up the demand will still stay approximately the same. Other products like this are Cigarettes drugs etc, people will still pay the price because it has no substitutes. But what the recent price surges are yet to translate themselves into the economy. You might think that it is no big deal for you to pay the extra $10 for the tank of gas (believe me it isn’t for me either), but other large corporations will have to adjust prices due to higher costs and lower profits, this will result in layoffs and higher inflation (did you check the recent inflation rate and the value of the dollar?). And that is just the beginning. It is all just simple economics they know what they are doing, this is why they are making this kind of money, but prices should NOT go up any more, or else we will be facing a national disaster.
[/div]

No, its because over 40% of the price of gas you pay for is Taxes. SO as the price increases, so do the Taxes. In Venezuela for example, the gov't doesnt have to tax people to death on gas, because the gov't has enough money to build roads on its own, without the help of its citizens.
 
RE: Are Oil Companies really making money off the high gasoline prices?

Why are people being retarded? Oil companies have a product thats Very high in demand, and finally got a good chance to make money, adn now they are the bad guys? Why shoudl they sell gas to you for .50 when they could sell it elsewhere for 2? or 3bucs? watever the case may be.

Do you remember when gas was so cheap, which industry lost the most jobs? and which industry really took a hit? you werent whining then about the gov't helping them stablize prices, so you cant do it now.

Its too bad you cant afford gas, maybe you should try riding the bus... because last time I remembered, it wasnt Exxon's job to make sure you get to hit the rev limit after every stop light ::roll::
 
RE: Are Oil Companies really making money off the high gasoline prices?

I am guessing you have no idea about how economics work? It is not that their product is in super HIGH demand it is that it has no substitues, for now. Are you going to tell me that oil companies have made no money in the past 40 years until now?? That is the biggest load of BS i have ever heard.
Gasoline went up in price for only one reason which is Profits (not DEMAND), but as I was saying earlier this will have dire consequences on the economy. If you haven't noticed we have had the highest inflation rates since the 80s. If oil prices go up... prices on almost everything will eventually follow as well. If I ride the bus, the price of the bus ticket will probably go up soon as well, and bus operators will be laid off because of higher expenses.
 
RE: Are Oil Companies really making money off the high gasoline prices?

[div class="dcquote"][strong]Quote[/strong]
I am guessing you have no idea about how economics work? It is not that their product is in super HIGH demand it is that it has no substitues, for now. Are you going to tell me that oil companies have made no money in the past 40 years until now?? That is the biggest load of BS i have ever heard. Gasoline went up in price for only one reason which is Profits (not DEMAND), but as I was saying earlier this will have dire consequences on the economy. If you haven't noticed we have had the highest inflation rates since the 80s. If oil prices go up... prices on almost everything will eventually follow as well. If I ride the bus, the price of the bus ticket will probably go up soon as well, and bus operators will be laid off because of higher expenses.
[/div]

I was talking about when prices fell sharply about 4 years ago, when it was close to 80cent/gallon. OPEC nations were seriously suffering, and there wasn’t much they could do about it.

Oil does not go up for profits, but demand and how much the other guy is willing to pay for it. GAS went up as oil prices went down recently after the hurricane over shortage of refiners, not profit increase.

This Oil market is a double edged sword, it could either wreck oil companies, or make them filthy rich. They already suffered a few years ago, and now they are making loads of money. That’s just how it is.

The answer to this is to build more refiners, or freeze everyone in China and india, and stop natrual disasters.
 
RE: Are Oil Companies really making money off the high gasoline prices?

[div class="dcquote"][strong]Quote[/strong]
They already suffered a few years ago, and now they are making loads of money. [/div]Can you post some examples of when oil companies actually *lost* money? I'm really curious...

John
[link:www.goldengatemark8.com|Golden Gate Mark VIII Website]
http://mark8.org/users/johnaec/Mark_VIII_s.jpg
'97 Mark VIII LSC
'96 T-Bird 4.6L
 
RE: Are Oil Companies really making money off the high gasoline prices?

[div class="dcquote"][strong]Quote[/strong]
[div class="dcquote"][strong]Quote[/strong]I am guessing you have no idea about how economics work? It is not that their product is in super HIGH demand it is that it has no substitues, for now. Are you going to tell me that oil companies have made no money in the past 40 years until now?? That is the biggest load of BS i have ever heard. Gasoline went up in price for only one reason which is Profits (not DEMAND), but as I was saying earlier this will have dire consequences on the economy. If you haven't noticed we have had the highest inflation rates since the 80s. If oil prices go up... prices on almost everything will eventually follow as well. If I ride the bus, the price of the bus ticket will probably go up soon as well, and bus operators will be laid off because of higher expenses. [/div]I was talking about when prices fell sharply about 4 years ago, when it was close to 80cent/gallon. OPEC nations were seriously suffering, and there wasn’t much they could do about it.Oil does not go up for profits, but demand and how much the other guy is willing to pay for it. GAS went up as oil prices went down recently after the hurricane over shortage of refiners, not profit increase.This Oil market is a double edged sword, it could either wreck oil companies, or make them filthy rich. They already suffered a few years ago, and now they are making loads of money. That’s just how it is.The answer to this is to build more refiners, or freeze everyone in China and india, and stop natrual disasters.
[/div]


Please post actual #s.
Here is a link to an article from 2001 When crude oil was at $31 a barrel. Now it is at over $60.

http://www.enquirer.com/editions/2001/01/25/loc_oil_companies.html

In 2001 which is 4 years ago. They made 5 billion in PROFIT!!!! (That is at less than $2 a gallon for gas). Now at double the prices for gas they are making 10 billion. Your argument has no point. Crude Oil prices have nothing to do with refinery capacity, gasoline prices should be the only prices affected by refinery capacity. And only the ones on the east coast. We have our own refineries in Cali, 20 miles from my house and we supply refined gas to three other states, yet our prices went up as well (Hence the PROFIT). Crude oil price increased to $70 (please tell me how refinery capacity made that price go up). 30%.
 
RE: Are Oil Companies really making money off the high gasoline prices?

What level of profit do you think would be appropriate for the oil companies? IF they had 100 billion in revenue, is 10 billion too much profit? Or is it the making 10 billion profit in one year what you object to? Does where they make a profit matter?

What if you sold 100 widgets for a dollar each, is ten dollars profit too much? Does it matter if you sold them in one minute or one hour or one day? Does it matter where you sold your widgets?
 
RE: Are Oil Companies really making money off the high gasoline prices?

[div class="dcquote"][strong]Quote[/strong]
[div class="dcquote"][strong]Quote[/strong][div class="dcquote"][strong]Quote[/strong]I am guessing you have no idea about how economics work? It is not that their product is in super HIGH demand it is that it has no substitues, for now. Are you going to tell me that oil companies have made no money in the past 40 years until now?? That is the biggest load of BS i have ever heard. Gasoline went up in price for only one reason which is Profits (not DEMAND), but as I was saying earlier this will have dire consequences on the economy. If you haven't noticed we have had the highest inflation rates since the 80s. If oil prices go up... prices on almost everything will eventually follow as well. If I ride the bus, the price of the bus ticket will probably go up soon as well, and bus operators will be laid off because of higher expenses. [/div]I was talking about when prices fell sharply about 4 years ago, when it was close to 80cent/gallon. OPEC nations were seriously suffering, and there wasn’t much they could do about it.Oil does not go up for profits, but demand and how much the other guy is willing to pay for it. GAS went up as oil prices went down recently after the hurricane over shortage of refiners, not profit increase.This Oil market is a double edged sword, it could either wreck oil companies, or make them filthy rich. They already suffered a few years ago, and now they are making loads of money. That’s just how it is.The answer to this is to build more refiners, or freeze everyone in China and india, and stop natrual disasters.[/div]Please post actual #s. Here is a link to an article from 2001 When crude oil was at $31 a barrel. Now it is at over $60. http://www.enquirer.com/editions/2001/01/25/loc_oil_companies.htmlIn 2001 which is 4 years ago. They made 5 billion in PROFIT!!!! (That is at less than $2 a gallon for gas). Now at double the prices for gas they are making 10 billion. Your argument has no point. Crude Oil prices have nothing to do with refinery capacity, gasoline prices should be the only prices affected by refinery capacity. And only the ones on the east coast. We have our own refineries in Cali, 20 miles from my house and we supply refined gas to three other states, yet our prices went up as well (Hence the PROFIT). Crude oil price increased to $70 (please tell me how refinery capacity made that price go up). 30%.
[/div]

You are not reading my post correctly, you are reading what you what to read. Please see the BOLD setence of my previous post.

Actually, and when you say 30/Barrel, which barrel would you be talking about? because different oil found in different parts of the world sells for different prices (I know for fact that prices reached $9/barrel in saudi). Now if we were ONLY talking about U.S. oil companies, then thats something different.

Fact of the matter is, the oil industry (not just in the usa) suffered a whole lot a few years ago, many smaller oil related companies, and piping/construction companies went completely out of business. Now, if you were ONLY talking about Exxon mobil, and Chevron, then by all means, this may not apply to them.
 
RE: Are Oil Companies really making money off the high gasoline prices?

[div class="dcquote"][strong]Quote[/strong]
What level of profit do you think would be appropriate for the oil companies? IF they had 100 billion in revenue, is 10 billion too much profit? Or is it the making 10 billion profit in one year what you object to? Does where they make a profit matter? What if you sold 100 widgets for a dollar each, is ten dollars profit too much? Does it matter if you sold them in one minute or one hour or one day? Does it matter where you sold your widgets?
[/div]

I see you point JP, but I think I've drifted off to include world markets, when this thread was talking about U.S. oil companies. My mistake.
 
RE: Are Oil Companies really making money off the high gasoline prices?

[div class="dcquote"][strong]Quote[/strong]
[div class="dcquote"][strong]Quote[/strong]What level of profit do you think would be appropriate for the oil companies? IF they had 100 billion in revenue, is 10 billion too much profit? Or is it the making 10 billion profit in one year what you object to? Does where they make a profit matter? What if you sold 100 widgets for a dollar each, is ten dollars profit too much? Does it matter if you sold them in one minute or one hour or one day? Does it matter where you sold your widgets?[/div]I see you point JP, but I think I've drifted off to include world markets, when this thread was talking about U.S. oil companies. My mistake.
[/div]

Is there any pure 'U.S. oil company'? I'd be astonished if there is.
 
RE: Are Oil Companies really making money off the high gasoline prices?

I just returned to Jacksonville from the Atlanta Motor Speedway in central Georgia. The lowest price that we saw on the entire trip was in Macon. Regular gas was $2.18/gal at one location. Premium was $2.38. Gas in lower Georgia was $2.39/gal for regular. The lowest price for gas in Jacksonville is, and was $2.80/gal.

Normally, gas in Georgia is $0.19/gal cheaper than gas in Jacksonville. I was amazed to find that gas was $0.62/gal cheaper!

The difference of lowest gas prices within Georgia range $0.21. How can gas prices have such a wide discrepancy within one state while station owners claim that they are not gouging us with overprofits? I smell a rat.
 
You must log in or register to reply here.
Back
Top