Exxon made PROFIT at the rate of $1500 a SECOND

[Flacamper]

I don't own Exxon stock, I don't work for Exxon, I don't like paying $4.00 a gallon but let's look at few things here.
 
On a gallon of gas Exxon makes about 8% profit. That's .32 cents per gallon at $4.00 a gallon.
 
The average tax on a gallon of gas including state local and federal is somewhere around conservatively speaking .39 cents per gallon.
 
One guy makes .32 cents per gallon after he found the oil, drilled for the oil, builds refineries, refined the oil and produced the gasoline, transports the gasoline so we have gas at our finger tips, jumps through a bunch of federal hoops to accomplish this and you're mad at him.
 
The other guy makes .39 cents a gallon for sitting on his butt and collecting the tax money and you don't have a problem with him.
 
I'm a bit confused. Don't we live in a capitalist society.
 
I own my own business and I promise you I make more than 8% profit on my companies total revenue, does that make me a bad guy?
 
We have a congress that will not allow a vote to come to the floor to remove a ban on offshore drilling that would begin to diminish our dependence on foriegn oil. Shouldn't we be pissed at them for keeping us in this situation?
 
Here in Louisiana there are oil wells that were drained dry 25 year ago and capped. Most of those capped oil wells are in what is now, protected natural wetlands. They monitor these wells on a regular basis and many of the wells are once again as full of oil today as they were when they were first drilled proving that the oil well is fed by a much deeper reservoir of oil. Common sense would say, well go open those wells back up and get the oil. But now that it has been proclaimed natural wetland, these sources are off limits. They don't have to drill for this oil, all they have to do is turn the faucet back on. This should piss you off.
 
This is just the tip of the iceburg.
 
When we start getting pissed at Companies and Corporations for making record profits we are sliding down a dangerous slope. I have owned my own business for three years and each year since I started my business I have set new revenue and profit records. That my friend is the American Way.
 
CajunCamper

Well put Cajun.  Most people do not think like you and I.  They only see $4 a gallon and listen to those like Obama, Pelosi, Reid and others who think capitalism is a bad thing and seem to only want us to import goods.  Which in the end will only ruin AMERICA... Don't get me wrong, Bush isn't much better, but I can see it getting worse if we don't do something.

[CajunCamper]

He's not helping and please don't include me in the "WE". Some of YOU put him there.

The thing that gets me is we are paying record prices for gas and the oil companies are making record profits. If they are doing no more than passing the cost along then what are they now doing right that they weren't when the price was lower??

That's a pretty simple question to answer.

When gasoline was $1.25 per gallon, Exxon's profit margin was 8% thus their profit on a gallon of gas was .10 cents per gallon.

If you sell 1 billion gallons of gasoline at that price then your profit is $100 million.

Sell the same 1 billion gallons of gas with the same 8% profit margin but this time gas sell for $4.00 per gallon then your profit jumps to $320 million.

(I just used a billion gallons as an example in my illustration) Exxon sells much more than a billion gallons of gasoline and the amount they sell keeps going up as world demand goes up.

It's really pretty basic economics.

CajunCamper

[CajunCamper]

Well put Cajun.  Most people do not think like you and I.  They only see $4 a gallon and listen to those like Obama, Pelosi, Reid and others who think capitalism is a bad thing and seem to only want us to import goods.  Which in the end will only ruin AMERICA... Don't get me wrong, Bush isn't much better, but I can see it getting worse if we don't do something.

Obama, says he's not bothered by $4.00 a gallon gasoline, he just wishes it hadn't gotten to that $4.00 mark as fast as it did. That being said, do you really thing he's in touch with the American public and do you really think he's going to do anything to bring down the price?

If your answer is yes, then I have prime ocean front property for you near Kansas City.

CajunCamper

[AZsix]

That's a pretty simple question to answer.

When gasoline was $1.25 per gallon, Exxon's profit margin was 8% thus their profit on a gallon of gas was .10 cents per gallon.

If you sell 1 billion gallons of gasoline at that price then your profit is $100 million.

Sell the same 1 billion gallons of gas with the same 8% profit margin but this time gas sell for $4.00 per gallon then your profit jumps to $320 million.

(I just used a billion gallons as an example in my illustration) Exxon sells much more than a billion gallons of gasoline and the amount they sell keeps going up as world demand goes up.

It's really pretty basic economics.

CajunCamper

But if they are just passing along the cost as they claim, the profit would stay the same no matter what the price. Just to make it simple, if it cost them $1.00 to refine it and they sell it for $1.25 they make 25 cents. If their cost goes up another dollar and they raise the price a dollar to compensate they still make 25 cents right? So it looks like they are doing more than passing their cost along.

One thing that does bother me about prices is the federal tax that was put on gas in the late 80's early 90's (not sure when). It was supposed to be a temporary tax with the funds going to highway and bridge upkeep and repair. Both parties have left this tax in place after it was suppose to expire and the funds go into a general fund that helps fund pet projects in individual states. Removing this tax would drop our price considerably. I wouldn't even mind the tax so much if it actually went toward the things it was set out to fund.

[CajunCamper]

But if they are just passing along the cost as they claim, the profit would stay the same no matter what the price. Just to make it simple, if it cost them $1.00 to refine it and they sell it for $1.25 they make 25 cents. If their cost goes up another dollar and they raise the price a dollar to compensate they still make 25 cents right? So it looks like they are doing more than passing their cost along.

One thing that does bother me about prices is the federal tax that was put on gas in the late 80's early 90's (not sure when). It was supposed to be a temporary tax with the funds going to highway and bridge upkeep and repair. Both parties have left this tax in place after it was suppose to expire and the funds go into a general fund that helps fund pet projects in individual states. Removing this tax would drop our price considerably. I wouldn't even mind the tax so much if it actually went toward the things it was set out to fund.

Business doesn't work that way. When in business you have to work with set profit margins or it throws everything out of whack. High gas prices as we all know effects the price of everything and when prices go up on everything even Exxon has to pay higher prices as well, such as steel that they purchase for building and maintaining their plants. Their suppliers have raised their prices on everything so Exxon's cost of doing business has increased. Exxon also has to pay sales tax on goods they buy from their vendors when the price of goods goes up the sales tax is more even though it is the same tax rate.

So you build a business model with set profit margins and hold to them.

CajunCamper

[chasd60]

In the time it took you to read the thread title Exxon made $1500...
 
  NEW YORK (CNNMoney.com) -- Exxon Mobil once again reported the largest quarterly profit in U.S. history Thursday, posting net income of $11.68 billion on revenue of $138 billion in the second quarter.
 
  That profit works out to $1,485.55 a second.
 
  That barely beat the previous corporate record of $11.66 billion, also set by Exxon in the fourth quarter of 2007.
   
   
  Feel free to get pissed now.

Did you know that McDonald's makes more profit per dollar sold than Exxon Mobil?
 
 Did you also know that the dollar is only worth 70% of what it was a few years ago?
 
 If 1$ is now worth 0.70 then a barrel of what was $80 oil will now cost you ~$114 without the price increasing at all.
 
 Funny thing is, the politicians are not willing to tell you this and they too would rather have you blame the oil companies.

[dkradcliffe]

ok if there are 365 days in a year and there are 24 hours in a day, 60 minutes in hour and 60 seconds in a minute then there are 31,536,000 seconds in a year.  divide that by 4 since we are talking quarterly results and I think 1500 is right!  

However - you have fallen for someones agenda if you are upset that a company made a lot of profit!  What would you suggest we do to stop a company from making profits?  Should we regulate how much they can make?  At what level would you set that cap?  Would it apply to all companies?  And are you serious?

[suprz]

did any of you think of the other things that oil companies make with the by-products of refining oil?   just how much of a profit are they making off of those things??    like: Naptha, Propane, (yes propane, look it up) etc.... there is no good reason for oil to be so expensive and no good reason for oil companies to make such a ridiculous profit, and no good reason for elected officials to sit on their butts and watch the american people get fleeced!   I believe that they were elected by americans that believed the elected officials were actually going to "look out for us"    instead they are for the most part self-serving flunkies of rich lobbyists. all i can say it is a sad state of affairs,   I know of one elected official that is now a congressman. he is set for life,  now a brief history on this person is that he comes from a WEALTHY, AND WELL KNOWN family.  he never worked a day in his charmed life, went to the finest schools, finally passed the bar exam and became a lawyer. then he was voted a senator, and then became a congressman!     now i have heard him speak and tell the crowd "i understand the hardships you working people are going through"   OH REALLY???!!!  politics in america has become a sick joke, and the electoral college vote should be done away with.    everyone you talk to say that politicians are all crooked and out for themselves and the big money lobbyists, and when people vote i have heard them say they vote for the person that they think is the lesser of 2 evils.  

is this the kind of system our forefathers actually envisioned?  :U

[chasd60]

there is no good reason for oil to be so expensive

The dollar has gone down in value.
If 1$ is now worth 0.70 then a barrel of what was $80 oil will now cost you ~$114 without the price increasing at all.
Oil prices have increased by a larger percentage here in the US than Europe. The EURO has not lost as much value as the dollar.

And no good reason for oil companies to make such a ridiculous profit

8% is ridiculous?

And no good reason for elected officials to sit on their butts and watch the american people get fleeced!  

Not sure what they can do given my reponses above. We are not getting fleeced. Just drive down the highway and see how fleeced people are feeling as they pass you going 80MPH.
We can't blame the economy on oil prices, the dollar was going down in value long before oil went up.

[suprz]

8% and they still are making record profits..... that 8% is from GASOLINE, like i said in the previous post,  what about all the other products that come from the initial refining of crude oil?  Naptha, Kerosene, Jet fuel, Asphalt, etc.... all of these items prices have risen as well.  the oil companies can either choose to continue to refine the byproducts of the initial process, or more than likely sell the by-products to other companies (at a profit i am sure), that turn them into products we use everyday.
I am not an expert, but oil companies are posting record profits, and then they turn around and cry poverty because they are only making 8% of gasoline,  that is a contradiction in terms wouldnt you agree?  I have read articles recently where the oil companies are shifting the blame away from themselves and are targeting the local and federal governments for the high prices due to the gasoline taxes on every gallon.  which by the way is also gotten way our of control...but that is another story....

think of how many items come from oil that we use just in camping. gas for the tow vehicle, oil in the crankcase, grease for all the moving components, butane in the lighter for the stove, water heater, barbeque, campfire, propane for the heater, stove, barbeque, tires, plastic,  etc... all these things come from oil and who owns that crude oil?  the oil companies once they purchase it from OPEC.  there is no way i can believe that oil companies are only making a 8% profit on EVERYTHING they make from that oil...
but enough, it is depressing the heck out of me.... :mad:

[chasd60]

I am not an expert, but oil companies are posting record profits, and then they turn around and cry poverty because they are only making 8% of gasoline, that is a contradiction in terms wouldnt you agree?

I haven't heard them cry poverty. The 8% is not just on gasoline, it is their total percentage of profit on all sales after reinvestments.
 
If McDonalds sold as many dollars of product as the oil companies they would have higher profits. Would you complain about how much money McDonalds is making?
They make a higher % per dollar than the oil companies.

[waygard33]

I LOVE the fact that we are a FREE, CAPATALIST society. Based on the premise of working hard and benefitting from that hard work.

I am self employed and enjoy every second of it, both in the good times and the bad. Because of my attitude and beliefs, I would never begrudge any company, big or small, their profits.

People get angry at the oil companies because their product(s) affect us on such a large scale. The emotions are blown out of proportion and it's difficult to be objective.

Whether it is perception or reality, the fact is: Most folks are angry at the oil companies. :yikes:

So here is where it gets good. Our FREE, CAPATILIST society is made for this! Whether fact or fiction, when a company or politician or service or whatever, is no longer the favorite option, the door is opened for someone else. This is the type of situation that creates the 'Beginning of the End'.

I hate having to pay the price at the gas pump! I'm concerned about the affects of dumping all the carbon back into the atmosphere (whether fact or fiction). But I hope and believe that the current situation is finally pushing the great US of A to the point where we can be great in the face of a great challenge! It's time to rise up to the challenge and solve the problem the way that only America can! I keep waiting for the modern version of the JFK speech where he challenged us to put a man on the moon before the end of the 60's.

I'm an Independent/Conservative at heart but I will look hard at any candidate who challenges Americans and means it, to end our dependency on oil within the next 10 years. No more sending billiions to terrorists! It's time to quit whining about it and do something about it ourselves. It's time to get back to work and be great again. :U

The thing that scares me most is all the talk about making the oil companies give us some of their profits back. If that happens, we have no reason to be great again. There won't be any challenge to overcome. We'll quietly settle back into our lazyboys, change the channel, and relax. Even though the oil companies just gave me and my family $1000, I'll know deep down it was not a victory but another speed bump down the road to a socialist society. That gets a big NO THANKS from me.

Man, I want America to be great again. This is our chance. And to make it even better, in true American fashion, once we have the problem solved, we'll spread it around the globe at no charge. We just can't help ourselves and that's what makes us really great. :U

wg

[chasd60]

I am an alternative energy and energy conservation nut. I drive 5-10 mph below the speed limit. I have a programmable thermostat in my house. I am building solar window boxes to reduce my oil consumption for heat (presently at 850 gallons/yr).
 
Now that the price of oil is getting close or higher than the cost of alternative energy technologies, we may actually move that way. It could be the blessing in disguise.
 
I alos think it is great for emerging technologies. There is probably going to be a lot of new technologies and ideas from regular people, not the scientific community. There was a day when the backyard mechanic came up with the easy to do and implement ideas and I think that is on its way back.
 
The next Thomas Edison is probably in his garage tinkering as I type this.