Exxon makes record profits while gas prices continue to rise.

[raygun]

$40.6 Billion in 2007 and our gas prices continue to rise.....WHY????

http://www.usnews.com/articles/busi...xons-profits-measuring-a-record-windfall.html

I don't know how the executives sleep soundly at night. I guess that much money buys a very comfy bed.

Now I am not one who thinks making money is a bad thing. I want to be rich one day too, but this is preying on a population that is unfortnatly tied in to the need for oil and its byproducts.

Here is the story for those who do not want to link out.

Exxon's Profits: Measuring a Record Windfall
By Marianne Lavelle
Posted February 1, 2008


Exxon Mobil's staggering $40.6 billion earnings for 2007 drive the truth home: There's no business on the planet that gushes forth more profit than selling oil—nothing even close.

But just because it's more money than any other corporation has ever made in history, is it a windfall?

Some, notably the oil companies themselves, spurn the implication that the astronomical earnings are an instance of good market fortune that has blown their way. They don't like the term windfall, especially since it is so frequently followed by an even more despised term, tax. So don't be surprised if you hear a lot of talk about how oil profitability is not out of line with that of other industries. What's the real story when it comes to Big Oil profits?

Let's talk records. Exxon beat its own one-year-old record for the biggest corporate profits ever by 3 percent. Put together with the announcement by the No. 2 U.S. oil company, Chevron, of an $18.7 billion year, up 9 percent over 2006, plus the earlier results of Shell and ConocoPhillips, and that's more than $100 billion in profits from four companies. It's all thanks to the historic 35 percent climb in worldwide crude oil prices in the second half of 2007, ending the first week of this year when oil briefly touched $100 per barrel.

Exxon nation. If Exxon Mobil were a country, its 2007 profit would exceed the gross domestic product of nearly two thirds of the 183 nations in the World Bank's economic rankings. It would be right in there behind the likes of Angola and Qatar—two oil-producing nations, incidentally, where Exxon has major operations.

Ahead of the pack. Exxon Mobil's profits are 80 percent higher than those of General Electric, which used to be the largest U.S. company by market capitalization before Exxon left it in the dust in 2005. The new economy? Microsoft earns about a third as much money. And next to Exxon, the world's largest retailer, Wal-Mart, looks like a quaint boutique, with annual profits of about $11 billion.

On the margin. The oil industry urges people to look beyond its profits to its profit margin: about 7.6 percent of revenues late last year. That's not much higher than the 5.8 percent profit margin for all U.S. manufacturing, and if you exclude the financially troubled auto industry from that analysis, the oil industry actually appears less profitable than most manufacturers, which were earning 9.2 cents on every dollar of sales.

But unrivaled returns on equity. However, profit margins across industries vary greatly based not on how well each business is doing but how capital- or labor-intensive it is. Oil is among the most capital-intensive. But look at the oil industry's profits compared with shareholder equity it has available for investment. The U.S. Energy Information Administration's most recent analysis of the oil industry's performance, released just last month, showed oil industry return on equity of 27 percent—about 10 points higher than that of other manufacturers. And it has been higher throughout this recent era of high world oil prices, just as it was back during the oil shock that hit in 1980.

Enough windfall to tax? That year was the last time a windfall profits tax was enacted, and there's no question that the oil industry's results will focus political attention on the idea again, especially with economic concerns at the forefront and the expensive challenge of addressing climate change on the horizon. (Hillary Clinton talks windfall profits tax; Barack Obama says repeal the tax breaks oil already enjoys.)

The Congressional Research Service found the last oil windfall tax generated only $80 billion in revenue before it was repealed in 1988, far less than the $393 billion projected. That may have been, of course, because of numerous loopholes in the way Congress wrote, and then later amended, the law. Domestic oil production fell and foreign oil dependence grew during the windfall tax years, but—given the hard reality that the United States doesn't have as much oil as the Middle East—those trends have continued unabated since then without any help of a windfall profits tax. That's why new ideas are floating for structuring a tax, such as exempting investments that the oil industry makes in non-fossil-fuel alternatives.

For now, there's simply no alternative that replaces more than a sip of the world's voracious demand for petroleum. And as long as that is the case, the companies that provide it will be pumping out profits.

 

[NOKUY]

hmmmm....maybe now they can start to pay back the fishermen in Alaska who's lives they ruined after exxon valdez spill.

...and all the cleanup costs that they almost completly skipped out on.

they'll never be able to pay back enough for all that the fucked up in my book.

FUCK EXXON!

 

[Guest]

I'm a free market conservative but maybe its time to bring back the windfall profits tax

 

[raygun]

hmmmm....maybe now they can start to pay back the fishermen in Alaska who's lives they ruined after exxon valdez spill.

...and all the cleanup costs that they almost completly skipped out on.

they'll never be able to pay back enough for all that the fucked up in my book.

FUCK EXXON!

That would be nice but you will never see that happen.

 

[Trees McGee]

Haha the windfall tax, what a hillarious tax thanks for the laugh blockheader


tmcg

 

[The Son of Man]

It's a direct result of not having enough refineries. The environmentalist have been really successful at stopping new refineries from being built--demand outstrips supply. We're running out of oil anyways--experts think we have reached-about to reach peak production--price only going to get worse from here on out--especially with new demand from China and India adding to the problem--who's ready for the great oil wars? It's not the oil company's fault--their just in the right business. Plus people own stock in those companies. It's not like one guy owns all the oil companies. Windfall tax would be theft. I can see however-ending subsidies to that sector that wouldn't affect supply.

Plus millions of years of carbon being thrown up in the span of a 150 years--the futures so hot we're all going to have to wear shades.

 

[raygun]

How can you justify the increase in gas prices? I could see the rising cost of gas if profits were dropping and they needd to save the company or somthing like that but increasing prices that is taking advantage of modern societies need for oil to survive, plus being the top profiting company in America equils greed.

 

[The Son of Man]

How can you justify the increase in gas prices? I could see the rising cost of gas if profits were dropping and they needd to save the company or somthing like that but increasing prices that is taking advantage of modern societies need for oil to survive, plus being the top profiting company in America equils greed.

What's wrong with being successful?--our society promotes it. There's anti-trust laws and anti-collusion laws on the books--fair play ground rules--these companies break the rules then they pay--but they are playing by the rules. They are just lucky enough to be in the right business. How would you feel if say you were a farmer--prices are way up--you work your ass off for years--hell generations--and make shit for your efforts--now your making some money and some jack ass comes and tries to take away your hard earned rewards. Not any different. At one time oil companies weren't rolling around in dough. Peak production has been reached--according to the experts--so it's only going to get worse. Our whole society is based on oil--everything. So naturally something so important is going to be rewarding.

These companies don't set the price--world demand does. There's not enough to go around so those who value it more get it. Any price controls on such an important commodity is only going to create shortages. If America is more expensive to do business with--our competition is going to get the oil. We have to use the free market and promote fair competition.

 

[raygun]

Nothing is wrong with sucess but these guys are not playing with the same set of rules. Its big business, big money and big government helping increase profits to there special interest groups. I am not complaining about Bill Gates with microsoft and his billions.

Its more of the fact that they are taking advantage of the fact that we are so dependent on OIL. Its not like consumers can say I boycot oil untill they lower there prices. That means no plastics, polyester, gasoline, a multitude of polymers and every day items that we take for granted but were never possible before the production of crude oil to gasoline. We are born in to a society bathed in oil. The profit margins keep getting bigger and that is good if you are in the club, but for the rest of the world that means nothing but higher prices and an increased cost of living.

I am all for free trade, am legally self employed and hope that one day my business takes off or I invent/find something that I can sell to people for big profits. I just don't think its right to take advantage of a monopoly that you hold especially when its so essential to life. But that is corporate globalization and the way of the future.

 

[Liam]

OIL PRICES ARE SET BY DEMAND (and OPEC)

Do you understand that we have drilled the oil that is CMEMORY to access first? Now it will cost MORE to find/drill/supply oil because of this no matter WHAT.

DEMAND is increasing faster than SUPPLY, PRICE goes up.



If you read the above, and still think Exxon is EVIL, you are retarded.

 

[thcbound]

If the price of oil is solely determined by demand and supply, how are the oil companies posting record profits? The answer is they gouge their prices and they get away with it because there is no regulatory body governing them.

 

[The Son of Man]

Oil is not like diamonds--take Dabeers for example--I probably spelled that wrong but fuck it--Dabeers would buy up all the diamonds and hold them off the market to affect/control the price of diamonds--oil companies don't do this. It's refined and at most a month later used. It's not the oil companies that have the power--it's Opec. They pump what they want when they want. It costs x amount to refine the oil and deliver to market--this is where oil companies are making their money. They own relatively few reserves compared to Opec and while Opec is holding out--oil companies are going full steam ahead with their refining capabilities and pumping their sources at max. They want it to market.

To say that the oil industry isn't regulated is crazy. It's the base for everyones' economy and everyone's got a policy--hell a series of policies--long term strategic plans. Opec is made up of sovereign countries so we can't dictate what they do--they do just enough so we don't invade. Our whole system is based on fair competition and that is accomplished through regulation. Standard Oil was broken up--exxon today--countless environmental regulations--I can go on and on. The higher price of oil is inevitable and we all have to become more efficient with a heavier reliance on alternatives. Just think--we haven't been using the stuff that long--and peak production is already reached. The sooner we find a viable alternative the better. The high price will help innovation move on the fast track and the high price will help us realize the stupidity of dumping millions of years of carbon in the air. When future generations look back at us when they are--oiless--with a fucked environment--they will be like you dumb asses.

 

[SmokeyPufmaster]

We are being robbed, no if ands or buts. What some of you are talking is total corporate spin. There is a direct connection between the cost of gas abt the oil company's profit. With all those profits I can see that expenses haven't rising high enough to justify those prices. This is the "New" world that we live in where the corporations mean so much more than the indivual. I could go on and on.

 

[Kizzattack]

If ya' don't like it then don't pay for it!

Maybe they will lower prices then, or just raise them to make up for the loss.

 

[Guest]

They are definitely robbing us blind...but that's why as soon as i have the space i am buying on of these http://www.cascadebiodiesel.com/products.php and making my own bio-diesel...check it out http://www.making-biodiesel.org/

 

[Blowstrees]

I saw this earlier today on the news. But Im not sure on why everyone is so surprized now. They broke it last year in 2006 with 39 bill. and the year before that as well.

These assholes are raping us for every penny. They say for every $1.00 increase in gas, Exxon stood to make 500 million off it.

Rediculous how nothing is being done about it...but then where do you start with such a powerful empire?

 

[thcbound]

Oh yes that's right I forgot, there IS a regulatory body that governs the price of oil! They're called speculators! Some Middle Eastern dictator farts and the futures traders jack up the price! Oh no, the sky is falling!

 

[trouble]

I wonder how many members on here that grow for profit are bitching about paying to much for gas? Good thing cars dont run on THC or it would cost the average working man several thousand dollars to fill-up his tank.





.....

 

[Verite]

I found a car that gets better mpg when I yell at it.

 

[Guest]

I prefer caucasian headlights at night for safety reasons though Oriental beams suffice for normal daytime driving