If we're not getting ripped off by oil price why is Exxon Mobil posting cosistant record profits?

Question

Do you think that this has anything to do with the fact that this is George Bushes last few years and his entire family is and was funded by oil companies for decades?

Lower your noses Republicans. Its just a question.

Answer 1

While I believe there is gouging foing on I also understand why there is going to be record profits. Higher per barrel prices and increased volume cause that.

Look at it this way: If crude oil cost $1 per barrell and the oil company has a 50% markup, if they sell 100 barrels worth at the gas pumps they will earn $50 profit.

Now if oil goes up to $2 per barrels they will make twice as much profit but they will not have raised the profit margin or gouged because of the higher crude price. The same concept applies to increased use.

The thing we need to look for is not total profit or increased profit. We need to keep an eye out for increased profit margin. When you find that you find gouging.

Answer 2

You don't know what you're talking about. President Bush actually has virtually NO connection with "Big Oil", nor does Dick Cheney. As for Exxon Mobil, sure they're posting record profits. A lot of companies are, in the oil business and EVERYWHERE ELSE. It's a BOOMING ECONOMY, but gasoline is below $2 a gallon where I live.

Your next comment will no doubt be the tired liberal blather about how oil prices will go up right after the election. I bet they will too, but not because of politics. Today's news is that natives of Nigeria have just invaded three Royal Dutch Shell pumping stations there, forcing Shell to shut down. Nigeria is an important exporter to the U.S., and there go your oil prices.

Answer 3

the price of oil is determined out on the global market. Exxon it self has little control over the price.

George Bush couldn't couldn't find the end of his nose if he was about to sneeze. How in the world is he going to fix prices.

The main reason the price of oil has risen so much since the year 2000 , is demand. Demand is increasing faster than companies can increase the supply.

I would argue that high oil prices are good for us as a country. It will promote innovation and more efficient use of the oil we have.

Answer 4

Your question reveals a lack of understanding of basic supply and demand laws.

One can make huge profits and not rip anyone off.

As far as being "ripped off", try buying gasoline in Europe which consistently costs nearly 6 dollars a gallon or more.

A large chunk of what you pay at the pump is due to taxes. Oil companies don't get that money -- the government does. The government could relieve the problem by lowering the taxes on gas, but they won't do that.

Answer 5

You're correct..Partially. The oil prices need to be regulated by the government. Although oil is selling on the open market and that determines the prices. But so much profit is not healthy for anyone, but Exxon Mobil. They need to share their wealth with the people that make them rich day after day..

Answer 6

Example, If you sell 1 barrel of oil for 1 dollar and your cost to manufacture transport etc are 90 cents per barrel of oil you make 10 cents for that barrel of oil. Now if you average 10 barrels a day in sales you would average 1 dollar a day in profit. Now demand goes up to 100 barrels a day you just made10 dollars. Oil company profit margins (about 10cents on the dollar) have not changed for decades.The only thing that has is demand. So until we here in America get our heads out of our butts and stop buying gas guzzling vehicles they (oil company's) will make more profits. Which is what all company's big and small try to do. Now as cost to produce, ship etc have gone up over the decades so has the cost to get that barrel of oil to you and me. So to maintain a decent profit margin prices go up. It is that way on all goods and services. Hope this helps.

Answer 7

Well, if you were economically literate or understood business, you might have used your brain to actually research the issue, instead of parroting the DNC/Kos talking point.

Exxon is making record profits, because it has record sales. It's profit margin is running about 10% of sales. That's nice, but hardly 'greedy' or gross. Oil companies plow much of their profit back into R&D.

Oh, and last year, they paid $100 Billion in taxes.

You people are woefully ill-informed and not intellectually curious.

Answer 8

Most things you buy are marked up for profit. The more you sell the more you make. Most things, though, aren't controlled by huge monopolies. Other items, even necessities, have a myriad of potential suppliers who rush in and reduce the potential of windfall profits. To the credit of oil companies, noone is going to offer them any money if the demand for their products dries up.

Answer 9

Absolutely. Republicans who control Congress received 81 percent of the $54 million dollars in political campaign contributions made by big oil companies since 2001. The American Petroleum Institute, an industry trade group, is spending millions of dollars in newspaper and television ads to convince Americans that their profits have nothing to do with higher gas prices. Yeah, right.

And to add fuel to the fire Exxons Chairman Got a $400 Million Retirement Package. Spread the wealth you greedy jerks.

Answer 10

Of course it does. But as long as we continue to buy it, they will continue to sell it and have record profits. They suck. I think we should have a full week of not using our cars and see how the oil companies feel about that. But most people would not go for it because they would rather be anally raped by the oil companies than give up their cars for a week.