If China is the cause of the rise in oil price....Is China buying oils directily from Exxon? = Exxon Profits?

Answer 1

china is not the cause, there is plenty of oil.
the alaskan pipeline has never operated above 40% because there is no place to process it.
lib regulations and enviromentalist lobbies have kept new refineries from being built.
federal and state tax gouging doubles the price at the pump.

Answer 2

Exxon or any oil company makes only cents on each gallon of gasoline they sell. The profits reflect how many gallons we use. The additional demand from China (as well as other factors) is forcing up the price of crude oil. The price of gasoline goes up but the profit margin remains relatively the same.

You could get immediate relief on the price if states would cease the practice of requiring different formulations, if the Federal and State governments reduced the taxes and permit more refineries to be built. All of this nations refineries were built before the1980's. New ones would be more efficient and would suffer less maintenance issues.

.

Answer 3

They may be buying oil from Exxon, but that is not the reason for the increase in price. You have to understand that there is a finite amount of oil that can be taken from the ground on any given day. True, it may be a large amount, but the pumps can only extract so much. So, for argument sake, say that all of the world oil producers can pull 1 billion gallons of oil out of the ground in a 24 hour period. Prior to China getting into the ring, lets say for all of the other countries combined, 1 billion gallons were sold each 24 hour period. Now, China starts to buy oil, since more and more people are driving cars in China. They want to buy 100 million gallons of oil in 24 hours. The world still can only take 1 billion out of the ground, so places that were getting their daily supply, somewhere, will be short. So, each country is now in a struggle to meet their countries requirements, telling the oil pumpers, that they will be a little more to make sure that they get their full supply as before.

Answer 4

China controls the oil distribution for Iran. Google it.
It is part of the problem but not in that way.
If we keep on importing more than we export, the only way to sustainability is through inflation.

So no china doesn't have to buy from exxon. It is it's own exxon.

Answer 5

Your question shows you have either no understanding of how the international market works, or you are deceitful.

Go study the oil business, there are hundreds of websites that show how and why prices move.

Keep in mind, finished product delivered to the pump, has a profit of around $0.45 to $0.60 per gallon, which is less than the taxes.

Don't like the price, tell congress to pull the tax.

Answer 6

China isn't the cause of high gas prices is America. Where did you hear that crap? China is only responsible for starving their people, putting orphans to torture, causing orphan over-population, mostly, okay, all girl children, because they overpopulated their country in the first place, by giving the Chinese people no fun, or anything better to do, to have a little joy than to have sex. It is the Arabs who are responsible for the high gas prices, because they are greedy pigs. They will tell you that themselves, and laugh at you while they do it. Their name is OPEC.

Answer 7

Exxon makes about 4 cents on each gallon of gas-- the authorities makes about 30 cents--or better reckoning on the taxes from the city, COUNTY, STATE, and FEDERAL authorities

Answer 8

it is traded Openly on the Market Exxon produces NO OIL the are a refinery and Make Gas and Fuel products and Distillites Like varnish and Stuff.........

Answer 9

actually they buy a lot locally, from russia for instance. and they are trying to expand their own state owned oil group. won't it be fun when they outright buy exxon?

Answer 10

Who said that? It must have been a Lib!