REPUBLICANS: How did EXXON get record profits in the last 6 years?

Question

It wouldn't be something simple like price gouging americans at the pump?

Answer 1

Price gouging has been going on in the oil industry for decades, both in Republican and Democratic administrations.

Answer 2

Because they can. Who could enforce price gouging any how. I personally saw the billings for the price of gas that was delivered to a Gas Station I worked at. The profit margin is a few cents, in fact it is a lost liter in most convenience stores just to get you into the store. By the time you add the cost of windshield washer fluid and paper towels stationed at the pumps for the consumer to use, the profit margin is even less. If they try to charge more, people will go down the street and by the cheaper gas. I personally don't see the use of selling gas at that level.

The barrel of oil was stated on the Fox news channel at 65 dollars a barrel. That is less than the post Katrina hurricane prices. Their saying over 4 dollars a gallon this year and it is expected to climb well above that.

The oil companies are doing it because they can. If the government tried to place regulations on it, the gas shortages and gas lines talked about in the late 70's will be 10 times worse this time.

We can only hope that the oil companies don't sell us too far down the river.

Answer 3

Profit margin: the difference between the cost to produce a product and the value received from selling it.

Let's say that the oil companies make 10 cents profit on every dollar value of a gallon of gas (high estimate). The profit margin is 10%. Sell half a trillon gallons of gas, and you've made $50 billion. OMG!!! $50 billion!! Outrageous. But the profit margin is still 10%. They've made no more or less than before. The volume of sales has just been high.

People, it's rates that matter, not volumes. You want the oil companies to make less money, stop buying so much gas. But to accuse them of gouging just shows your own ignorance.

And, by the way, the goverment makes 2-3 times the amount on a gallon of gas that the oil companies do. Its called taxes. Perhaps you should ask your representatives to lower them.

Answer 4

"This putts may end up costing us more money at the pump because Gore will have us put some kind of additive in our gas. Get ready to pay $5 a gallon. If the guy was so smart, why did he loose the election, and does anyone recall him saying global warming during his campaign?" You're an idiot!!! He didn't lose the election for one thing - the Supreme Court PUT the lunatic Bush in power. Second, Gore has been talking about issues concerning the environment and global warming since the 80's - its only been recently that people have been like - wow, you could be right! And no, its not cylindrical or whatever the hell word that other guy used, we have the highest levels of CO2 we've had EVER! Don't be an idiot!

Answer 5

You just have to sell a lot of products that people want to buy. In the last six years, people have been buying a record number of gallons of gas. If people buy more gallons next year than this year they will have a new sales record and new record profit.

Quit complaining and buy EXXON stock. Get in on the profits. It is a publicly traded company. You could have bought in a $40 five years ago. It is currently selling at $83.
An awful lot of investors are sharing in those profits, pal. I recommend you get some.

.

Answer 6

How did hundreds of corporations report profits under the Clinton administration when they where losing money? Enron, qwest, MCI and nearly all the dot coms? I don't think there is enough memory at yahoo to list all the companies that said they where making money and they where not under the Clinton administration. What did Clinton do to these companies- nothing. What about the share holders. Wal-mart makes money for china crap- what about Hillary here as a board of director?

Answer 7

No other oil company made record profits in the last 6 years...

They get record profits because with the increase in population comes an increase in the demand for oil

Answer 8

No it was because of their long term investments.. Remember they lost money way back when w/e its a bunch of BS.... they made these record profits because greed wins and that is the only reason. Bush becomes president, finds a reason to go to Iraq. Refineries slow production, the iraq war threatens the oil supply, prices go through the roof...hmm this adds up doesnt it....wow... Greed, gonna kill us all one day.

Answer 9

Read the 9 cent a gallon part!

The problem is that most people do not understand supply and demand economics and what the structure is of the cost of gas per gallon. Do you know that we are using more oil now than EVER before! People are driving at an alarming rate. Do you realize how much petroleum’s used in making plastics and then how many things we use are made of plastics? The oil company makes about 9 cents a gallon as profit. The rest is made up of Federal and State taxes, the cost of exploration and production, Refining and then the cost of the additives that we have to put in the gas (we call it designer gas, thanks to the environmentalist wacko's). Do you know that we have not built a refinery in almost 40 years? (thanks again environmentalist). The refineries that we have are working at capacity and that is not enough to keep up with demand. Do you know that we hardly get any oil from the Middle East? Most people think that is where it all comes from. Not true. We get our oil form Canada, Mexico, Venezuela and Africa, in that order. What we get from Saudi is a very small %. You want the cost of gas to drop....STOP driving, open up the ANWR for drilling and off our coasts (thanks again environmentalist) OR come up with an alternate fuel.

and this is a capitalist society, you don't like it don't pay for it!

Answer 10

No it would be something simple like providing a product and people buying it at any price. Have you ever heard of federal, state, county and city taxes on fuel? Look into it.