DEMOCRATS: 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, would it ?

...lol....

Answer 1

Can you define "profit"? Is it Net from Operations, or EBITDA? And how does that compare to other industries?

To state these are record profits is a completely meaningless and perhaps intentionally misleading statement.

I do not have the numbers because I really do not care unless of course I owned some of the company. But here it is in simple terms, they did some really good things business wise, they thought farther ahead maybe than others, they spend more in putting themselves into position to accomplish, they did it through the free market system and for that I applaud them considering the serious restrictions to the free market in America today. When was the last time a new refinery was built? When was the last time a new area was opened for exploration?

If your concern is why are prices high, it is simply supply and demand, there is currently more demand than there is supply and therefore they can charge more. What is really neat about capitalism, it will police itself, you screw up you lose money, look at what Clinton allowed to happen with Enron. If anyone thinks this is the result of price gouging, they are simply either brainwashed or ignorant of the business.

Now, to address some other misleading statements from those that answered. What Exxon does in terms of helping scientists in their research has NOTHING to do with their profits and to believe so is a sign of a complete lack of understanding of the free market. To believe or imply that the profits are the result of efforts of the executive branch is delusional at best, the executive branch in any means cannot effect the profits of a single corporation, much less an industry, if you want to point fingers you need to look at congressional regulation and normally that is the cause of loss of profits.

Thanks, it is always fun to read the answers of the delusional and brainwashed that could not compete in the free market and survive long term.

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

Well I'm certainly not a Democrat but one of the main reasons for record profits is record refinery production. Gas prices are market controlled by supply and demand. Oil companies don't just dream up the price on their own! They also only make about a 10% profit margin which is well below many other industries such as computers. Oh yeah,if any of you think your hands are clean in all of this then check out the company listings on your mutual fund reports. I'll bet you find many oil and energy sector stocks on there that you have profited from as well as I.

Answer 4

The simple answer: Exxon is a lot bigger than they used to be. Oil companies make big profits when oil prices are high. The last time oil prices were this high was in the early 1980s. At that time, Exxon was very small compared to its current size. So they make record profits because they are larger than ever before.

Answer 5

The insatiable appetite of Americans for gasoline and for driving SUVs the size of minor planets at speeds approaching mach 1. Oil companies only make 10-12 cents a gallon profit on gasoline compared to the 45-55 cents of tax revenue collected by the government at the state and federal level.

Answer 6

So, is this a question specifically addressed to Democrats, or does it imply some kind of blame or responsibility?

And if EXXON was price gouging, exactly what does that have to do with Democrats?

Scientists and economists were offered $10,000 each by a lobby group funded by EXXON, to undermine a major climate change report.

The AEI has received more than $1.6m from ExxonMobil and more than 20 of its staff have worked as consultants to the Bush administration.

Oil and gas industries donated $2,596,725 to the Bush Presidential Campaign in 2004.

So........what has EXXON's profits got to do with the Democrats?

Answer 7

Most of the profits are from overseas sales only 1/3 of it came from the US.. Though the profits seem outrageous look who benefits it is stockholders hardworking people with 401K's and other investments people like you and me to punish them would be cutting our own throat. Oil companies only get 18 cents per gallon of gas the rest comes from distributors and taxes. If our government really wanted to help us they could suspend the gas tax the tax is the reason gas cost almost a dollar more in California than Kentucky. Profits are good but in this case politicians want you to hate them to justify raising taxes on them. And when that happens who do you think will pay it?
It also enables them to keep class envy on the table this way they can champion the so called little guy and keep getting elected so they can spend your hard earned dollars.

Answer 8

Global demand is up.

No new refineries have been built since 1974 due to environmental laws.

Some of our working refineries are not working at 100% capacity, still, because of hurricanes Rita and Katrina.

Global tensions are running very high these days. War in Iraq. China, N.Korea, Iran, Afghanistan, Russia, Lybia, Syria, Pakistan, Nigeria, etc. are all causing tension. This drives up the price of crude.

I'm a Dem, but I like to read up on things before passing them off as a partisan issue.

Answer 9

Gouging? What, are you stupid? This profit wasn't just by accident. We have worked hard to create an artificial shortage of gasoline and oil for years. It tooka lot of work to stop any new refineries to be built. We had to scare people silly with stories of how high paying jobs would bring polution to the air and clean safe suburbes to the areas that have them. It took decades to convince the public that Polar bears and Caribues were more important than people in order to stop any drilling in Alaska that would have provided jobs that could have taken people off the wealfare rolles and our controll. Not to mention the hard work needed to stop drilling in the gulf of Mexico that allows Chavez to continue to sell oil to the US in order to advance his socialist dictatorship in Venezuala. These things don't just happen. It took years but with the help of our friends in the teachers unions we have been able to convince a lot of people that profit is bad and high taxes are good. It only took granting a monopoly for the education of working class kids to get that done. Then with the help of the anti-capitalist, anti-growth enviromental movement we were able to scare people into thinking man somehow controls the tempurature of the sun. It was tough but once again working with government school teacher and the help of the hollywood left we got er done. Now just when Exxon is finnaly making some money which we can get our hands on with a windfall profit tax you want to grip about it? For Darwins sake just shut up and let us continue the brave new world our secular agenda promisies.

Answer 10

Well, it is price gouging. Even the ethanol blend is almost as expensive. When a barrel of oil is $68, we know it is bad. It is not just supply and demand.

The price for crude oil was cheaper last summer but prices are about $0.30 higher today. It doesn't seem much but it amounts to millions of dollars every day. The Democrats just passed legislation to put harsh punishments for price gouging; up to $150,000,000 in fines for Corporations and $2,000,000 and ten years in jail for individuals involved in price gouging.

Not surprisingly, George W. Bush is threatening to veto the bill. Well, maybe it is because Bush's younger brother, Neil Bush, owns an oil company. Also, George was a chief executive at a company called Unocal in the 90s; Unocal later merged to make Chevron Corp. which reported $204 Billion in revenue in 2006.

Let's compare this to the Republican presidential candidates, such as Rudy Giuliani. The Oil and Gas industry is practically president of his fan club, with individual and PAC contributions from the industry totaling $229,923. An "Honorary Texas Oil Lawyer," Giuliani became a partner for Bracewell & Patterson, which was renamed Bracewell & Giuliani, whose clients include "oil refiners, power producers and other energy companies in Texas and near the Gulf Coast." There, Bracewell & Giuliani worked for Saudi Arabia's Oil Ministry and got six figure payments from Venezuelan President Hugo Chavez's Citgo.

Mitt Romney is next in line to be the champion of the Oil and Gas industry, second only to Giuliani in contributions from the Oil and Gas Industry with over $100,000. At Governor Romney's Inaugural Party, NStar Electric and Gas Donated $25K and served as a Platinum sponsor.