Why have Exxon, Chevron and BP all had significant profit loses compared to a year ago?

Question

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Are the Oil companies taking the hit for the American consumers,

By not passing on the increased price of oil in the price of gasoline ?

Chevron profits down 15%, Exxon down 10%.

Are these all american oil companies or what ?

Helping the average american by takings loses to keep our gasoline prices affordable,

After OPEC, Venezeula, Canada and Mexico try to cheat the american consumer, by unfairly jacking up the price of oil.

oohhboth: actualy they are, look at the 3rd quarter profits just released this week.

Exxon made a record profit in 1997, 1998, 1999, 2000, 2001, 2002, etc

It's not like it is a new thing, most well run companies continue to grow and make more profit than they made the year before.

To many people seem to forget when gasoline prices increased 73% during the last 3 years of the Clinton administration.

And 9.41 billion, is not excessive profit on 112.97 billion dollars in revenue, thats only an 8.3% profit.

Compare that to the 29% profit margin of the New York Times last year.

Answer 1

Now if we could just persuade governments to follow suit by not raising gasoline taxes the poor old consumer could get a real break.

I am not a huge fan of the energy companies, but they are facing a huge P.R. problem, and I'm glad whenever they do something that's in the interest of the consumer.

Good observation.

Answer 2

They aren't.
""July 24 2007: 1:50 PM EDT

NEW YORK (CNNMoney.com) -- There's rarely been a better time to be a refiner.

In the second quarter, refiners bought crude oil at lower prices and sold gasoline at record high prices. As a result, companies like Exxon Mobil, Chevron, and Valero could see record profits when the industry reports earnings this week.

Instead of ensuring that we use less gas, politicians and consumers take the easy way out, says Fortune's Alex Taylor.

Exxon (Charts, Fortune 500), which actually refines more barrels of oil than it pumps, could see over $11 billion in earnings, which would be the biggest quarterly profit in corporate history.""

"All these refiners will have record second quarter earnings," said Fadel Gheit, a senior energy analyst at Oppenheimer. "Margins will really be very pronounced."

For instance, Carol said BP's profit on refining a barrel of oil went from $9.50 in the first quarter 2007 to $16.60 in the second quarter.

Sunoco is expected to see earnings per share jump 19 percent, according to Thomson Financial. At Valero (Charts, Fortune 500), the nation's largest independent refiner, profits are expected to swell 26 percent. Tesoro is expected to see a 35 percent jump, and Frontier is looking at a whopping 55 percent surge.""

Answer 3

Liberal bias, You truly don't know jack squat about anything do you. The Coast Guard response was as you said, immediately on scene to rescue and begin a body recovery, That was what the initial contact was involving, However what the Coast guard and NOAA did not do, Which they should have done unilaterally was assess the degree of the damage done to the rig, and the under the water line flow pipes. Which they DID NOT DO, They allowed BP to take the lead position in the clean up. Which has now proven to be the biggest blunder of the century. BP short sold the magnitude of the spill and the amount of fuel belching its way into the gulf. Until it became so obvious we were headed for environmental disaster as we are now dealing with. So please don't show your ignorance for what you think Obama did right. Deal with what was not done at all.

Answer 4

gas $$$ fell to very affordable levels in the 2-3 months before the 2006 mid term elections. A barrel of oil before the 2004 elections was an outrageous $50 a barrel with gas about the same as today ($3.00 a gallon) Now with $100 a barrel oil why is gasoline NOT $6.00 a gallon. Go Figure whose pulling the strings! BTW, Canadian oil does not belong to Canada, the oil is owned by the same companies you mentioned.

Answer 5

those countries are not jacking up the price of oil.
The price of oil is being pushed up by speculative trading.
Everytime something happens that might be a threat to supply coming out of an oil producing nation investers slam more cash into oil, and make it appear as if demand is greater than it is, artificially pushing the prices up.

but you would have to prove to me that their profits are down from a year ago, when the oil they are pumpiung is worth far more. the only way I see this happening is through book-cooking by selling the oil to the refineries they own for a cheaper price so they don't get as much flack in the media about their huge extremely huge profits.

Answer 6

You're joking aren't you? After having had record profits over the past couple of years, you're saying Exxon-Mobil's drop in profits from $10 Billion to $9 Billion in this last quarter is a significant loss? I feel so sorry for them. ROTFLMAO.

Answer 7

When you set records for profits as they did the past several years, there's nowhere to go but down.

Taking a hit for the American consumer? Are you serious?

What about the $400 million retirement package for Lee Raymond? Was that the "hit" you're talking about?

With that kind of giveaway, I doubt they've got that much sense about managing their finances.

Answer 8

Exxon Mobil just posted a third quarter profit (not gross revenue.....profit) of 9.4 billion dollars. That's more than any US corp made in a year just a little more than a decade ago.

Don't worry too much about the oil companines.

Answer 9

Theres a fight for oil in the world. In China more than 50,000 are now driving than last year. The whole thing in Mexico and stuff is because theres only like one company that controls the market however is restricted by the goverment.

Answer 10

Despite having spent billions of dollars on exploration,
the major energy firms are reporting few new discoveries
and so have been digging ever deeper into existing reserves.

First class equipment has to be paid in Euros.
Oil is still paid in Dollars worldwide.

Anyway, they are fine, don't worry about donations.