Record $10 Billion profit for Exxon

bmgs400 · 10-28-05, 06:51 AM

Somethng isn't right in Oil Town. We have record high gas prices and now Exxons profits are up 75% to a record high of $10 billion...hum...wonder why.

morris · 10-28-05, 06:56 AM

the question is so what? we life in a Capitalistic Society Profits are good. If you had Exxon Stock you would be happy about the Profits IF a Consumer doesn't like Exxon or there prices they can buy Someone elses oil

IS0LD0UT · 10-28-05, 08:06 AM

Quote:

Originally Posted by morris

the question is so what? we life in a Capitalistic Society Profits are good. If you had Exxon Stock you would be happy about the Profits IF a Consumer doesn't like Exxon or there prices they can buy Someone elses oil

Even if you owned the stock you still would not be happy. It would just help offset the high costs you are paying at the pump. Frickin ridiculous.

You are sucking my dry, you parasites.

Lil4X · 10-28-05, 09:23 AM

Somehow "profit" has become a dirty word in the media. It connotes a veiled accusation of skullduggery that is somehow less than honest - that takes bread out of the mouths of children and lines the pockets of the upper class. That “class envy” proposition overlooks one of the basic principles of business: Profit is not only desirable, it is absolutely critical to any business. Profit is the source of business expansion, research, new product development, new jobs, and higher salaries. It is also an indicator of the long-term health of the company. Profit literally drives our economy.

I'm delighted XON has done well this past year. They can spend more money with me and other vendors, my stock is up just a bit, and the overall gain in the oil market is good news for all of us on the "supply" side of the oil market. The nature of the business, while perhaps no longer the wild ride of the old "wildcatter", is still . . well, volatile, thanks to wide fluctuations in the hydrocarbon market.

It was not too many years ago that oil was in short supply as the Sheiks shut the oil tap in Saudi. Gas lines were common in the US and around the world as the price-per-gallon of gasoline doubled almost overnight. In an effort to produce more of our energy needs here at home, the "MAFLA" (Mississippi-Alabama-Florida) region including Mobile Bay and much of the outer continental shelf suddenly became a very hot property. Although the area was thought to be a oil bonanza, it was also suspected to be a region of "sour gas" (poisonous hydrogen sulfide) that would require new materials and new technologies to produce.

The oilfield manufacturers and service companies went to work, producing drill pipe and tubular goods that would stand up to the "hydrogen embrittlement" caused when carbon steel is exposed to H2S. New alloys, new fabrication techniques, and new safety standards were created just to develop this promising find. The government auctioned the leases in the MAFLA area for BILLIONS and the new specially-equipped rigs moved to key locations to begin drilling.

Somebody said, "Never in the history of the oil business has so much been owed by so few to so many!" Mr. Churchill's mangled quote didn't relate to the heroes of the Battle of Britain, but to the investors and bankers who backed the MAFLA play. One test well after another came up dry. After several years of exploration drilling, not a single drop of oil was discovered. The MAFLA play rode off into legend as one of the biggest "busts" in the history of the oilfield. Hundreds of billions of dollars were lost, companies collapsed, and a huge workforce was suddenly out of work. But technologies and techniques are never lost . . . .

A new understanding of "sour" crude was gained, and in time, production of "poison gas" fields was suddenly possible - opening new reserves. New environmental controls had been developed and the production and refining of hydrocarbons was eventually made cleaner, safer, and more profitable for all.

Profit is critical to any business – particularly the energy business. It’s still a crapshoot that has to have a profit to encourage investment and development. Like any casino, unless there is a potential for great profit, great risk would never be taken. I don’t begrudge the oil companies their profit. Without it, we would still be huddled around wood-burning stoves this winter, or hitching up the team for a drive into town.

Gas prices are already declining across the nation as production and refining facilities come back on line. If you calculate in the costs of inflation and fuel taxes, gasoline is still about the same price as it has always been. Before you complain about the cost of motor gasoline, look at the price sticker on that liter of water you're drinking. THAT's profiteering!

bmgs400 · 10-28-05, 09:40 AM

Quote:

Originally Posted by Lil4X

I don’t begrudge the oil companies their profit. Without it, we would still be huddled around wood-burning stoves this winter,:

Alot of people will because of the rediculously high oil prices. Talk with some people in Vermont, New Hampshire or Maine with forced water heating through oil-fed furnace. People are mad.

Lil4X · 10-28-05, 09:47 AM

Oil and hydrocarbon products are fungible commodities, not an unalienable right. If Northeasterners are cold, they can invest in L.L. Bean stock, solar power - or move to Florida.

bitkahuna · 10-28-05, 10:11 AM

Quote:

Originally Posted by bmgs400

Alot of people will because of the rediculously high oil prices. Talk with some people in Vermont, New Hampshire or Maine with forced water heating through oil-fed furnace. People are mad.

So upgrade? Get a gas powered furnace, or heck, burn some of that crapload of wood they have up there.

bmgs400 · 10-28-05, 11:34 AM

Quote:

Originally Posted by bitkahuna

So upgrade? Get a gas powered furnace, or heck, burn some of that crapload of wood they have up there.

A lot do brother...a lot do. Pellet stoves are more popular. There are alternatives...true. But a lot of retired folk who can barely pay for their, also outrageously priced, prescriptions can't afford to upgrade. Profits are needed, I agree with ya. But at what expense to low and middle income families.

morris · 10-28-05, 11:43 AM

Quote:

Originally Posted by bmgs400

A lot do brother...a lot do. Pellet stoves are more popular. There are alternatives...true. But a lot of retired folk who can barely pay for their, also outrageously priced, prescriptions can't afford to upgrade. Profits are needed, I agree with ya. But at what expense to low and middle income families.

again oil is not a right they can always buy Some one elses oil if they don't like Exxon

If you think it is then you don't understand what a free market means

stckyfngz · 10-28-05, 11:46 AM

I think most people are worried about another Enron situation here

plus there's nothing like making billions off of natural disasters and people's misfortunes

Quote:

On Tuesday, ExxonMobil, the world's largest publicly-traded oil company, announced net income of $9.9 billion for the most recent quarter, eclipsing analyst expectations and dwarfing the $5.68 billion reported for the same quarter a year ago. It was the largest quarterly profit ever for a U.S. company.

ExxonMobil wasn't alone. Royal Dutch Shell said today that profits grew 68 percent, to $9.03 billion, last quarter. Earlier in the week, BP announced profits at 34 percent above last year's levels, and ConocoPhillips saw revenue jump 43 percent.

The reason? High gas prices.

"The recent hurricanes in the U.S. have impacted our results. However, underlying performance is strong, amplified by high but volatile prices of oil, gas and products," BP Chief Executive Lord Browne said in a statement announcing the company's performance.

and if you want to stay the worlds superpower oil better be a cheap unalienable right...either that or find an alternative

bmgs400 · 10-28-05, 12:02 PM

Quote:

Originally Posted by morris

again oil is not a right they can always buy Some one elses oil if they don't like Exxon

If you think it is then you don't understand what a free market means

All due respect morris, I have to disagree. And I'm not finger-pointing at Exxon exclusively. Oil is natural, just like the air we breath. Oil companies don't produce oil, it's natural. We don't pay for air, why must we be raped for oil. I know it takes a lot to pump it out of the ground and refine it. But heck, billions and billions of $$$ profit seen here. And gas is still high. All this profit and no one talks about pooling a large reserve of this black gold for the consumers. Seems only the federal government has that reserve luxury. I say something is terribly wrong.

morris · 10-28-05, 12:27 PM

I see what You are Saying but oit is not air. IT is owned by the people that own the Land OR drilling rights. also unlike air Someone pays to make it usable to the consumerI no one is forced to use the Product. If you can tell an oil company what it can charge for its product then you can tell the guy at 7 eleven what he can charge for his product. Or a doctor what he can charge for his service or what an IT professional can charge for there service.

IS0LD0UT · 10-28-05, 03:31 PM

Quote:

Originally Posted by morris

again oil is not a right they can always buy Some one elses oil if they don't like Exxon

If you think it is then you don't understand what a free market means

Oh wait the other guys oil is just as expensive, and they reported a huge profit too. I know what you are saying about a free market, but when everyone charges the same inflated price and you car only takes gasoline, there are not many options.

J.P. · 10-28-05, 05:07 PM

Is 10% of sales an evil profit?

Hey I want lower prices to, but think for a second...................

morris · 10-28-05, 06:15 PM

Quote:

Originally Posted by IS0LD0UT

Oh wait the other guys oil is just as expensive, and they reported a huge profit too. I know what you are saying about a free market, but when everyone charges the same inflated price and you car only takes gasoline, there are not many options.

Sure there are options, buy a car that gets more mpg or dont drive as much or invest in your own oil rig and get your own oil.

The problem here is that some people think they are entitled to oil at a price they want to pay, not the price that the market has set.

If all of the companies are charging the same price then that is in fact the market price, that is how prices are set in this country for the most part.

No one has a right to anyones product at any "pre determined price"

Heck, I dont like paying 4.00 a gallon or higher for 93 octane for the lex but I also realize that if I dont like it I can park the car.

And what makes you think the price is inflated?