Gas prices soar!

El Tiante - Here are some articles in support of the statements you have an issue with -

Exxon profits surge to new record

Exxon Mobil sets profit record

Exxon Mobil posts record profit of $10.7 billion

This one was particularly galling. You cannot convince me or other members here, I suspect, that the oil companies are not making a killing on the backs of the American consumer. Only greed on a grand scale ensures a retirement package of this nature -

Oil: Exxon Chairman's $400 Million Parachute

I think an apology is called for here.

[edit on 4/23/2006 by Bibliophile]

Hardly.

You too, fail to mention PROFIT MARGINS. The PROFIT MARGINS for most oil companies are relatively small. Microsoft and Oracle do better than a 30% profit margin, McDonalds is more than 20%. By comparison, Exxon’s is 10%.

Let’s say I had a lemonade stand and made a profit of $0.05 a cup. On my first day I sold 5 cups and make a profit of $0.25. The next day I sold 50 cups and made “record profits” of $2.50. Have I “gouged” the public? No, I just did more REVENUE but my PROFIT MARGIN didn’t change.

Exxon did record revenue because people want their products and services. Future traders are biding up contracts because future supplies are in doubt.

With regards to the payments to board members, that’s between the board and shareholders. If you want a voice in that decision then buy Exxon stock.

mod edit: removed quote of previous post


[edit on 24-4-2006 by sanctum]

I've just calculated in Australia we are now paying US$4.95 per gallon. (Average)

My friends just booked their car in for a LPG (Liquid Petroleum Gas) conversion, and the company is booked out for 2 months.

sanc'.

edit: math

[edit on 24-4-2006 by sanctum]

Marg, you are correct. I mentioned that in at least 2 of my previous post.



I hope you are correct in your assumptions. A few months may be too late for many of us as hurricane season begins June 1.

I just heard on MSNBC that gas prices could rise to $5.00 per gallon in the US by mid July. Is this a way to force US drivers to trade in their gas guzzlers and buy hybrids?

I’m sorry, but the logic of you lefties is nothing short of impenetrable. For years you guys have been yelling that Americans aren’t paying enough for gas. Your prayers have been answered and you complain about that.

The left has obstreperously opposed new power plants, drilling and exploration, new refining plants, new pipelines or ANYTING else that might increase energy supplies. Well guess what; if you increase demand for a commodity with a commensurate increase in supply PRICES GO UP.

well prices here in the UK have gone mad , stations charging over £1 a litre , and one charging £1.19 per litre , thats nearly £5.50 a gallon thats $9.83 a gallon.

You comparison is flawed. While Exxon's margins might be smaller, their actual profits are much larger.

ONLY BECAUSE THEIR REVENUE IS LARGER!

You have no understanding what a profit margin is. It’s not surprising, most people on the left never trouble themselves with economic realities.

Consider my lemonade stand example. Let’s say there’s blight in Florida and lemon prices triple. So instead of charging $0.10 a cup I now charge $0.35 (still only a $.05 profit a cup). It’s been really hot lately and people want my lemonade despite the price increase. On one hot day I double my sales to 100 cups of lemonade and make a “record profit” of $5.00 from a revenue of $35.00. So even though my profits doubled, have I really “gouged” people? No.

Now the guy down the street sells Popsicles for $0.15 and makes a $0.10 profit on each one. On that same hot day he sells 50 and nets a profit of $5.00. So even though our profits were the same his margin is higher and he’s running the better business. Or in lefty-I-don’t-understand-economics-speak he’s “gouging” more.



[edit on 24-4-2006 by El Tiante]

To whom are you directing this post? No one who has responded, that I am aware of, has called themselves a "leftie." I am not a "leftie." Are you trolling?

darkelf

Today the crude trade was lower but still the gas on prices is raising why? because the oil companies control the markets.

Because since the Reagan administration corporate America has been allowed to raise unpunished now we the consumer are at their mercy.

Some congressmen are saying that the government has allowed the oil monopolies to take hold of the oil markets in the US while buying out the littler guys that were there to play the game of competitive prices now is nobody to bargain with, because the big Exxon, Mobil and Chevrons own the markets.

Perhaps imposing oil taxes to them will ensure some relieve on their unfair practices against the consumer.

Now that the crude prices change their excuses are that Iran uncertainty with Nigeria woes is making them keep the prices high.

First of all We do not buy crude from Iran Second US oil companies are the ones drilling in Nigeria.

Monopolies that is what is going on with the oil and gas prices in America, monopolies are the ones dictating what we pay at the pump.

Still let see their record profits this week.

A shame

I don't drive myself (cost's too much ) but I have noticed a steady increase from around 89p/litre to now around 95p/litre over the past few months. It's not that volatile here, it just keeps creeping up every month.

Nice way to completely skirt the issue. The fact is that Fat Boy Lee Raymond wouldn't have gotten such a juicy package without the kind of profits you insist the oil companies aren't making.

This isn't your run-of-the-mill everyday retirement package. This baby comes to a little under half a billion dollars. That ain't chump change, man. Who do you know that gets nearly a half-billion dollars when they retire?

That's right . . . NOOO-body. You can post all you want about profit margin and tell the rest of us we don't know our butts from gopher holes (yeah, we get profit margin), but the fact is that the kind of net profit exists that allows Fat Boy to rake it in.

Nice two-step, but I ain't dancin' to your tune. It's whacked.

Since you joined within the past week, I'll cut you some slack. You apparently haven't seen the motto here - DENY IGNORANCE.

Geez you people. Deny ignorance? How about deny Marxism.

Ok, I'll assume they taught you basic arithmetic wherever your reside. The reason Exxon profits were “record” (in unadjusted dollars) was because they did record revenue. A company will do twice the revenue when they sell 10 widgets than when they sell 5. Does that make sense to you?

China and India have greatly increase their demands for oil so Exxon is selling more of it. So of course their profits are larger because their REVENUE is larger. If this doesn't make sense please read it again a couple of times until it sinks in.

An another thing Landis, are you appointing yourself to the UN committee for CEO golden parachutes? Exxon is OWNED by the SHAREHOLDERS and no one else, anyone else's opinion is irrelevant. If you believe otherwise than you are a Marxist. Only a Marxist would think the state and any place in a decision made by the OWNERS of a company regarding CEO compensation.

As a person who works for the down stream of the Gas industry, I to know the pain at the pumps. For starters, I would like to state that all of the gas industries that you see are essentially 2 companies. One is the up stream and the other is the downstream. The Up stream consists of from the point it leave the ground to the refinery. The downstream is from the point it leaves the refinery to the station. Now as a member of the downstream, yes I can tell you that portion of the gas industry is struggling hard, and loosing money and profits. Most stations are convience stores as well, but only part of the operating costs of running the station comes from inside. Most stations make about .04 cents for every gallon sold. The price of a gallon of gas is determined every day at the point at which a barrel of gas is sold. Now before you go off on me, I have worked in the down stream side of the business for about 7 years and never have I gotten a discount on gas. I pay full price and right now am commuting a round trip of about 70 miles every day.
Today the cheapest price of gas in the country was Boise Idaho, with 2.50 per gallon and the most expensive this morning was San Diego with 3.12 per gallon.
I do however hold the Presidents Regan, Clinton, Bush Sr, and Bush Jr for this problem. President Carter had the right idea and they choose not to follow through with it. If they had, we would not be in the pinch that we are. What I am personally predicting is rationing of gas here not to shortly in the near future.
However as a resident of California, am begining to see a few alternative fuel vehicles on the road.
Well off to see about a bus pass.

If you are correct, then that would be a serious problem, especially in rural area where people need to drive to get to just about anywhere. Our ability to move about freely will be heavily restricted. I should have bought that Honda last year.

It's funny you just said that. I just got through changing my siggy. I'm going to keep track of how much money it cost me to drive the 16 some-odd miles roundtrip to work every day. I'm in the semi-lucky zone - we're about midway on the price scale for the nations prices.

Wow, you are arrogant and wrong in equal huge measures.



Again your comparison is flawed. What blight is there in oil production at the moment? There is no 'katrina' excuse. Did the 'fairies' take the oil?



Your partisan crowing does nothing but damage your own argument and give us insight into your paranoid, seige-mentality mind. what made you like this? Were you abused by a gay democrat when you were little?

Oh, and look:
Bush looking into price gouging in gasoline markets
Even your partisan hero doesn't agree with you.

You don't have a leg to stand on, but you could at least exhibit some good manners in debate.


[edit on 25-4-2006 by rizla]

Do they publish newspapers where you live? Do you have news broadcasts on radio or TV?

Maybe you haven’t been keeping up with current events, but there is quite a bit of trouble going on at the center of world oil production. That puts future supplies in doubt.

Naturally no country wants to experience interruptions in supply (like let’s say Iran starts shooting at tankers in the SOH) so they compete for futures contracts. An increase in demand without a commensurate increase in supply will cause prices to rise.

Right now there’s quite a bit of supply, but because (like I said) future supplies are in doubt, it puts and upward pressure on prices.

Let me try to think if an example that you can relate to... Let me see…

Ok, let’s say you just found out they were going to cease production of pokemon cards. You’d hop on your bike and ride down to the comic book store and buy as many as you could. Unfortunately for you, the rest of kids in the neighborhood heard this disturbing news as well.

So when you get to the comic book store it’s full of kids trying to buy the last shipment of pokemon cards. Sure you love your pokemon, but so do a lot of other kids and a bidding war starts for the last few pack of cards.

Well grown ups do the same thing, only with what grown ups call commodities and oil is a very, very important commodity.

Regarding Bush: He's doing this to appease people like you who don't understand commodity markets.


[edit on 25-4-2006 by El Tiante]

Do they publish newspapers where you live? Do you have news broadcasts on radio or TV? In case you didn't know, private companies exist to make money. Morality doesn't come into it. Iran's rhetoric is being shamelessly used as an excuse to raise prices.




I will not lower myself to your level. Please be mature in debate. You make yourself look churlish.




You mean me and the other 77% percent of the US population? You are in a rapidly shrinking minority. Reality is knocking on the door...


[edit on 25-4-2006 by rizla]