This is from a Houston Chron article, Exxon Mobil's profit was too small —
really
About halfway down....
Not enough profit
The problem isn't that Exxon Mobil's profit was too big, it was that it was too small.
It earned nearly $12 billion, excluding a charge for damages in the Exxon Valdez case, but fell short of analysts' predictions of $13 billion. In
other words, the company let down its investors, those individuals and institutions who took a chance buying Exxon Mobil's stock in the belief that
the company would reward them with better performance than it did.
These investors, by the way, include millions of average folks whose retirement accounts, pensions and mutual funds hold, directly or indirectly,
Exxon Mobil shares.
Even if you aren't among those legions of shareholders, though, another number in the company's earnings release should concern you, as it should
the Beltway blowhards.
Exxon Mobil's worldwide oil production slid by about 10 percent. In other words, our biggest oil company pumped less oil than it did a year earlier.
That's been the trend for five quarters now.
Very interesting that Exxon Mobil production slid 10%... I wish I had a better feel for the numbers regarding the economics of the percentages and
such, but the reality here is that Exxon Mobil's slump in production only increased the market price due to the demand for less of a supply.
I would think that there would be a law preventing something like this.
DocMoreau
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It would depend upon the reason of the fail whether it is something to worry about or not. Was it to reduce supply or was it reduced production from
wells?
US well production has been slowly falling since the 70's as is Mexico's, our 3rd or 4th largest oil provider.
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reply to post by SenHeathen
I agree that overall oil production is declining, but 10% lower production in one year is unheard of. For every 10 gallons last year, they produced
only 9 gallons this year.
I would say that taking away 1 out of every ten gallons would increase demand on a short supply. You know the old 'supply and demand'?
It sickens me that Exxon Mobil is making something like 90,000 dollars a minute, but it sickens me more that they are cheating the consumers to make
those profits by squeezing the demand.
That's what I got from the article. That Exxon Mobile made record profits operating at 90% of last years capacity. That means they made more money
on less gasoline, and the only reason they were able to accomplish that, was because they were operating in a market 'overweight' in the speculation
of supply and demand.
It seems to me that the lower production from Exxon Mobil has more to to with their ability to make more profits while working less...
DocMoreau
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Wow, I am surprised that this thread has not gotten more of a response.
We have several threads debating whether or not we should allow more offshore drilling, and this article, from the mainstream Houston newspaper, says
that Exxon/Mobil operated at 90% of Capacity last year, but still made record profits.
I guess the information shoots the debate over offshore drilling in the foot.
I guess it is easier to ignore something than discuss it....
DocMoreau
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