Exxon shatters profit records

[rubibond007]

thank you very much pal for those links!
You have to separate the gasoline from petroleum. Petroleum is like Frankenstein and gasoline, heating oil, kerosene, etc. are the monsters with their own life. You have to understand that so you don't get confused.

but make no mistake, exxon is a big piranha swimming amog white sharks like Russia, Nigeria, Venezuela, ecuador, bolivia etc etc etc.

exxon makes profits with high prices in crude oil, but refining is not their main source of revenue. the whole world is paying high prices in gasoline cause bureaucracy and big taxes.

Did you know that Iran and other Big time producers has to import gasoline, because they dont have refineries?

 

[Bingoking]

Quote from Pekelo:

Understood, but that was true 3-4 years ago too. So if the world actually produces LESS crude oil that let's say in 2005 (so far the peak) the only explanation for a windfall profit is the higher prices, even if the profitmargin remained the same, around 9%.

And I have heard that part of the problem is the lack of refining capability. But everybody says: "Not in my backyard."

 

[piezoe]

Quote from scriabinop23:

Exxon's margins are in line; investors in the right businesses are rewarded. Thats capitalism guys. Without profit incentive, investment stops, economic growth halts, and people don't have jobs.

Here's another way of looking at it: Don't you suppose the entire oil production business would be motivated to drill for more crude if the margins are this high? Yes. Even small drillers would be incentivized. If its free money, even $50 crude sounds great [assuming demand falls off] to an investor. Problem is its simply too difficult and too expensive to find more.

Simple economics guys -- if its cheap enough for an oil producer to drill for more (ie $10/barrel), they stand to lose nothing by drilling for as much as possible and flooding the market with supply. Especially little guys.. It would be free money.

Reality is quite the opposite. There are production and supply issues, and this soaring oil price is not purely a function of monetary policy.

I am shocked and chagrined. This kind of rational thinking has no place on ET (to say nothing of network television). To illustrate the kind of thinking that would be more appropriate here, I heard on one of the news channels that Exxon paid three times as much in taxes as it earned. Now then, that's the kind of thinking we could use more of!

 

[ASusilovic]

Quote from rubibond007:

You pay so much in gasoline, because goverment taxes. The Fact is that Exxon earned 9.5 cents on every dollar of gasoline and oil sold, cashing in at every stage of the process, while the federal government collected 18.4 cents per gallon in tax for doing nothing. Federal, state and local taxes total an average of 46 cents per gallon -- significantly more than the 28 cents Exxon earned on a $3 gallon of gas.

for example: Exxon pay 83 percent as much as the $11 billion it earned in total tax/cost/dividends. Networks Ignore How Big Government Rakes In More than Big Oil. Government took in more than $7 billion (in income tax) from ExxonMobil during the first quarter of 2006, a jump of more than $2 billion from the same time period in 2005. And that doesn't count the more than $7.6 billion in excise taxes -- the gas tax -- that ExxonMobil collected for the government during the same quarter. Plus another $11 billion in 'other taxes' and ExxonMobil sent the government more than $25 billion in the first quarter of 2006 -- three times more than the amount ($8.4 billion) network reporters seem to feel is obscene.

Western European governments also not complaining about the "little" tax surplus in their budgets...

 

[rubibond007]

Western European governments also not complaining about the "little" tax surplus in their budgets....

this is a joke, right???

what surpluses?

italy have a 114% GDP deficit, france a 75% GDP deficit, japan a 154% GDP deficit, germany a 67% GDP deficit, spain 56% GDP deficit vs the US 63% deficit.

guess what, when spain "makes money" they have to "share" their wealth with countries in deeper shit. when california is deep shit, is their own problem.

ahhhh you're talking about budget???... are you really a trader?

 

[makloda]

Quote from armoured saint:
whatever, I DONT CARE. I want to pay NO more than 2 BUCKS/gallon.. make it happen!

i guarantee you if the number of big oil DOUBLED it would happen.. overnight!

and what's this shit i'm hearing they;'re paying 30 cents/gallon in Iraq?

You know, with all your whining, why not resign your citizenship and emigrate to Cuba, Sudan or Venezuela. You'd be most welcome there with your hatred for free markets.

 

[KINGOFSHORTS]

Quote from day7793:

Now you know why we pay so much for gas?

It creates inflation and sinks our economy and there is no one to rein these Oil Barrons.

Instead of complaining you could have hedged against this by investing in these oil barons and made money yourself as well. This is a free country you are free to ride the coattails of those oil barons.