I'm not blaming the oil companies, and I certainly don't wan't the gvt to get involved, but in the interest of fairness and accuracy I have to point out this:
http://phx.corporate-ir.net/phoenix.zhtml?c=115024&p=irol-newsArticle&t=Regular&id=828850&
"When it comes to delivering superior return on investments, Tillerson pointed out that ExxonMobil led the industry in 2005 with return on capital employed (ROCE) of 31 percent. "In our view, ROCE continues to be the best overall measure of financial performance given the long-term and capital-intensive nature of our industry. I would be cautious of anyone who tries to deemphasize it," said Tillerson."
You have to admit, 31% is really something for a mature commodity. No?
Even Microsoft doesn't get that.
ROCE is an important measure, but the story it tells is how efficient a company invests its own assets. Since Exxon's is higher than Microsoft's, it suggests they are better managers (using just this measure of course). This does not neccessarily translate into better profits. Here is a 2005 comparison:
MSFT XOM
Net Sales 39,788 328,213
Net Income 12,254 36,130
Profit Margin 30.08% 11.01%
ROC 19.93% 31.46%