Posted on 11/09/2005 7:16:55 AM PST by libertarianPA
Are they going to drag in the Google execs next? Their profit and operating margins are twice that of "Big Oil".
I don't see any other alternative. We have to stop prosperity in its tracks.
When was the last time you considered less than 10% profit "gouging"?
Company..............Profit..........Sales.........% Profit
Exxon Mobile......$ 9.92 B.....$ 100.7 B.....9.9%
Shell....................$ 5.37 B.....$ 76.44 B.....7.0%
BP.......................$ 6.53 B....$ 65.76 B......9.9%
Chevron...............$ 3.60 B....$ 54.46 B......6.6%
ConocoPhillips.....$ 3.80 B.....$ 49.66 B......7.7%
Marathon.............$ 0.77 B.....$ 17.25 B......4.5%
All are third quarter 2005 numbers.
Conservatives recognize the benefits of free trade and a free market.
We also recognize monopolies and oligopolies.
In the oil industry you have a situation where an external dichotomy at the hands of a few oligarchs is common. It’s not a free and open competitive market. Get the 7th grade competition based economics model out of your head! We’re not talking grain farmers here.
Red6
My point exactly. I don't need the nanny-execs to discipline my gas use.
And stocking up (or hoarding as you call it) on a product when it's on sale is bad how? When Kmart had coffee for 1.99 a big ol' can, I bought 20 cans. Is that stocking up, hoarding, or just plain wrong of me to take advantage of a sale? The same way I took advantage of lower out-state gas prices on my 3 state fun trip (right after Katrina, btw?) Did the gas co's want me to stay home, and deprive 3 states of all the $$ I spent?
OK, perfessor, go to it! :)
But their earnings didn't meet expectations? /sarcasm
It's a shame your economic education is limited to your transactions at KMart.
I could go over the concepts of supply and demand for you, but you probably wouldn't get it. I'd rather you go through life blaming others everytime something bad happens.
Blame the oil execs. Go on thinking that they're "doing something to you." That's the easy answer. Don't bother to learn how economics works. I don't want to overwork that brain of yours. You need as much as you can to keep those legs moving, I'm sure.
Never. These profit percentages show that, in fact, the oil companies are NOT gouging. Many business make much larger profit margins.
We're also not talking monopolies or oligopolies here. Get the liberal philosophies out of your head.
That is not true. ExxonMobil is expanding the exploration and production of heavy oil on the North Slope. Oil companies are continually expanding. Oil fields naturally deplete and produce less oil each year without expansion. They have to increase production through new wells or additional facilities just to stay even.
And most people fail to recognize that independently owned gas stations set their own prices, not the oil companies. All over the country you can see the same brand with drastically different prices 20 miles apart. It is not that the oil companies hate Alliance Ohio but like Sebring Ohio, it really is market forces. Which is why prices suddenly dropped to match surrounding areas when a new big gas station started in Alliance Ohio in the past couple months.
Excellent point. Exxon actually OWNS only 7% of the Exxon stations in this country. So, it's hardly dictating the price at market.
A little further information:
ExxonMobil continued its active investment program in the third quarter, spending $4.4 billion on capital and exploration projects, bringing the year-to-date spending to $12.4 billion, an increase of $1.7 billion versus 2004. Our disciplined project management systems remain a competitive advantage, delivering new supplies of crude oil to the global market.
And at the same time, the US government and state government have had huge increases in royalty payments for their 12.5% or whatever deal they make, plus additional tax revenue. We should be asking congress what they are doing with the additional revenue to increase production in the US. I know Alaska is trying to invest the surplus into the Alaska Gas Pipeline to bring more Natural Gas production to the US. Who else is helping?
I was hoping for the "David Oman Natural State Area."
They split up AT&T and have tried to do the smae to Microsoft.
Are you trying to be funny?
Red6
Lib, dahling, that answer was way beneath you. I am surprised.
.....But XOM has not added to exploration.......
That is not true. ExxonMobil is expanding the exploration and production of heavy oil on the North Slope. Oil companies are continually expanding...........
I'm sorry if my post was misleading. Yes they're spending on capital and exploration, but not in line with their earnings and cash flow increases.
From their 10Q filing of 11/5:
Nine month:
Net Income $25.4 Bil an increase fromm 2004 by $8.5 Bil
Capital Expenditures $9.9 Bil an increase by 1.3 Bil
Exploration expenses $635 Mil vs 2004 $789 mil.
Share buyback $18.5 Bil, up from 2004 by $7.9 Bil
So, while net income is up 50%; capital spending is up 15%, exploration expenses are down; and shareholder buyback has increased by 75%.
Perhaps future expenditures will change this picture, but at this point I don't see any huge increase in re-investment in oil infrastructure.
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