Exxon Leaving Retail Gas Business

Time ^ | 6-12-08

[STARWISE]

Exxon Mobil is getting out of the retail gasoline business, a market where profits have gotten tougher because of high crude oil prices.

The world's largest publicly traded oil company said Thursday it will sell its 820-company owned stations and another 1,400 outlets operated by dealers to gasoline distributors across the U.S.

The Irving-based company didn't disclose financial details but said the transition will take place over a "multiyear period."

[STARWISE]

Stunning! Chickens are coming home to roost. Stations with Exxon and Mobil names will continue, and they pay for the name use.

[chaos_5]

ROFL

So the dems want to punish Big Oil for high gas prices, and Big Oil says, OK, we'll just close our gas stations!

LOL

[EBH]

Exxon Mobil’s Profit in 2007 Tops $40 Billion

Buoyed by soaring crude oil prices, Exxon Mobil announced yesterday that it set new records for U.S. quarterly and annual corporate profits in 2007, and Chevron, the nation’s second-largest oil company, also reported big gains in earnings.

http://www.washingtonpost.com/wp-dyn/content/article/2007/02/01/AR2007020100714.html

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Please explain this?

[Michael Barnes]

Which is EXACTLY what the socialists/marxists in Congress want; so they can swoop in and take over the industry here in America. After all, the “people” have to have gas to make earnings for the state; er, I mean, so they can get around.

[deport]

Uh Oh................

[Michael Barnes]

I bet they did "earn" a lot. But I also bet what was not written about is where those earnings are going to go.

Kind of like you and I. We "earn", but out of those earnings, we have expenditures to pay for. It's not like we get that net pay and can go hog wild with it. There are bills to pay, investments in our houses, etc...

[Dog Gone]

Owning a gas station is horrible. They don’t make any money for the most part.

Exxon doesn’t want an underperforming part of its business.

There will still be Exxon stations. But that gas station is just paying Exxon for the right to use the name. The gas station might well be buying its gasoline from some independent refiner.

[EBH]

Indeed everything is going exactly to plan.

Who is John Galt?

[Kakaze]

Well Maxine Waters threatened Royal Dutch Shell, Exxon is just positioning itslef to make the move off shore, to a more capitalist friendly place.

Indeed....Who is John Galt?

[EBH]

No, that doesn’t saying “earnings” it says profits.

Profit is the difference between price and the costs of bringing to market whatever it is.

1.00 hotdog (Price)
0.25 Cost of hotdog
____________________
0.75 Profit

Very simple example, but a company would include in their costs payrolls, bills, rent, etc. What ever is left over is Profit.

[deport]

Please explain this?

---

You reckon that huge profit came from the 820 retail outlets they are getting out of and the some 1400 dealer operated units they are divesting themselves of?

[chaos_5]

The company probably made the profits in the crude business. There are very little profits in retail gas. Most gas stations may their money selling concessions. Thats why they are getting our of retail gas, there is plenty of money in the crude and whole sale gas business.

[EBH]

Don’t know...why I am asking...

Exxon got called on it by congress, if I recall they didn’t say the profit wasn’t from oil/gas.

[xp38]

Outside the US the old Esso brand is still in use...

[lmr]

Oil companies have a problem competing in the gas station business because they are not allowed by law to lower the prices of gasoline below their wholesale cost like Conveinence stores and Sam's club etc are. Cheap gas is a loss-leader for many of these places which look to make up for it with the profit of sales of other items like food and drink. 'Cheap' gas is just used to draw customers in.

[shove_it]

Exxon BOD got tired of having its CEO called up on false charges by congress crooks. The MSM plays up the gas prices at the pump which drives the whole debacle. This is a brilliant move to get out from under the unfounded charges and they've said that's enough.

[dfwgator]

Atlas has shrugged.

[deport]

‘Cheap’ gas is just used to draw customers in.

---

And it works to a degree. A few days ago I was at a Walmarts and notice cars lined up 3 to 4 deep at the pumps, idling to keep cool. I passed a station just down the street which was 2 cents a gallon higher. Now these people would sit in line for 20 minutes or so with the motor running to save 2 cents/gal. Maybe a total saving of 40cents on their purchase on their purchase of say 20 gallons..

[LS]

Here’s an idea: sell the stations to a Saudi company. That way, when the damn Dems want to complain, they can go straight to Riyadh.

[EagleandLiberty]

Owning a gas station is horrible. They don’t make any money for the most part.

That is why you see convenience stores at gas stations now. They make more money in profit from the store then from the gas.