urmine351
fort smith, arkansas
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Joined: 02/18/2006
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Profit is after all expenses, tell me Exxon/Mobile ain"t gouging.
1996 Safari Serengity, 3126 Cat,Allison 6 speed, 38' DPNS, 2005 Honda Element,vip tow brake. doran tire sensors, Magellan750Nav,
and 1 good looking wife, and missy and Alex(died 11-03-06) and AJ, born 09-06-06 my carins.
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stevelv
FullTimers at Last!
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Joined: 05/24/2006
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No, they are not gouging - they do not set the price of oil, they simply find it and they spend billions trying to find oil and gas. When they started drilling and pumping the oil that we get today, the market value was $40 a barrel. They had to build their network based upon making a profit at that level. The market speculators put the price at $120+ a barrel, not the Oil companies and yes, they and their shareholders benefit from this windfall but they do not price gouge as you suggest.
Oil and fuel costs are in everyones minds and it's easy to look at the oil companies as being the bad boys - you need to understand how the market works and why oil rose so high and it has nothing to do with the Oil companies but the speculative commodities market and the value of the US Dollar on the World Market.
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jtel
New Mexico
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That profit they are showing is not just fuel. It is ALL the cross products they have. Everyone just thinks all they do is fuel.
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kmb1966
Houston
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Joined: 09/18/2005
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stevelv wrote:No, they are not gouging - they do not set the price of oil, they simply find it and they spend billions trying to find oil and gas. When they started drilling and pumping the oil that we get today, the market value was $40 a barrel. They had to build their network based upon making a profit at that level. The market speculators put the price at $120+ a barrel, not the Oil companies and yes, they and their shareholders benefit from this windfall but they do not price gouge as you suggest.
Oil and fuel costs are in everyones minds and it's easy to look at the oil companies as being the bad boys - you need to understand how the market works and why oil rose so high and it has nothing to do with the Oil companies but the speculative commodities market and the value of the US Dollar on the World Market.
Yeauh, "don't blame me, blame dat man behind dat tree".
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kmb1966
Houston
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jtel wrote:That profit they are showing is not just fuel. It is ALL the cross products they have. Everyone just thinks all they do is fuel.
Then they must be buying that oil for alot cheaper than the market says, otherwise how could the profit be rising so well? I know in my business, if I have to pay more for my product, I have to go up on the price I sell it for. However, if I go up ALOT more than what MY cost went up, then I make ALOT LOT LOT LOT more.
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TomW2
Southwest Washington State USA
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Joined: 05/23/2005
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With the high profit and high prices it is kind of natural to associate the two but it isn't necessarily the case. What is their profit margin before & after the latest steep rise? It probably hasn't changed. It is likely the volume that produced that big number.
Of course, wholesale & pump prices rising at the same time as the crude price for something we won't be putting in our tanks for quite a while definately does increase their profit margin.
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Bearnkat
Fort Worth, Texas
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Joined: 07/30/2004
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Here we go again, beating a dead horse. 
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Beemerrider
Mechanicsville, Virginia
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That's right blame the oil companies. They have big risks and make very little from the sales of fuel. Why aren't there more government bashers when their borrowing and spending has devalued the dollar and gotten us into this situation. BTW, the government reaped triple more than the oil companies by collecting all the state and federal taxes on the same fuel. Get real, wake up and smell the rats.
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Elkhartjim
Texas
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Many, many, many companies make a significally larger percentage of profit than the oil companies. I believe Lowes and Home Depot made more money percentage wise than Exxon/Mobil. Don't hear people grumble about the cost of a 2x4.
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hohenwald48
Hohenwald, TN
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What company wouldn't buy its raw materials for as little as possible and sell its final products for as much as possible. That's "free enterprise" not "gouging".
Gouging is what you call it when you want the gubment to intervene. And we all know how everything is better with the Feds involved. Just look at Social Security, Medicade, Homeland Insecurity and all the other wildly successful government programs.
In a free enterprise system (as opposed to socialism) you are entitled to make as much profit as you can. In fact, the BOD is obligated to maximize profits for share holders. If you don't like the price of the product then don't buy it. When demand drops so will the price.
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