Exxon Mobil Profits, Let the ass raping continue! Options

[The Fanatic]

But at $10.9 billion, the profit still ranks as the second-biggest for a U.S. company _ the only larger result in a three-month period was the $11.7 billion Exxon Mobil posted in the final three months of 2007.

http://www.huffingtonpost.com/2008/05/01/e...ar_n_99568.html


Nothing new here...


Our addiction to oil continues to enslave us.

[Hartmann]

http://www.huffingtonpost.com/2008/05/01/e...ar_n_99568.html
Nothing new here...
Our addiction to oil continues to enslave us.

Upstream + downstream = highly profitable company.

When all of their financial records are released (may already be), I'm sure it will be clear that their money came from pumping it out of the ground and selling it.

I have no problem with them making that kind of money, it's the day traders / future traders who are screwing us over.

ExxonMobil executives don't sit around going, "I wonder how we can screw people today".

[Hartmann]

Oh, and one other thing:
http://money.cnn.com/2008/05/01/news/inter...dex.htm?cnn=yes

I post this to show that the media has their facts wrong. The price for a gallon of gas in Aruba is currently around $5. They have a Valero refinery there and there is heavy control over the price, they don't even publish the prices at the pump and it changes only once a month.

http://www.arubalife.net/gasoline/

Nice research work CNN.

[impala454]

People who think Exxon sets the gas prices are idiots.

[The Fanatic]

They may not set the price of oil but it sure isn't hurting them either.

[impala454]

So does it make sense to get mad at Exxon for being an American based country making buku profits off something that's not in their control, or get mad at the combo of: abudabbabba across the pond, idiot investors all over the world, and lawmakers here who won't let us use the oil we have underneath our feet right now?

[Testm0nkey]

can someone site me some sources saying companies like exxon have no power or influence over gas prices? because from what it seems and from what i hear they most definitely do

1 source i just found "oil companies dont set gas prices they only have the power to raise them"

its laughable to think people out there actually think this oil is just given to us at a set amount/price and thats the bottom line. idiotic even

edit: ~28% of fuel prices is due to refinery costs (american), in addition to taxes (13% of every gallon) and zoning differences set by oil companies

http://www.senate.gov/~gov_affairs/042902g...rt/sectionv.pdf

[Hartmann]

can someone site me some sources saying companies like exxon have no power or influence over gas prices? because from what it seems and from what i hear they most definitely do

1 source i just found "oil companies dont set gas prices they only have the power to raise them"

In a way they can control the price at the pump.

Let's say you're Valero, all you do is refine oil and sell the gasoline. You have to buy the oil from ExxonMobil (and others). ExxonMobil drills the oil and sells the stuff at the market rate. The refineries pay that price and their owners start to raise the gas prices to make some kind of profit (which is marginal anyway). The gas that is produced is put into a general "pool" meaning that Shell can buy gas from Valero's refinery to meet demand in an area where they have stations. The Shell refinery at Deer Park sells gas to multiple stations (including ExxonMobil).

Again, the money is not in gasoline (even that is the end product), it's in the selling of the raw product because without it you can't make gas to begin with it.

The only way the price of gas goes up is as the market price for oil goes up so does the price.

Who said that the price is given to us. There are future traders on the market floor buying more and more oil thinking that the supply or whatever is running out, so the price goes up.

I would think that I'm a source.

[Testm0nkey]

sorry but i think a senate report on gas prices is a more reliable source

[Hartmann]

sorry but i think a senate report on gas prices is a more reliable source

I take senate reports very lightly... let's see, Iraq, gas taxes, healthcare... Yeah, they don't have the best record.

I heard a few of the senators talking about revoking the gas tax for the summer. That's the most idiotic thing I've ever heard, people will save what, $.18 a gallon, all the while the prices continue to rise.

When you get to Houston, let me know. I'll try to get a time to get you to a couple of the refineries here. You'll hear it straight from the horses mouths that these guys don't set prices, and I think they're pretty darn good sources.

Although different refineries have different operating characteristics, with limited
exception the basic gasoline produced at any particular refinery will be chemically identical to
the gasoline produced at any other refinery. A brand of gasoline is created when the refined
gasoline is mixed with a company’s proprietary blend of chemical additives at the terminal,
which usually occurs as the tanker trucks are being filled for their deliveries to service stations.
Because all gasoline must meet the applicable minimum federal standards, most gasoline is
identical even after the proprietary chemical additives are mixed.57 “Branded gasoline” is sold
by the refiner with the understanding that it may be resold under the trademark or trade name
owned by the refiner. “Unbranded gasoline” cannot be resold under the trade name.
Branded gasoline is distributed from refineries and terminals to retail outlets, either
directly to the service station or through bulk plants. Bulk plants are like terminals, but they are
used by jobbers to store product for distribution to retailers.58 Jobbers purchase and transport
gasoline from refiners and sell or distribute it to gasoline retailers or, in some cases, directly to the public through their own retail stations.59 A jobber may distribute several brands of
gasoline, and may own or lease several retail outlets selling different brands, including
unbranded gasoline. Jobbers who contract with a company to distribute a particular brand of
gasoline are often required to obtain that gasoline from a particular terminal. Refiners and
jobbers distribute the gasoline to retail outlets by trucks that generally carry about 7,700 gallons
of fuel each. Figure III.4 (page 83) shows the flow of gasoline from the refiner either directly to
the dealer or indirectly through a jobber distribution system.

Straight from the subcommittee of investigations.

Economic principles dictate that markets in which a few firms have market power to
affect overall supply will exhibit higher prices than more competitive markets. As long as
sellers in a market can indirectly affect prices through their supply decisions, it can be expected
that sellers will act in their self-interest to manage supply so as to maximize their profits; this means that producers in a concentrated market will attempt to achieve and maintain a tight
balance between supply and demand. This is increasingly the situation in the gasoline industry
today.

Nationwide, in the winter of 2001 - 2002, demand fell and inventories rose following the
tragic events of September 11, 2001. With reduced demand and higher inventories, prices fell.
As a result, refining margins fell and refiners cut back on production in order to obtain higher
margins. Along with the increase in the price of crude oil and market speculation, these reductions in production were a significant factor contributing to the run-up in price in the late
winter and continuing into the early spring of this year.

These are the only paragraphs in the entire report that I've seen that says anything about pricing and it states it is a matter of supply and demand and the equilibrium.

Yes, they control the supply and limit it but they have to, otherwise you have refined gasoline sitting around and it does have somewhat of a shelf-life and the risks involved in storing it.

[Testm0nkey]

so you are saying you know more about it then the federal government? arent you an IT/network guy?


edit: i think you should read that report because the worker bees in the refineries arent setting the prices. never said that. but so far thats the only source posted. 28% of fuel costs is due taxes and 14% refineries. and i have another source that has those two numbers switched

edit again because im sure itll come up: im not saying exxon is 100% responsible for gas prices. but to think they have no influence whatsover is silly and just untrue. im also wondering more about how OPEC works

[Oasis]

I heard a few of the senators talking about revoking the gas tax for the summer. That's the most idiotic thing I've ever heard, people will save what, $.18 a gallon, all the while the prices continue to rise.

I think it's 37 cents a gallon

Cathryn, I'd listen to Stephan if I were you. He knows what he's talking about

The day traders who are gouging the market and buttfucking the country for their own personal gain should be kidnapped and brutally murdered. And yes I'm being dead serious about that

[Testm0nkey]

uh its not me saying this its a report from the federal government. 2nd and 3rd party story from Stephan i wouldnt call necessarily reliable unless he can document the source


has the tied turned?! now people will believe what i say about global warming because i know a guy?!

[Hartmann]

so you are saying you know more about it then the federal government? arent you an IT/network guy?
edit: i think you should read that report because the worker bees in the refineries arent setting the prices. never said that. but so far thats the only source posted. 28% of fuel costs is due taxes and 14% refineries. and i have another source that has those two numbers switched

edit again because im sure itll come up: im not saying exxon is 100% responsible for gas prices. but to think they have no influence whatsover is silly and just untrue. im also wondering more about how OPEC works

I am saying the federal government hasn't been able to figure it out yet and they spend good money trying.

No, I am not a network/IT guy. I was a software developer for Shell before taking a job as a consultant for a firm that does reliability and production management for refineries, manufacturing, and drilling operations. What does that mean?

It means I get to visit rigs, refineries, etc. and see their numbers firsthand (that would make me first party).

28% of fuel costs are due to taxes? Is that taking into account tariffs to bring the stuff into the country?

OPEC is a cartel, plain and simple. They can increase, decrease, and cut-off production based on need/desire.

[Hartmann]

Oh and that first paragraph from the report I posted is kind of important. Take note of the transportation of the gasoline:

Jobbers purchase and transport gasoline from refiners and sell or distribute it to gasoline retailers or, in some cases, directly to the public through their own retail stations

As these jobbers see fit, they can raise the price of transportation and the price of gasoline to the retailer.