Exxon's $10B fill-up: Cashing in on crunch

Boston Herald ^ | Brett Arends

[KevinDavis]

So what..

[thackney]

The law gives incentives to producers such as Exxon to expand production, such as for drilling for new wells in deeper waters in the Gulf of Mexico.

We give incentives to produce more US oil, which pays royalties of 12.5% to the US and that is considered a bad thing? Only by people who don't understand math.

[thoughtomator]

Oil company profits are a pittance compared to the tax revenue generated by their activities.

[EagleUSA]

came under new fire yesterday when it emerged that ExxonMobil's profits are likely to soar above $10 billion this quarter on the back of the fuel crisis.
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After all that has gone before this, how can anyone be surprised by this?? All you have to do is look at typical stockholder information of ALL the oil companies...read the balance sheet. Of course they are profiteering. Whatever the market will bear, especially in a market that really has NO COMPETITION.

[dakine]

Missed the gravy train, did ya'?

[Alberta's Child]

Oil company profits are a pittance compared to many other industries, too.

With a net profit that is equivalent to about 6% of gross sales, investors in the oil industry can expect a return that is about the same as a 30-year mortgage -- without the collateral of a tangible real estate asset.

Among all the complaints about "record profits for Exxon/Mobil," the name of the company is apparently lost on most people. One of primary factors in these "record profits" was the merger that created one company out of two oil giants.

[atomicpossum]

Nationalize oil production. These companies should only break even. Just like the medical industry, they shouldn't profit by something that people need. And while we're at it, how much money is Nabisco making after they got me addicted to Oreos?

It's the F'ING FREE MARKET. Don't want them to profit? Don't buy their gas.

[Enchante]

Maybe liberal Mass-holes like Markey and Meehan, Kennedy and Kerry, will someday figure out that they are incompetent blunderers when it comes to economic and energy policies, but I won't hold my breath.... they want to maintain maximum 'environmental' blockages on new exploration and production, then they whine about prices and blame everything on big bad oil.....

[hobbes1]

Prices are soaring because of perceived shortages

And who to blame for that???? (MSM)....

[RinaseaofDs]

I'm sorry, but this is not defensible. Not only is it not defensible, it is going to hurt Exxon in the long run.

Japan is completely committed to hybrid technology. 95% of their energy is imported, and they have been working with regular tinkerer types in the US to modify their cars so that their hybrids indeed get 250 miles/gallon.

Meanwhile, GWB has ties to oil and Exxon makes it look like conservatives think this is all OK.

The plain truth of it is that the actual cost of producing a gallon of gas, on average, hasn't changed much, but they have made billions on the fear created by the crisis.

It's not a leap for a liberal to claim, "Why are we worried about poor people stealing TV's from a Wal-Mart when Exxon is stealing billions from all of us?"

This is going to be an election year issue unless the prices come back into line. The problem with prices coming back into line in time for the election is that it raises another election year issue - Big Oil adjusting their prices in time for the mid-term elections.

[trubluolyguy]

Just a free market at work.

[sharktrager]

If I am not mistaken, their profit margins have remained consistent, and were rather modest (8% iirc). Yes, they make more cash, but should they cut their profit margin because speculation and consumption are driving up prices?

[tom paine 2]

I proudly own 650 shares of XOM and with the share buyback and a dividend increase, it's looking like I made a good deciscion to buy four months ago. You should buy some too. The P/E ratio is in the low teens.

[kennyo]

Raising the price of food,water,diapers,and gasoline is not gouging.

[Radioactive]

So what..

So what...I like that reply. It covers it all.

So what if you just paid 130 dollars to fill you pickup truck.

So what if it will cost you a lot more to heat your home.....so what?

I like that...when anyone tells me..I have to make a choice between staying warm or paying the mortgage...I'll always say...so what.

If you reply to this post.....so what?

You've got a terminal disease?....so what!

All our tax dollars going to rebuild New Orleans?...so what!

Tinfoil you say????........SO WHAT!

[rellimpank]

--but this is not defensible---

and I suppose selling your house at market price is--or do you intend to be a good citizen when the time comes and sell it at, say, 20% under market?

[Pessimist]

"and they have been working with regular tinkerer types in the US to modify their cars so that their hybrids indeed get 250 miles/gallon."

Got any proof?

[Paradox]

Liberals should be happy. Higher gas prices are finally making people reconsider purchasing SUV's and looking into hybrid cars. Alternative fuels are going to get a second look. You see, they aren't unhappy that the prices are so high, they are unhappy that somebody is PROFITING from it. If that money were instead burned in a big pit, they wouldn't be so upset. They are anti-profit bigots.

Ok, I'll say though that PR wise, its going to be tough on Exxon, but their response to this is entirely up to them.

[KevinDavis]

Whatever Comrade...