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ExxonMobil posts record 40.6-bln-dlr profit in 2007

Discussion in 'The Lounge' started by BigV, Feb 1, 2008.

  1. BigV

    BigV BigV

    Make me want to rush right out and fill up!!
    NEW YORK (AFP) — ExxonMobil reported Friday the largest US corporate annual profit in history at 40.6 billion dollars, benefiting from surging crude oil prices on strong demand, particularly in China and India.
    The net profit was three percent higher than a year ago when the biggest US oil and gas firm reported a 2006 annual profit of 39.5 billion dollars, which had prompted ire over US policies said to favor big oil firms.

    Yes That’s BILLION
     
  2. athensfishin'

    athensfishin' Fighting the Man

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    The purpose of business is to make money...... They have to satisfy and payback their shareholders and investors. Don't like pumping your money to big oil companies, buy an electric car or start your own oil company. Better yet donate or help develop an alternative fuel source.

    Now what many are failing to understand is where most of the profit is coming from which is not the US. When you have India and China becoming vast industrial nations their use of oil has skyrocketed. Clearly it in our nature to think because our gas prices are high they are getting the money from us, most of that money is tax that doesn't go to the oil company. This is purely a short term boost in profits from the soaring oil prices and the booms of India and china. But as companies in India and china start to catch up to their boom you will see Exxon lose these markets to Indian and Chinese companies. supply and demand people, it's all about supply and demand. The US is not the only economic power anymore and this ethnocentric outlook in the global economy will not work. We no longer get to have the major resources on lock down and will have to compete through price with other developing nations.

    Oil prices are already on the fall in reaction to the ever impending recession thats looming.

    http://online.wsj.com/article/SB120188486345735597.html

    Not sure if you need a subscription to the wall street journal to follow that link so I'll copy the first paragraph.

    Oil Dips Below $90 a Barrel
    By MATT CHAMBERS
    February 1, 2008 12:09 p.m.

    Crude-oil futures fell below $90 a barrel late Friday morning, after weak U.S. jobs data sparked more concerns that the world's biggest economy is in recession and pointed to a further slowing of crude-oil demand. Gold futures also slid, as funds sold off holdings and the dollar rose.
     

  3. Lewzer

    Lewzer Powderfinger

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    Earning don't tell the whole story. I look at EPS. Exxon's is $6.92 where as Microsoft is only $1.76.
    They are making a boatload of money.
     
  4. misfit

    misfit MOD SQUAD

    oil "futures" is a load of crap used to benefit certain peopleit actually has no real bearing on things(or it shouldn't).just another gimmick to inflate prices for instant gratification.
    and this ids in no way a "short term boost in profits".exxon has been regularly posting record profits for a long long time.
    granted,taxes make up a large portion of fuel prices at the ppump,but that in no way hurts their profits.nobody can convince me that jumping prices at the rates of the last few years is neccesary to maintain a reasonable profit margin.it does however,result in those continuing record profits.
    there are ways to control this madness,but those with the fat wallets are not going to let it happen.
     
  5. athensfishin'

    athensfishin' Fighting the Man

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    We have no control over oil prices, OPEC is going to set the price, you know that cartel that runs the oil industry. If a company erks OPEC by selling at lower prices they will not be in business long. And the US pattern of bullying around oil producing companies is reflected in the prices also. This tactic used to work but not anymore, the US is not the only place to sell oil anymore, OPEC countries and companies are only going to take so much of our crap. Not to mention Venezuela nationalizing all their productions, which makes for a difficult situation, since traditionally we get most of our oil from Venezuela. There are countless reasons for rising oil prices, but I will agree it's also for profit, but you all act like this is a bad thing. People want to drive a hummer they pay a premium, Raised prices are the only way to change peoples habits, people do not change on their own. The High prices are not a bad thing, high prices force the search for alternatives.

    Not all of the profit is just from gas sales either, Exxon produces chemicals and other products. You guys are not getting that Exxon is a large oil producer it is a MASSIVE and I bring that out because I'm not sure if some people really understand how large this company is. To put is in perspective chevrons profits were $4.88 billion, now is this difference because of price? nope same price the difference is because the amount of production that Exxon is pumping out.
     
  6. Sooo, you're gunna short the whole sector and make a bundle with that prediction right?

    Right.
     
  7. You're obviously versed in economics, but an explanation of the supply and demand relationship is not an adequate explanation for exhorbitant gas (and fuel, and whatever other petroleum we are speaking of) prices. OPEC is the primary reason for ridiculous pricing. It is nothing more than a legalized monopoly. To state that the United States government has the 'power' to bully around OPEC is ludicrous.

    People in industralized nations need fuel (whatever the stage of the individual country development). OPEC absolutely manipulates supply and demand is ever increasing. The result pricing is predictable. It's interesting one can read about a tanker disaster on one of the oceans or a refinery fire, etc. (the excuses are endless) and gas prices elevate .25/gallon the NEXT DAY at my neighborhood gas station in Ohio. The supply/demand relationship cannot and should not be seen in the pricing the NEXT DAY. It is manipulation, baloney and greed.
     
  8. triton175

    triton175 STX 206 Viper

     
  9. athensfishin'

    athensfishin' Fighting the Man

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    Meh you can disagree all you want. Fact of the matter is, People want the oil, they produce a lot of it, you will pay whatever they want for it. If you don't like those apples, buy a scooter. I just don't like to hear people complaining about the oil prices, then a person goes outside jumps in their large SUV and drives to the end of their driveway because they were too lazy to walk to check the mail. I have people that live around me that do that crap all the time, drives me nuts.

    Is my statement right, who knows, Clearly those crazy economist they hire to research markets don't know much, I don't know why I put stock into what they write. Markets are only as stable as the people in them and with a recession coming oil prices will drop, not that it matters because if you don't have a job you won't need to drive anywhere.
     
  10. BigV

    BigV BigV

     
  11. athensfishin'

    athensfishin' Fighting the Man

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    It's still supply and demand, with a cartel or monopoly it is just a different model. With resources like oil that are important the demand curve is not easily effected by change so cartels such as OPEC are able to raise prices much easier than other markets. These countries have few resources and oil is their lifeline, it's irrational to expect them to do anything but milk every cent they can out of it, we would. There is still a point on the curve where it will reach a point that the demand will fall though. Rather than going into a 3 page explanation of how supply and demand is effected by monopolies I just left it as a sentence, my apologies. You want a good example look at the diamond market, diamonds are not that rare, but almost all mines are owned by 1 company and they purposely control the supply to effect the demand and price.
     
  12. athensfishin'

    athensfishin' Fighting the Man

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    http://www.electricboating.com/

    Companies are already starting to address this market. Now to pose the question if gas prices were not high would anyone be looking at this market? probably not there is good in everything. Given they are not all that great or cheap yet, the more people look to this as an alternative the more innovation that will occur in the market leading to better motors and cheaper prices. The only block to innovation is the motivation to do it, what better motivator is there than high prices. We are on the verge of a technology shift away from oil, does it happen overnight, No, Is it easy, No, but it will happen and will high prices speed up the process, Yes. Would people have stopped using horse if they were as fast and productive as trains and cars, No. High prices or low productivity are the main motivators to cause change. The world does not stay the same.
     
  13. misfit

    misfit MOD SQUAD

    i have a fair understanding of the way supply/demand works,but at the same time don't like the way things manipulated,at times producing false indicators by all involved.
    i also am on a very limited income,drive a 20 year old 4 cylinder mini-truck and try to limit my driving.but i hate it when go to the pump on wednesday to gas up for $3.15,then drive by a couple days later to find the price 20 cents lower:mad:
    i know there are factors present now,that we didn't see 20 years ago,but can anyone justify or even explain logically,the constant almost daily fluctuations and steady increases we have become accustomed to in the past few years,besides the old global economy,new world order line?
    athens,i really do see many of your points,but at the same time i cannot find justification in some of them either.
    i admit i'm kinda a fossil and would have been much more comfortable with my place in the world,and the world itself if i'd been born 100 years or so sooner:eek:
     
  14. athensfishin'

    athensfishin' Fighting the Man

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    No, don't get me wrong I don't like the justifications for them, but they are far better than the alternative, which is a communist society. This is capitalism, it has goods and bad. What we as people cannot do is pick and choose when we want capitalism. On the same token nothing is accomplished by just saying prices suck there is no reason people do this. There is a reason and while we might not agree with it, it's part of the system. So as a society we either live with it or develop something new and better. Like my dad told me when I used to complain about the way he did things, "Do something better about it or stop complaining."
     
  15. misfit

    misfit MOD SQUAD

    oh i doubt i'd like any other system more,but i would like this one a litle more if a natural by-product of capitalism wasn't greed.
     
  16. athensfishin'

    athensfishin' Fighting the Man

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    yeah to solve that one we would all have to take a deep long look in the mirror because that one goes fully to human nature.
     
  17. misfit

    misfit MOD SQUAD

    agreed.but i've noticed that in general,the more one has,the more they are infected with greed;)
     
  18. athensfishin'

    athensfishin' Fighting the Man

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    yeah, it's similar to gambling in a lot of ways it's very addictive. Everyone has greed, when you have little it only take a little more to satisfy it. The more you have the more it takes. Some give back but it's usually when they become older and the end is near. But at the same time you can make the argument that it was them who put all the money and risk into starting a company and it had just as much likelihood of failing as succeeding so they are entitled to the rewards. The owner could have easily went out of business and lost everything they own, but they didn't. But then you will have disagreements as to if there is a limit to the amount of award one should get, which is the problem that is at the root of this thread.
     
  19. I pretty much agree with athens too. The media wants to put out amount of profit...but what you rarely hear them say is, what is the PERCENTAGE profit on gross sales? I would bet money i make a higher profit then exxon does. So should i give customers rebates? or?
     
  20. misfit

    misfit MOD SQUAD

    very good points.maybe that's why i've never accumulated much in this life.i was always afraid of becoming too greedy,and ending up like some folks i've known over the years.