Exxon records record profits

[CYdTracked]

Exxon breaks record for profit, yet again - Oct. 30, 2008

And supposedly gas prices are getting too low now? Never heard of a poor oil company and so they end up with like $10 billion in profits next quarter now? They have a built in profit cushion regardless of the price so I highly doubt $1.99 gas is going to hurt business.

 

[brianhos]

Is there a problem with a company making a big profit?

 

[HILLCYD]

Is there a problem with a company making a big profit?

Not until Nov 4.

 

[brianhos]

Not until Nov 4.

You mean Jan 20th.

 

[ekim121]

Is there a problem with a company making a big profit?

What he said. The problem with the oil market isn't the American refining companies. They compete against one another and the best come out ahead. The fact that Exxon did so well is just a testament to how well they operate. They manage to jump through the hoops of dealing with the dictators and monarchies that control the supply and then the environmental regulations stifling their refining abilities and still manage to turn a profit. I for one am impressed and would be among the first to contragulate them for their work. The profits are just a representation of how good they are at brining their product to market and how desireable that product is. The larger issue is the cartels that control the actual supply of oil which certainly don't act with any sort of coherent fashion.

 

[mj4cy]

Some explain how they make record profit, yet gas prices have been cut nearly in half.

 

[brianhos]

Some explain how they make record profit, yet gas prices have been cut nearly in half.

Volume...

Plus oil prices just recently fell, this profit was made in q3 (7/1 - 9/30)

 

[jumbopackage]

You have to understand that there is a difference between profit margins and profit. They are two separate things.

Almost any healthy company in a growing industry should have record profits every year. It doesn't mean that they are somehow fleecing the world.

Also, there is a difference between refining and oil production. Most oil companies that also own refineries are losing money on the refining/retail side of things as of late. Pretty much all of the profit has been coming from crude oil sales.


I'd expect to see profits drop considerably, supply to tighten up, and prices to go up again as low margin oil (i.e. expensive to extract and refine) becomes a losing proposition again now that oil is cheap.

 

[ISUFan22]

Some explain how they make record profit, yet gas prices have been cut nearly in half.

Plus oil prices just recently fell, this profit was made in q3 (7/1 - 9/30)

Yeah, that. It's sad how quickly people forget where gas prices were - just a month or two ago.

And proof, to me anyways, that until gas prices go high and stay there for a long period of time - the emphasis on alternative energy will remain low/moderate.

 

[Flag Guy]

Yeah, that. It's sad how quickly people forget where gas prices were - just a month or two ago.

And proof, to me anyways, that until gas prices go high and stay there for a long period of time - the emphasis on alternative energy will remain low/moderate.

Sadly, QFT :no:

 

[jbhtexas]

Also, there is a difference between refining and oil production. Most oil companies that also own refineries are losing money on the refining/retail side of things as of late. Pretty much all of the profit has been coming from crude oil sales.

Valero, a refining company, seems to have made profit on their refining operation last quarter, as well as for the year...

News Releases - Financial

 

[cycloneworld]

And proof, to me anyways, that until gas prices go high and stay there for a long period of time - the emphasis on alternative energy will remain low/moderate.

You may be right but only time will tell. One reason gas prices continue to fall is the continued decline in demand. So for right now, we are still using significantly less that we used to. We will see if that continues with gas now around $2.

 

[CYKOFAN]

We always hear that the price of a barrel of oil is a supply and demand issue, but I never have bought it. The price of a barrel of oil is down over 60% in the last few months from it's high in the $150 dollar range, and I don't know the exact percentage but I'd guess world oil consumption is down probably 10-15% from its peak. How does that make sense with supply and demand?

 

[ISUFan22]

You may be right but only time will tell. One reason gas prices continue to fall is the continued decline in demand. So for right now, we are still using significantly less that we used to. We will see if that continues with gas now around $2.

Wasn't there an article that showed SUV sales had already spike? I could be wrong, but I thought I saw something like that posted here the other day.

 

[jumbopackage]

We always hear that the price of a barrel of oil is a supply and demand issue, but I never have bought it. The price of a barrel of oil is down over 60% in the last few months from it's high in the $150 dollar range, and I don't know the exact percentage but I'd guess world oil consumption is down probably 10-15% from its peak. How does that make sense with supply and demand?

Comparing percentage increases/decreases in demand and price directly is too simplistic, as it is not a linear relationship. In addition. there are a lot of other factors that go into pricing the commodity.

Just as you can't compare the price of a bushel of corn to the demand for a box of corn flakes.

 

[DaddyMac]

I didn't read the article. But could it be that these profits were for Q3 - July through Sept, the early part of which is when gas prices were at all time highs AND the peak of the travel season?

And gas has only come down the last 3-4 weeks, most of which is Q4?

Edit: Sorry - I missed Brian's post.

 

[joefrog]

Wow, some nice intelligent answers here. Don't get caught up in the profit amount, look at how much they made as a percentage. That is the important number. One must remember that oil companies are huge! Their profit margins are not all that amazing, many other businesses have a lot higher return, and yet nobody says anything about them. Big Oil makes a nice bad guy. Hardly anybody sticks up for them, and they are easy to stereotype as greedy polluters.

While I am happy that gas prices are down because of the impact they have on lower wage earners who may have to travel more to work two or more jobs, I also like the higher prices because they spur on innovation and the use of alternatives. I also think that we should be using more of our resources.

 

[bigB]

Is there a problem with a company making a big profit?

Maybe we should ask Gov. Palin.....LINK

 

[CYKOFAN]

I know there are a few other factors, but if the price of oil (and gas) is mainly a supply and demand issue, why did the price go up 100% in a year or so when demand only went up 10% or so. Still doesn't make sense to me.

 

[DaddyMac]

While I am happy that gas prices are down because of the impact they have on lower wage earners who may have to travel more to work two or more jobs, I also like the higher prices because they spur on innovation and the use of alternatives. I also think that we should be using more of our resources.

I know this is a pipe dream - but given the state of the world and the amount of oil we import (and therefore the cash we export), and the volatility of the oil commodity market - shouldn't that alone be enough for us to demand/encourage innovation and use of alternatives.