Exxon brings in record profits.
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ScionERA
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Exxon brings in record profits.
The world's largest company, ExxonMobil, brings in record profits for 2006, as stated by Autoblog.com. Exxon's 2006 revenue was over $377b, nearly twice as much as Toyota's 2005 revenue of $173b (although Toyota's jumped up in 2006 I'm sure).
http://www.autoblog.com/2007/02/02/e...llion-in-2006/
My question is... Is that right? All those hundreds of billions of dollars for an oil company?
http://www.autoblog.com/2007/02/02/e...llion-in-2006/
The oil empire that is ExxonMobil generated $39.5 Billion in profits in 2006 by providing to us the one thing we need most, good old-fashioned oil. A big reason for what amounts to the largest profit ever in U.S. history is the $3 per gallon gasoline that ruined our love for SUVs and trucks last year. Gas prices fell towards the end of the year, but ExxonMobil had already made its money by that point.
Many lawmakers want to heavily tax ExxonMobil for being too wealthy, but the oil guys point out that they spend a lot of money finding more oil so they can keep the crude coming. As it turns out, it's more expensive to drill a mile deep in the middle of the ocean than it is to poke a straw in the Saudi Arabian desert. Yeah, they're buying back a lot of stock too, but at least they're giving us the energy we need whenever we need it, which is better than the alternative.
[Source: The Car Connection]
Many lawmakers want to heavily tax ExxonMobil for being too wealthy, but the oil guys point out that they spend a lot of money finding more oil so they can keep the crude coming. As it turns out, it's more expensive to drill a mile deep in the middle of the ocean than it is to poke a straw in the Saudi Arabian desert. Yeah, they're buying back a lot of stock too, but at least they're giving us the energy we need whenever we need it, which is better than the alternative.
[Source: The Car Connection]
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From: Redneck Riveria
If gas was $.90/gal, I wouldn't have a problem with the 10%, even tho I know it's really just an accounting 10%, and the real profits are likely higher. It's the combination of $3/gal gas + hundred million $ salaries + 10% margin on a product that the US couldn't live without in a market that works like a monopoly.
The oil industry is not a free market.
The oil industry is not a free market.
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but 10% is 10%. if revenues increase because gas is $3, so does profit. The margin will also go up some because fixed costs remain the same. If profit margin is now 10% and was 3% when gas was $1.50 (before everybody decided the oil companies were evil), then you could complain. If it went from 7 or 8% to 10% I'm not sure you can say they are evil and wrong.
The executive compensation deal is a whole different topic, but in most cases it actually has very little effect on the bottom line of the company bacause the companies have such huge revenues. This is especially true of oil companies with hundred of billions of dollars in revenue. The executive compensation thing is the same in all industries, so you can't blame evil oil companies for that.
The executive compensation deal is a whole different topic, but in most cases it actually has very little effect on the bottom line of the company bacause the companies have such huge revenues. This is especially true of oil companies with hundred of billions of dollars in revenue. The executive compensation thing is the same in all industries, so you can't blame evil oil companies for that.
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ScionERA
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I don't have any problem with gas being expensive. In many ways it's a good thing. It keeps some SUVs off the road and brings more people to buy smaller cars. Overall, I think it's a good thing that gas WAS expensive last year. I'm not saying that gas should be $5/gal but I think it is too cheap right now. At the pump I won't complain (just filled up at $2.1
but as a society I think it is better for all of us when gas gets expensive.
It is amazing to me that when gas dropped right before the elections last year, SUV sales surged. What are they thinking? Eveyone knows that gas is only going to get expensive again, whether it is a legit or not.
but as a society I think it is better for all of us when gas gets expensive.It is amazing to me that when gas dropped right before the elections last year, SUV sales surged. What are they thinking? Eveyone knows that gas is only going to get expensive again, whether it is a legit or not.
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People have short memories and tend toward selfishness. So when gas dips, they think "great, back to cheap gas again!" They forget that this summer, we'll be seeing $2.50 - $2.90 all over again.
Gas being expensive isn't necessarily a good thing economy wise. Like it or not, we need a good economy. I know it's better enviromentally, but it brings the price of everything up. And I'm not at all interested in having to shell out outragious pump sums, just so the epitomy of well connected fat cat can get fatter and more powerfull.
Gas being expensive isn't necessarily a good thing economy wise. Like it or not, we need a good economy. I know it's better enviromentally, but it brings the price of everything up. And I'm not at all interested in having to shell out outragious pump sums, just so the epitomy of well connected fat cat can get fatter and more powerfull.
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