It is nice to know that someone is making money off of the out of control gas prices.

I am seeing gas prices at $2.35 a gallon. To me it looks like a sweet deal until you see what we were paying this time last year.

It is nice to know that someone is making money off of the out of control gas prices.

I am seeing gas prices at $2.35 a gallon. To me it looks like a sweet deal until you see what we were paying this time last year.

Gas in my area as of this morning is down to $2.17 per gallon.

Before we go out of control bashing the oil companies we should keep 3 things in mind.
1. Our gas is much, much cheaper than anywhere in Europe.
2. A large part of the price of gas is taxes by the Government, and that tax money is pure profit for the government.
3. When you compare the amount of money spent by the oil companies compared to their profits, they actually make a little bit less than other large companies of that size in other industries.

The rack to retail margins on gasoline has been anywhere between $.06 to $.30 a gallon. It only got to $.30 cents quickly and went right back down.

Retail profit is not that high but it should be at least $.15 if not higher.

The EPA and CARB are requiring gas stations to perform upgrades constantly which costs money. A viscious cycle yes but they need to make money to spend money.

I have to agree 100% with Hummertech on this one. This morning gas around here was $2.69 and that is about as low as it has been in some time. The oil companies have a lot of expenses to cover just to run the operation let alone recouping the investments to get the oil. I know from first hand experience how expensive it is to drill and you never really know if there is going to be anything there. It is a high risk business and they may make a profit this year but could lose their asses next year.

Lets not forget to add that the Exxon/Mobil plant to Houston was shut down for a week or 2. I was talking with some oil companies 2 weeks ago they might not get 100% allocations but rather 60%. Can you imagine going to get your oil changed and the guy tells you sorry, where out of your oil.

Our local gas company has even sent out letters to large (Commercial) accounts tell them they can not guarentee that their gas wont be shut off due to insufficent supply. So if you think oil is bad gas is much worse.

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Spike:
Gas in my area as of this morning is down to $2.17 per gallon. </div></BLOCKQUOTE>

Looks like I need to go to whereabouts unknown

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Looks like I need to go to whereabouts unknown
</div></BLOCKQUOTE>S. Jersey

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by sfox:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Hummertech:
Before we go out of control bashing the oil companies we should keep 3 things in mind.
1. Our gas is much, much cheaper than anywhere in Europe.
2. A large part of the price of gas is taxes by the Government, and that tax money is pure profit for the government.
3. When you compare the amount of money spent by the oil companies compared to their profits, they actually make a little bit less than other large companies of that size in other industries. </div></BLOCKQUOTE>

1: Everything is higher in Europe...who cares...

2: Actually only a fairly moderate portion of the price of gas is taxes. An even smaller portion goes to the franchise owners...the rest/bulk goes in Exxon's pocket.

3: No matter HOW you slice it, 9.9 billion in PROFIT is disgusting considering what the country has been enduring over the past year. These companies have profiteered on the back of national disaters to an unprecedented extent and if the current administration doesn't take some action, we may end up with a Democrat controlled government sooner than later....

S </div></BLOCKQUOTE>

I agree!!! The 9.9 billion is profit. It is already taking all of their expenses and so-called risk of drilling out of the figure. They are making billions, while there are a lot of people who are afraid to drive anywhere or turn their heaters on this winter. If you look on MSNBC there is an article about oil companies trying not to focus on big profit. It makes me sick. What the hell else are we supposed to focus on?

We're still at $2.75 here in the northwest... What's also said is the diesel prices haven't budged from $3.16.

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Spike:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Looks like I need to go to whereabouts unknown
</div></BLOCKQUOTE>S. Jersey </div></BLOCKQUOTE>

nevermind

$2.44 here.

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">3: No matter HOW you slice it, 9.9 billion in PROFIT is disgusting considering what the country has been enduring over the past year. These companies have profiteered on the back of national disaters to an unprecedented extent and if the current administration doesn't take some action, we may end up with a Democrat controlled government sooner than later....

S </div></BLOCKQUOTE>

Just out of curiosity, when did high profits become "disgusting" in a Capitalist country? What business are you in? Do you not want to make maximum profits? When you sold your last house, did you not charge the maximum that the market would bear? Were you gouging? After all, there is a shortage of affordable housing in the US today. Should the government have stepped in and forced you to sell your house for less?

We've gotta be careful here. We've gotta be consistent and intellectually honest. Are we Capitalists or are we not? Do we, as consumers, have any right to dictate, through our government, retail prices to a business? If we decide we do, watch out. The legislators will take that permission and run with it - and we ALL will suffer, no matter what business we are in.

Just my 2 cents - which is all I have left after filling my rig this morning...

Sean

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by sfox:


As to consumer control of the market, gas is not something that most people can choose an alternative for. I can't charge whatever the hell I want for my house and expect to sell it, Oil can sell for just about any price they want and people have NO CHOICE but to buy it. We are as dependant on big oil as we are on water, and the sources for that oil are so few that capitalism DOES NOT impact big oil. People can conserve a bit, but folks still need it to simply live their lives on a daily basis. Big oil knows this and stuck it to the American economy when it could least absorb the hit...that sir is disgusting. Do I favor the Gov interjecting itself? No, but when you have something so essential to our economy so out of control, then it is time to step in and stop the screw job that was/is going on.

S </div></BLOCKQUOTE>

If we are going to bash exxon/mobil or any oil company for charging "what they want" could we please throw in the 2 biggest monopolizing industries into the mix.

Cable and GAS.

Oil has alternatives. Cable and Gas do not. If I HAVE to heat my home with gas I can only buy it from one sourse. If I want High speed internet I have on choice. If I need to fill up my car with Gasoline, I have many choices.

sfox I find it amazing that you are the only one that REALLY understands that gas is gas. In most places it really does come all the same refinieries.

However some stations due pay less than others. Walmart probably does pay less per gallon than a guy across the street that only has one station.

The biggest problem that Exxon/Mobil has is not that they made that much money but rather that they told people they made that much money. It is ok to report it but don't cry about high costs and report high profit. Buy someone or spend the money or ****.

I don't agree with everything said but I do agree that it is pathetic to cry about how bad they have it after a storm, then have quarterly profits such as these

I wonder how the airline industry is taking this news. Some have closed down and some have filed bankruptcy due to the high price of fuel. The ones that are still around are reporting huge losses every quarter.

Yes we do live in a capitalist country, but I still think the government should be able to do something regarding this. If my local electric company has to go to congress to get a rate hike approved, I don't see the difference in controlling the profit of the big oil companies.

$ 2.29 for 87 Octains here in southeast Michigan Still high but much better than $ 3.18 from a month ago

If you don't like high gas prices than pay attention to who you vote for. A certain political party would love to have the mojority of Americans use mass transit. I think you know who I'm talking about. The same political party that cried about drilling for oil in the middle of nowhere in Alaska. The party that tries to stop any new oil refineries from being built.

Interesting discussion but some points are off the mark. No new refineries have been built since 1079. Capacity in refineries has had to be reconfigured almost yearly to account for Federal and State environmental requirements as to what can be in your gasoline(there are currently 14 different gasoline formula requirements). This results in some refining capacity being underutilized in some parts of the country when demand is not there. The republicans have introduced a bill to provide incentives to build new refineries but there is some question whether oil producers can supply more oil to be refined. As for natural gas, LNG could be a major factor in increasing supply as domestic production is in decline. Opening new areas for exploration must be done or prices are only going to go higher without more supply or a very healthy cut in demand. Also all oil companies contract for supply on a long term basis with the price generally tied to a market price, so when the price goes up on the market the contract price also goes up. Same pricing mechanism all the way to the retail outlet. The only protection for large swings in prices are financial hedges, which is what Southwest has used to stay profitable. Just some ramblings on a complicated issue.

Another thing to consider. Absolute profit amounts mean nothing - profit is based on "return on capital". Another way to look at it is suppose you made $10,000 profit in a year, but had to invest $1,000,000 to do that. Would that be good - no it would be ****ty profit for what you invested (you made 1% on your money that you tied up for the year). But if you invested only $100,000 and made $10,000 that would be excellent (the money you tied up for a year made you 10%). The absolute number means nothing unless you know how much was invested.

All major oil companies have BBBIIILLLIIIOONNNSS of dollars invested in the infrastruture. In many of their divisions, the return is worse than if they just sold the capital and put it in the bank. Putting money in the bank or smart investments guarantes 4%+ (at least) and is risk free, so why would a company operate if it makes less than that such as the retail gas indusrty.

Believe it or not, the margin is so low at the retail gas station that most would be closed if you didn't buy cigs or pop or carwashes, etc (gas alone doesn't cut it). Keep in mind that an average station sits on land worth $1.5M and that the station costs $1.5M to build which only has a life of 10-15 years until it is obsolete and needs to be closed or rebuilt again. Thus in 10 years the company must recoup the 1.5M$ to build - that means the station must profit at least $150,000/yr just to cover the investment - what about profit?? So if you heard that your local gas outlet made $200,000 profit and so did the neighbouring one and so on (which adds up when a large company has thousands of stations), would you feel cheated. You shouldn't because this is what they need just to remain open, and I know first hand that many individual stations profit much less than this which is why their overall return is worse than just selling and putting it in the bank.

Some people are just upset because they're missing out on the profits. You want some of it? Buy stock or invest in sector funds.

That said, it is a little hard to understand complaining about getting hit hard when you're making these kinds of profits. "Oh damn, we're only going to profit 9.9 billion instead of 10.9 billion this quarter!"

Perhaps some of the appearance, though, is the media's fault. It'd be interesting to see the number of stories where a gas company exec was complaining about being hit hard compared to the number of stories where the media was just saying that the industry was getting hit hard. Perhaps we have yet another media inspired biased story for more government regulation. Anyone got some stats?

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by sfox:
You are still missing the point guys, the individual franchise owner of a service station isn't seeing jack from that 9.9 billion, that is from the parent company (if anything the rise in fuel prices are hurting the sation owners badly because people CAN'T spend as much on odds and ends once inside). The other thing you are missing is that Exxon and others are reporting RECORD profits EVERY quarter....I don't know about you, but I'd love to own a business that I could make record profits every quarter, annnnd have the goverment come and "rescue me" when disaster hits one of my facilitites.

S </div></BLOCKQUOTE>


You reveal yourself with that last comment. You'd love it if it was you, but hate it when it is "them"? Interesting. As for the govt. rescuing them after a disaster....please provide some details? I know the oil companies are spending hugely to repair and get back on line their facilities. Are the Feds helping them in some way that I am not aware of?

Sean

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Hummertech:
If you don't like high gas prices than pay attention to who you vote for. A certain political party would love to have the mojority of Americans use mass transit. I think you know who I'm talking about. The same political party that cried about drilling for oil in the middle of nowhere in Alaska. The party that tries to stop any new oil refineries from being built. </div></BLOCKQUOTE>

x2!!

You reveal yourself with that last comment. You'd love it if it was you, but hate it when it is "them"? Interesting. As for the govt. rescuing them after a disaster....please provide some details? I know the oil companies are spending hugely to repair and get back on line their facilities. Are the Feds helping them in some way that I am not aware of?

Sean[/quote]
_______________________________________________

x2 again!! (pad)

Look! Look! I'm a Pwofesional Hummer Owner!!

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by sfox:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Bondage:
You reveal yourself with that last comment. You'd love it if it was you, but hate it when it is "them"? Interesting. As for the govt. rescuing them after a disaster....please provide some details? I know the oil companies are spending hugely to repair and get back on line their facilities. Are the Feds helping them in some way that I am not aware of?

Sean </div></BLOCKQUOTE>

Sean,

The last comment in my last post was SARCASM, sorry, nothing revealed except the fact that you are too dense to see when someone is being a smartass. As to the federal govt helping, who has been rebuilding the pipelines between refineries?

Yes, we would all like to make as much profit as possible, but when the profit we make actual is detrimental to the economy of the country that is supporting that profit, well, that ain't right.

S </div></BLOCKQUOTE>

Now wait...that was sarcasm? So you would NOT want to own a company with record profits and government rescues??? You're kidding, right? You wouldn't wanna own that???? Commie.

Sean

I agree with Cato.org regarding "Profiteering"

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> Be that as it may, “profiteering” strikes most of us as unsavory. But it depends on the context. After all, were we serious about criminalizing price gouging, we would throw every member of the National Association of Realtors behind bars. Although the markup on housing is far more dramatic than the markup on gasoline, we don’t seem to mind. Why? Because most of us getting gouged on Sunday afternoon at the open houses hope one day to do likewise. Apparently, Americans approve of gouging as long as they’re the ones doing the deed.
</div></BLOCKQUOTE>

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Hart1:
I agree with Cato.org regarding "Profiteering"

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> Be that as it may, “profiteering” strikes most of us as unsavory. But it depends on the context. After all, were we serious about criminalizing price gouging, we would throw every member of the National Association of Realtors behind bars. Although the markup on housing is far more dramatic than the markup on gasoline, we don’t seem to mind. Why? Because most of us getting gouged on Sunday afternoon at the open houses hope one day to do likewise. Apparently, Americans approve of gouging as long as they’re the ones doing the deed.
</div></BLOCKQUOTE> </div></BLOCKQUOTE>


You Capitalist Pig!!!!

Sean

Exxon/Mobil by itself receives about $25 Billion in US Government subsidies every year.

Those of you who do not think something is wrong with the current fuel situation are going to wake up to severely higher prices for everything else you buy a few years down the road. Everything you buy has to be transported and the over-inflated diesel fuel prices currently seen is killing shipping.

When fuel prices can rise $0.15 because there is the possibility of a hurricane but there is no market correction, especially as quickly, then you have something that lives outside the typical ideals of supply and demand.

Why does everyone complain about OPEC price fixing, when it's apparent the major oil companies do the same thing, but somehow some of you don't feel this is the case.

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Hart1:
I agree with Cato.org regarding "Profiteering"

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> Be that as it may, “profiteering” strikes most of us as unsavory. But it depends on the context. After all, were we serious about criminalizing price gouging, we would throw every member of the National Association of Realtors behind bars. Although the markup on housing is far more dramatic than the markup on gasoline, we don’t seem to mind. Why? Because most of us getting gouged on Sunday afternoon at the open houses hope one day to do likewise. Apparently, Americans approve of gouging as long as they’re the ones doing the deed.
</div></BLOCKQUOTE> </div></BLOCKQUOTE>Stupid