Sure you can look at it like that when all you are looking at is 2005. But take a look at a year ago, when their total revenue was at 76.4 billion dollars and net income of 5.68 billion dollars for the third quater. That means that in 2004 their profit margin for the third quarter would have been 7.4%. So from this time last year to this year they are in fact increasing thier relative profits.

 

"So from this time last year to this year they are in fact increasing thier relative profits."

Isn't the point of every company to grow? Capitalism IS about making money. It hurts me at the pump too, I commute 65 miles a day in my '05 Diesel - but I don't complain about it because a look at the cold numbers tells me that this is not some kind of scheme perpetrated by "big oil" to break the backs of the poor and middle class. So they had a 2.6% rise in profits from last year? People would be screaming if they'd risen 1%. Are we also going to accuse home builders and general contractors who will increase their profits by at least 10% because of the rebuild work caused by Katrina?

 

It matters because the basis of the argument is that a natural disaster occurred (the hurricanes), local prices went up (in the US) and the oil companies profited by that (10 billion). A more detailed analysis of the numbers might show a different picture.

 

I must agree with 76. A corporations sole purpose is to make money within the bounds of law. If a corp has violated the law, they should be prosecuted. If not, buy stock or feel free to bitch about it. There is ample evidence that Big Oil reduced refining capacity to tighten supply, but that is a policy decision that is not illegal. There are rumblings in D.C. about a Windfall Profits Tax or regulations to force Big Oil to expand refining capability. It will be interesting to see what the politicians come up with.
Dono

 

You are not the only one. I personally don't get it either. It's almost like the billion dollar number gets thrown around like it's nothing.

On the lighter side, here is some fun info. A stack of $1 bills 1' L x 1' W x 1' H would contain a little more than $25,000, completely packed with no gaps or air pockets. It would take you roughly 9 acres of land to build enough of these 1' stacks to equal $9.9B. If you traded them for the dollar coin with Sacagawea and infant son on the face, you'd need a way to haul more than 88,000 tons of them. If I got the math right, that would be about 230 trips for the Caterpillar 797B. And as far I know, that is one of the largest, if not the largest mining dump truck in existance.

But who uses $1 bills or coins? That doesn't buy much gas. Let's use $20 bills instead. If you live in a average home with 8' ceilings, you would not have enough interior space to pack in all the bills. It would take nearly a 2500 sq. ft. house with 8' ceilings to stack and pack enough $20 bills to equal Exxon Mobs profit for the quarter. Again, that is using the currency's exact size. There is no figure for gaps and air space there.

 

Yeah but isn't that all that we are doing here.. is complaining? I don't think that for a second there is anything we can do about it.. and there isn't anything the government should do about it, because y'all are right.. they are a corporation that is there to make money. BUT as a consumer i don't like it so i will continue to moan and complain about their profits.
I for one would know that I would have a mcuh different outlook if I was on their board of directors or something like that.

 

Of course their goal isn't to make the middle class go broke.. their goal is to make more money. Hense why their profit margin has gone up so much since 2002 where it was just over 5%.

Like I said in my last post... yeah they arn't doing anything wrong, but with profits like that they could be doing a bit more to help out the average joe gasoline buyer.

 

To me it's like Sport's teams & The Banks .

They will eventually price everyone out of the Arena or Stadium.

Or because of all the Extra service costs,I'll close my account at the bank.
Only problem is, You NEED a Bank to get along in this world.

Who will start a Bank Profit thread ?
Their profit is also in the Billions

 

Ah yes.. but at least with banks you have the option to find lower rates and such. Or if you just want an account you can open one that has no fees, free checking etc.

But with gasoline if you chose to purchase you have no real options. You buy or you don't.

 

This is true, they could do more. However that is something that needs to be left to the company directors. My concern here is that now the gov't wants to get involved and maybe force them to do a little more to "help the little guy". This does not bode well - history should have taught us all what happens when gov't gets involved with private business. The fact that so many people see "big oil" as this faceless money making machine that is breaking the backs of Americans concerns me because when the politicians do try and pass laws that could be detrimental to us the masses will vote on emotion rather than logic. People will go to the polls saying, "Exxon made $10billion in profits - that's too much money!" when they should be ratinally thinking, "Exxon made 10% profit, an increase of about 2.5%. Sure it hurts my pocket book but this is a capitilast society and they have a right to grow their income. Maybe having the gov't try and force them is a bad idea."

However my life experience is teaching me that 98% of us think with emotion first and logic second (if at all). I am happy to be one of the 2% even though at times people get pissed at me for my views.

 

There are aways options, we just might not like them. Drive less. Carpool. Use public transprtation. Buy a more fuel efficient vehicle. Buy an electric car, or a hybrid. Be one of the people that looks for an alternate form of energy. Me personally, I have chosen to drive less, carpool and work on forms of alternate energy to solve my problem.

FYI to anyone who thinks I'm overly defending "big oil", recent gas prices have my monthly budget running a deficit. I have been using my savings to help offset the costs, which is precisely why I am doing the things mentioned above.

 

And if Congress were to pass a law making that illegal, or a law controlling obscene profits, then the oil companies would march off to the Supreme Court. Those 9 judges would strike the law down so fast it would make your head spin. Where I come from, that would be called "judicial activism," but I guess it's okay when it's for the good of your corporate buddies. I mean, if I were a Supreme Court justice, I'd hate to do anything that might make for an awkward moment between me and the CEO of ExxonMobil when we bump into each other at the 19th hole of the country club.

 

Are you in the oil business man. Why would you talk like that. You must like paying these high prices. Nobody I know talks like this except somebody in the oil business. Do you run a business thats a big fuel user. I cannot believe im reading comments like this.

 

150 - who's comments are you reffering to?

 

Quarter Sales Earnings Profit %
--------------------------------------
Oct 05 $100b $10b 10%
July 05 $88.5b $7.6b 8.5%
April 05 $82b $7.8b 9.5%
Jan 05 $83b $8.4b 10.1%
Oct 04 $76.3b $5.6b 7.3%
July 04 $70.6b $5.8b 8.2%

Source: http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-CalendarEarnings