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Hold on a sec, ok the pirce of crude went up? Ok then so did the price of gas? Ok makes sense. A more expensive raw ingreadent equals a more expensive final product. That I'll buy.
But record profits? That would only jive if the price of curde were low and the price of gas were high, thus providing greater return on invested raw product.
What I'm saying is it has nothing to do with the man in the white house. If anything it has to do with subsidiaries that might be handed out bo congress. That has nothing to do with operating income, which is what income statements show. Income statements show income, not assets or subsidiaries. The report had nothing to do with those. For the record, I have no idea how much money was given in subsidiaries to Exxon, if any.
Oil companies take a percentage of the price you pay at the pump. The price you pay at the pump is always proportionate to the price of crude oil. The actual gas station takes between 1-2 percent, the federal government takes approximately 14 % on top of that for road repairs, assuming vehicles with more gas consumption cause more damage to roads, therefore penalizing (usually) larger heavier cars. There is an additional tax on diesel because it's used commercially more. I'm not exactly sure how much percentage the refinery process gets, or transportation on barges, trucks or pipelines get.
The price you pay at the pump is divided up by percentages for everybody that is involved in the steps. From who we purchase crude oil from, to the transportation on bargs, to the refinery, to the shipping to local distribution centers on trucks, to the oil pipelines and so on. Since the oil companies earn a percentage of the overall gas sold, they earn more when the price is higher. 1% of $4 is twice as high as 1% of $2. Exxon is the largest oil company, thus it's obvious why they earned more during the years that crude oil and gas prices were at a record high.
What I'm saying is you have to consider the profit margin of the company, and you have to consider the amounts reinvested into the company as opposed to handed out as salaries and bonuses. Exxon has a very high reinvestment rate and is contributing much more than people realize to new technologies.
Last edited by shadows090; 10-30-2008 at 11:21 AM.
Hold on a sec, ok the pirce of crude went up? Ok then so did the price of gas? Ok makes sense. A more expensive raw ingreadent equals a more expensive final product. That I'll buy.
But record profits? That would only jive if the price of curde were low and the price of gas were high, thus providing greater return on invested raw product.
Shah, do you think there is some magic spigot that flows oil somewhere? Do you know a damn thing about mineral rights?
And I'm saying they are getting on hell of a tax break.
The corporations of individuals with the highest 1% of income contribute about 30% of the money into the income tax pool. The highest 20% of income earners contribute approximately 70% to the income tax pool.
Exxon, as a corporation is treated the same as an individual. And you can bet they're part of the 1 percent that contributes about 30% of the entire income tax pool that our government receives. They are not getting a tax break by anybody. They're paying in the highest percentage of the income tax bracket. They are one of the highest contributors in our entire country to newer technologies.
Quote:
Originally Posted by shah269
Especially since the past two quarters over all consumption of gas has been lower.
Fuel consumption has been lower but not significantly. Overall money spent on fuel has been higher since we have been at the highest crude oil and gas prices.
Hold on a sec, ok the pirce of crude went up? Ok then so did the price of gas? Ok makes sense. A more expensive raw ingreadent equals a more expensive final product. That I'll buy.
But record profits? That would only jive if the price of curde were low and the price of gas were high, thus providing greater return on invested raw product.
Again, what kind of deal did these guys get from Dead Eyes Dick when they had their not so secret meeting which they do not care to talk about.
Look all I’m saying is that you elected an oil man, ok be it a filed oil man, as president with hopes that he would know what to do.
And I’m saying we gave the wolf the job of guarding the hen house.
Here is where your logic fails you and I'll let you in on something...
They own the Crude in most cases...
Sure they have to pay governments and land owners for the "lease" or right to drill and pay portions of every ounce that they squeeze out of the ground or have to sell directly to the goverments, etc. butt OPEC doesn't Drill.
The price of oil is a factor of so many different things, much of it is pure speculation on the political relations in foreign countries, as well as the speculation of investors which includes any stock holders. It's not just drilling and selling, it's speculation on how much it is worth. While it's true that ExxonMobil drills, they are the 14th in the production of oil and obviously do not have the power to sell oil at whatever price they would like. The CEO of the company has been saying that the price is too high, and that it's an artificial bubble. I believe him.
Shah, do you think there is some magic spigot that flows oil somewhere? Do you know a damn thing about mineral rights?
You know Mosadeq was overthrown by the CIA at the request of BP for he wished to add an extra $.025tax on every barrel of crude that left the country.
Last I knew we were giving our friends in Saudi Arabia about $15 per barrel that left their beloved sand.
The oil terminals and all the wells were built in the early 60's with minor modifications and additions.
And no offence, but watching you guys falling over each other to defend big oil and your boy kings close connections with big oil is like watching a drunk guy hit on the fat pig at the end of the bar.
And no offence, but watching you guys falling over each other to defend big oil and your boy kings close connections with big oil is like watching a drunk guy hit on the fat pig at the end of the bar.
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