Exxon record profits again

[Casey1]

I was just thinking. If oil companies A-Y are making astronomical profits then of course there would be plenty of room to come down on price if they chose. A considerable amount surely. Why wouldn't company Z get the idea to lower their price, sure they would make less per gallon but look at the volume they would have as they cornered the market with cheap fuel. Why hasn't that happened? Isn't that how free market is supposed to work? If that were the case we would be the beneficiaries of the competition.

Oh well I guess if you can't do anything about it might as well like it huh.

Who would you rather be right, me or you.

If I am wrong then I am just one of those dumb consumers who doesn't understand the intricacies and subtle workings of the oil industry, as well as no clue on how a free market works.

On the other hand you experts busting your tails trying to explain a price explosion in favor of the oil industry are wrong, then there isn't enough egg in the state to stick on your faces.

 

[slowrev]

Well...here are the state and local tax rates for gas in those states
NY 43.13 c
PA 32.30 c
OH 28.00 c
KY 18.50 c
TN 21.40 c

It appears that lower taxes are eaten up by gas company profits

 

[SkyPup]

Pilgrim's Pride Offers $1 Billion
For Chicken Processor Gold Kist
Wall Street Journal
August 19, 2006; Page A2

"Pilgrim's Pride Corp., the U.S.'s second-largest chicken processor, launched an unsolicited takeover offer of $20 a share, or $1 billion, for Gold Kist Inc., the nation's third-biggest chicken company."

"The combination of the two companies would rival the size of the largest U.S. chicken business -- which is part of meatpacking giant Tyson Foods Inc."



Casey, how do you feel about the high price of eggs? Aren't all the egg producers gouging the consumers and making astronomical profits? Why do they just give away the eggs for free and bring the price back down to reality? Why are the egg companies all making such huge profits and keeping it secret from the public? Can't something be done to prevent these HUGE egg mergers to protect the consumer?

 

[slowrev]

Skypup, just because corporations do the buyout/merger thing does not mean it is the best course for our country. For example if gas gets very high then the transportation costs from the one or two places left that make widgets essiential for life in the USA will be very high. vs having many different widget makers scattered around the country. There is two sides to the fence and in the long (sometimes very long) run the side that consumers like will prevail. After all what we spend is 60% of the economy.

 

[MikePA]

According to the Energy Information Administration, on average, oil companies make 10 cents per gallon profit. Since they sell a lot of gallons, this is considered astronomical profits. If the oil companies decided to only be half as greedy, cost at the pumps would drop by 5 cents. Even if they decided to make no profit, price at the pumps would drop by 10 cents.

Now that the greedy oil companies have been dealt with, who is the next target. Federal tax at 18 cents per gallon. Is anyone complaing about that? Nope.

Next? State and local taxes which vary from 8 cents (Alaska) to 50 cents (New York) per gallon. Is anyone complaing about that? Nope.

In this scenario, oil companies are making no profit on gasoline, why should they produce it?

 

[SkyPup]

Skypup, just because corporations do the buyout/merger thing does not mean it is the best course for our country. For example if gas gets very high then the transportation costs from the one or two places left that make widgets essiential for life in the USA will be very high. vs having many different widget makers scattered around the country. There is two sides to the fence and in the long (sometimes very long) run the side that consumers like will prevail. After all what we spend is 60% of the economy.

Of course it wouldn't be a good option unless they were to PROFIT as a result of it and reward their shareholders. If they do not PROFIT as a result of the merger, etc. then the shareholders will get rid of them and get a new BOD to run the company.

BTW, I was just responding to Caseys complaint about the shortage of eggs in Texas that he was lamenting about anyways.....

 

[Casey1]

I don't need eggs. I can play free market and easily choose not to use them. Petro products on the other hand are a little harder to eliminate from my diet. I don't like mergers of large corporations whether or not they are eggs or oil. It eliminates business competition.

10 cents a gallon profit? Somebody said the station got around 15 cents per gal. The gas prices have drop around 25 or thirty cents around here lately. I guess the oil companies and the retailers are selling for cost now. I would say be just a little suspicious of sudden large jumps in fuel prices and don't be so quick to lay it off on just honest business practice. It can get a lot worse than it is now, it is just a matter of time before even SkyPup and the boys decide there is something amiss.

 

[ducati996]

Pilgrim's Pride Offers $1 Billion
For Chicken Processor Gold Kist
Wall Street Journal
August 19, 2006; Page A2

"Pilgrim's Pride Corp., the U.S.'s second-largest chicken processor, launched an unsolicited takeover offer of $20 a share, or $1 billion, for Gold Kist Inc., the nation's third-biggest chicken company."

"The combination of the two companies would rival the size of the largest U.S. chicken business -- which is part of meatpacking giant Tyson Foods Inc."



Casey, how do you feel about the high price of eggs? Aren't all the egg producers gouging the consumers and making astronomical profits? Why do they just give away the eggs for free and bring the price back down to reality? Why are the egg companies all making such huge profits and keeping it secret from the public? Can't something be done to prevent these HUGE egg mergers to protect the consumer?

At least with eggs you can just get some chickens to lay the eggs, and the problems is solved....

 

[SkyPup]

So what should we do when the price of a barrel of crude oil falls into the single digits again, close down all the oil companies until they can make a legitimate profit once again?

 

[Casey1]

Single digit oil prices. I wouldn't mind it. The oil companies would just adjust the price at the pump and make a legitimate profit. Our cost would be less and they would still do fine. It's a pipe dream though. It ain't going to happen. I hope your stock goes up at the same rate as fuel prices, but I bet that will not happen either.

10 cents a gallon for oil company profit? How did they squeak by before? Gas prices in my area have dropped 25 to thirty cents recently (diesel hasn't) with profit margins so thin the oil companies and the retailer must be selling at cost. I don't think so.

When gas goes to 250 dollars a barrel then I suppose most of you will suspect there is something rotten it Denmark. It will really be smelling bad by then.