Exxon record profits again

[slowrev]

on the egg and milk thing, I can get a cow and chickens, it is however quite difficult to make gasoline
I rank energy more like medicine, gotta have it, can't make it.

Much of the oil being sold now was drilled into when it was selling for $40/bbl or less. Also the profit on gasoline is not the only profit that oil companies make.
There is many items made from petroleum, what about the prices on those ? have they gone up a corresponding amount compared to gasoline ?
Then there is natural gas, hmm it does not seem to come from the middle east.....Why has it gone up so much ?I understand the supply and demand thing, but still think we are being ripped off to some degree.
Ben

 

[ducati996]

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?

Not sure where you got 10 cents a gallon but based on EIA breakdown
of unleaded gas being at $2.98
the breakdown for the crude is 52 % , refining 26%, distrubiton & marketing 6% and taxes 15%
Either way its more than 10 cents a gallon -if you could please define if its net or gross profit

Gasoline and Diesel Fuel Update

 

[MadReferee]

Not sure where you got 10 cents a gallon but based on EIA breakdown
of unleaded gas being at $2.98
the breakdown for the crude is 52 % , refining 26%, distrubiton & marketing 6% and taxes 15%
Either way its more than 10 cents a gallon

Gasoline and Diesel Fuel Update

As I said earlier, everyone pays the same amount for gas at the bulk distribution terminal. The difference in prices from the terminal to the pump is usually in the 30-50 cent range. This markup DOES NOT GO TO THE OIL COMPANIES, it goes to the local distributor, hauler and retailer.

The big oil companies are making their profit earlier on in the process.

 

[MikePA]

Much of the oil being sold now was drilled into when it was selling for $40/bbl or less.

1. It doesn't take that long to get a barrel of oil from the the Middle East to the refinery. So, the oil being sold now was not drilled when it was $40/bbl.

2. Even if it was, items that are getting more expensive are priced at what it will cost to replace them in inventory, not what it cost to acquire them.

An example;

Your Unit Cost - $1.00
Your Unit Selling Price - $1.10
You sell 1 item.
Wow, you made a 10% profit and have $1.10 in the bank.

Problem is, now the cost to replace the item in inventory is $1.20 and you don't have enough money to buy it. The more volatile your replacement cost, the harder it is to set prices. Too low and you lose money and make the shareholders mad, too high and people accuse you of excess profits.

 

[MikePA]

Not sure where you got 10 cents a gallon but based on EIA breakdown
of unleaded gas being at $2.98
the breakdown for the crude is 52 % , refining 26%, distrubiton & marketing 6% and taxes 15%
Either way its more than 10 cents a gallon -if you could please define if its net or gross profit

Gasoline and Diesel Fuel Update

Try doing more research on the EIA site. Oil company profits on a gallon of gas is 10 cents when gasoline costs $3.00.

 

[Casey1]

It's funny that the oil drilled for 30 or 40 dollars a barrel is the same oil drilled for 70 now. There is something wrong and I don't know exactly what it is but if you believe there is only 10 cents a gallon profit going on then I will sell you some ocean front property in Arizona for oh 10 cents an acre.

 

[MikePA]

It's funny that the oil drilled for 30 or 40 dollars a barrel is the same oil drilled for 70 now. There is something wrong and I don't know exactly what it is but if you believe there is only 10 cents a gallon profit going on then I will sell you some ocean front property in Arizona for oh 10 cents an acre.

What do you mean 'there's something wrong and you don't know exactly what it is'? What's wrong is the people who pump the oil out of the ground have doubled the price of a barrel of oil.

The OIL COMPANIES LIKE EXXON make 10 cents a gallon. I did not say the people who pump the oil out of the ground are only making 10 cents a gallon. EXXON does not pump the oil out of the ground. EXXON is not a retailer. This thread is about EXXON.

 

[slowrev]

1. It doesn't take that long to get a barrel of oil from the the Middle East to the refinery. So, the oil being sold now was not drilled when it was $40/bbl.//

//

HUH ?
You mean wells drilled before the war are not still producing oil ? All oil does not come from the middle east.
Ben

 

[MikePA]

1. It doesn't take that long to get a barrel of oil from the the Middle East to the refinery. So, the oil being sold now was not drilled when it was $40/bbl.//

//

HUH ?
You mean wells drilled before the war are not still producing oil ? All oil does not come from the middle east.
Ben

I misunderstood your comment. I agree, I imagine there are wells that have been producing that long. However, no refiner, such as Exxon, controls what they pay for a barrel of oil since they (the refiner) do not pump the oil out of the ground.

 

[SkyPup]

Exxon stations have a way higher margin on their eggs, milk, bread, Gatorade, beer, magazines, and drinking water than they do on their gasoline.