Exxon can lick my bawls
- Thread starter joincamp
- Start date
So do something about it. Don't buy a gasoline engine based car. You are the consumer. You have the power to change the situation.
dullard
Elite Member
- May 21, 2001
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Suppose you sold an item. Suppose the normal selling price of that item was $69. Suppose you could sell as many of those items as you possibly could produce at $69. Now tell me one logical reason you would choose to sell at a different price and have your business to far worse than it could?
Exxon is in the business of making money. That is what they do. They have a responsibility to their shareholders to maximize profits. If they try to sell at a higher price, no one would buy their goods and they'll go out of business. If they try to sell at a lower price, they couldn't sell any more and thus they'd have lower revenue and lower profit - an ethically wrong thing to do to their shareholders.
Remember: Exxon doesn't set the oil price.
Exxon is in the business of making money. That is what they do. They have a responsibility to their shareholders to maximize profits. If they try to sell at a higher price, no one would buy their goods and they'll go out of business. If they try to sell at a lower price, they couldn't sell any more and thus they'd have lower revenue and lower profit - an ethically wrong thing to do to their shareholders.
Remember: Exxon doesn't set the oil price.
Bike to work, take the bus, or car pool.
Save up for a more fuel efficient car, instead of buying a stupid muscle car (most people are compensating anyways
)
**EDIT**
I take the bus to work (Houston is scary to bike to work, especially when you live out in the 'Burbs). Find a cheap deal on a Bus Pass. I end up paying $50 per month on the bus and around $30 on gas per month now, and I still end up with excess bus money. I can give away/sell my extra pass when I run over.
Save up for a more fuel efficient car, instead of buying a stupid muscle car (most people are compensating anyways
) **EDIT**
I take the bus to work (Houston is scary to bike to work, especially when you live out in the 'Burbs). Find a cheap deal on a Bus Pass. I end up paying $50 per month on the bus and around $30 on gas per month now, and I still end up with excess bus money. I can give away/sell my extra pass when I run over.
HA!
The government does regulate the price.
I'm using the term government and oil-companies interchangeably.
1) P&N
2) Exxon employs 105,000 people = good for economy
3) Millions of direct shareholders = benefits individuals, good for economy
4) Thousands of funds hold Exxon = Millions of indirect holders who's pensions, 401ks, etc benefit, good for economy
2) Exxon employs 105,000 people = good for economy
3) Millions of direct shareholders = benefits individuals, good for economy
4) Thousands of funds hold Exxon = Millions of indirect holders who's pensions, 401ks, etc benefit, good for economy
CPA
Elite Member
- Nov 19, 2001
- 30,322
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Oh, and if anyone watched Bloomberg this morning, analysts are again saying oil is not the problem, refining it is. You can blame environmentalists for that problem.
Also, Chavez (Venezuela) is asking OPEC to lower production because there is too much oil in the market. Chavez, though, is looking out for his best interests and probably is saying it to push up oil prices further in order to screw the US. He likes to use oil as a weapon against us.
Also, Chavez (Venezuela) is asking OPEC to lower production because there is too much oil in the market. Chavez, though, is looking out for his best interests and probably is saying it to push up oil prices further in order to screw the US. He likes to use oil as a weapon against us.
ViviTheMage
Lifer
also what i heard
and from what i know a quart of oil for you car costs the same (maybe a few cents more) this year as last year, that oil and your gas come from the same crude oil barrel (the gas is just refined more)
and the last refinery that that was built in the US was about 1970 (i could be wrong) but i was a long time ago
but then you have to ask yourself a question, why would an oil company spend millions to make a refinery just so they can charge less for there product?
[feel free to correct me, all of these things are just specualtion]
I could care less... I buy Mobil gas and notably they are cheaper than the Chevron across the street. Can you explain why Chevron charges more but isn't earning such big profits?
TheAdvocate
Platinum Member
- Mar 7, 2005
- 2,561
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Wrong. There is a fixed level of the demand that is constant, regardless of price. Exxon has an ethical duty to not gouge its customer base, but dont mention that in the ATOT Adam Smith land. Laissez-Faire - if it generates a profit, it must be right.
dullard
Elite Member
- May 21, 2001
- 25,556
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You go right ahead then, go into business in a competetive market and attempt to sell significantly above the going rate. I'll sit back and watch you go bankrupt.
You are wrong that demand is constant. Yes, there is a base level that will always be purchased. But beyond that, there is a price/demand curve where demand shrinks as price increases. Oil is not perfectly inelastic.
If Exxon, for example, refused to sell oil at anything less than $100/barrel, no one would buy Exxon oil. There is a limited supply of other oil, so price will go up. As price goes up, demand DECREASES. There will be a new balance of lowered supply to demand, and a new price tag of that oil. By definition, that new price must be less than the price that Exxon attempted to sell it at and Exxon will sell nothing (otherwise supply would be the same and demand would be the same and the price of oil would stay at ~$69/barrel).
There is a point at which demand would fall. Would it drop to zero? Of course not. But if gas were $20 a gallon you can bet demand would drop.
People seem to think they have a right to cheap gas, and that simply isn't the case. Gas is a limited resource, they have it & we don't. They're entitled to profit as much as possible from that.
Viper GTS
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