I have a solution to Exxon's PR problem. Break the company into global sector divisions and have tracking stocks and separate financials for each. That way, if they are 10 evenly distribute companies, earnings would be only $4 billion/year and not the headline grabbing $40 billion/year.
Originally posted by: Specop 007
I really dont understand it. How can I possibly explain it to you any better?
If you could make 20 billion a quarter selling here, or 40 billion a quarter selling over there, where would you sell?
I'm honestly afraid I'm going to have to resort to colors and coloring books to explain this very, very basic concept....
Where is over there? if you redirected the oil supply from the US the world supply increases and the price drops.
you'd be content with the mafia supplying your oil? on the other hand, i don't doubt that the russian mafia has a hand in russia's oil production.
this doesn't make any sense because there are industries with higher profit margins. up a few posts i linked to intel's margins: 17%. here's apple's: 14%. should those margins come down too?
I don't think they're making enough money, I'm going down to the gas station to donate another $40 to Exxon.
Umm, 10% is the norm for most all manufacturing. Have you pulled up to a pump in Europe lately? I have. I think your BDS is clouding your reasoning and sound business.
The difference with those companies they are a true free market, they compete with valued engineering and their buyers want that specific item.
Oil companies sell the same damn thing, demand a price because they know we have no other choice.
Oh boy, you've gone off the looney bin.
Are you saying that computing is not a commodity market? You must be joking.
You're too focused on the supply side with something you can touch and feel. Computing is the exact same thing except you can't touch and feel it. No less, it's a commodity.
You dont seem to have a point. You dont respond to the topic, you just keep quoting me then making another point.
You infer that we have it better in the US because we have lower prices. I point out that its because of the tax, no profit margin.
You respond with, well, nothing.
EXXon was perfectly content with a $25 billion profit in 2005, my contention is that if they were told they would not make more than $25 billion in 2009, they would take that deal.
Originally posted by: Lothar
Do you realize the value of the dollar has dropped since 2005?
yeah, you do realize thats partly because of the price of oil?
Originally posted by: bctbct
Originally posted by: Lothar
Do you realize the value of the dollar has dropped since 2005?
yeah, you do realize thats partly because of the price of oil?
wow...you need to flip that relationship...
Originally posted by: bctbct
Originally posted by: Lothar
Do you realize the value of the dollar has dropped since 2005?
yeah, you do realize thats partly because of the price of oil?
Price of oil doesn't affect the dollar.
It's the other way around.
Originally posted by: bctbct
Originally posted by: Lothar
Do you realize the value of the dollar has dropped since 2005?
yeah, you do realize thats partly because of the price of oil?
wow, no wonder I can't talk sense into people.
supply and demand - live it, learn it, love it. Basic economics.
"EXXon was perfectly content with a $25 billion profit in 2005, my contention is that if they were told they would not make more than $25 billion in 2009, they would take that deal.
"
I seriously doubt that. I can't slam business knowledge into you any more clearer. I'm sorry if this doesn't make sense. But business is in the business to make money.
You guys seem so hung up on the monetary number without looking further or even understanding it. You do understand that the purpose of business is to make more money, right? Or is the purpose somehow not right to you? Do you understand growth?
-edit-
bctbt, please post your age. It's very relevant.
Slow economic growth and even interest rates can affect the value of US currency. High oil prices have diffently impacted US growth.
Oil prices are tied to the dollar, but dont discount other factors.
Oil prices are tied to the dollar, but dont discount other factors.
there are several things wrong with that statement.
1) due to our banking system, the value of money drops from year to year due to inflation. so, no they will not be content with this arrangement. in fact, i'd bet they'd stop being a company based in the u.s.a. and become a company based in some other country where there is no profit restriction.
2) they would fall behind their peers in europe (bp, shell, total, etc.) and other countries and will no longer be as competitive.
3) by 2009, exxon won't be the only company with $25 billion or more in profits. citigroup came very close in 2006.
I'm sorry, you said that a business would take a deal that would limit their profit 4 years into the future. Not going to happen.
I don't mean to harp on it but your statement is so completely against any reasonable person that it can't be taken seriously. I'm trying to find my sarcasm meter but it's obviously broke.
Stop focusing on the actual dollars.
Inflation is not just because of our banking system. There are many other inputs into the equation.
Why do you guys think that the oil companies should call the shots here? I dont subscribe to the idea that we have to take what they give us.
No company is going to walk away from $25 billion in profit, and if they do someone will step in to gladly accept it.
They have a product they need to sell. 20 million barrells per day, everyday.
Say they all conspire to not sell to us, they then have those barrels they need to sell elsewhere.
Is the world prepared to buy those 20 million barrels everyday? Maybe, probably not. But if they do, prices will crash and they would lose even more money.
Gas was $3 per gallon when the price of oil was $55 pb, now its close to $100 and the price is the same. They are munipulating the supply and demand to boost profit, quit defending them.
And spidey, gas was .49 per gallon when I started pumping it.
No company is going to walk away from $25 billion in profit, and if they do someone will step in to gladly accept it.
They have a product they need to sell. 20 million barrells per day, everyday.
Say they all conspire to not sell to us, they then have those barrels they need to sell elsewhere.
Is the world prepared to buy those 20 million barrels everyday? Maybe, probably not. But if they do, prices will crash and they would lose even more money.
Gas was $3 per gallon when the price of oil was $55 pb, now its close to $100 and the price is the same. They are munipulating the supply and demand to boost profit, quit defending them.
And spidey, gas was .49 per gallon when I started pumping it.
ok, thanks...I remember 70 cents a gallon so you got me.
But when you say "they" are limiting supply (because you certainly can't limit demand) who are you referring to?
Originally posted by: spidey07
ok, thanks...I remember 70 cents a gallon so you got me.
But when you say "they" are limiting supply (because you certainly can't limit demand) who are you referring to?
Are you old enough to remember Reagan, Bush Sr. and Clinton pressuring the Middle East to pump more oil? Have you seen an honest attempt for that in the last 6-7 years?
Royal Dutch Shell(not an American company) already reported a $32 billion profit.
If you were to tell bctbct that, he'll either tell you "apples to orange" comparison or that their profit was due to the strong Euro.
Actually it is an answer to salvage our economy. I think the better solution is to reduce the profits by making it a free market instead of letting them rig prices.
Gas prices were dictated by barrell price, now they want to say its based on refinery capacity. They control that that capicity to manipulate prices.
A strong Congressional investigation into US oil companies would have execs questioning whether profits are worth risking jail time.
edit
I dont know that much about ANWR, I suspect the oil companies want it because its more profitable, in turn thats why Bush wants it.
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