Exxon: near record profits

Page 10 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.

Amused

Elite Member
Apr 14, 2001
57,300
19,334
146
Originally posted by: TheAdvocate
Originally posted by: Amused
Originally posted by: ElFenix
Originally posted by: Amused
Your post is absurd. First of all, the oil companies are not a government mandated monopoly. Secondly, the profit margin is LOWER for Exxon than it is for most monopoly utility companies.
profit margins aren't an idicator of anything. what if they're very inefficient? could be that they could have 50% margins if the company was run properly.

Profit margins are everything when spurious claims of gouging are thrown about.

They arent spurious. Exxon's Gross Margin increased over the last two reported quarters, as I pointed out and you ignored. That was my point.

You had no point. All the Gross Profit Margin tells us is that the company became more efficient. GPM is nothing more than a measure of efficiency.

Meanwhile, their profit margin remains virtually unchanged over 5 years. A point you choose to ignore because it doesn't jibe with your claims of price gouging.
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,398
8,568
126
Originally posted by: virtualgames0
Facism? Do you even know what you're talking about? Facism supports businesses. That said, all extremes are bad, yes even capitalism at it's unregulated form does not work.
fascism was the confluence of industry and government. it arose from the syndicates in italy.


no one has tried capitalism in its unregulated form, so who knows if it doesn't work.
 

slsmnaz

Diamond Member
Mar 13, 2005
4,016
1
0
Originally posted by: TheAdvocate
Originally posted by: Amused
Originally posted by: ElFenix
Originally posted by: Amused
Your post is absurd. First of all, the oil companies are not a government mandated monopoly. Secondly, the profit margin is LOWER for Exxon than it is for most monopoly utility companies.
profit margins aren't an idicator of anything. what if they're very inefficient? could be that they could have 50% margins if the company was run properly.

Profit margins are everything when spurious claims of gouging are thrown about.

They arent spurious. Exxon's Gross Margin increased over the last two reported quarters, as I pointed out and you ignored. That was my point.

So the CEO did his job. What's your problem with a company increasing margins? There are many reasons this could happen. For example: They could have spent money in that quarter on refining, R&D, exploration, etc. and showed the benefits of that recently.
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,398
8,568
126
Originally posted by: gsellis
errr... you folks are missing the fact that China and India have significantly increased their demand for oil. Supply is about the same, demand increases => Price increases. Then stir in a bunch of pansy traders (I hate 'em as commodity traders have no contact with reality - who traders determine price is a special tirade for another thread/book).

Sidenote - our own Beltway folks seem to think that you can only make alcohol from corn (some grower orgs act as badly as unions).

on the contrary, sugar growers have a terrific union that causes sugar in the US to be 10x more expensive than the world price.

and once coke and pepsi decided to use high fructose corn syrup because the sugar price set by the government was too high, the sugar subsidy became a corn subsidy as well.



god i wish we could just get rid of all the fscking subsidies. then we'd see how much a gallon of ethanol really costs (and we could have better tasting coke)
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,398
8,568
126
Originally posted by: Amused
Profit margins are everything when spurious claims of gouging are thrown about.

what if they are gouging but they're blowing the money on crap instead of giving it to the shareholders?
 

kalster

Diamond Member
Jul 23, 2002
7,355
6
81
Originally posted by: Amused
The most amazing thing here (besides the blatant ignorance of how the market works) is that so many people feel they are entitled to a company's product.

You are not. If Exxon's (and the other oil companies) profits disgust you, stop buying their product. Contrary to popular opinion you do NOT need gasoline. You do NOT need to live miles from work and you do NOT need to drive everywhere.

easy to say these things living in Illinois. Try moving to California or some of the more expensive states and you will realize how its not easy to live near work. I guess you will say next, you DONT have to live and work in California. Well guess what the way people/world function now, GAS is an integral part of soceity and companies hiking up prices and earning mega proifts while consumers can barely afford it is not acceptable. Not to mention automakers not wanting to develop alternative technology (see the movie "who killed the electric car")
 

fitzov

Platinum Member
Jan 3, 2004
2,477
0
0
Originally posted by: Amused
Originally posted by: fitzov
Originally posted by: Linflas
Originally posted by: fitzov
If it weren't for "sheep" veterans like me, you'd have no rights whatsoever.

Unless you served in WW2 you are full of crap, and even then it's speculative--no, it's science fiction--that Japan or Germany would have taken over the US.

The only one full of crap here is you. When you are in the military your life is on the line 24X7 not just during a time of war. We weren't at war when the Cole was bombed or when Pearl Harbor was bombed yet in both instances American servicemen lost their lives. It is only speculative that Germany or Japan would have taken over the US only because there were enough people willing to defend this country to allow you to be around today to spout such garbage.

Blah blah blah. I was in the military during the first Gulf War, and I don't feel entitled to say that I "defended" the country. That's BS, and disrespectful to those who died when were in real times of crisis. You can take your flag-waving crock of shite and shove it where the sun doesn't shine. (or, maybe it does shine there, who knows)

Um, without a military we'd be open prey to the first two bit dictator to come along.

I'm very sorry you did not recognize the importance of your job when you did it. Some of us did. My father was in WWII and so was my GF's grandfather. Thankfully, they don't/didn't share your pathetic discounting of our military.

BTW, WTH is wrong with waving the flag? Aren't you proud of your country and what the flag stands for? If not, why the hell did you serve? Let me guess, for the benefits, right?

I recognized the importance of my job, but I don't feel that it raises to the level of "defending the country"--that's nationalistic propaganda BS used everytime someone speaks their mind and says our military shouldn't be in the business of nation-building or regime-change. The military is important, but we may disagree on what its role is. You apparently have the hairbrained idea that any action undertaken by the military is "defending" the country. Well, either you don't know what 'defending' means, or you are a sheep. That's ok though, because we need people that will simply follow orders and not think.

Flag-waving is ok on the fourth of july, but when it's used to give the impression that another's opinion is anti-American, then it's being used for nationalistic rhetoric. That is disrespectful to the concepts that the flag stands for, and it is disrespectful to those who have died.
 

notfred

Lifer
Feb 12, 2001
38,241
4
0
I take it based on the fact that, at this point, everything in tis thread is quoted 10 levels deep, that anything I posted now would pretty much be ignored in favor continuing these ongoing arguments, correct?
 

slsmnaz

Diamond Member
Mar 13, 2005
4,016
1
0
Originally posted by: notfred
I take it based on the fact that, at this point, everything in tis thread is quoted 10 levels deep, that anything I posted now would pretty much be ignored in favor continuing these ongoing arguments, correct?

Actually it might be welcomed
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,398
8,568
126
Originally posted by: kalster
Not to mention automakers not wanting to develop alternative technology (see the movie "who killed the electric car")

ah great another conspiracy theory movie

and how many people moved to california because it was better there. now its better elsewhere and you're saying that moving isn't an option?
 

cheezy321

Diamond Member
Dec 31, 2003
6,218
2
0
Originally posted by: fitzov
Flag-waving is ok on the fourth of july, but when it's used to give the impression that another's opinion is anti-American, then it's being used for nationalistic rhetoric. That is disrespectful to the concepts that the flag stands for, and it is disrespectful to those who have died.

When was it used for that reason? You are spitting off crap that has nothing to do with the argument at hand, and no one said anything of that nature? Are you writing stuff just to feel important?

He has an american flag as his AVATAR. You are looking so deep into this your head is up your a$$
 

Babbles

Diamond Member
Jan 4, 2001
8,253
14
81
Originally posted by: TheAdvocate
Not one legitimate argument since I posted.

If there's one thing I've learned, you cannot have a logical discussion with an idealogue. You'd have more success ordering a hamburger from a turtle. They are basicly a different species.

That's why this stuff needs to be on P&N. The people making the most noise in these threads dont want to discuss, they just want to argue.

If you wanna compete that bad, go play a video game, or :gasp: go outside and play a sport. At least you'll be exercising.

You know you got a winner win they play the holier-than-thou card. It's even better when they use the ad hominem attacks even though just a few posts above they moaned about ad hominem being used against them.

Additionally you need to separate your inability to critically think about the situation and legitimacy - i.e. just because you don't "get it" does not mean it isn't legitimate.
 

yhelothar

Lifer
Dec 11, 2002
18,409
39
91
Originally posted by: fitzov
Originally posted by: Amused
Originally posted by: fitzov
Originally posted by: Linflas
Originally posted by: fitzov
If it weren't for "sheep" veterans like me, you'd have no rights whatsoever.

Unless you served in WW2 you are full of crap, and even then it's speculative--no, it's science fiction--that Japan or Germany would have taken over the US.

The only one full of crap here is you. When you are in the military your life is on the line 24X7 not just during a time of war. We weren't at war when the Cole was bombed or when Pearl Harbor was bombed yet in both instances American servicemen lost their lives. It is only speculative that Germany or Japan would have taken over the US only because there were enough people willing to defend this country to allow you to be around today to spout such garbage.

Blah blah blah. I was in the military during the first Gulf War, and I don't feel entitled to say that I "defended" the country. That's BS, and disrespectful to those who died when were in real times of crisis. You can take your flag-waving crock of shite and shove it where the sun doesn't shine. (or, maybe it does shine there, who knows)

Um, without a military we'd be open prey to the first two bit dictator to come along.

I'm very sorry you did not recognize the importance of your job when you did it. Some of us did. My father was in WWII and so was my GF's grandfather. Thankfully, they don't/didn't share your pathetic discounting of our military.

BTW, WTH is wrong with waving the flag? Aren't you proud of your country and what the flag stands for? If not, why the hell did you serve? Let me guess, for the benefits, right?

I recognized the importance of my job, but I don't feel that it raises to the level of "defending the country"--that's nationalistic propaganda BS used everytime someone speaks their mind and says our military shouldn't be in the business of nation-building or regime-change. The military is important, but we may disagree on what its role is. You apparently have the hairbrained idea that any action undertaken by the military is "defending" the country. Well, either you don't know what 'defending' means, or you are a sheep. That's ok though, because we need people that will simply follow orders and not think.

Flag-waving is ok on the fourth of july, but when it's used to give the impression that another's opinion is anti-American, then it's being used for nationalistic rhetoric. That is disrespectful to the concepts that the flag stands for, and it is disrespectful to those who have died.
:thumbsup:

 

yhelothar

Lifer
Dec 11, 2002
18,409
39
91
Originally posted by: ElFenix
Originally posted by: virtualgames0
Facism? Do you even know what you're talking about? Facism supports businesses. That said, all extremes are bad, yes even capitalism at it's unregulated form does not work.
fascism was the confluence of industry and government. it arose from the syndicates in italy.


no one has tried capitalism in its unregulated form, so who knows if it doesn't work.

America was much closer to an unregulated capitalism before FDR set the foundation for the regulations we have today. Businesses were corrupt and the working class was fvcked over big time. It clearly does not work.
 

cheezy321

Diamond Member
Dec 31, 2003
6,218
2
0
Originally posted by: virtualgames0
America was much closer to an unregulated capitalism before FDR set the foundation for the regulations we have today. Businesses were corrupt and the working class was fvcked over big time. It clearly does not work.

Link as proof?

In this entire thread, you haven't provided anything useful in this argument. You say that its price gouging because oil companies have record profits. Explain how its price gouging. The oil companies didnt raise the prices, the events going on around the world did.

Ever thought demand went up? Ever thought that their commodity they are selling is hard to get, and is running out pretty quick?

All you have said is that people who have a flag avatar are sheep to the govt and love oil companies. riiiiiiiiiight.
 

TheAdvocate

Platinum Member
Mar 7, 2005
2,561
7
81
Originally posted by: Amused
You had no point. All the Gross Profit Margin tells us is that the company became more efficient. GPM is nothing more than a measure of efficiency.

Meanwhile, their profit margin remains virtually unchanged over 5 years. A point you choose to ignore because it doesn't jibe with your claims of price gouging.

Actually, I did have a point, which you neglected:

Actually, everything I've posted is stuff I've worked on myself, including the gross margin analysis of Exxon's quarterly financials, that you so predictably glazed over. There are only two ways to improve gross margin:

1. Charge more for the same goods
2. Reduce costs of production

If you look at Exxon's Q1 2006 and Q4 2005 financials, Gross margin INCREASED, despite the ballooning cost of crude oil. How do you offset that and make a BETTER margin? By charging more than 100% of the cost increase. It's one thing to say that they have an aboslute right to pass along cost increases to consumers at 100% because there are no equivalent alternatives (a theory I strongly disagree with for reasons of national security and well being), but it's another thing entirely to pass along MORE than 100% of your cost increases - that's called gouging or profiteering, and given the circumstances, it's highly unethical.

But, like I said, you're an idealogue. There is no way you would ever listen, let alone concede a point in any debate. Therefore, it isn't a discussion, because there is no give and take.

Arguing with you is a complete waste of time. It's repetitive and boring. I'll pass.
 

CrackRabbit

Lifer
Mar 30, 2001
16,642
62
91
I'm not truly sure what to think of this.
Companies making a profit are what companies are meant to do. If you can't make a profit you generaly aren't in business for long.
But gas is a comodity, something needed to make the current economy work. Without it the entire system falls apart. I'm talking about the long haul trucks, trains and ships that transport goods from one place to another. As the costs of fuel rise greatly those costs eventualy get passed on to the consumer. If they keep rising at what point does it trigger recession and eventualy depression as the amount consumers spend on goods goes up greatly but the ammount they make to buy the goods doesn't match?

The real thing about is when does a company have to stop thinking about it's own profits and think about the entire economy that they could be effecting?
 

slsmnaz

Diamond Member
Mar 13, 2005
4,016
1
0
Originally posted by: CrackRabbit
I'm not truly sure what to think of this.
Companies making a profit are what companies are meant to do. If you can't make a profit you generaly aren't in business for long.
But gas is a comodity, something needed to make the current economy work. Without it the entire system falls apart. I'm talking about the long haul trucks, trains and ships that transport goods from one place to another. As the costs of fuel rise greatly those costs eventualy get passed on to the consumer. If they keep rising at what point does it trigger recession and eventualy depression as the amount consumers spend on goods goes up greatly but the ammount they make to buy the goods doesn't match?

The real thing about is when does a company have to stop thinking about it's own profits and think about the entire economy that they could be effecting?


You said the magic word "commodity". Speculators are driving the prices.

It's no more the oil company's responsibility than the gov't. They won't dare lower the gas tax to help the people so why should a corp be held higher than them?
 

slsmnaz

Diamond Member
Mar 13, 2005
4,016
1
0
Originally posted by: TheAdvocate
Originally posted by: Amused
You had no point. All the Gross Profit Margin tells us is that the company became more efficient. GPM is nothing more than a measure of efficiency.

Meanwhile, their profit margin remains virtually unchanged over 5 years. A point you choose to ignore because it doesn't jibe with your claims of price gouging.

Actually, I did have a point, which you neglected:

Actually, everything I've posted is stuff I've worked on myself, including the gross margin analysis of Exxon's quarterly financials, that you so predictably glazed over. There are only two ways to improve gross margin:

1. Charge more for the same goods
2. Reduce costs of production

If you look at Exxon's Q1 2006 and Q4 2005 financials, Gross margin INCREASED, despite the ballooning cost of crude oil. How do you offset that and make a BETTER margin? By charging more than 100% of the cost increase. It's one thing to say that they have an aboslute right to pass along cost increases to consumers at 100% because there are no equivalent alternatives (a theory I strongly disagree with for reasons of national security and well being), but it's another thing entirely to pass along MORE than 100% of your cost increases - that's called gouging or profiteering, and given the circumstances, it's highly unethical.

But, like I said, you're an idealogue. There is no way you would ever listen, let alone concede a point in any debate. Therefore, it isn't a discussion, because there is no give and take.

Arguing with you is a complete waste of time. It's repetitive and boring. I'll pass.

You had only 2 points that limited your argument. There are other reasons besides those. I mentioned them before but you ignored them.

There are many reasons this could happen. For example: They could have spent money in that quarter on refining, R&D, exploration, etc. and showed the benefits of that recently.
 

Amused

Elite Member
Apr 14, 2001
57,300
19,334
146
Originally posted by: TheAdvocate
Originally posted by: Amused
You had no point. All the Gross Profit Margin tells us is that the company became more efficient. GPM is nothing more than a measure of efficiency.

Meanwhile, their profit margin remains virtually unchanged over 5 years. A point you choose to ignore because it doesn't jibe with your claims of price gouging.

Actually, I did have a point, which you neglected:

Actually, everything I've posted is stuff I've worked on myself, including the gross margin analysis of Exxon's quarterly financials, that you so predictably glazed over. There are only two ways to improve gross margin:

1. Charge more for the same goods
2. Reduce costs of production

If you look at Exxon's Q1 2006 and Q4 2005 financials, Gross margin INCREASED, despite the ballooning cost of crude oil. How do you offset that and make a BETTER margin? By charging more than 100% of the cost increase. It's one thing to say that they have an aboslute right to pass along cost increases to consumers at 100% because there are no equivalent alternatives (a theory I strongly disagree with for reasons of national security and well being), but it's another thing entirely to pass along MORE than 100% of your cost increases - that's called gouging or profiteering, and given the circumstances, it's highly unethical.

But, like I said, you're an idealogue. There is no way you would ever listen, let alone concede a point in any debate. Therefore, it isn't a discussion, because there is no give and take.

Arguing with you is a complete waste of time. It's repetitive and boring. I'll pass.

Exxon's 5 year average GPM is 28.41

Today it stands at 28.88

The 5 year average for the S&P 500 is 44.41

It's now at 44.52

I fail to see this huge increase in GPM that you think has trumped all arguments and made Exxon a "price gouger."

Fact: Oil prices have jumped from less than $20 to $70+ a barrel. Gas prices have risen as well.

How is any of that Exxon's fault?
 

SampSon

Diamond Member
Jan 3, 2006
7,160
1
0
When you cannot attack the logic, attack the messenger, ad hominem. The guy took home $686M dollars during a time when the nation was reeling from Katrina and the Iraq war. That's a fact.
You presented no logic in that post. You posted a link to a picture of the former CEO and proceeded to ask if based on the picture of a fat guy do I still feel ok about my argument? Yes I do. Also your argument was addressed in this post multiple times before I'm posting this, so no need to further explain your flawed logic. If anyone in this thread is a windbag ideologue it's you. Ps. Don't pull out a fallacy card, when you were guilty of committing the same logical fallacy in the post I quoted from you.

uh...yeh, i read it. no one directly said they had a right to gasoline. you are just assuming that is what they meant. oh.... sounds like you read something "into" the thread.
Right, they implied that they have a right to gasoline. They also imply that they have the right to cheap gasoline. That's WHY people are mad, because they think gasoline must be cheaper, and they think because they "need" it to live their lives that they have a right to have it. It's implied logic, a very simple concept.

i said, "the holier than thou attitude of a select few in this thread amazes me"
that would seem i am referring to more than you.
Yes, I understand that. I was addressing your inclusion of me in that group of people.

I can only speak for myself, but I understand why these record profits are being made. I also understand that while they go home with fat wallets my purse is shrinking. I have a right to be pissed about that scenerio no matter how much you want to justify it as free enterprise.
Record profits are being made in part because of record usage. That is a direct correlation. You have all the right in the world to be pissed off, but you don't have the right to justify your anger by blaming it on oil companies (or any company for that matter) for making money. Why arn't you pissed off at NEW YORK STATE, who has incredibly high gas taxes. Why arn't you pissed at arab nations who set very high prices for a barrel of oil?

I disagree. I am speaking of those of you who feel the need to talk down to us time and time again and in thread after thread. That's where the pedestal perching comes in.

How are you figuring I use SO MUCH gas again? you have no idea.
Well thoes people typically make very logical and educated points. I know you are talking about Amused, because you always go at it with him in threads. I rarely see him attack you personally, insult you, or look down at you as an inferior person. He addresses the points you are making with clear concise thoughts/opinions that really do not come off as being condescending. I think much of it has to do with how you feel when you're proven logically wrong, and you know it, but you don't want to admit it. Since your argument isn't being accepted you feel as if someone is looking down at you, which really isn't the case. Also an observation, you argue with emotion, Amused argues with logic, it's classic man vs. woman.

This thread is a good example of that. You opened your posting with an emotion driven argument on a topic that you (apparently, due to inquires) know little about, then logical arguments were made with numbers involved, you continued to counterpoint with emotion driven argument. There is nothing wrong with that at all, but the thread is really about economics.

I never implied you used a lot of gasoline. "They" is referring to our society as a whole, I never directly said "mosh, you use a lot of gasoline. As an American you are part of the group of the most ravenous consumers on the planet, and so am I. We use A LOT of gasoline over here and we really don't want to stop, no matter what anyone says.

what have i said that was ignorant in this thread?
I just think that your lack of understanding of how the economics of oil works leads you to believe media hype that you're getting "screwed" at the pump. You claim that you need gasoline, and you're probably right, but you need a lot of things, do you bitch so vehemently about these other things and think you're getting screwed? No matter which way you want to look at it the reality is it boils down to economics. Oil companies havn't changed the way they do business much at all, though oil prices and taxes have risen. So your anger is completely misdirected. What do you want these companies to do, cut a few percent from their already low profit margins of 10%? Will it make you feel better if they don't make billions of dollars and gas prices are only a few cents cheaper? These companies made a lot of money because people are using a lot of gas, capiche? Your ignorance of oil economics directly correlates with your anger. Your whole argument seems to be. "I'm mad because I have to pay money for something I need, and the price keeps going up!". Well ok, that's reality, and there isn't much more to that argument than that statement. I'm not sure how you can stretch that point beyond a couple posts.

Originally posted by: ElFenix
Originally posted by: Amused
Profit margins are everything when spurious claims of gouging are thrown about.

what if they are gouging but they're blowing the money on crap instead of giving it to the shareholders?
To quote the article posted:
"Exxon said spending on exploration and production rose 8 percent in the quarter, to $4.9 billion, while overall output rose 6 percent."
"Gheit said the company sent $7.9 billion back to shareholders in the second quarter in the form of dividends and stock buybacks."
 

DARQ MX

Senior member
Jun 4, 2005
640
0
0
As much as the prices have a lot to do with the owners and the companys. I found a NH Exxon I go to is $2.95 a gallon for 89. This brings it to be 20-15 cents cheaper than most places in Mass. So it is rather odd...
 

Legend

Platinum Member
Apr 21, 2005
2,254
1
0
Originally posted by: wazzledoozle
So this would be a good time to buy stock in Exxon?

Not sure, but they've been a top performer in the past 50 years. Many people are attracted to tech, growth stocks from hype, but value stocks like oil, food, cigarettes, prescription drugs, soda, etc have only been beaten by an early investment in google or micrsoft. But that's like winning the lottery. For every microsoft, there's thousands of duds.