http://money.cnn.com/2008/02/01/news/companies/exxon_earnings/index.htm?cnn=yes "Exxon Mobil made history on Friday by reporting the highest quarterly and annual profits ever for a U.S. company, boosted in large part by soaring crude prices. Exxon, the world's largest publicly traded oil company, said fourth-quarter net income rose 14% to $11.66 billion, or $2.13 per share. The company earned $10.25 billion, or $1.76 per share, in the year-ago period. The profit topped Exxon's previous quarterly record of $10.7 billion, set in the fourth quarter of 2005, which also was an all-time high for a U.S. corporation."
Now you know why we pay so much for gas? It creates inflation and sinks our economy and there is no one to rein these Oil Barrons.
11.6 billion profits on revenue of 114 billion ...about 10% return, not to bad microsoft 37% earnings of revenue...even better
You pay so much in gasoline, because goverment taxes. The Fact is that Exxon earned 9.5 cents on every dollar of gasoline and oil sold, cashing in at every stage of the process, while the federal government collected 18.4 cents per gallon in tax for doing nothing. Federal, state and local taxes total an average of 46 cents per gallon -- significantly more than the 28 cents Exxon earned on a $3 gallon of gas. for example: Exxon pay 83 percent as much as the $11 billion it earned in total tax/cost/dividends. Networks Ignore How Big Government Rakes In More than Big Oil. Government took in more than $7 billion (in income tax) from ExxonMobil during the first quarter of 2006, a jump of more than $2 billion from the same time period in 2005. And that doesn't count the more than $7.6 billion in excise taxes -- the gas tax -- that ExxonMobil collected for the government during the same quarter. Plus another $11 billion in 'other taxes' and ExxonMobil sent the government more than $25 billion in the first quarter of 2006 -- three times more than the amount ($8.4 billion) network reporters seem to feel is obscene.
Exxon's margins are in line; investors in the right businesses are rewarded. Thats capitalism guys. Without profit incentive, investment stops, economic growth halts, and people don't have jobs. Here's another way of looking at it: Don't you suppose the entire oil production business would be motivated to drill for more crude if the margins are this high? Yes. Even small drillers would be incentivized. If its free money, even $50 crude sounds great [assuming demand falls off] to an investor. Problem is its simply too difficult and too expensive to find more. Simple economics guys -- if its cheap enough for an oil producer to drill for more (ie $10/barrel), they stand to lose nothing by drilling for as much as possible and flooding the market with supply. Especially little guys.. It would be free money. Reality is quite the opposite. There are production and supply issues, and this soaring oil price is not purely a function of monetary policy.
"Exxon's margins are in line; investors in the right businesses are rewarded. Thats capitalism guys" nope, that's superb accountants man.. best money can buy the "OJ" of money" the timing is too perfect