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Re: Big Oil Profits
Old 11-14-2005, 04:58 PM   #21
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Re: Big Oil Profits

Just a small point. There is no such company as Exxon it is ExxonMobil. Stock symbol XOM.

Corporate morality? No such thing. A corp. exists to make money and for no other reason. If you don't like their actions, don't buy the product or their stock. I know it's not possible to do without some products like gas.

How about tobacco companys? Their product is expensive and kills you! People still buy it and the stock.


I own XOM stock but my statements would be the same if I didn't.
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Re: Big Oil Profits
Old 11-14-2005, 05:07 PM   #22
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Re: Big Oil Profits

As another post has said....what about Citigroup and Bank of America? They earn BILLIONS in profits! Where's the 'excessive profits' on them?

And as ConocoPhillips exec pointed out - they earn something like 7% net income on their revenues. 7% Net income off of your revenues sure as hell isn't 'price gouging' to me.

One last question - as will undoubtedly happen, when India and China start to modernize and import massive more quantities of grains and meat/poultry to feed their combined 2 billion people: will we suddenly cut the farm subsidies and exact an "excessive food profits tax" on the farmers when the price of chicken breasts doubles and you pay $3/lb for sugar due to a doubling of the world demand, even though they're making just as much percentage-wise on their sales, due to higher costs for fuel and fertilizer?
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Re: Big Oil Profits
Old 11-14-2005, 05:23 PM   #23
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Re: Big Oil Profits

The consumer has, in most cases, the ultimate power - Stop Buying. Also, we get the (oil-friendly, chicken-hawk) government we elect.


Full disclosure: I own CVX and PBR (great run!).
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Re: Big Oil Profits
Old 11-14-2005, 06:46 PM   #24
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Re: Big Oil Profits

In a competitive market the surest cure for high prices is . . . high prices.

High prices cause demand destruction - i.e. energy conservation

High prices cause alternatives to become viable - i.e. hybrid cars

High prices cause increased investment in new supply

It is through high prices that the market signals the need for greater investment and encourages conservation of a scarce resource. It is also the mechanism by which scarce resources are rationed.

If the government tampers with the pricing mechanism by mandating lower prices than a number of things happen 1) lower prices discourage new investment which prolongs the resource scarcity 2) artificially low prices encourage over consumption of the scarce resource 3) over consumption and under investment causes rationing through another mechanism - shortages (as in gasoline lines).

Anyway, in a country where people gladly pay $2-$4 for a 16 oz cup of coffee and $1.25 for a 20 oz bottle of water, isn't it a little bit silly to be soooo angry over paying $3 for 128 oz (1 gallon) of gasoline.
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Re: Big Oil Profits
Old 11-15-2005, 08:39 AM   #25
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Re: Big Oil Profits

I think everyone is aware that Exxon is ExxonMobil XOM.
It saves 5 key strokes to just refer to them as Exxon.
.
Solutions: wish I had one; thought that members on this forum could discuss; maybe a few solutions would pop up.
.
Of course, in the macro sense, high prices are or should be best for America.
But in the micro sense, it's hurting me and many others.
.
One of my original questions has not been addressed: What do you think big oil will do with the PROFITS made recently? Anyone in the oil industry out there ?
Does big oil expect big government to build new refineries for them ?
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Re: Big Oil Profits
Old 11-15-2005, 08:54 AM   #26
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Re: Big Oil Profits

Quote:
Originally Posted by bennevis
One of my original questions has not been addressed:*
What do you think big oil will do with the PROFITS made recently?
Does big oil expect big government to build new refineries for them ?
Funny how those questions relate to each other-- there's an election year coming up and I'm sure contributions are way behind!
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Re: Big Oil Profits
Old 11-15-2005, 08:55 AM   #27
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Re: Big Oil Profits

Quote:
Originally Posted by bennevis

One of my original questions has not been addressed: What do you think big oil will do with the PROFITS made recently? Anyone in the oil industry out there ?
Does big oil expect big government to build new refineries for them ?
Two words: Mergers, Aquisitions. Why build it when you can buy it?
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Re: Big Oil Profits
Old 11-15-2005, 10:07 AM   #28
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Re: Big Oil Profits

Hmmm

Lets hope they are as stupid as last time - when some oil companies bought into other businesses - to ah er diversify - Texaco comes to mind.

heh heh heh
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Re: Big Oil Profits
Old 11-15-2005, 10:26 AM   #29
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Re: Big Oil Profits

Quote:
Originally Posted by bennevis
I think everyone is aware that Exxon is ExxonMobil XOM.
It saves 5 key strokes to just refer to them as Exxon.
.
One of my original questions has not been addressed:* What do you think big oil will do with the PROFITS made recently?* *Anyone in the oil industry out there ?
Does big oil expect big government to build new refineries for them ?
On your first point... yes people use a short version of LOTS of companies but know the long name.. thanks for the backup with the other poster.. As an example... who refers to the accounting firm of PriceWaterhouseCoopers? Just call it Price.. Or International Business Machines IBM... General Electric?? etc. etc....

On you second point, or question... I do not think they will do anything with the profits in the short term except hold on to them and maybe buy back more stock... There is not good reason to invest in explorations at this time.. there is no good reason to build a refinery... Just milk it for all you can right now.
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