Don't Blame Me, I Voted For Kerry Message Board

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Politics : Don't Blame Me, I Voted For Kerry

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To: Cogito who wrote (78404)	7/27/2006 4:00:31 PM
From: TimF	Read Replies (2) of 81568

I never said that Exxon had a low profit margin. But 116th out of 500 is not something that screams "massive price goughing and manipulation". Also that was in a good year for Exxon-Mobil and the oil business in general. They have good years and bad years. In this exceptionally good year they where not even in the top 5th of the S&P 500. In bad years they where much lower and may easily have been in the bottom 5th. "...This table reinforces my original premise that ExxonMobil posted record profits mostly because of such high volume. The profit margin was one-third that of Citigroup or Microsoft, but its sales numbers were so high that the net profits almost tripled that of Microsoft. In closing... Oil companies are presently making a lot of money. They make it by pennies per gallon from refining, and only a little more from production. It's almost impossible to back-calculate the true cost of production or profit per barrel, but the chart above tells me that ExxonMobil's 11% net profit margin on $70 oil would equate to a net profit of $7.70 per barrel, or $0.18 per gallon. That's admittedly a very simplistic way to look at it, but it does tell me that there's no huge rip-off occurring. Oil prices are set by global supply and demand, and they will continue to rise as long as demand keeps increasing. Global demand has risen from 77.7 million barrels per day (BPD) in 2002 to a projected 85.2 million BPD in 2006..." fool.com Also see wizbangblog.com thepoliticker.net

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