Dearest Exxon Mobil

[Sean88gt]

Well I know in the oil and gas industry there are plenty of little guys that make a bunch of money as well.

Agreed, but not at the EM level.

Don't like it don't buy it, cut into their revenue. It's as simple as that.

Nobody is forcing you to buy petrolium products are they?

No, but petroleum products are a different story. I'm not bitching about buying gas. I'm just tired of hearing how hard it is for these companies when they are knocking down billions because they've been able to put pressure on the market and change the rules. I'd like to trace out the speculators and see if any of them are paid consultants that the oil companies keep around for advice.

[71chevellejohn]

Lucky. It costs $110 to fill up my Dodge when it's empty.

I was thinking the same thing. My truck has been in the 85-100 range to fill up. The real kicker for me is, for the last few weeks I've been filling up everyday - sometimes twice a day. And the pay for the work that has been done is 30-45 days out.

Oh well, at least CapitalOne still loves me....

[Stunter Bob]

Fuel is expensive, and will never go back down.

I am just lucky that I live 7 miles from work and only have to putt at 40 mph there.

I might spend 100 dollars a month in fuel if that.

[Grimpala]

No, but petroleum products are a different story. I'm not bitching about buying gas. I'm just tired of hearing how hard it is for these companies when they are knocking down billions because they've been able to put pressure on the market and change the rules. I'd like to trace out the speculators and see if any of them are paid consultants that the oil companies keep around for advice.

I agree with you there. Speculation should be a crime.

[Grimpala]

Fuel is expensive, and will never go back down.

I am just lucky that I live 7 miles from work and only have to putt at 40 mph there.

I might spend 100 dollars a month in fuel if that.

You could make up that difference by selling all the mirrors you kick off of people's cars.

[Denny]

We're currently bidding to be a sub for Shell on their newest Iraq project. I though DoD contracts made coin... DANG!

[Stunter Bob]

You could make up that difference by selling all the mirrors you kick off of people's cars.

Yea your cool, Haven't rode in 2 years but good eye buddy.

[FATHERFORD]

We're currently bidding to be a sub for Shell on their newest Iraq project. I though DoD contracts made coin... DANG!

We just got 5 big projects from shell. About 7-8 years worth.

To bad they are fucking cadworx projects and I hate fucking cadworx.

[Hobie]

People still buy Exxon gas? QT, VALERO, AND WALMART gas ftw.

People still think retail outlets have anything to do with the production companies?

[Grimpala]

Yea your cool, Haven't rode in 2 years but good eye buddy.

Glad to see you've changed your ways.

For some reason that one response in that one thread stuck with me. I guess it's the thinking that you don't fuck with another man's car.

[GrayStangGT]

Pretty interesting read.

http://www.exxonmobilperspectives.com/2011/04/27/gas-prices-and-industry-earnings-a-few-things-to-think-about/

Here’s a simple fact of economics that’s getting everyone in Washington pretty excited this week: When prices increase for a commodity like oil, companies that produce and sell that commodity earn more money.

So, as we get ready to release our quarterly earnings on Thursday, here are a few things to consider when you see the inevitable headlines and sound bites about high gasoline prices and what to do about them. These facts probably won’t make anyone feel better about paying more for gasoline – and of course price increases can have a very real impact on family budgets – but I do think it’s important that we at least have an honest discussion about what’s behind recent energy price increases.

Less than 3 percent of ExxonMobil’s earnings are from U.S. gasoline sales
ExxonMobil’s earnings are from operations in more than 100 countries around the world. The part of the business that refines and sells gasoline and diesel in the United States represents less than 3 percent – or 3 cents on the dollar – of our total earnings. For every gallon of gasoline, diesel or finished products we manufactured and sold in the United States in the last three months of 2010, we earned a little more than 2 cents per gallon. That’s not a typo. Two cents.

Oil is a commodity; prices are set in the global market
Crude oil is a commodity, and like all other commodities – such as corn, wheat or sugar – the price is determined by buyers and sellers in a global market. Buyers are paying more for oil because the global economy is strengthening, and demand for products derived from crude oil is on the rise. Political instability in some oil-producing nations is also contributing to uncertainty about future supply. Oil markets are well supplied today, but uncertainty about tomorrow’s supply is reflected in prices today. Finally, the U.S. dollar is at a three-year low against other currencies – accelerated last week after a warning by Standard & Poor’s about the country’s $14.3 trillion debt and relative economic weakness. The weaker the dollar, the less it will buy – meaning more is spent for the same amount of a commodity, whether it’s crude oil or nearly all of the commodities in the chart at right.

ExxonMobil doesn’t set oil prices
Take a look at the chart at right. ExxonMobil owns less than 1 percent of the world’s oil reserves, and it produces less than 3 percent of the world’s daily oil supply, so it’s really not credible to suggest that we are responsible for world oil prices. ExxonMobil actually buys more crude oil than we produce. Last year, we spent $198 billion on crude oil, which we used to make refined products such as gasoline.


What goes into the price of gasoline
The main component of the price at the pump is the cost of a barrel of crude oil. Another major component of the price of gas is state and federal taxes, which range from a high of 66 cents per gallon in California to a low of 26 cents per gallon in Alaska, according to January 2011 data. How are pump prices set at Exxon and Mobil stations? We don’t own 95 percent of them, and therefore we don’t set the price. Local stations are often owned by a businessman or businesswoman in your community, and they set their own prices based on local market conditions.



ExxonMobil’s earnings are in line with the industry average
In 2010, ExxonMobil made less than 8 cents for every dollar of revenue from all of our businesses around the world. That’s less than half of companies selling pharmaceuticals, beverages, tobacco and computers, just to name a few. On a dollar-for-dollar basis, our earnings, and those of the U.S. oil and gas industry at large, are generally in line with the average earnings of all U.S. industries.



ExxonMobil is one of the largest taxpayers in the United States
Last year, our total taxes and duties to the U.S. government topped $9.8 billion, which includes an income tax expense of $1.6 billion. Over the past five years, we incurred a total U.S. tax expense of almost $59 billion, which is $18 billion more than we earned in the United States during the same period. Critics often try to ignore these facts by saying the oil and gas industry receives “subsidies.” But what they really mean is that they want to increase our taxes by taking away long-standing deductions for our industry while leaving these same deductions in place for other sectors of the economy.

ExxonMobil invests in new energy supplies
ExxonMobil’s investments to find and produce new supplies of oil and natural gas totaled $32 billion in 2010 – exceeding our earnings by more than $1.7 billion. From 2011 to 2015, we plan to invest $33 billion to $37 billion annually in new energy supplies. In the past 25 years, we’ve invested almost $400 billion in energy projects – an amount that nearly matches our income during that time.



ExxonMobil earnings go to our shareholders
Once we’ve paid our expenses, paid our taxes and funded new projects, we turn the rest of the money over to our shareholders. Last year we distributed more than $19 billion to shareholders through dividends and share purchases.
If you’re living in the United States – where some 85 percent of our shareholders live – chances are you’re benefiting in some direct or indirect way from our earnings even if you don’t own our stock. For example, if you live in any of the following states, your public sector or teachers retirement funds hold shares in ExxonMobil: New York, California, Texas, Ohio, Colorado, Alabama, Tennessee, Alaska, Michigan, Pennsylvania, Kentucky and Utah. Many more retirement funds, 401-Ks and IRAs hold shares in ExxonMobil and other major publicly traded oil companies – including those for government workers and members of Congress.

[Sean88gt]

I agree with you there. Speculation should be a crime.

Give it to $150/bbl and I think you'll see cries for a change that require buyers to take delivery. I would LOL hardily if a speculator bought played 50,000,000 barrels and the trucks started showing up.

I also think they need to do away with buying commodities on margin.

[Hobie]

Glad to see you've changed your ways.

For some reason that one response in that one thread stuck with me. I guess it's the thinking that you don't fuck with another man's car.

Don't try to take someone's life with your car and it won't get fucked with. I think that's a small price to pay for threatening another man's life.

[Hobie]

Give it to $150/bbl and I think you'll see cries for a change that require buyers to take delivery. I would LOL hardily if a speculator bought played 50,000,000 barrels and the trucks started showing up.

I also think they need to do away with buying commodities on margin.

Wasn't it Exxon's CEO that said something about, "Anyone can buy 1,000,000 barrels of futures and warehouse them in your desk's top droor." ???

[Broncojohnny]

Give it to $150/bbl and I think you'll see cries for a change that require buyers to take delivery. I would LOL hardily if a speculator bought played 50,000,000 barrels and the trucks started showing up.

I also think they need to do away with buying commodities on margin.

CME is increasing margins on oil contracts by ~25% today after the close. I guess we are going to find out how much speculation has to do with the price.

I think they should at least double the margin requirement, maybe even triple it.