# The last oil price thread this year. **URL:** \ **Category:** The BBQ Pit\ **Created:** [August 2, 2008, 5:15am UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581 "2008-08-02T05:15:07Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Darth\_Nader](https://avatars.discourse-cdn.com/v4/letter/d/ad7895/32.png) [@Darth\_Nader](https://boards.straightdope.com/u/Darth_Nader)\ **Post date:** [August 2, 2008, 5:15am UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/1 "2008-08-02T05:15:07Z")
Really. “Exxon Mobil Corp. reported second-quarter earnings of $11.68 billion Thursday, the biggest profit from operations ever by any U.S. corporation…” And the WSJ says it’s not enough. [cite](http://online.wsj.com/article/SB121749575639100347.html?mod=hpp_us_whats_news) ---
**Author:** ![Airman\_Doors\_USAF](https://avatars.discourse-cdn.com/v4/letter/a/e36b37/32.png) [@Airman\_Doors\_USAF](https://boards.straightdope.com/u/Airman_Doors_USAF)\ **Post date:** [August 2, 2008, 5:31am UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/2 "2008-08-02T05:31:42Z")
That’s not what the _WSJ_ said. They said that the reported earnings did not meet expectations. In other words, they were predicted by people in the know to make more. There’s a vast difference between the two. In any event, what’s your point? Is this the standard lament about how oil companies are ripping us off? If so, I direct you to [this recent article](http://money.cnn.com/2008/07/31/news/companies/exxon_profits/index.htm?postversion=2008073112), which fleshes out why that particular argument is bullshit (as if you didn’t know from the 11 billion times we’ve already done this). So, what does it say? > [@](#): > > Exxon was both helped and hurt by high oil prices. > > As an oil producer, the company makes a lot of money when crude prices rise. Exxon made $10 billion from selling oil in the latest quarter, up nearly 70%. > > But as a refiner, it must also buy crude oil to turn into gasoline. Exxon actually buys more crude than it sells. > > Profits from its refining business totaled $1.6 billion in the quarter, less than half of what they were last year. > > “Record crude oil and natural gas realizations were partly offset by lower refining and chemical margins, lower production volumes and higher operating costs,” read a statement attributed to Rex Tillerson, Exxon’s chief executive. > > While oil prices in the quarter were nearly twice as high as the same time last year, gasoline prices only rose about 30%. Still think they’re ripping you off? They could have been charging you more. Think about that. On second thought, don’t. Stick to the script. These threads are always entertaining. All we need now is **gonzomax** with the standard sort-of-related link/one-line drive-by posts and we’ll be all set. Incidentally, gas prices are down around 50 cents in the last 3 weeks where I live. Not bad for something that people swore up and down would never drop due to the greed of Big Oil. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [August 2, 2008, 5:32am UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/3 "2008-08-02T05:32:22Z")
I’m guessing you didn’t buy any XOM back in '06. ---
**Author:** ![Darth\_Nader](https://avatars.discourse-cdn.com/v4/letter/d/ad7895/32.png) [@Darth\_Nader](https://boards.straightdope.com/u/Darth_Nader)\ **Post date:** [August 2, 2008, 6:22am UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/4 "2008-08-02T06:22:05Z")
You’re right, they should be charging us more and making less money. 'Cause that would be better, or something. My bad. It’s $11 billion, dude! It took you a while to see that the war in Iraq was a load of crap, why is this one so hard? ---
**Author:** ![JohnT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnt/32/15048_2.png) [@JohnT](https://boards.straightdope.com/u/JohnT)\ **Post date:** [August 2, 2008, 7:34am UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/5 "2008-08-02T07:34:51Z")
XOM paid taxes in excess of $32 billion, almost 3 times the amount of profit they made. If you’re interested in cutting excess cash disbursements for the purpose of lowering gas prices, cut out the “profit” of $32 billion made each quarter by the globe’s various governments. Note that this $32 billion generated a 23% “tax margin” based on XOM’s total revenue ($138 billion), while the “profit margin” was a mere 7.9%. Cite: [Exxon’s 8-k](http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-sec), page 8. ---
**Author:** ![Darth\_Nader](https://avatars.discourse-cdn.com/v4/letter/d/ad7895/32.png) [@Darth\_Nader](https://boards.straightdope.com/u/Darth_Nader)\ **Post date:** [August 2, 2008, 7:45am UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/6 "2008-08-02T07:45:19Z")
Really… Exxon lost money this year? Okay. ---
**Author:** ![JohnT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnt/32/15048_2.png) [@JohnT](https://boards.straightdope.com/u/JohnT)\ **Post date:** [August 2, 2008, 7:52am UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/7 "2008-08-02T07:52:47Z")
Where did I say that? My point was that nearly 1/4 of the “price of gas” (since you’re seemingly thinking that these profits all came from gasoline sales to little old ladies) goes back to various governments. Cutting the amount of taxes on petroleum products, income taxes, etc by 10% would do more to “make gas cheaper” than cutting the profit margin by 25% - there is just that much more money being taken out of Exxon by governments than by the shareholders. ---
**Author:** ![Airman\_Doors\_USAF](https://avatars.discourse-cdn.com/v4/letter/a/e36b37/32.png) [@Airman\_Doors\_USAF](https://boards.straightdope.com/u/Airman_Doors_USAF)\ **Post date:** [August 2, 2008, 11:50am UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/8 "2008-08-02T11:50:04Z")
[QUOTE=Darth Nader] It’s $11 billion, dude! It took you a while to see that the war in Iraq was a load of crap, why is this one so hard? [/QUOTE] You know, you’re right. How dare they be in business to make money! Man the battlements! The problem is that while they are making more, it is costing them more. Their profit margins have not changed, but the value of the product has. I’ve said this before, if you spend $5 to make $10 and the price doubles, you’re now spending $10 to make $20. All else being equal, you have just doubled your profit. If it were you you’d be doing backflips at your good fortune, but since it’s “Big Oil” I’m supposed to hate them for it? I think not. ---
**Author:** ![FoieGrasIsEvil](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/foiegrasisevil/32/16638_2.png) [@FoieGrasIsEvil](https://boards.straightdope.com/u/FoieGrasIsEvil)\ **Post date:** [August 2, 2008, 12:39pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/9 "2008-08-02T12:39:04Z")
Rep Don Young, House Bill 6107. [![](https://img.youtube.com/vi/MlfmvwxxgHM/hqdefault.jpg "Rep Don Young Urges Producing American Energy & Opening ANWR") ](https://www.youtube.com/watch?v=MlfmvwxxgHM) ---
**Author:** ![gonzomax](https://avatars.discourse-cdn.com/v4/letter/g/e8c25b/32.png) [@gonzomax](https://boards.straightdope.com/u/gonzomax)\ **Post date:** [August 2, 2008, 4:36pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/10 "2008-08-02T16:36:34Z")
[QUOTE=Airman Doors, USAF] That’s not what the _WSJ_ said. They said that the reported earnings did not meet expectations. In other words, they were predicted by people in the know to make more. There’s a vast difference between the two. In any event, what’s your point? Is this the standard lament about how oil companies are ripping us off? If so, I direct you to [this recent article](http://money.cnn.com/2008/07/31/news/companies/exxon_profits/index.htm?postversion=2008073112), which fleshes out why that particular argument is bullshit (as if you didn’t know from the 11 billion times we’ve already done this). So, what does it say? Still think they’re ripping you off? They could have been charging you more. Think about that. On second thought, don’t. Stick to the script. These threads are always entertaining. All we need now is **gonzomax** with the standard sort-of-related link/one-line drive-by posts and we’ll be all set. Incidentally, gas prices are down around 50 cents in the last 3 weeks where I live. Not bad for something that people swore up and down would never drop due to the greed of Big Oil. [/QUOTE] Why we have you sucking at the exhaust pipe of illogic. Nothing changes your sycophant attitude to the faces of power. Quarter after quarter ,they set new records for profits, outstripping the ones they set the previous quarter. And you as always find some explanation that billions of profit is just getting by for these poor misunderstood thieves. If you believe that crap you are unreachable. ANWR will solve nothing. it is a drop in the old pipeline. They are neither committed to drilling it or earmarking its oil strictly for the US. They just want it on their books. They have millions of acres they can drill in already. They have not. If they were so desperate for adding to the supplies why have they not used up the lands they already have. Of course if they get the right to drill their is one immediate effect. It helps their net worth and stock price. It makes some oil execs a few more pieces of silver. They would not even put it on line for many years . Bush will go out fighting for everything he can get for the oil companies. They have had a money party for 8 years but it is never enough. People like you who live in sophistry land buy everything they sell. You idiots probably still believe oil prices are not changed by speculation. Yet when we have a 20 % price drop ,while you still argue demand is only going up, you find a twisted logic to back up your preconceptions. It is not about the evidence. It is there. It is about what a good little oil soldier you are. If the bosses say it, it must be so. Yes sir. Oil is not looting, sir yes sir. ---
**Author:** ![John\_Mace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/john_mace/32/185_2.png) [@John\_Mace](https://boards.straightdope.com/u/John_Mace)\ **Post date:** [August 2, 2008, 5:40pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/11 "2008-08-02T17:40:01Z")
Not this idiotic argument again. Someone teach this guy about this nifty mathematical concept called “percent”. The absolute number is meaningless. Exxon is a BIG company, so it makes BIG profits. There are plenty of smaller companies that make much more as percent of revenue. Of course, if you think they’re making too much profit, then you’ve got a great business opportunity in front of you! Get some investors together and exploit the opportunities out there to undercut them on price. ---
**Author:** ![El\_Kabong](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/el_kabong/32/496_2.png) [@El\_Kabong](https://boards.straightdope.com/u/El_Kabong)\ **Post date:** [August 2, 2008, 6:02pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/12 "2008-08-02T18:02:29Z")
[QUOTE=Darth Nader] Really. “Exxon Mobil Corp. reported second-quarter earnings of $11.68 billion Thursday, the biggest profit from operations ever by any U.S. corporation…” And the WSJ says it’s not enough. [cite](http://online.wsj.com/article/SB121749575639100347.html?mod=hpp_us_whats_news) [/QUOTE] You know, if you want people to take you seriously, you shouldn’t lie right from the get-go, especially about something that can be checked simply by following the link you helpfully supplied. I am of course, referring to your claim that the Wall Street Journal says “Exxon’s profits are not enough”. If you really feel your argument is so weak you have to lie about the facts, bury your falsehoods in the fine print somewhere and hope no one notices them. Meanwhile, I breathlessly await your proposed solution for this rank injustice; you know, companies making money and such. ---
**Author:** ![Carol\_Stream](https://avatars.discourse-cdn.com/v4/letter/c/c2a13f/32.png) [@Carol\_Stream](https://boards.straightdope.com/u/Carol_Stream)\ **Post date:** [August 2, 2008, 6:14pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/13 "2008-08-02T18:14:56Z")
[QUOTE=El\_Kabong] Meanwhile, I breathlessly await your proposed solution for this rank injustice; you know, companies making money and such. [/QUOTE] A whopping 7.9 cents on the dollar. The horror! It should be a crime! ---
**Author:** ![magellan01](https://avatars.discourse-cdn.com/v4/letter/m/45deac/32.png) [@magellan01](https://boards.straightdope.com/u/magellan01)\ **Post date:** [August 2, 2008, 6:43pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/14 "2008-08-02T18:43:02Z")
[QUOTE=Darth Nader] You’re right, they should be charging us more and making less money. 'Cause that would be better, or something. My bad. It’s $11 billion, dude! It took you a while to see that the war in Iraq was a load of crap, why is this one so hard? [/QUOTE] Well, economics is not my strong suit, but you make me look like Alan Greenspan and Milton Friedman rolled into one. Translation: you are an idiot. As **Mace** and others have pointed out, the absolute number doesn’t matter. Really. Stop right there until it sinks into your Idiot King brain. You’ll know if it made it through because a feeling of embarrassment will wash over you and you will ask to have the thread closed. So, do not post on this issue, unless you want to educate yourself. (In which case you just might want to read the other thread that was offered to you.) Just repeat the mantra “the big scary number means squat”. How this can be so baffling to you is the heart of befuddlement. Maybe it’s the Patchouli. ---
**Author:** ![Weirddave](https://avatars.discourse-cdn.com/v4/letter/w/919ad9/32.png) [@Weirddave](https://boards.straightdope.com/u/Weirddave)\ **Post date:** [August 2, 2008, 7:28pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/15 "2008-08-02T19:28:18Z")
[QUOTE=gonzomax] Why we have you sucking at the exhaust pipe of illogic. Nothing changes your sycophant attitude to the faces of power. Quarter after quarter ,they set new records for profits, outstripping the ones they set the previous quarter. And you as always find some explanation that billions of profit is just getting by for these poor misunderstood thieves. If you believe that crap you are unreachable. ANWR will solve nothing. it is a drop in the old pipeline. They are neither committed to drilling it or earmarking its oil strictly for the US. They just want it on their books. They have millions of acres they can drill in already. They have not. If they were so desperate for adding to the supplies why have they not used up the lands they already have. Of course if they get the right to drill their is one immediate effect. It helps their net worth and stock price. It makes some oil execs a few more pieces of silver. They would not even put it on line for many years . Bush will go out fighting for everything he can get for the oil companies. They have had a money party for 8 years but it is never enough. People like you who live in sophistry land buy everything they sell. You idiots probably still believe oil prices are not changed by speculation. Yet when we have a 20 % price drop ,while you still argue demand is only going up, you find a twisted logic to back up your preconceptions. It is not about the evidence. It is there. It is about what a good little oil soldier you are. If the bosses say it, it must be so. Yes sir. Oil is not looting, sir yes sir. [/QUOTE] I’m honestly curious. Does it hurt being this stupid? ---
**Author:** ![gonzomax](https://avatars.discourse-cdn.com/v4/letter/g/e8c25b/32.png) [@gonzomax](https://boards.straightdope.com/u/gonzomax)\ **Post date:** [August 2, 2008, 8:22pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/16 "2008-08-02T20:22:58Z")
[QUOTE=Weirddave] I’m honestly curious. Does it hurt being this stupid? [/QUOTE] Does it. We NEED TO KNOW. ---
**Author:** ![Duck\_Duck\_Goose](https://avatars.discourse-cdn.com/v4/letter/d/50afbb/32.png) [@Duck\_Duck\_Goose](https://boards.straightdope.com/u/Duck_Duck_Goose)\ **Post date:** [August 2, 2008, 8:28pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/17 "2008-08-02T20:28:13Z")
Does “The last oil price thread this year” mean that this thread is going to go on for pages and pages until 2009 rolls around? ---
**Author:** ![gonzomax](https://avatars.discourse-cdn.com/v4/letter/g/e8c25b/32.png) [@gonzomax](https://boards.straightdope.com/u/gonzomax)\ **Post date:** [August 2, 2008, 8:29pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/18 "2008-08-02T20:29:20Z")
A similar industry is cable and internet. A few years ago we were ahead of everybody. Now we are passed up in internet speed by Korea France Poland Portugal Japan Sweden Netherlands Canada Autria Germany Belgium. Why? They got companies trying to improve . We got consolidation. It eliminated competition, stifles innovation and makes a few very rich and powerful. Skip this Weirddave It might involve logic and thinking. What if it questions your puerile economic thoughts. / Can’t have that. ---
**Author:** ![Weirddave](https://avatars.discourse-cdn.com/v4/letter/w/919ad9/32.png) [@Weirddave](https://boards.straightdope.com/u/Weirddave)\ **Post date:** [August 2, 2008, 8:42pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/19 "2008-08-02T20:42:11Z")
[QUOTE=gonzomax] Does it. We NEED TO KNOW. [/QUOTE] Wow. “I know you are but what am I?”. That’s a hell of a comeback. ---
**Author:** ![John\_Mace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/john_mace/32/185_2.png) [@John\_Mace](https://boards.straightdope.com/u/John_Mace)\ **Post date:** [August 2, 2008, 8:48pm UTC](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581/20 "2008-08-02T20:48:42Z")
[QUOTE=gonzomax] A similar industry is cable and internet. A few years ago we were ahead of everybody. Now we are passed up in internet speed by Korea France Poland Portugal Japan Sweden Netherlands Canada Autria Germany Belgium. Why? They got companies trying to improve . We got consolidation. It eliminated competition, stifles innovation and makes a few very rich and powerful. Skip this Weirddave It might involve logic and thinking. What if it questions your puerile economic thoughts. / Can’t have that. [/QUOTE] So, why is gas expensive everywhere in the world (except where it is subsidized by the government)? Are the evil American companies behind that, too? [Next page](https://boards.straightdope.com/t/the-last-oil-price-thread-this-year/458581.md?page=2)