ExxonMobil has a 8% profit margin

Discussion in 'Teacher Time Out' started by Irishdave, Aug 1, 2008.

  1. Irishdave

    Irishdave Enthusiast

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    Aug 1, 2008

    ExxonMobil has a 8% profit margin
    That's more than your corner deli

    but
    8% of $146,000,000,000.00 ($11.68 billion) that ExxonMobil made,
    is a lot bigger that
    10% of $600,000.00 ($60,000) that the corner deli owner may be making

    Should we punish any company for making 8% profit? if we do I guess we should punish Apple Computers etc, need I list companies who make more that 8%?
    If I fill up at Exxon station and pay $3.85 a gal
    Exxon is only getting 3.08¢ for each Gal I pump!(where the State and fed is getting over 10% almost 4¢ per Gal.

    Don't get me wrong I HATE the price of gas
    BUT WHO SHOULD WE BLAME?
    :2cents: :soapbox:
     
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  3. Lesley

    Lesley Habitué

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    Aug 1, 2008

    Is that not also going to the shareholders? Profit margin is great and not a problem and is expected in the US. The most upsetting part is when we do not have a choice. With most companies you have a choice to purchase or not, with gas we have to purchase, maybe not as much or as often as we use to, but we still need to purchase gas.

    America must drill within our country. If not we will be purchasing oil from Russia. Yes, Russia, they are purchasing rights to land all over the globe and drilling. Even China knows to go elsewhere for oil so they may keep tabs on oil costs for their country. Too Bad America cannot figure it out fast enough.
     
  4. Irishdave

    Irishdave Enthusiast

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    Yes we should drill to help the new technologies take hold
    Solar works during the day
    Wind works during the wind
    Hydro works all the time but not everywhere
    Nuke should be used
    THAT will reduce our dependance on Oil
     
  5. Sarge

    Sarge Enthusiast

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    The dinosaurs. For failing to have the foresight to reproduce in numbers large enough to leave a sufficient number of carcasses that would decompose into crude oil 60 million years later.

    What I'm saying is that it's a given fact that the price of gas is going to go up and keep going up. Sure, if it drops as it is dropping now, maybe it will get to $3.50 and we'll all be happy, forgetting that it was $2.50 before the most recent spike. Then when it goes up again, it will go much higher than $4.50 a gallon.

    Drilling is not going to solve the problem. It might buy us some time, and that's about it. We could drill ANWR and off the coasts of California and Florida all we want. Maybe the next time it goes up, it will only be $7.95 a gallon instead of $8.00 a gallon.

    Here's why. The U.S. uses about 20 million barrels a day. We import about 60% of that. That's more than any on oil producing nation on earth. In other words, if we owned Saudi Arabia, it would not meet our oil needs.

    The problem is that any additional oil we produce is going to hit the global market and only affect the price of a barrel of crude insofar as how it increases global production. So how much of an impact on the global price of a barrel of crude will drilling in the ANWR have? Not much.

    I don't think I'm being overly pessimistic when I say that we shouldn't be surprised 50 years from now when a barrel of oil costs $500 and a gallon of gas $20. I also don't think there's much we can do about it - either on the demand or supply side.

    What we can do, what we must do, is prepare for it. We need to start re-directing highway funds into mass transit. We need to stop voting down bonds for the same purpose. We need to rebuild our rail systems. We need to reorganized our agricultural infrastructure so that more of the food the average person eats is locally grown and produced. Most difficult of all, we need to start changing our communities so that more people can afford to live near where they live.

    Will any of this effect the price of oil or make gas any less expensive? No. But what it will do is make the transition to a post-petroleum society a lot less painful.

    I can tell you that the average European is a lot less worried about the price of gas than the average American, even though they pay twice as much as we do. Why? Because the average European has alternatives. Most Europeans know that if gas gets too expensive, they can still get to work and pick the kids up at school because in most of Europe you can live without a car if you really have to.

    My wife and I are in that situation, and I can tell you it's a very nice feeling to know that if gas ever got so expensive that we really couldn't afford to drive our cars we'd still get by just fine. She's close to her workplace and I have the ability to bike very long distances. But nearly everyone else I know isn't that lucky. I can't imagine the stress that some people go through, wondering how long it will be before the gas to get to work costs so much that working is no longer financially feasible.
     
  6. Irishdave

    Irishdave Enthusiast

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    Yes We should be using GAS as the alternative to the other forms!
    Good Points
     
  7. Mrs.Sheila

    Mrs.Sheila Cohort

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    Aug 2, 2008

    Okay ~ no haters please!!

    Exxon has a HUGE plant in mytown ~ and because of that... our school district gets funds from them too ( taxes)! My husband also works there.

    As far as choices go you do have a choice! You could walk, run, bike to where your going ~ but most of us prefer due to distance our vehicles. You also dont have to go to Exxon, there are many other stations around I am sure!

    It's not like the water company, gas company or for some phone. THOSe I don't have a choice on ( except phone ~ I go through cable).
     
  8. Irishdave

    Irishdave Enthusiast

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    My point is that Big Oil does not have a big profit margin in fact many other industries have greater ones.
    But Oil (gas) has become a "mock" utility like the Water company, the Natural gas company & the Electricity Company.

    There is a question do we want to socialize petroleum (government take over)? remember government gave us the Motor Vehicle Department, How long do you want to sit in line for 10 gal of gas?

    Mexico Has Government petroleum and look at all the Mexican citizens living in $350,000 homes in Chiapas :rolleyes: (the poorest state in Mexico)
    Profit is needed for the incentive for research
    Take away profit and you will stop research for alt energy.
     
  9. catnfiddle

    catnfiddle Moderator

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    According to my geophysicist husband and just about all his associates, we have a little over twenty years of sweet crude oil left to tap. I'd track down his math, but it gives me severe vertigo as well as an impending sense of doom.

    How do we deal? He drives a Vespa or rides a bicycle 95% of the time. I'll be teaching online, which will DEFINITELY cut down on my gas usage, plus I'm buying a bicycle with my second teaching paycheck (after I splurge on the best dinner to celebrate being a full-time teacher). We're also local activists to bring light rail and other mass transit back to our region.

    In the meantime, the hubby has been avoiding jobs in the petroleum industry. There's no future in it. ExxonMobil can enjoy their profits while they can still get them.
     
  10. Irishdave

    Irishdave Enthusiast

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    Is that 20 year with existing oil fields? Will it give us a little more time if we open up any more new fields?
    We do need to find alt transportation and alt energy.
    back east the distances between "points of interest" are smaller but west of the Mississippi distances between "points of interest" are great so we may need more time to develop better technology ie: battery technology.
     
  11. catnfiddle

    catnfiddle Moderator

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    It's what's currently being drilled as well as the assumed discovery of more untapped sources. The Rockmaster hubby says he thinks that's on the optimistic side and it may be closer to twelve years worth of reserves. He specifically states that we would need to find 20 billion barrels worth of NEW DISCOVERIES each year in order to maintain for the next two decades, assuming usage also drops monumentally.
     
  12. titansrst

    titansrst Rookie

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    Aug 2, 2008

    Blame?

    Blame an economic system that allows for gas prices by the barrel to be hiked to ridiculous amounts based on the speculations of some bean counters. These predictions lead to action or inaction by oil producers, and we, the average working person, get stiffed.
    Blame President Bush and his business cronies, many of them in oil, for maintaining policies and secretive international ties that keep the money flowing to their pockets and out of our pockets.
    Blame the auto industry for producing gas guzzlers instead of more gas efficient cars. Blame them, too, for buying the patents to engines and ethyl that would increase gas mileage per gallon, and then burying them deep in the old file drawer never to be seen by the public.
    And blame us, the buyers, for being self-indulgent, irresponsible people who ignored the warning signs because it interfered with our way of life.
    I can't wait until winter when that 70-year-old Michigan couple have to choose between staying warm or eating reasonably.
     
  13. Irishdave

    Irishdave Enthusiast

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    Let us include most Presidents AKA politicians both parties
     
  14. Sarge

    Sarge Enthusiast

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    Aug 2, 2008

    When I said blame the dinosaurs, I wasn't kidding.

    They should have known that once the Americans had gone through much of the world's oil, you'd have a billion people in
    China who would suddenly become willing and able to trade in their Flying Pigeon bicycles for Toyota Avalons.

    That's the real reason. Global demand is outpacing global supply.

    Any additional oil that we get out of the ground is going to hit the global market just like any other commodity. I highly doubt that Exxon is going to sell it to American consumers at a discount. And I also doubt that the U.S. government would even try to make them. If oil is $200 a barrel because that's what China and India are willing to pay, then that's the price it will be.

    That's why I'm saying that what we really need to do, more than anything, is to acquire the ability to function economically and socially on less fossil fuels.

    At the end of the day it really comes down to one question. How are people who live in "bedroom communities" going to get to their jobs in cities 50 miles away when gas costs $20 a gallon?
     

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