Exxon profit soars, but misses forecasts

[Grafton]

No. 1 U.S. oil company's profit and revenue miss estimates, even as it posts second-largest earnings total on record.

http://money.cnn.com/2008/05/01/news/companies/exxon_earnings/?postversion=2008050115

MISSES FORECASTS????? WTF

i am seriously tired of all the buttsecks the oil companies are getting to have every time someone goes to the pump (lol pun) i get that our foreign oil suppliers have raised the price of oil by the barrel, but doesn't that mean that the oil companies like exxon are just raising the pump price just that much more to rake in more money?

I am sick and tired of it, but there is nothing i can do gahhh :mad:
it the last month here in westvirginia gas has jumped up ~$0.50 IN A MONTH

[Revv23]

This is forum related how? This will also end up as a flame fest.... But because I'm bored i'll respond.

If you don't want to pay so much in gas drive a more fuel efficient car or don't drive. There are several fuel companies in competition they can keep raising prices as oil prices rise because people aren't driving less as prices go up. At some point the price will get high enough to where people will actually monitor thier own driving habits, then the price will level off and everyone can stop :banana::banana::banana::banana::banana:ing. Until then expect prices to increase day by day for as long as it takes. Facts are demand is rising and supplies aren't increasing.


http://money.cnn.com/2008/05/01/news/companies/exxon_earnings/?postversion=2008050115

MISSES FORECASTS????? WTF

i am seriously tired of all the buttsecks the oil companies are getting to have every time someone goes to the pump (lol pun) i get that our foreign oil suppliers have raised the price of oil by the barrel, but doesn't that mean that the oil companies like exxon are just raising the pump price just that much more to rake in more money?

I am sick and tired of it, but there is nothing i can do gahhh :mad:
it the last month here in westvirginia gas has jumped up ~$0.50 IN A MONTH

[JaD]

http://money.cnn.com/2008/05/01/news/companies/exxon_earnings/?postversion=2008050115

MISSES FORECASTS????? WTF

i am seriously tired of all the buttsecks the oil companies are getting to have every time someone goes to the pump (lol pun) i get that our foreign oil suppliers have raised the price of oil by the barrel, but doesn't that mean that the oil companies like exxon are just raising the pump price just that much more to rake in more money?

I am sick and tired of it, but there is nothing i can do gahhh :mad:
it the last month here in westvirginia gas has jumped up ~$0.50 IN A MONTH

Heh...and you have no idea of what the prices are in Europe.

1,4€/Lt -> 8+$/Gal

:(

[SoulsCollective]

The sooner this happens the better. The world needs to move off oil , which will never happen as long as oil remains economically viable.

Recommending this thread be moved to Wampeteers, however. Not really Xtreme Newsworthy.

[Revv23]

One other point I will make is that as the dollar keeps dropping in value the price of oil will continue to climb regardless of demand.

[highoctane]

One other point I will make is that as the dollar keeps dropping in value the price of oil will continue to climb regardless of demand.

Bingo, a weak dollar definitely is a big factor in oil prices! At the rate things are going we'll have a 1:1 exchange rate with Canada for currency.

[irev210]

Bingo, a weak dollar definitely is a big factor in oil prices! At the rate things are going we'll have a 1:1 exchange rate with Canada for currency.

we already have a 1:1 exchange rate with Canada.


What I dont understand is why does nobody get upset about the 80+% of GM that Microsoft has?

Difference between big oil and big software-

big oil doesnt set the price of gas, big software does set the price of their OS

[Gramner]

3.62$/gallon is about 0.95$/liter. That's dirt cheap.

[Frank M]

Bingo, a weak dollar definitely is a big factor in oil prices! At the rate things are going we'll have a 1:1 exchange rate with Canada for currency.

you're hoping the dollar will get stronger sometime? :devil: :hrhr: :D

IIRC, the Canadian $ already tied US $ about half a year ago...

[Beefy22]

This is forum related how? This will also end up as a flame fest.... But because I'm bored i'll respond.

If you don't want to pay so much in gas drive a more fuel efficient car or don't drive. There are several fuel companies in competition they can keep raising prices as oil prices rise because people aren't driving less as prices go up. At some point the price will get high enough to where people will actually monitor thier own driving habits, then the price will level off and everyone can stop :banana::banana::banana::banana::banana:ing. Until then expect prices to increase day by day for as long as it takes. Facts are demand is rising and supplies aren't increasing.


One other point I will make is that as the dollar keeps dropping in value the price of oil will continue to climb regardless of demand.

Yup, couldn't agree more...


Heh...and you have no idea of what the prices are in Europe.

1,4€/Lt -> 8+$/Gal

:(

That has more to do with the exorbitant tax rates on fuels in Europe than anything else...

[DaMulta]

All this stuff being said about demand is bull :banana::banana::banana::banana:. Back in 2001 when gas hit 99cents for the last time the Russians opened up their pipe line in full. This drooped the value big time. No time sooner they shut that mofo down and then trend down the flow rate.

This is how oil works now. In the old days when they wanted to make more money they just pumped more and more oil. Now they have hit a point where when they want more money they just slow down production and the price goes up. We have plenty of oil, it's just who is pumping it has learned how to work the system. It's only going to get worse. Most of the oil is starting to go to countries instead of companies that will play the cat and mouse game even more.

FYI China just bought a junk of BP Oil the other day.

Bush is saying build more refineries, well no one wants to. They really don't want to in the USA. During the rain of Clinton he passed new EPA laws that wanted the Oil company's to clean up the pollution from Refiners and they fixed some and closed others because THEY didn't want to fit the bill to upgrade the plants.... The EPA just rapes them, and building one cost billions of dollars. Well there has been a new one approved that they are planing on building , it took 20 years to pass the paper work along before they were allowed to build one.

This really isn't even a problem. We have plenty of gas/ diesel being made. How many times have you went to your local gas station and they are OUT OF GAS? Ya, they are soooo out. People have slowed down driving a little, but in truth I don't think it has. There are still plenty of cars on the road as there always has been. In America there is no public transportation system, and you have to drive there is no other way around it.

[Afterburner]

The USD is almost 1:1 with AUD.

The SGD was 1.75 to the USD and now its 1.35.

The cheapest gas here is SGD$2.05/ltr while Shell Vpower is $2.30+

[Hard H20]

big oil doesnt set the price of gas

Finally somebody gets it!

I work for "big oil" Chevron to be exact. The exploration and production companies (Big Oil) do not set the market price per gallon. You want to place blame for soaring prices look no further than OPEC. They're manipulating the market output which inturn makes prices soar when demand is high. You think the PPG is high now wait until June, July and August.......

[highoctane]

you're hoping the dollar will get stronger sometime? :devil: :hrhr: :D

IIRC, the Canadian $ already tied US $ about half a year ago...

Hey now, we have a whole .02 cent advantage over canada yet!! :D

http://finance.yahoo.com/currency

[highoctane]

The only good thing to come from these high prices on fuel is that alternatives actually become economically viable.

The sooner we make a big push towards alternatives to crude oil fuel the better.

[Xenogias]

I wouldn't mind the rising cost of gas if we still had a middle class in America...

[itznfb]

If you don't want to pay so much in gas drive a more fuel efficient car or don't drive.

this is the only point that needs to be made on this topic.

i carpool in a hyundai accent everyday. i don't spend more than $20 in gas a month. i fill up my integra about once very two months.


I wouldn't mind the rising cost of gas if we still had a middle class in America...

i don't live here anymore? news to me.

[WRC]

if the hydrogen engineers can solve the storage&supply problem these cars will ultimately put an end to this madness

[deathman20]

One other point I will make is that as the dollar keeps dropping in value the price of oil will continue to climb regardless of demand.

Actually the dollar is on the rise over the past week.
Went from 1 Dollar = 1.58 Euro's to 1 Dollar = 1.54 Euro's and its steadly going postive for the dollar every day this week.

[DaMulta]

itznfb;2960536']this is the only point that needs to be made on this topic.

i carpool in a hyundai accent everyday. i don't spend more than $20 in gas a month. i fill up my integra about once very two months.



i don't live here anymore? news to me.

For my job I have to go deliver 3 times a week, and do spot checks here and there. It's me and the boss so there really isn't anyone to car pool for me. I spend around 100 dollars a week now on fuel. It's a have to thing for me. Sure I could quit and find another job but I like what I'm doing and the hours MOST of the time.

Fuel is literately killing my pocket book these days.

AKA :banana::banana::banana::banana:ing Ethanol is killing me as well. I have lost 10 miles to the gallon because they killed off 93 octane to 91, and started pumping crappy ethanol into my gas that I still pay the same price for.


I'm now even thinking about turning my other mark Viii into an electric car....

http://www.evsource.com/tls_transwarp11.php
It would be a hell of a lot cheaper to drive.

http://www.evsource.com/

[itznfb]

why aren't you writing off that expense? it shouldn't cost you a penny. out of pocket at first yea, but you get it back.

[DaMulta]

I do, but it's not like I don't have a credit card with no bill every month.

I"m starting to live check to check because of this mess. I'm being forced to cut down on other things......it's not fun.

[Nicksterr]

hyundai accent is a great little car, specifically b/c of it's price. Actually it's not really little, bit it's not a full crossover size either. i think the honda civic coupe gets a few more mpg, but it costs more...i'm happy with hyundai though, they are doing great things and 10yr warranty is sex.

[stayfrosty]

I wouldn't mind the rising cost of gas if we still had a middle class in America...

This man speaks the truth...... When 2% of your population has 90% of your money there is something VERY VERY VERY WRONG.

[n-sanity]

rofl flamefest in a thread that talks about GASOLINE... bring on the flamethrowaz :D

On another note... gas companies might just be bumf****ing themselves... digging their on grave; by driving the prices so high they make it easier for ethanol and other fuel sources to be competitive ;)

[itznfb]

On another note... gas companies might just be bumf****ing themselves... digging their on grave; by driving the prices so high they make it easier for ethanol and other fuel sources to be competitive ;)

not really... one of the reasons price is so high (according to the execs) is that they refuse to open refineries and refine the oil here. they aren't going to refine the oil here because they feel its a wasted effort as oil is a doomed market and they'll focus their efforts elsewhere.

in other words, they aren't going to waste their time and money to save you a couple bucks when you are just going to ditch their product soon anyway.

[3NZ0]

Bah, If anyone has a right to complain, it's us UK folk. Petrol and diesel cost an absolute fortune - well over a £1 a litre, utter joke.

[[Spectre]]

http://money.cnn.com/2008/05/01/news/companies/exxon_earnings/?postversion=2008050115

MISSES FORECASTS????? WTF

i am seriously tired of all the buttsecks the oil companies are getting to have every time someone goes to the pump (lol pun) i get that our foreign oil suppliers have raised the price of oil by the barrel, but doesn't that mean that the oil companies like exxon are just raising the pump price just that much more to rake in more money?

I am sick and tired of it, but there is nothing i can do gahhh :mad:
it the last month here in westvirginia gas has jumped up ~$0.50 IN A MONTH

:rolleyes:

$116.85 billion in revenue with $10.89 billion in net means they had a 9.3% profit margin.

That is actually a really bad profit margin and not good business.

Now if you are actually serious, which I hope you aren't, lets look at another example (mainly because I don't have Exxon's numbers)

Chevron:

Chevron's gasoline division made $252 million dollars this year compared to $1.6 Billion last year. Which indicates they have NOT been passing along all the cost increases to you at the pump.

http://news.yahoo.com/s/ap/20080502/ap_on_bi_ge/earns_chevron;_ylt=ApGzHTlT.xLmppRz9j_Zm6.s0NUE

[irev210]

Finally somebody gets it!

I work for "big oil" Chevron to be exact. The exploration and production companies (Big Oil) do not set the market price per gallon. You want to place blame for soaring prices look no further than OPEC. They're manipulating the market output which inturn makes prices soar when demand is high. You think the PPG is high now wait until June, July and August.......

OPEC doesnt have the manipulating power they used to, even with all of their quotas, etc they all cheat on output anyway. Even the swing producer, Saudi Arabia is pretty much pumping at max capacity -- and I cant blame them when their economic cost of pumping oil is about 32 dollars a barrel (actual cost for most of their oil is MUCH cheaper) and they can sell it for 115.


I wouldn't mind the rising cost of gas if we still had a middle class in America...

and our cable TV bills, our cellphone bills, our shopping bills, toy bills, hobby bills, etc etc. Define middle class --
Median household income, 2004 $44,334
http://quickfacts.census.gov/qfd/states/00000.html

Do you know how many people around the world would KILL to have a MEDIAN household income of $44,334?

if you’re at the US poverty line ($9,800 for an individual) you’re richer than 87% of people in the world.
the global median income is $850 US, annually

Okay, lets talk about unemployment rate-

Unemployment Rate:
5.0% in Apr 2008
(full employment is considered around 4.3%)
http://www.bls.gov/


Look at Germany and France unemployment!




I do, but it's not like I don't have a credit card with no bill every month.

I"m starting to live check to check because of this mess. I'm being forced to cut down on other things......it's not fun.





This man speaks the truth...... When 2% of your population has 90% of your money there is something VERY VERY VERY WRONG.

2% of the population also pays for 95%+ of taxes

2% of the population are also responsible for millions of jobs in America. Fundamentally, the idea that you can work really hard and become a Bill Gates, etc attracts a lot of talent from outside the country.

For example, no Bill Gates, no Microsoft, no hundreds of thousands of excellent jobs that it creates.

[itznfb]

2% of the population also pays for 95%+ of taxes

2% of the population are also responsible for millions of jobs in America. Fundamentally, the idea that you can work really hard and become a Bill Gates, etc attracts a lot of talent from outside the country.

For example, no Bill Gates, no Microsoft, no hundreds of thousands of excellent jobs that it creates.

wow, someone actually understands the fundamental basis of a strong economy... shocking.

[Hard H20]

irev,

I will agree that OPEC does not posses the power they once did in the late 70's early 80's. However, they are still a major contributor to the day to day increases we're seeing now. Increasing output would if nothing else stabilize the market price.

We're doing all that we can in the Gulf, Chevron has invested 1.6 billion in the drilling program over the next 5 years but this does us no good without the capability to refine what we drill and produce. This is where more refineries would help us tremendously. If we could refine 80% of what is being produced in the Gulf currently we would not be bent over a barrel (no pun intended) with the Saudi's.

Another factor is all of the restrictions we've impossed on domestic oil & gas exploration and production here in the states. Open up ANWR and the Florida coasts :D

The agency who profits the most from our oil & gas exploration is not big oil but the MMS. They get paid whether or not a well is deemed commercial. If you flowback a test well and it turns out not to perform as expected MMS still gets their cut. That's another subject for another time.

Most people look @ the earnings reports and see nothing else but a huge number. Nobody bothers to take the time to factor in the day to day expenses and overhead big oil has. They also don't factor in the years big oil spent making 0.23 a barrel profit when oil was 17.00 a barrel. Add in hurricane storm damage that was absorbed by most of the companies because they are self insured and that "earnings report" doesnt look nearly as favorable afterwards.

[jb-]

Debating aside, you have to admit this quote from the article is impressive:

"The profit in that quarter came to $1,385 a second"

[Hard H20]

Debating aside, you have to admit this quote from the article is impressive:

"The profit in that quarter came to $1,385 a second"

Impressive, yes.

The rig I work on the Cajun Express costs Chevron $19,000.00 USD a minute to operate. If we hit a dry hole (no oil) they absorb that cost. You see where I'm going with this? That's only 1 rig.

[Spawne32]

3.44 here, i threw in some octane booster this time around again, ups my gas mileage considerably

[Hard H20]

$4.10 a gallon for diesel here... By world liter prices still dirt cheap.

[stocius]

Does this mean Exxon will qualify for more gov't subsidies?

[XS Janus]

"$1,385 a second"

Sounds like a god deal to me!
Where do I sign?
:D

[[XC] Lead Head]

The oil companies only charge a couple of cents per gallon of gas, the reason why they make so much money is because the amount of gas they sell.

[M.Beier]

lol...

I spend 250$ a month on gas... And Im a student!
You Americans havent got any probs with gas prices yet...

However, if the gas price is 15-25 USD per gallon, wouldnt you still drive your car?? Admit it... Its just something thats annoying, however, you would...

[jb-]

Pft, I ride a motorcycle! $25 per month for me.

Oh and here's a good one:
http://www.thesharkbook.com/blog/uploaded_images/cheap_beer-771579.jpg

[M.Beier]

Pft, I ride a motorcycle! $25 per month for me.

Oh and here's a good one:
http://www.thesharkbook.com/blog/uploaded_images/cheap_beer-771579.jpg

Well, its ALWAYS been cheaper : - )
Even milk is cheaper then gas... you can almost get wine at the same literprice! :p:

[Grafton]

If you don't want to pay so much in gas drive a more fuel efficient car or don't drive.

three major problems with this statement
1, i already drive a 97 hyundai accent 30-32mpg and cant afford a new car
2, i have to get to work somehow, and its not like i cant find another job closer to me @ a similar payrate
3, i have cut out almost all un-nessary trips: seeing family, going out to eat, oh i forgot something at the store trip, etc... i go to school and work if i need food i get it from a store that is on one of those two routes,

:(

[Nicksterr]

Lead Head;2961332']The oil companies only charge a couple of cents per gallon of gas, the reason why they make so much money is because the amount of gas they sell.

Okay, I hope you are kidding and just thought that up.

The reason why oil companies make so much money is because of the futures contracts they make with oil producing countries. Your average oil company (there are only 3 or 4 left now in the world) most likely buys oil for $50 or less a barrel. The reason why they charge so much at the pump is because they try to estimate how much the oil will be worth one year from whatever point (futures contract concept). That, along with greed. The oil companies have done nothing but increase prices since the beginning. It's simple, the executives in the oil companies have just become more greedy over time.

[Decami]

Yup, couldn't agree more...



That has more to do with the exorbitant tax rates on fuels in Europe than anything else...


that and the higher octane levels, we have :banana::banana::banana::banana::banana: gas here. Not to mention I have no problem with gas prices what so ever, and I have to buy 91+ for my car. Do you guys have any idea what it takes to get oil turned to gas and then to the pumps, its one of the cheapest liquids sold by the barrel, im not gonna sit here and complain cause im spoiled from low prices in the past.

[BulldogPO]

There are no way to get fully rid of oil, every machine needs it at manufacturing at least also it is every where, paints, fabrics, drugs, plastics, you name it..

[Swatrecon_]

Lead Head;2961332']The oil companies only charge a couple of cents per gallon of gas, the reason why they make so much money is because the amount of gas they sell.

finally, someone gets it. They sell literally billions of gallons per week, making a few cents a gallon, that's still hundreds of thousands every day. it has nothing to do with the BIG BAD OIL COMPANIES OF DEATH. It's what they have to pay for oil by the barrel. You can blame the Saudi's and the Liberals if you live in the US. DRILL ANWAR!!!


itznfb;2961051']wow, someone actually understands the fundamental basis of a strong economy... shocking.

I know, it's a pleasant refresher.

[ethernal]

Sigh.. let's just ignore the actual problem and blame the big bad oil companies (or OPEC, whichever evil organization you want to blame).

I posted this on another thread a week or two ago, but I'll repost it here:


While I'm not a fan of large oil companies, the reason oil is such a high price as of right now is because of simple market forces.

Oil companies do not set the price of oil, which is what many people seem to think. Yes, they influence the price of oil, but that is only through their supply of it. It is the forces of free market commodity trading that determines the price of oil. Oil is one of the best examples of commodities. Oil is oil. While there are a few subsets of it (e.g., light sweet crude) if oil meets certain purity and concentration requirements, it's oil. As such, it is traded on commodity markets. It is holders of these futures and traders in commodities that determines the price of oil. Futures are basically contracts to buy a product at a certain price at a certain time in the future. It is what the consumers of the oil are willing to pay for the product that determines it, not the oil companies. It is simple supply and demand.

While it's fun to say that the oil companies are conspiring to limit supply or something, that is not the case. As it is now, many oil fields are being drawn at too quick a drain rate. You can only drain oil from a field so quickly before it damages the maximum productive yield of oil (i.e., if you drain it too quick, you damage the field, and you lose extractable oil quantities). Oil companies are vigorously trying to find new reserves, now moreso than ever. The simple fact of the matter is that there has been a fundamental shift in the market.

This graph (http://www.wtrg.com/oil_graphs/oilprice1869.gif) shows the change. The cost of a barrel of oil (inflation adjusted) has been about $20-25 throughout the 20th century. The exception to this was, of course, the collusion of OPEC to reduce oil output. That is an exception to the rule. There is no such effort to reduce production at this point in time. The price has gone up because supply is having trouble meeting demand. While there is not yet a shortage of oil, there is a fear of a shortage that is driving the price of oil up.

The fundamental rules have changed, and that change is that long-term supply is going to fall under long-term demand at current planned production rates. This is the reason that the price of oil has skyrocketed, not the evil of the oil companies.

Once again, I am not saying that the oil companies are good, moral companies or anything of that sort, but they are not inherently evil, nor are they the cause of high gas prices. We, the consumers (on a global scale), are the ones that are driving up the price of oil. The problem with oil is that it is such an inelastic good that even a brief shortage or even the fear of shortage can cause the price to skyrocket. People need oil - for plastics, for fertilizers, for transportation. The demand for oil is so universal and so inelastic that the price has jumped by 600% in the past decade. The oil companies certainly enjoy the benefits (the cost for them to extract the oil hasn't increased much, but the price they can sell it for has increased greatly), but they are not the cause of the high prices.


And since this dig is at the big bad oil companies, I'll go ahead and add a couple more facts. The reason why Exxon Mobil didn't meet forecasts is because they can't maintain their production as is because they simply cannot get their hands on new reserves (although the fact that Hugo decided to steal expropriate some of their reserves didn't help either).

[[Spectre]]

Okay, I hope you are kidding and just thought that up.

The reason why oil companies make so much money is because of the futures contracts they make with oil producing countries. Your average oil company (there are only 3 or 4 left now in the world) most likely buys oil for $50 or less a barrel. The reason why they charge so much at the pump is because they try to estimate how much the oil will be worth one year from whatever point (futures contract concept). That, along with greed. The oil companies have done nothing but increase prices since the beginning. It's simple, the executives in the oil companies have just become more greedy over time.

You aren't actually serious are you?

Exxon had a 9.3% profit margin. It is the speculators who have driven the market into contango or the oil companies would be posting good profit margins not crappy ones.

Chevron made $252 million on their gasoline division last year after making 1.6 billion the year before....which means they absorbed those increases in cost without passing along the increases to you in any real fashion.

Oh and there are far more than 3 or 4.

Exxon-Mobil
Chevron
BP
Royal Dutch Shell
Sunoco
Marathon
Amerada Hess
Devon
Anardako
etc.

And those are just the ones with large presence in the US that I can think of.