The price of gas is going up why ?

2ndAmendment

2ndAmendment

Just a forgiven sinner
PREMO Member
Also that is worldwide operations if I am not mistaken, so it is not just U.S. dollars that went into the figures even if they are reported in U.S. dollars.

You are right slik, you are ignorant of business. Business is all about ROI (Return On Investment). Ten percent is a rather low ROI. Most businesses try for 30%. If the ROI is too low or negative, no reason to stay in business. Your car wouldn't be worth very much without gas, and the price of horses and wagons would skyrocket.
 
Toxick

Toxick

Splat
slik said:
I might be ignorant and people can tell me that it's cause of the demand versus the supply but it's crazy these companies are showing such high profits while out prices keep going up.
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I'm ignernt too.

Actually, I know exactly why the prices go up - but every time I get ass-raped at the pump, I couldn't care less about supply and demand. All I care about is my ass hurts.



These companies do not care about you.

They don't care about a goddam thing 'cept $$$$$$$$$$$.




Congress had a half-assed hearing about this very thing last year. I'm not sure exactly what was supposed to be accomplished at these hearings, but the result was exactly what I expected it to be.

Dick.
 
2ndAmendment

2ndAmendment

Just a forgiven sinner
PREMO Member
<h1>ROI
</h1>
<h1>ROI
</h1>
<h1>ROI
</h1>
<p>And 10% profit is not much of a profit margin. If the gross was not so large, Exxon-Mobile would be looking for a different business to be in.
<br />
</p>
 
Toxick

Toxick

Splat
2ndAmendment said:
<h1>ROI
</h1>
<h1>ROI
</h1>
<h1>ROI
</h1>
<p>And 10% profit is not much of a profit margin. If the gross was not so large, Exxon-Mobile would be looking for a different business to be in.
<br />
</p>
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When you put it like that...

I still don't care.



Supply is artificially low. Blame the oil companies, blame the government for putting such restrictions on drilling and refining, blame Hugo Chavez for being a fart-knocker.

There's only one thing I can feel, and it's not Exxon's ROI.
 
Toxick

Toxick

Splat
vraiblonde said:
Well....yeah. :confused: What's your point?
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That was the point. They simply don't care.


They don't care about me getting to work any more than I care about their ROI.

Nothing too profound.
 
slik

slik

New Member
2ndAmendment said:
Also that is worldwide operations if I am not mistaken, so it is not just U.S. dollars that went into the figures even if they are reported in U.S. dollars.

You are right slik, you are ignorant of business. Business is all about ROI (Return On Investment). Ten percent is a rather low ROI. Most businesses try for 30%. If the ROI is too low or negative, no reason to stay in business. Your car wouldn't be worth very much without gas, and the price of horses and wagons would skyrocket.
Click to expand...

In my initial post I admitted being ignorant to the situation. I never claimed be an expert in all facets of business, I pay other people to do that. But I would like to point out that maybe I'm not the only ignorant soul in regards to this situation (then again maybe I am):

http://www.csmonitor.com/2005/1027/p01s04-usec.html
http://www.consumeraffairs.com/news04/2005/gas_prices_testimony.html
http://www.msnbc.msn.com/id/9970294/

I'll admit 30% ROI is an ideal target. Not very realistic when your look at it proportionally. Most companies are not making earning of $10 billion a quarter.
10% of $100 is a whole lot more then 30% of a $10.

I have a feeling Lee Raymond goes not worry about his heating bills.
"His 2005 compensation was about $42 million, including salary, bonus, and stock-based compensation."

http://www.answers.com/topic/lee-raymond

http://quote.bloomberg.com/apps/news?pid=10000039&sid=ahRyCRdYNY5s&refer=columnist_crystal

Admittedly, the US probably has gas prices much lower then most other countries. My point is that the pricing of gas effects so many parts of our lives that I would think with compensating a CEO $42 million --- well - that leads me to believe that maybe they could afford to cut the prices some, maybe make it a bit easier on the working stiff and still turn a hefty.
 
E

ericw

New Member
If it's any consolation, Annapolis and DC will make bigger profits on your gas purchase than the oil company and the gas station owner, and they'll just waste it, while some of the oil company profits will be reinvested for things like building refineries (which will bring prices down in the future), and the dividends will benefit pension plans which have invested in oil stocks.

And it IS supply and demand, and not just in the US. Demand in China, for example, is growing something like 10 or 12 percent a year, which is driving up oil prices around the world.
 
Frank

Frank

Chairman of the Board
The word out there is that Iran's latest behavior on the world scene is disrupting the price on oil.
 
ylexot

ylexot

Super Genius
slik said:
Admittedly, the US probably has gas prices much lower then most other countries. My point is that the pricing of gas effects so many parts of our lives that I would think with compensating a CEO $42 million --- well - that leads me to believe that maybe they could afford to cut the prices some, maybe make it a bit easier on the working stiff and still turn a hefty.
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As large as that $42 Million is, his pay could be eliminated completely and it would effectively make zero difference in what you pay at the pump.
 
Larry Gude

Larry Gude

Strung Out
slik...

are showing such high profits while out prices keep going up.
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Please define for me and for Exxon for that matter, what level of profit would you be OK with?

10%?

15%?

How about the S & P 500 average for the last 30 years of about 18-19%???
 
BuddyLee

BuddyLee

Football addict
slik said:
Exxon profits largest in history ???

http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-01-30T163413Z_01_WAA000163_RTRUKOC_0_US-ENERGY-EXXON-EARNS.xml&rpc=23

Chevron hits record profits ??

http://www.breitbart.com/news/2006/01/27/D8FD44QG0.html

I might be ignorant and people can tell me that it's cause of the demand versus the supply but it's crazy these companies are showing such high profits while out prices keep going up.
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Congress hasn't said 'boo' in a while.:duh:
 
Larry Gude

Larry Gude

Strung Out
All lies...

Toxick said:
I'm ignernt too.

Actually, I know exactly why the prices go up - but every time I get ass-raped at the pump, I couldn't care less about supply and demand. All I care about is my ass hurts.



These companies do not care about you.

They don't care about a goddam thing 'cept $$$$$$$$$$$.

Congress had a half-assed hearing about this very thing last year. I'm not sure exactly what was supposed to be accomplished at these hearings, but the result was exactly what I expected it to be.

Dick.
Click to expand...


...at SOME point they care about you. That point would be when they start to lose growth and market share. THEN they will try and woo you with baubles and trinkets and discounts and such.

Fight back! Buy their stock! Make money on YOUR money!
 
Steve

Steve

Enjoying life!
ericw said:
If it's any consolation, Annapolis and DC will make bigger profits on your gas purchase than the oil company and the gas station owner, and they'll just waste it...
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:yeahthat: We blame a company for profiting, for doing successfully exactly what it was formed to do, yet we ignore the fact that the tax on fuel is even greater than the profit margin for the company producing it. As of August 2005, Maryland was charging 41.9 cents per gallon of gas sold in the state, or 14.4% of the $2.90 price of gas at the time. Exxon's current earnings (the largest in history) came in almost 40% lower than that, at 10.4%. Yet no one is griping about the tax. No, we expect Exxon or Chevron to give up their profits, while saying and doing nothing about the tax.

And by the way, this represents only one tax. How about State and Federal income tax, property tax, luxury tax, general sales tax, and inheritance tax. What taxes have I missed?

I think what is really happening here is that folks are just so resigned to give our money over to the governement that we get some sense of satisfaction out of bitching about how much companies are making, when what we should really be focuing on is accountability for the billions and billions of dollars that are wasted in tax revenue each year.
 
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