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Yeah, something stinks here. Basic economic theory is that if the wholesale cost goes up, the retail cost increases by a proportionate amount. This is what we were all told when the gas prices jumped. At first, I was willing to believe this [up to a point] but now the truth comes out.

Basically the math seems to have worked like this: $0.10/gallon increase in wholesale gas cost = $0.35/gallon increase retail. Thus, profits jump exponentially. What a load of s...tuff.

Their refusal to reinvest some of this isn't so much the issue as the fact that we were told that the price went up because of market conditions (which is true to an extent) but they clearly took advantage of the situation to bolster the margins here. Now we see the earnings reports, and they have a PR disaster. Poor babies, let's see 'em grovel and stutter like morons when Bill O'Reilly and others start laying into them.

I'm getting a whiff of yet another federal investigation coming...which will just be more money wasted as it will change nothing. Public pressure may actually effect some change before this is all over though.

KDirk
 

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The Government NEEDS to regulate these oil companies! And Exxon didn't just make 10 billion, they made 10 billion in PROFIT!

Bill O' Reilly is definetly right in saying that they are gouging us into oblivion.
 

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Notice how when the companies are in trouble (like the Airlines after 9/11) and begging for help, we feel sorry for them, yet when companies are actually turning a profit, and doing what they're supposed to do (without assistantce) we get all pissy at them.

Besides, Exxon is charging no more than what the world market is right now. If they lowered their prices, they'd have to stop selling in the U.S., because China and India are willing to pay $3 a gallon (or however it is adjusted over there). Also, you have to realize, that when the oil companies asked to build more refineries or drill in Alaska, it was the EPA and the democrats who always vetoed it. It was the democrats in California who INSISTED that they have their own blend of gasoline, resulting in at least 18 different blends across the country, which drives up prices even more. If the whole country used the same formula, we'd have a LOT cheaper gas...

If you don't like it, get a hybrid, or better yet, use E85 or Ethanol or Biodiesel. There are alternatives you know...
 

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Notice how when the companies are in trouble (like the Airlines after 9/11) and begging for help, we feel sorry for them, yet when companies are actually turning a profit, and doing what they're supposed to do (without assistantce) we get all pissy at them.

Besides, Exxon is charging no more than what the world market is right now. If they lowered their prices, they'd have to stop selling in the U.S., because China and India are willing to pay $3 a gallon (or however it is adjusted over there). Also, you have to realize, that when the oil companies asked to build more refineries or drill in Alaska, it was the EPA and the democrats who always vetoed it. It was the democrats in California who INSISTED that they have their own blend of gasoline, resulting in at least 18 different blends across the country, which drives up prices even more. If the whole country used the same formula, we'd have a LOT cheaper gas...

If you don't like it, get a hybrid, or better yet, use E85 or Ethanol or Biodiesel. There are alternatives you know...
I'm a Republican, but I don't place blame on the liberals for the spike in oil prices. We already ARE drilling in Alaska, but not all across the state in protected areas. Last year Exxon made a PROFIT of $5,500,000,000 and the same time THIS year they're making a profit of $8,000,000,000. The oil companies know that since the government doesn't regulate their prices, that they can easily cash in on events such as hurricanes to boost their revenue.

If they could have a heart (unlike they do now) and lower their profits by just $1 billion (still would be making $7 billion), our prices at the pump would be considerably less than they are now. There is NO doubt that these idiots are laughing at our pain.

http://www.usatoday.com/money/companies/earnings/2005-04-28-exxonmobil_x.htm

I feel sorry for everyone in the Northern and Midwestern States that have to pay 50% more to heat their homes for the upcoming winter months.
 

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I'm all for free enterprise, but it seems pretty clear Big Oil is screwing the driving public.

Personally, I boycott companies (such as Wal-Mart) whose business practices I don't agree with. I may be just one consumer, but if enough people took the same approach, it might have an impact on them.

I generally buy gas at Costco since it's 10-20 cents cheaper (especially important since my 4.9 requires premium), and there aren't many Exxon or Mobile stations in Oregon, but I sure as hell wouldn't give them any of my business if there were.

Speedy, I used to live in Phoenix, and I know Mobil has the largest market share in that area. Would you buy gas from them?
 

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I used to use Mobil, now I use Chevron...It doesn't matter, all these oil companies are getting fat off us...paying an average of $3/gallon, why wouldn't they make $10B in profits. What they need to do is stop increasing these gas prices on the pretense that refinery costs have sky rocketed....If that is the case, put the 10 billion back into the refineries, lower the cost of refining, and give the consumer a f*$king break!
 

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I'm a Republican, but I don't place blame on the liberals for the spike in oil prices. We already ARE drilling in Alaska, but not all across the state in protected areas. Last year Exxon made a PROFIT of $5,500,000,000 and the same time THIS year they're making a profit of $8,000,000,000. The oil companies know that since the government doesn't regulate their prices, that they can easily cash in on events such as hurricanes to boost their revenue.
You're a Republican? And you want government regulation? Uhhhhh.....:hmm:

I'm a Libertarian, and since there is no monopoly on gas, I don't care how much Exxon charges. Its the rules of Capitalism, whoever charges less will get more business, but obviously since everyone is charging about the same prices, that means the world market for gasoline is just higher. You forget that 1/3 of the world population lives in India and China and THEY drive cars too and they need gas too.

If the U.S. is tired of paying so much at the pump and making Arabs rich, they should get on the ball with that hydrogen. I mean, what's the holdup???
 

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Assuming we give Exxon the benefit of doubt, and we assume that their operational costs increased 15% last year, if they increased their price by 15% then the profits would be approximately the same. The fact that their profits increased by so much would indicate that they increased their price at a faster rate than their expenses.

I am all for free enterprise and capitalism but since this isn't a pure capitalist society there has to be some consideration for the good of society. These high gas prices are having a ripple effect across the economy, they are affecting transportation costs, production costs, retail costs, and practically else.

What this is going to lead to is an inflationary period similar to that of the Carter administration. Hourly workers and unskilled workers will have to choose between food, bills, or gas to get to work. So the answer is higher wages, resulting in higher prices, and so on and so on.

As for investing some of the profits into increased refinery capacity or alternative fuels - why should they? They don't make money off alternative fuels.
 

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These high gas prices are having a ripple effect across the economy, they are affecting transportation costs, production costs, retail costs, and practically else.
Which will hopefully drive people towards alternative fuels. I mean, last year we were saying hybrids were a fad, they would never catch on, but look at them now - Toyota is saying that most of its lineup will be hybrids by the end of the decade, and GM, who said hybrids were a waste of time, is once again getting embarrased by not only not adopting hybrids, but by sticking with engine technology that is SO 20 years ago (OHV's in Pontiacs? Come on, how do you expect Pontiac to beat out Toyota when they use outdated engines...)

As for investing some of the profits into increased refinery capacity or alternative fuels - why should they? They don't make money off alternative fuels.
I didn't mean the gas companies, I meant the American people and congress. Obviously people are starting to realized that gas won't be around forever, and they are also realizing that terrorist nations are getting rich off of us too, and theres NOTHING we can do about so long as we depend on foreign nations. What if Saudi Arabia got pissed at us and said, "you know what? we're cutting production by half so you have to pay $6 a gallon, what are you gonna do about it???" It almost happened with Venezuela when Pat Robertson pissed off their president this year...
 

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Speedy, I used to live in Phoenix, and I know Mobil has the largest market share in that area. Would you buy gas from them?
I admit that I do go to Mobil most of the time due to the location of the station. I'm only a few minutes away, so it makes it more conveinent for me.

Personally, I boycott companies (such as Wal-Mart) whose business practices I don't agree with. I may be just one consumer, but if enough people took the same approach, it might have an impact on them.
Walmart is a bachelors best friend :D!

You're a Republican? And you want government regulation? Uhhhhh.....
Yes I am. I live in a largely Republican area, and I do support government regulation on some industries such as the petroleum industry.

Which will hopefully drive people towards alternative fuels. I mean, last year we were saying hybrids were a fad, they would never catch on, but look at them now - Toyota is saying that most of its lineup will be hybrids by the end of the decade, and GM, who said hybrids were a waste of time, is once again getting embarrased by not only not adopting hybrids, but by sticking with engine technology that is SO 20 years ago
One of my friends who normally drives a 2003 Ford F-350 accually went to the Toyota dealership and test drove the Pirius. He said it was too small, too complicated, and too quiet for his liking. Myself...I'm scared of driving the Prius and accidently flick my cigarette butt and having the WHOLE Southwest blown off the map...It is hydrogen after all :D!
 

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Oil companys oporate under different rules than the rest of the free market ....they are a cartel......(technically Illegal)
 

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One of my friends who normally drives a 2003 Ford F-350 accually went to the Toyota dealership and test drove the Pirius. He said it was too small, too complicated, and too quiet for his liking. Myself...I'm scared of driving the Prius and accidently flick my cigarette butt and having the WHOLE Southwest blown off the map...It is hydrogen after all :D!
Uhhhh. The Prius definately isn't hydrogen.;) (yet...). Hybrids run on gasoline-electric motors, and the Prius was one of the first, so understandably, it was small and complex. But of course, times change, and technology advances....which brings us to modern hybrids, like the Ford Escape SUV, and the new Lexus GS 450h, which has a V6 hybrid, 0-60 in under six seconds, and somewhere near 300HP. Did I mention it gets over 30 MPG?

Of course, don't expect GM to surprise us. They're just now deciding to add a hybrid Silverado, which is mainly just so they can tell their stockholders, "Yeah, we have a hybrid TOO!" Of course, they will have more hybrids (I think there will be a Saturn sometime soon) but the fact is that GM missed an oppurtunity to look good to the public and (as usual) ended up looking like morons when (while everyone else was focusing on hybrids) they decided to bring out their new SUV program when gasoline is $3 a gallon..
 

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I have a love-hate situation with Chevron! When I was younger, my parents bought me 1000 shares of CVX stock, so it technically does make me a bit of money when prices go up, but it hurts me more! My parents also bought some for themselves when their stock was much lower, and now I think they have 5000 appx shares.

Anyone know what their shares are worth now, I'm guessing $55?
 

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They're $57 a share, predicted to go up to $72 within the next year...

What are the dividends like on a share of Chevron stock? How much do you make with your 1000 shares (if you don't mind me asking:suspense: )?
 

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Jesda said:
Q: Who sets oil prices?
A: The market.

Q: You mean oil companies?
A: No.

Carry on.
You mean this is a free market? :hmm:

Does the lack of new oil refineries in the US play any part in the higher costs of fuel, due to the lack of capacity to refine fuel? :hmm:

And who would be opposed to building new refineries in the US? :hmm:
 

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SpeedyArizona said:
Walmart is a bachelors best friend
But if you shop at Tarjay, you're not just cheap, but you have taste! :D

Even before I decided Wal-Mart was evil, I thought their stores were tacky. But I'm getting off topic.
 
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