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Automotive News & Views Are gas prices fueling your pain? 
10042 messages, Last post on Jul 12, 2008 at 3:07 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: kernick (May 27, 2008 9:10 am) Not a bad idea except for one problem: now that we've proven we'll pay this much, what do you think the chances are of Exxon dropping prices versus just keeping them where they are and pocketing the $80 billion, perhaps in wonderful new executive compensation parachutes...er, packages? 
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Replying to: kernick (May 27, 2008 8:43 am) You are exactly right regarding Sarbannes. Companies do the equivalent of testifying every time they release a financial report. If they are found to have lied on the report, they (the president and any others proven to have contributed to the lie) go to jail. Period. |
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Replying to: bpizzuti (May 27, 2008 8:41 am) Exactly what do you think is false about these numbers? Exxon/Mobil doesn't make much money selling gasoline. They make far more selling oil so the fact that the profit margin on gasoline sales is relatively small is totally irrelevant. There's a lot of profit in selling $130/barrel oil and it probably does come out to around $3 of the price for a gallon of gasoline. Are you suggesting that the oil companies should sell their oil to customer X for less than customer Y is willing to pay?
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Replying to: tpe (May 27, 2008 9:47 am) You're not saying that $3 of the $4 price is profit, are you? Exxon make about 10% on total revenue, which would mean about $0.40 profit per gallon.
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Replying to: tpe (May 27, 2008 9:47 am)
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Replying to: texases (May 27, 2008 9:53 am) No I'm not saying that. I'm saying that of the $4/gallon that we are currently paying for gas the price of oil accounts for $3 of that. The other $1 is refining, distribution, taxes, etc.. Now I'm certain there is a lot of profit in that $3, which is based upon the market price of oil and has little to do with the actual price to extract it.
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Replying to: tpe (May 27, 2008 10:14 am) |
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Replying to: ezelda (May 27, 2008 7:08 am) |
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| Last weekend we had dinner with a friend of my wife’s who is an analyst with BP-Arco. He told us if a new proposed federal rule goes through in the next couple of weeks; expect to see gas prices at least $0.50 higher by Labor Day. He told us that the rule will do two things. First, it will require that the oil refiners increase their diesel production by at least 15% by the end of 2008 and second; it will limit the amount of finished diesel that can be exported. The feds are concerned that the high cost of diesel will pull the economy into a recession and they want the price of diesel more in line with premium gas. | |
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Replying to: tpe (May 27, 2008 7:30 am) Nationalizing anything beyond our defense forces is a recipe for disaster and that includes the Postal Service. We're capitalists and time and again if you leave people to their own resources with profit as their reward they will do a FAR better job than the government. If you can imagine EVERY major industry, health care, oil, farming, etc., operating like your local DMV you can envision what a government world would be like.
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