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Barony

Hmm... $4 gas good for someone

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Oil giant Exxon reports another record.

HOUSTON - Exxon Mobil reported second-quarter earnings of $11.68 billion Thursday, the biggest quarterly profit ever by any U.S. corporation, but the results fell well short of Wall Street expectations.

The world’s largest publicly traded oil company said net income for the April-June period came to $2.22 a share, up from $10.26 billion, or $1.83 a share, a year ago.

Revenue rose 40 percent to $138.1 billion from $98.4 billion in the year-earlier quarter.

Excluding an after-tax charge of $290 million related to an Exxon Valdez court settlement, earnings amounted to $11.97 billion, or $2.27 per share.

Analysts on average expected Exxon Mobil to earn $2.52 a share on revenue of $144 billion, according to a survey by Thomson Financial. The estimates typically exclude one-time items.

The record-setting results were largely expected, given that crude prices in the second quarter were nearly double what they were a year ago. Natural gas prices were significantly higher too.

But investors expected even bigger profits Thursday, especially after Europe’s Royal Dutch Shell reported a 33 percent jump in second-quarter earnings of $11.6 billion, which fell just shy of Exxon’s own record earnings from 2007.

Setting U.S. profit records has become commonplace for Irving-based Exxon Mobil. The $11.68 billion topped its own U.S. record of $11.66 billion, posted in the fourth quarter of last year. Right behind that was the $10.9 billion it reported to start 2008.

© 2008 The Associated Press.

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I never saw people posting in the past when Big Education was raising tuition at 10-15% year after year???

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Fixing Houses for Senators in Alaska is expensive stuff.

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People need it, they have it. Can't blame them for that, as that's the basis of our economy. Same as Bill Gates and Microsoft. Those people complaining about the money makers of this country absolutely hate to see others succeed and that's why this country is going in the toilet. Sorry, but it's not "fair", and won't ever be "fair". As Judge Schmales said on Caddyshack: "The world needs ditch-diggers too", so don't blame the guy who makes something of himself...blame yourself.

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Big education, as you call it, chasineyes, was raising costs to continue to provide a level of expected service which is continually being degraded. This is much different than a business that is making ridiculous profits in a monopolized market for you and me their shareholders.

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Wow, that must be a record even for Silly Town. It only took one reply to pull the post off topic.

I also agree you can't blame big oil for making big money. While they are in one of the sweetest economic spots worldwide (most of the world is oil-dependent), they don't control the price of a barrel of crude.

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I watched one of the oil exec. on the Today show last year and his comment was that they have an obligation to make money for the stock holders. I agree whole heartedly, but it's sometimes a tough pill to swallow when you see multi billion dollar profits quarter after quarter, year after year for the most widely used commodity out there.

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Barony, what do you propose? Government regulation like electricity?

The profits might not be as high, but it would become a solid stock for the long term.

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Barony, you are right. It's a hard pill to swallow sometimes when I look at anyone who is rich while I am not.

But big oil got to be big oil by being smart, tough, forward-looking and a bit unscrupulous. Those traits in combination are what the "American Dream" celebrates and rewards.

Life's like that. I've been a ditch-digger. gringrin

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Think of it this way…..

Say you hand make fishing lures and sell them on hsolist, and all of the sudden there is a shortage of your specialty fishing lure. You start to notice your lures are selling for 3, 4 or even 5 times what you would expect because of the demand.

Do you now set a fixed price instead of the going market because you feel the people who buy them are getting gouged? Heck no, you increase production to maximize your profit.

Now say you increase production so much that the demand is no longer there, now the price comes back down.

The difference we have here is that the oil companies cannot simply increase production due to many factors. The same people that complain about the price of gas also complain about building new refineries. You can’t have it both ways.

Having said that I think it would be naïve to think that there aren’t shady “back door” deals that happen with OPEC and the Big Oil companies.

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I'm proposing buying Exxon stock for my portfolio.

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I'm proposing buying Exxon stock for my portfolio.

If you have a 401k you probably already have it wink

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Originally Posted By: Barony
I'm proposing buying Exxon stock for my portfolio.

If you have a 401k you probably already have it wink

I certainly do. I chose investments that have oil companies, pharmaceutical companies, and financial services (not so good lately on that last one) prominent in the portfolios. I'm happy with the results, and look forward to the dividend increase in my portfolio.

Just wish I owned more...

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Originally Posted By: dtro
Originally Posted By: Barony
I'm proposing buying Exxon stock for my portfolio.

If you have a 401k you probably already have it wink

I certainly do. I chose investments that have oil companies, pharmaceutical companies, and financial services (not so good lately on that last one) prominent in the portfolios. I'm happy with the results, and look forward to the dividend increase in my portfolio.

Just wish I owned more...

My 401k(s) are doing quite well thanks to the Exxons of the world.

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Big oil is making lots of money, but remember that our government is making much, much, more per gallon that the big oil companies.

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Quite true anyfish...lets bash congress, as it is they who set the taxes on a gallon of gas and they who are making about 3 times what the oil companies are on a gallon of gas and they have done nothing at all to get it to the pump!

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Your not complaining that the government is taxing the oil companies are you. Let me think now(and hurts when I think),You dont dont tax them they get the money. Do ya think they will just lower the price of gas. And how do we get our infrastructure fixed even though the gov can do a better job with money they already have. 18 cents is a fraction of what a barrel of oil cost. And by lowering the tax it only will put more money in their pockets.

What is the point to be made showing the government makes money off an over inflate product. The government doesnt make anymore money when the cost of oil goes up if anything they are losing money.

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Your not complaining that the government is taxing the oil companies are you. Let me think now(and hurts when I think),You dont dont tax them they get the money. Do ya think they will just lower the price of gas. And how do we get our infrastructure fixed even though the gov can do a better job with money they already have. 18 cents is a fraction of what a barrel of oil cost. And by lowering the tax it only will put more money in their pockets.

What is the point to be made showing the government makes money off an over inflate product. The government doesnt make anymore money when the cost of oil goes up if anything they are losing money.

No he's saying that the government is profiting more off the taxes on a gallon of gas than the sellers of the gasoline are making. Nobody mentioned the corporate taxes on oil companies.

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If the corporate tax rate is 10% (please correct is wrong) wouldn't the tax on $11.6 BILLION be about $1.13 BILLION? And to think that's only for ONE quarter!! How many roads and bridges could be built with that... oh wait it's all being dished out to every other organization that needs a handout.

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Well, if Hillary had her way, so-called big oil would not make any money. What a joke. That's what she said. How dare a company make a profit in this country? Also, isn't Exxon the 14th largest oil company in the world? $10 billion out of $138 billion in sales is about quite 7% margin. That wouldn't be very good for most companies. The company I work for sets higher expecatations than that (as do most) and would not be happy with those results. If I was a major shareholder I'd be looking for better results.

I'm so tired of hearing "Big Bad Oil" makes all this money blah blah blah and it's just not "fair".

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I'm not against them making money, I'm against them taking taxpayer money for subsidies & then telling us all to take a hike. Why are we subsidizing Big Oil? Can anyone tell me?

"The American oil and gas industry might receive anywhere between $15 billion and $35 billion a year in subsidies from taxpayers.

Why such a large margin of error? The exact number is slippery and hard to quantify, given the myriad of programs that can be broadly characterized as subsidies when it comes to fossil fuels. For instance, the U.S. government has generally propped the industry up with:

* Construction bonds at low interest rates or tax-free

* Research-and-development programs at low or no cost

Assuming the legal risks of exploration and development in a company's stead

* Below-cost loans with lenient repayment conditions

* Income tax breaks, especially featuring obscure provisions in tax laws designed to receive little congressional oversight when they expire

* Sales tax breaks - taxes on petroleum products are lower than average sales tax rates for other goods

* Giving money to international financial institutions (the U.S. has given tens of billions of dollars to the World Bank and U.S. Export-Import Bank to encourage oil production internationally, according to Friends of the Earth)

* The U.S. Strategic Petroleum Reserve

* Construction and protection of the nation's highway system

* Allowing the industry to pollute - what would oil cost if the industry had to pay to protect its shipments, and clean up its spills? If the environmental impact of burning petroleum were considered a cost? Or if it were held responsible for the particulate matter in people's lungs, in liability similar to that being asserted in the tobacco industry?

* Relaxing the amount of royalties to be paid"

Anyone have any insight to this? Making money is one thing, making money while I'm supporting them through tax dollars is a whole 'nuther issue.

A

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Lets assume that your margin on the products you sell is 10%

That product sells for $50.00 you make $5.00

now the product (because of raw material cost etc.) sells for $150.00 so you make $15.00. DUH.

Yes you make more $ but your margin is still the same. What should the Oil companies do. lower there margin when there costs go up, say make 3.33% instead of 10%? What about when the cost goes down to $5.00 should they raise there margin to 100% so they make the same amount of $? The point being the oil companies are making more $ not because they are raising there margins but because the cost of the produce they sell is going up. Is this wrong?

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You're a bright guy Max. Please go through your list again and weed out roughly half of the items you listed - which have absolutely nothing at all to do with "Big Oil".

Then you might as well pull out the ridiculous ones, such as the ones about the highways and the Strategic Petroleum Reserve.

Then we can deal with the fallacies of the few items left.....

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Jackpine, I am happily ignorant on this issue, so if I didn't make it clear, I was asking a question rather than stating an opinion (yeah I know the Reserve is pretty silly). There are a lot of experts around here smile so I was hoping one of them could lift me out of my dark fount of unknowledge.

Really, I'm curious about the top-line number, if "subsidies" in whatever form are really in the tens of billions of dollars.

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