Gas Prices Down, Oil Companies Still Make Money

We’ve kind of giggled at recent conspiracy theories revolving around falling gas prices. Were they an attempt to help out the GOP in next month’s elections? An OPEC attack on E85? The thought that the oil companies would artificially lower gas prices to achieve their goals may or may not be true, but one thing is for sure: they’re still making oodles of money. Today, ExxonMobile reported record profits for the third quarter totaling $10.5 billion. That’s higher than last year’s $9.9 billion net income in the same quarter. This should douse any Internet rumors of Big Oil controlling the world, for awhile.   

[ExxonMobil Profit Gushes Higher, USA Today]

Comments

It sickens me to still be paying $2.10 for gas and the oil companies are rolling in dough. Why can't they cut all of America a break and lower their prices some more? Even at lower prices they could still make a decent profit. Sorry, fat cat oil executives don't like to share.

"It sickens me to still be paying $2.10 for gas and the oil companies are rolling in dough."

First, gas prices are extremely cheap here compared to world gas prices. You are not paying for the externalities which driving causes. One reason the US is so dependent on oil prices is that taxes (and prices) are so low.

"Why can't they cut all of America a break and lower their prices some more? Even at lower prices they could still make a decent profit. Sorry, fat cat oil executives don't like to share."

Margins in refining, retail and distribution are low and there is plenty of competition. In production oil companies have fixed production costs and are profiting from high world oil prices (due to factors outside the companies influence). The companies would invest more but oil nationalism is closing down potential supplies......

your comments reflects a basic ignorance of the dynamics of the oil market and the role US companies play.

M3 just got dope-slapped by Tor (who incidentally is 100% correct).

Tow is probably an Exxon Mobil employee.
But he's still right.

If a company's raw materials (crude oil) are so expensive ("high world oil prices") then how are they still making such a huge profit? Usually when a company's raw materials get expensive, the cost to the consumer goes up (which I completely understand) and the company's profits decline. To have increasing profits with record high crude oil prices makes no sense.
If you are in favor of paying higher taxes on your fuel, go for it. Why not raise sales taxes and income taxes, too? I know other countries pay $5 a gallon for gas, but that's their problem for letting their government rip them off like that with ridiculous taxes. Do the citizens of those countries get any benefits for their high fuel taxes? If higher fuel taxes here could be GUARANTEED to be spent on better highways then I might support it, but I know our government will just waste it.
As for "dope-slapped", this website is an open forum for people to share opinions and information. I don't consider myself "dope-slapped", Tor's opinion just differs from mine. All a part of reasonable discourse.

M3, you did get Dope-Slapped. Be a man and live with it.

Oil cos. make less profit/dollar than most industries. They're now (in the best of times) making about 10%. Microsoft just came out with about 30% numbers, and even P&G's at about 15%. So why are the oil cos. the bad guys?

Why does everyone suggest to abolish or repeal the gas tax? That tax is usually used for roads and transportation fixes, funding and projects. In many caese it subsidizes the mass transportation like city buses that run the same routs every 20 minutes EMPTY. The gas is still bought and sold at the same rates with or without the tax. Make the oil companies adhere to federally mandated price fixing based on socio-geographic zones. Shut down the empty bus routes (or use smaller buses at night).