ExxonMobil has posted the largest quarterly profit in history. While ExxonMobil was banking a staggering $11.7 BILLION in profit, GM posted a second quarter loss of $15.5 BILLION.
Earnings for ExxonMobil have grown an unbelieveable 734% from its lowest point in the last 10 years. The company headquartered in Irving, Texas had a net income of $40.6 billion in 2007.
Meanwhile, in Detroit the GM boys are swimming in red ink. The $15.5 billion loss is the 3rd worst in the history of GM. There are many reasons GM is bleeding like this. GM, like most of America, failed to see the soaring fuel costs and react to the changing market. At last Americans may be moving away from the highly profitable, but not fuel effecient SUV’s for daily drivers. GM’s product selection across the board is loaded with porky SUV’s and the latest in fashion the so called ‘crossover’ vehicle. Crossover means it ain’t an SUV, but don’t call it a station wagon. These offerings are an improvement to the larger SUV, but they are equipped with All wheel drive. Grumpy thinks AWD is a needless expense that benefit very few. Grumpy’s dream car list includes the Cadillac Escalade. The big Caddy is AWD and thus likely would not be found in Grumpy’s garage.
Now, back to ExxonMobil. The market forces that are in place say that gasoline will continue to hover in the range of $4.00 per gallon due to the weak U.S. dollar vs. other currencies. Oil is traded in U.S. dollars. Grumpy is no expert in world economy. (or any other subject for that matter) The U.S. economy is weak due to deficit spending to support the wars in Iraq and Afganistan. Congress sent us all a little money to spend to stimulate the economy. Since they have no money to give us, it had to be borrowed from other nations like China. The faster our economy sinks with debt, the more we will pay for goods and services from other markets.
Grumpy thinks if ExxonMobil, ConocoPhillips, ChevronTexaco and the other players in the oil business can rake in this kind of cash, there is plenty of room to make some price cuts that will be seen at the pump. America is being held hostage by big oil and the oil men who were elected President and Vice President. Every U.S. President since Jimmy Carter has said that we need a national energy policy and a plan to reduce our thirst for foreign oil. Not one has been able to deliver a meaningful solution to this problem.
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Grrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr … don’t EVEN get me started, as I’m about to head out to take little dude to two hours of Taekwondo sparring, and would be TOO tempted to join him! (And, trust me — some of these kids are BADASSES — yeesh! I can hold my own with just about ANYone, but holy CRAP, can these kids move — whew!)
In ANY case — great update, great post, SICK NEWS, per usual … and yet somehow — where’s the REAL (non-violent) PUBLIC OUTRAGE … where’s the REAL STUFF PEOPLE ARE ACTUALLY DOING ABOUT THIS?? (Please don’t tell me about Obama’s pie-in-the-sky, tho, K? grin … remember, B’s ordered me to stick to RACIN’ from now on, lol …)
I’m currently working on marketing for an unique fuel-conversion project, tho … VERY interesting. If given a bit of confidentiality release at some point, might be something for ALL of us to be thinking about … will (or won’t, if I’m zipped up by client, lol) have more about this later.
ANYway … off to drive my, uh, 4×4 (but only when I WANT it) truck, lol … but, I’m totally with ya’, Grump!!
AWD is for sissies, anyway. I don’t even like the damned BUTTONS to switch back and forth now — I’d rather have ‘em on the floor, where they used to be, and where they still belong, grin … I swear, these new “SUV’s” are built for WOMEN, who usually don’t know a gear from a … ooops … ok, well, I’M an exception, lol …
ANYway … thanks for the heads-UP, as it was just $3.66 for about five minutes here in MI, and then went RIGHT back up before the weekend to $3.85+. If these guys are pullin’ in THAT much? They can cut us freakin’ breaks, already (or pay freakin’ CHINA back, sigh) … real nice feelin’ all patriotic over here, while we’re getting screwed by our own AND everyone else on the planet, lol …
Still … I am. Won’t bitch about a sitting President — much. At all. UnLESS he’s in the process of being impeached, and then … it’s time to rock & roll, IF I agree. SIGH. (Dad’s code … just the way it is.)
OK … since it’s “sparring night”, I must flee to watch my child kick the crap outa’ others while they’re TRYIN’ to kick the crap outa’ him, grin … good times!
“Grumpy thinks if ExxonMobil, ConocoPhillips, ChevronTexaco and the other players in the oil business can rake in this kind of cash, there is plenty of room to make some price cuts that will be seen at the pump. America is being held hostage by big oil and the oil men who were elected President and Vice President.”
So called Big Oil has had a profit margin of just under 10 percent over the years. For the first quarter of 2008 their profit margin - the amount cleared as profit on each dollar invested - is at 8.7 percent.
During the same time frame the pharmaceutical companies in America had a profit margin of over 27 percent. Computer/electronics companies margin stands at over 15 percent.
So it must be asked… just who is holding the American consumer hostage?
Grumpy, you’ve been buffaloed by all the blithering idiots in Wash D.C. and scared by the big numbers Big Oil produces and can’t see the reality.
During the same time frame the pharmaceutical companies in America had a profit margin of over 27 percent. Computer/electronics companies margin stands at over 15 percent.
So it must be asked… just who is holding the American consumer hostage?
Marc has a great point. I can grind an axe about the pill people too. Being a diabetic, I spend lots of money each month at the pharmacy. Since this site is focused on things like racing, I see the oil story as a loose tie in. A rant about the pharma industry here is not a good fit.
I believe the impact to this nation’s total economy is well illustrated when we look at the numbers posted by big oil compared to GM.
And you obviously miss the important point, that is the numbers you use, and not to mention those of the idiots in D.C. who would love nothing better than to see 10 buck a gallon to further their oh so ecco-friendly agenda, are crap on a stick.
There is nothing “well illustrated” by a less than 9 percent profit margin.
Ok marc, If they are only making 9% profit, how is it that the oil companies continue to post RECORD PROFITS for ANY company in any line of business? How is it that the cost of a barrel of oil can fall 30% and the retail price of gas falls less than 10 percent? The profits are not being made at the corner gas station.
It is made by the refiners and middle distributors. In the early 70’s I was a gas station owner. At that time, my profit was about a dime a gallon. i was selling at about .35-.40 per gallon all tax in. Now, retailers are selling at just over $4.00 per gallon. Of that .45 goes for state and fed tax. the stations claim the are lucky to make much over .05 per gallon.
I do not claim to know all, just askin’ ya know.
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