Exxon profits = $1,318 a second ($10B)

[Kirby]

I believe in healthy companies making a fair profit and staying healthy, but this is ridiculous. And it's even more of an insult that none of the big oil companies have reinvested the profits in new refining capacity for 30 years.

 

[Militant-Grunt]

The oil industry does not care about fair pricing, they know no matter how high they set the price, we shall buy..

 

[Abdoman]

Woh woh - don't blame the oil industry. They don't set pricing. If they did do you think that we would have ever seen $15 a barrel oil?

You are right as no matter how high the price we don't stop driving.

 

[Kirby]

Huh?

They don't set the price of a barrel of crude, but they DO set the wholesale price to the station, or in the case of company owned stations, the price at the pump.

Let's see, a ten cent reduction of price at the pump would be about a 3.5% reduction in profits, so they would have made "only" $6.5B profit instead of $10B. Or that $3.5B would pay for a new refinery.

Granted, I know I am oversimplifying the financials, but you get my point.

 

[mclarensmps]

uum 6.5B isnt that 35%? or am i missing something completely here!

 

[Kirby]

OK, I'm the dumbass who did the wrong math. But it proves the point even better - 10 cents at the pump less would cut the $10B profit to "only" $9.65B.

 

[mclarensmps]

Yeah either way you look at it, it is insanely ridiculous....