What is Digg?537 Comments
- cowkiler, on 07/31/2008, -31/+116since when is it wrong for companys to make money!!
- jbenson2, on 07/31/2008, -54/+122Norway, England, Denmark all do off-shore drilling and you don't see them facing environmental disasters. The Norwegians are doing very nicely, thank you very much, courtesy of their oil
But NOoooo, our ignorant "Don't Drill Democrats" and Obama himself would love to see $12 / gallon gas and our economy go into the tank. - inactive, on 07/31/2008, -34/+102People are so silly in America anymore. God how I love this country, even with so many liberals. Yes, it's big oil's fault for supplying each and everyone of us with exactly what we demand - dam those bastards! Why not ask "Uncle Sam" to give a little back. It is been proven that the feds take .20 cents of every gallon of fuel while the company's take in an average of just under .08 cents. Why do they tax the oil so? Oh, silly me - how else would the dems pay for all the entitlements and welfare programs? Because one thing we must ever forget: you don't get nothing for nothing (I know it's not grammatically correct so take it easy on me grammar police) and every single thing the government can give to us is only because WE fund them with TAXES. We do, we do, we do - remember that every time Obama promises some new program - like universal health care!!!!
- strafefire, on 07/31/2008, -18/+76Not that I am defending Exxon-Mobil [lord knows I am not], but I am just curious...Did they make that money due to their business practices, or is this profit actually due to INFLATION? The reason I ask is that their stock, and those of other companies in their sector have been dropping like hotcakes, even as oil has been continuing to rise.
- DaDrake, on 07/31/2008, -5/+46It's not .... and their profit margin isn't excessive at all. What happens when you provide energy .... something used to make EVERY SINGLE DAMN product and TRANSPORT EVERY SINGLE DAMN product? You make a lot of money .
But no ... they don't say they make a % ... they give the dollar amount, as if that is more shocking. - Skywise, on 07/31/2008, -17/+58YES, let them DRILL. What seems to be missing here is that profit PERCENTAGE that Exxon made has not changed. They're still making roughly 10% profit on the amount of money they're spending. So you'll note they're also SPENDING MORE MONEY to make that BIGGER PROFIT. Simple math.
- blatantninja, on 07/31/2008, -8/+43As usual, a bunch of crap. Exxon has about a 10% profit margin. That is hardly outrageous. The number is large, but it's because they are selling more than ever!
As for 'the expense of the ocean and the environment' (isn't the ocean part of the environment?), there will ALWAYS be some impact on the environment from energy procurement and generation. It doesn't matter where it comes from, whether it is the raw materials to build solar panels and wind farms, the shipping of parts, or the drilling of oil. Should it be minimized? Of course, we should do everything we can to keep that footprint small, but since we aren't even remotely close to having a viable alternative to carbon based energy generation, not for our majority needs anyway, we'd better keep drilling for more oil, or we're all going to be screwed. - ZephyrNinety, on 07/31/2008, -11/+41Drill now so we have oil sooner so we have more time to advance our knowledge about alternative fuels.
- Yimyack, on 07/31/2008, -8/+37I'd love to see our country get off oil altogether
- Digger1123, on 07/31/2008, -4/+32Amen. google makes more money on the dollar than Exxon, and we are not trying to take all their money.
- wissler, on 07/31/2008, -4/+29If you think their profits are obscene, then buy their stock.
- Chahrlie5, on 07/31/2008, -16/+41As one of MILLIONS of Americans who holds shares/stakes in oil companies through various retirement funds, I hope they make more money.
I wonder how many of you anti-oil diggers, have investments in these companies that you don't know about, in mutual funds etc. Or have parents who are invested in them. - hockeyvids, on 07/31/2008, -10/+33Them big oil companies must be bad - because Obama said so. Start taxing them immediately - that sure will help..
Exxon's business practices aren't anywhere near "out of line" - they made $11.6b on revenues of $98 Billion - 11% profit margin. Just to put thing's into perspective - Microsoft posted $4.3b profit on revenues of $15.84b - 27% profit margin.
Get your heads out of your ass - please. It's not Exxon's manifest destiny to provide oil at the cheapest possible price for you - they are in business to make a buck. - Peabdog, on 07/31/2008, -8/+29They also paid $32.36 billion on those profits, and I thought making profits was the point of a corporation.
http://mjperry.blogspot.com/2008/07/exxon-posts-re ...
Also, there's no such thing as "ExxonMobil." A corporation is just a legal entity made up of investors. So when you rail against an evil corporation, you're just railing against everyday folks, just like yourself. - buckygrad, on 07/31/2008, -5/+26We can ban the drilling, but then don't complain about high gas prices. The refinery system is woefully outdated because, given the tight restrictions on drilling, why would oil companies bother investing in it?
- darkened, on 07/31/2008, -7/+27And I love how the socialist bury squad is hitting every single argument that points out the free economy is mostly working fine.
- xsecretfiles, on 07/31/2008, -12/+32You guys realize that this HUGE profit for this "Big" company, really belongs to its investors.....
which it might just happen to be your next door neighbor.
Go get and beat him up if it makes you feel any better :) - WasabiBomb, on 07/31/2008, -8/+27Norwegian oil spill:
http://news.bbc.co.uk/1/hi/world/europe/7140645.st ...
English oil spill:
http://news.bbc.co.uk/2/hi/uk_news/england/devon/6 ...
Danish oil spill:
http://news.bbc.co.uk/2/hi/europe/1256556.stm
That's about two-minute's worth of search, by the way. - DavidtheMavin, on 11/11/2008, -17/+36Their profits are a direct correlation of the inflation of the price of oil.
They have plenty of it, oil & money, so much in fact that they don't even drill in the 60+ millions of acres of US land they have leases for.
The offshore drilling bill is just a last ditch effort by bush to give exxon and others as much land as they could ever want so that even if the US goes with sustainable energy, they'll be somewhat competitive in the world oil market. - serif69, on 07/31/2008, -13/+32...who happens to be correct.
- blatantninja, on 07/31/2008, -5/+24The fields aren't rich enough to cover even the cost of drilling in most currently open but unused areas.
- rroeserr, on 07/31/2008, -7/+24What's obscene about 8% profit? Microsoft profit margin is obscene--- 27%
- Arkons24, on 07/31/2008, -7/+23Buried as illogical and contrary to all common sense.
Keep crying about the high cost of oil while opposing all policies which would result in a decrease in cost. - ZephyrNinety, on 07/31/2008, -9/+25I dunno about the rest of America, but I know here on the east coast, since bush has approved offshore drilling, our gas prices have fallen a good 25 to 30 cents... Probably one of the only smart things he has done. I bought gas for 3.71 at a Sunoco the other day.
- mattmy, on 07/31/2008, -2/+18Their profit margin is about 10% the same as it was ten years ago. So yes, with them not changing their profit margin and the soaring inflation in the cost of their raw material their profits are soaring as well.
- inactive, on 07/31/2008, -8/+24Hello, a category 4 / 5 hurricane blew through the gulf...remember that little upper level disturbance called KATRINA? How many oil spills were there? Human stupidity caused far more damage in New Orleans than oil companies in the gulf. As Mother Pelosi tries to lecture everyone about saving the environment, China is stealing our oil from a Cuban oil lease. Capitalism isn't perfect, but it's the fairest system out there. Why go into business if you can't make money? It's stupid to penalize someone because their product is popular. Yes gas is expensive, blame speculators. Let the oil companies drill!
- wonderchemist, on 07/31/2008, -11/+27What's wrong with making money?
- moridinamael, on 07/31/2008, -9/+24These oil companies are publicly owned, so this money is basically going to you anyway. Also, the oil company spends this "profit" on exploration and new technology which musts be continually developed as conventional resources are depleted, in order to keep the gas flowing into your car.
- datastorageguy, on 07/31/2008, -4/+19What is obscene is the average Digger's ignorance of basic market economics.
- dreicher, on 07/31/2008, -1/+15That's because 2/3 of the price are taxes (it costs money to be socialist). Norway is a HUGE exporter (#3 in the world) of oil which has made their country very wealthy and allowed them to vastly expand social programs.
- zelig, on 07/31/2008, -6/+19We want lower gas prices, but we don't want to drill for oil. You can't have it both ways.
- FiringPin, on 07/31/2008, -10/+23Let's tax them and regulate them more so we can drive gasoline prices up even more! Idiots.
My retirement fund is doing quite well thanks to the oil companies. - jcollin3k, on 07/31/2008, -13/+26I have never heard a good explanation for why oil companies are not drilling in the millions of acres already cleared for drilling (in Alaska and other places). I've heard several pundits bring this up to point out that the oil companies don't need more drilling sites because they are not even using all the cleared drilling areas now. However, they never say why the oil companies are not using them. Anyone know this answer? It is just that the oil offshore is easier to get too?
- inactive, on 07/31/2008, -0/+12Exactly. In fact, their profit margin (I know that's a dirty word to diggberals) isn't excessive at all when you compare it to other industries.
- Digger1123, on 07/31/2008, -1/+12Because it is not profitable. It is bad business to waste money, shareholders don't like it, and neither will consumers when they have to pass on their losses to consumers.
- SpartanErik, on 07/31/2008, -12/+22Argh too many Diggberals here don't see 10 years down the road. Sure Exxon is making record profits now, but they will be spending that money on oil exploration! Think of the millions they spend years from now digging for holes, many of which might end up dry and result in Exxon cutting their losses and moving on.
The oil industry has its highs and lows.
We all know oil won't last forever, but a green transition won't happen overnight. We need to cushion ourselves with more drilling and alternative energy sources ASAP.
Get ready to Digg me down, but McCain's energy policy sounds much more ideal - LordPhilMil, on 07/31/2008, -4/+14You know...they could cut it down to 0%!
And we could just have the government run it!
Doesn't that sound great?
After that they could open the borders (I realize that is ironic seeing as how there is a hole the size of the border...) and give us free health care. After that, they could tell us what jobs we have to do!
Gosh, I love not having any responsibilities or worries because my government is there to hold my hand during the rough times... - Barackalypse, on 07/31/2008, -0/+10Totally ignorant is the way I describe anyone who thinks increasing the supply of a commodity that is in very tight supply won't impact price. As for Mr. Pickens, do you think the massive alternative energy projects he wants to fund benefit from higher fuels prices or lower fuel prices?
- zrcochran, on 07/31/2008, -3/+12Sure Norway, England and Denmark all do their own drilling, but you wanna guess how much they're paying for gas? A heck of a lot more than we do.
- LordPhilMil, on 07/31/2008, -1/+10And wants lower prices, and wants to be energy independent.
Nothing wrong with tapping our own resources while we wait for those other environmentally friendly energy sources to...I don't know, become viable and worth it you know.
My favorite part is how they want clean energy, yet when given Hydro, wind, and nuclear they say "But dams block waterways for fishies! and wind turbines kill birds and nuclear is dirty and dangerous...remember Three Mile Island!"
I just don't understand, they put birds and fishies and disasters that killed No one (look it up, three mile killed not a single person, Zomg thats dangerous!) in front of there own needs... - Moly, on 07/31/2008, -1/+10Wow. Clearly you don't follow stocks at all. Actually, jmpeagle's comment is, I believe tongue-in-cheek. The net was significantly below analyst expectations before the earnings conference call. There are no OTHER issues that interviewed analysts discussed. They were disappointed with the earnings, and punished the stock as a result. So, yes, their record profits caused their stock to get beaten down. Everyone was betting they were going to make a lot MORE.
The silliness about "record profits" not only ignores the "inflation" in the price of oil, but it also ignores inflation in general. So trying to compare the net today compared to the last oil price surge in the 80's without indexing is flat dishonest. You expect firms to post bigger numbers as time goes on.
On top of that, maybe YOU would love to be in Exxon's shoes, but 10% is pretty thin when it comes to manufacturing. In other words, the business is risky, as is demonstrated by the "record" profit not being enough to impress anyone. By comparison, Apple expects a margin of somewhere in the 45%-55% range. Markups by more typical firms on purchased material that is then value-added is in the 20-25% range. So if all you can muster after expenses is 10%, you are clearly either in commodities, or you're making auto parts. In either case, you see big number flow in when times are really really good, and flow out when times aren't really, really good. - rroeserr, on 07/31/2008, -3/+12The have to lease the land before they can explore the land to see if there is any oil to drill. If they don't find anything they have to keep it for the duration of the lease.
Also a company may only have 246,080 acres in one state and I believe there is 12 states you can lease from so that is about 3 million acres per company. So it's not one company who owns 60+ million acres. There are lots of different leases in the process of trying to discover oil. After they discover oil on public land they have to pay a royalty for each barrel of oil extracted.
Drilling offshore just gives oil companies another option to look for oil. It should be left to the state to decide what to do with their coastlines and not the federal government anyway. - Digger1123, on 07/31/2008, -5/+14Their percent profit is less than Apples, Googles, and a ton more companies, so are they also obscene? I am thinking we should create a windfall profits tax for tech companies, they just make too damn much money.
- jmpeagle, on 07/31/2008, -2/+10they just revided the Q4 2007 numbers for GDP to be negative so there has been negative growth
- pathouston22, on 07/31/2008, -5/+13Haters.
There's a difference between record profits and record revenue and how they relate.
net income = $11.68 billion
revenue = $138 billion
net income is 8% of revenue
Here, let me provide you some links to Wikipedia so you can edumacate yourself on those terms since most likely you don't know what they mean.
http://en.wikipedia.org/wiki/Net_income
http://en.wikipedia.org/wiki/Revenue - blatantninja, on 07/31/2008, -3/+11Sure, go look up the National Commission on Energy's sites. They have tons of papers written about the usability of every piece of land in the US.
- Moly, on 07/31/2008, -0/+8He didn't approve offshore drilling. He can't. All he did was lift the EXECUTIVE ORDER. However, Congress has its own order in place. Until THAT order is lifted, things will remain as they are - and the Chinese will continue to drill in the Gulf anyway.
- Julik, on 07/31/2008, -1/+9I am sure he is not pushing his own agenda or anything...
http://en.wikipedia.org/wiki/Pickens_Plan - LordPhilMil, on 07/31/2008, -1/+9and it does help those pesky 401ks and mutual funds that your retirement is banking on.
- inactive, on 07/31/2008, -1/+9The stocks are actually going down because they were actually predicted to make more money then they actually did. There branch in England I think had a 33% rise in profits. So believe it or not, they didn't hit the predictions.
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