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Exxon's 'outlandish' earnings spark furor

theglobeandmail.com — "The world's largest publicly owned oil company announced yesterday the largest corporate profit ever, but news of its near $40-billion (U.S.) windfall in 2006 sparked an angry backlash, coming on the eve of a major report blaming the use of fossil fuels for wreaking devastation on the planet."

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  • Ulisses, on 10/12/2007, -31/+75We may be doomed to extinction but at least some unethical businessmen are getting rich off of it.
    • math20, on 10/12/2007, -70/+34Unethical? Discovering oil, setting up infrastructure, drilling, and shipping all while being taxed every step of the way for a measly 9.2% margin is unethical?

      What is unethical is wanting to "take profits" http://www.youtube.com/watch?v=j1PfE9K8j0g from the oil industry to redistribute to some other industry on the whim of politicians.
    • headzoo, on 10/12/2007, -21/+65It's unethical to use excuse after excuse to raise prices, all the while they were really making money hand over fist. They kept using excuses like the weather and war to raise prices, but it was really a scam to make more money.
    • jcounterman, on 10/12/2007, -8/+18The oil companies didn't use those excuses....big hedge fund managers and the media did. The hedge fund people have changed the whole game and are creating a much more volatile market so they can take advantage of it.
    • MrFlesh, on 10/12/2007, -9/+31Taxed...BUHAHAHAHA! I can't believe you said that with a straight face. They are not taxed. They get 65% of thier extraction and development costs granted to them by the american people. I'm not sure but I think they also get R&D money. Thier product is taxed but so what? Our government all but ensures they have a captive audience for all time they can put any tax and/or price on it they want and we have no choice but to pay. They are not subject to anti-trust laws as well as a whole host of other protections they get.
    • deuceswilde, on 10/12/2007, -14/+3They aren't being taxed at such a severe level either. There were mistakes in implementing taxes starting in the Clinton era that have only become exacerbated with Bush, so many of the taxes the oil companies are supposed to pay they don't anyway.
    • blitzman, on 10/12/2007, -27/+29If you want your fair share of those profits, buy some stock in Exxon.
    • jcounterman, on 10/12/2007, -25/+30@mrflesh
      are you kidding? They aren't being taxed? You, my friend, are an idiot. They pay the same corporate tax rate as the rest of the companies (if they are U.S. based, of course).

      And any "Tax Incentives" they receive from the U.S. are because the U.S. Government is trying to encourage them to get U.S. sources of oil and gas up and running, even though the companies could make more money and be more efficient working on other, higher-yield geographies.

      Oh, and R&D? Typically, the Oil and Gas companies pay about 90% of R&D costs when working with the government, but the government still retains teh rights and ownership to what is produced, so that they can use to create infrastructure and projects for the U.S.

      65% funding by the American people? Get a grip, dude, and stop hating a company for employing your friends, neighbors, and making money at the same time. Christ...you act like the companies are some evil nebulous clouds...newsflash, they employ millions of people worldwide and make sure that there is always gas at the pump when you need it.
      At least get your facts straight before you start showing your ignorance in a public forum.
    • Okayyou, on 10/12/2007, -13/+36Doomed to extinction? Because an oil company is making profits? Yes, keep believing it's their fault while you sit in your lit, warm house, surfing the net on your power hungry computer, typing on your plastic keyboard manufactured and assembled across the Pacific. Any idea how much diesel fuel those super tankers burn to rush goods over the ocean. Oil is used for more things than moving cars. Without industry and cheap energy life would be exponentially more difficult.
    • BESTenemy, on 10/12/2007, -12/+19 Understand the concept of demand. We demand comforts in life. Comforts take resources. Resources cost money and everyone that manages the process of oil exraction, refining, transporting, distributing wants a share. There is a high demand for black gold and it costs exactly as much as we are willing to pay.

      Oil cartels make billions, cause our appetite for easy existence overwhelms our common sense.

      They're the middle man. They're not making oil, like software companies make programs. They're simply doing public, and our civilization a service for a modest fee amounting to... once again, exactly as much as we are willing to pay.

      Good corporation vs. bad corporation? BS! They're all the same. All they do is provide service for the demand. They feed our appetite. They build our dreams. They brainwash us, sure, but we're not even resisting. We're opening our skulls an inviting them into our heads. We love the feeling of being manipulated, lied to, tricked, scammed. Why? Cause it removes the responsibility off our shoulders. We hate to think that we were the ones that wanted it all. We hate to think that we've given these monsters the power to build our dreams. We like the result, we like abundance of energy, we like our cars, the electricity, cheap plastics (that are a byproduct of oil refinement), roads (made of crude oil filtration waste). We love the world we live in, but we feel guilty...

      ... and we're willing to blame anyone, but the guy or girl we see in the mirror every morning - the one that takes pride in his existence and everything to do with it.

      ... and we pretend we don't know anything. Guess we're used to it.
    • kazoolist, on 10/12/2007, -12/+20@headzoo

      "It's unethical to use excuse after excuse to raise prices"

      Funny. I thought we lived in a free market society where companies could actually charge prices as they saw fit. I didn't realize they needed to clear their reasons for setting market prices with you first.

      I say "Hurray for profits!" http://kazoolist.blogspot.com/2007/02/hurray-for-profits.html
    • philngrvn, on 10/12/2007, -5/+12Quick question... where does that profit go???? hmm... I know if I had Exxon stock I am pretty sure the gov would want me to pay taxes on the money I made from it... I think? Unless I found some tax shelter to throw it into like... oh I don't know maybe a business or something. I wish I could get this free market thing down. It's just way to complicated... maybe I should just give all my money to the gov and they will spend it as needed... cool. That makes things way easier.
    • h4x0r1ng, on 10/12/2007, -6/+11Government is blame for the breakdown of the free market (as usual). To name a few: The restrictions on refinery production and oil exploration, reduce the available supply. Additionally, the "free roads" (tax subsidized) create additional demand.
    • tekz0r, on 10/12/2007, -7/+7@philngrvn

      the money goes to buying up patents that endanger their industry ;)
    • Axim, on 10/12/2007, -7/+8man looks like most of our posters are from texas here how is the weather down there boys
    • Mu99ins, on 10/12/2007, -7/+1Corporations are supposed to make a profit. In some years, they make
      little profit. The graph has it's ups and downs. The correct way to approach
      this, is to review the tax structure, and revoke any tax breaks for the
      oil corporations. A more radical strategy would be to break up the big
      oil corporations. to create more competition. Another alternative, if
      you want the government to get active in this problem, is to have the
      fed put out to bid contracts for refineries to be built on those forts which
      they keep shutting down, which would lower the price of gasoline and
      diesel fuel.
    • kolobcreek, on 10/12/2007, -9/+8If you don't like it move to Venezuela they have cheap ethonal and are on the verge of a communist takeover.
      You could be Chavez's new buddy think of the possibilities. Gas so cheap its almost free communist dictatorship. If you missed out on the fascism this is your chance.
    • renski13, on 10/12/2007, -5/+5This is ridiculous. It just proves that you can't trust companies like Exxon. I don't care if they make profits as long as they're trying to do the U.S. and the world good, but it's obvious though that they're not trying to better society.
    • faskippy, on 10/12/2007, -4/+4Uh, did you not see the word "profit" in the article? I don't mind paying for products I use, but when the entire country is dependent on this product for survival, I do take issue with the orchestrated price gouging by big oil. And I DO take issue with elected officials profiting from this.
    • faskippy, on 10/12/2007, -3/+3jcounterman... you are somewhat mistaken. Their subsidies are not given to encourage them to produce in the states. Don't believe everything you hear. They are (and have been) retrieving and producing/refining every available source here. The would be even without the subsidies. Why the hell would big oil need subsidies to do something they are already doing? You scratch my back, I'll scratch yours, see?
    • teddtech, on 10/12/2007, -3/+4But wait! Exxon gives back to the environment! Back on March 24,1989 they gave back between 11-30 million gallons of crude oil. They carefully placed it into the Pacific Ocean off the Alaskan coast. They even gave the US 1.1 billion dollars(chump change) to give indigenous wildlife a free bath.
    • jackman3, on 10/12/2007, -1/+4The best excuses are:

      Summer driving season
      Winter heating season
      Instability in Iraq
      Instability in the Middle East

      And if none of those work, you can always fall back on "higher demand".
    • argoff, on 10/12/2007, -3/+5I can't believe the jealousy and ignorance here. Don't people understand what happens when the government acts socialist and starts telling people what prices they "should" charge:

      1st) The government already tried to control gas prices in the late 70's and we went from having high price gas to desperate gas shortages. That's because they didn't solve the real problem (see #2)

      2nd) The price of oil and oil profits haven't gone up that much in *real* dollars. Which means that you are not being screwed by the oil companies, but by the Federal Reserve Bank watering down the value of the dollar causing the prices of *everything* to go up.

      3rd) The congress are hypocrites because they get more taxes from the oil windfall than the execs ever have - and they didn't even need to explore and drill !

      4th) I have some swampland to sell anyone who believes that these taxes are going to come out of oil profits, and not out of their pocketbook at the pump.
    • sanman, on 10/12/2007, -1/+3Silly, it's normal for any business to raise prices based on demand-vs-supply. There's nothing unethical about it. Hell, why don't we sell gold at $1/oz?
      Why don't doctors be nice and only charge $1/hr for their time?

      Cmon now, what's really to blame is the fact that all of us in the world are addicted to oil, and we want someone to conveniently dig it out of the ground for us -- the oil companies. If we would move to other means of power generation for business, transportation, and living purposes, then there wouldn't be this problem.

      But rather than do that, we'd much prefer to blame the oil companies as an easy scapegoat, because we're angry their price hikes are preventing us from burning even more rubber on the road and making even bigger pigs of ourselves.
    • mabhatter, on 10/12/2007, -0/+1Take it all!!!

      After all, the prez is requesting another $100Billion for the war in Iraq so THEY can get oil to sell us. By default that money should go to pay the govt for helping them keep their oil. The war in Iraq is costing about 20X the profits they made.... The American people are getting hosed!
    • rockhauler, on 10/12/2007, -0/+1Without profit there is no reason to bring product to the market place.

      Businesses don't pay taxes, they collect them.
    • kuzotz, on 10/12/2007, -1/+1@MrFlesh

      basicly these billion dollar oil tycoons are making money for free?

      Most americans hate welfare because it makes people seem lazy but when rich businessmen can just barely do sit, and barely spend ***** of their own to make money..... Off of the money i pay to my government in taxes... Then no sir that is not fair sir.

      The US people need to wake up for just ten ***** seconds, and realise that companies are making money from the money the overnment gives them... Pretty much we have two entities taking our money..............................................
  • math20, on 10/12/2007, -10/+1forgot to reply, digg down
  • matthall28, on 10/12/2007, -26/+10that money is what is feeding my family(father works for them) so i could care less
    • Xanadude, on 10/12/2007, -11/+12You could? How much less could you care, exactly?
    • addrake, on 10/12/2007, -5/+11He could care less enough to respond to you
    • brad06, on 10/12/2007, -3/+8You feed your family with your fathers income? Oh you must mean he feeds *you* :P
    • matthall28, on 10/12/2007, -0/+1its not my fault that the Calgary education system is horrible
  • rubberpants, on 10/12/2007, -3/+16Now all they need to do to improve their image and increase profits is contract with the Burns Corporation to block out the sun.
    • LucerinRed, on 10/12/2007, -1/+5If they did a merger, would they become Burns Oil? *Snicker snicker*
    • rubberpants, on 10/12/2007, -4/+2Yes, very soon that mighty apparatus will spill forth it's precious fluid. Almost sexual isn't it Smithers?
    • foobar5892, on 10/12/2007, -1/+2I see what you did there.
  • jcounterman, on 10/12/2007, -21/+7Well...I guess the oil companies COULD lower the price of oil to make everybody happy.

    Of course, that would throw supply and demand way off...and demand would far outpace supply.

    So I guess that would lead to shortages and gas rations...I guess our grandparents were able to manage during WWII.

    I guess that would also make global transportation and shipments unreliable, since they might not have all the fuel they need. Heck, that could even cause medical supplies and food to not be delivered to where it is most needed.

    But hey, we should sacrifice all of this so that the oil companies (and the retirement funds of huge numbers of working Americans) can suffer.

    Think before you spout jealous hate towards a company, people.
    • MrFlesh, on 10/12/2007, -9/+10Well if all the "Support Our Troops" SUV & Truck drivers would stop using thier vehicle as a penis extension and get a car with better gas mileage the demand wouldn't be there in the first place. And how would it throw supply demand waaay off? Ohh wait if gas was cheaper ALL the "Support Our Troops" people would buy bigger penis extensions.
    • LesterKing, on 10/12/2007, -4/+5I tell you what, Counterman, if that argument had many any sense I would have tried to help you out.

      But instead you come off like a stooge and someone who can't string a thought into a complete sentence. That type of writing != digg.
    • ryanissuper, on 10/12/2007, -3/+4yeah, except for the whole supply and demand thing not working commodity with no price competition thing.
    • jcounterman, on 10/12/2007, -3/+7I will admit, I'm not the most articulate tonight.

      But the fact still remains that supply and demand in the the global market is the main driver. The overall market sets the price. If the price is adjusted unilaterally (by the supplier), it will lead to either a shortage or an overabundance.

      And we can blame the American oil companies, but the same problem exists around the world, where there is much fiercer competition between local companies and state-run oil companies.
    • goingmobile, on 10/12/2007, -3/+0so in essence what you might be saying is that brainwashing the term "global warming" might help lower gas prices?
    • ryanissuper, on 10/12/2007, -9/+3@jcounterman
      These record profits are almost PROOF that supply and demand only VAGUELY sets the price of oil. Since the companies agree not to competitively price against each other, the only limit to what they can change is public outrage. The oil companies have set up a textbook trust.
    • jcounterman, on 10/12/2007, -5/+12The American oil companies have a trust? Are you kidding? There are so many government investigations and probes in the Oil industry that if two companies even talked about price in the same room, they would be busted in a heartbeat.

      And, American oil companies only produce about 12% of the oil globally. Country-run companies control the mass market for production and even distribution. When you look globally at prices, they are almost identical (when you factor in taxes and government subsidies). The American companies do not have enough power to set price.

      Your do realize that demand has been skyrocketing in recent years, right? And that production cannot possibly match that, as it takes a lot of time to find and produce a new oil field. This is obviously going to lead to an increase in price and has absolutely nothing to do with competition. Countries like China (who has increase oil consumption by more than 250% in less than 25 years) and India (who is just slightly being outpaced by China) are creating this new demand, raising the price of oil worldwide.

      If you want to be bitter about prices, fine, that's your right. Just don't go around spreading false logic.
    • kazoolist, on 10/12/2007, -5/+9"These record profits are almost PROOF that supply and demand only VAGUELY sets the price of oil."

      What are you talking about?! Supply and demand setting prices isn't some pie in the sky hypothetical that may or may not apply. Demand for oil, with more and more nations becoming more and more industrialized, is at an all time high. Supply remains about fixed. The price of oil goes up - the expected result.

      Furthermore, there is no direct relationship between profits and price. If ExxonMobile had squandered it's earnings, they wouldn't have a profit, but prices wouldn't have changed. And, ExxonMobile doesn't directly set the price of oil. It's a world market. If other oil suppliers can find a price point lower where there marginal revenue equals marginal cost, they'll charge that lower cost because at it, they'll make more money.
    • omatsei, on 10/12/2007, -4/+9@ryanissuper: "These record profits are almost PROOF that supply and demand only VAGUELY sets the price of oil." Actually, I tend to think it matches it within about 9.2%. That seems pretty reasonable to me when you're dealing with that large a number. Tell you what... the next time you can deal with a budget of a multi-national, multi-billion dollar corporation that employs tens of thousands of people to deliver a product to every city in several countries, you can explain how and why 9.2% is too much profit.
    • Chubs83, on 10/12/2007, -4/+4You should learn how oil companies operate first. Supply and demand IS off. Go check out the prices of a barrel of oil, its about 50-60 a barrel now, but prices of gas is relatively the same as when the price per barrel was 70-80. Oil companies dont want to lower their prices even though they are paying less now then in the summer time for their oil

      And you should also learn what economics is before you mutter words of supply and demand. When there is short supply your right prices rise, but profits do not rise so drasitcally so the company can earn record amounts
    • jcounterman, on 10/12/2007, -1/+1I'll be honest, chubs, I just paid $1.99 for gas instead of the $2.78 I was paying...prices HAVE dropped and we all know if.

      And yes, profits do rise when there is a shortage, because the cost to find and produce oil didn't go up by the same percentage as prices. The only time when profits would not rise is if you are in a retail situation, when the cost to procure the end product rises at the same time as the end product. If you are whittling benches and selling them for 5 bucks or 10 bucks, the wood costs the same.
  • VicHislop, on 10/12/2007, -8/+14I still don't understand how a business can be considered successful while it guiltlessly ignores the negative externalities associated with its practices. It's completely shameful.
    • rubberpants, on 10/12/2007, -5/+10I think you hit it right on the head with "guiltlessly". Corporations cannot feel guilt, or shame for that matter.
    • Ark7, on 10/12/2007, -14/+7God damn these EVIL corporations! Making money and *****! Who the hell do they think they are?
    • rubberpants, on 10/12/2007, -5/+9@Ark7

      You're right, you can't really blame a corporation for trying to make money. After all, that's what they are legal obligated to do. Is that evil? I don't know. Is socialism any better? There aren't any easy answers.
    • scratched, on 10/12/2007, -3/+12@ark7

      I think he's talking about the problems companies like exxon cause for our environment, like global warming. Especially after they tried to pay off scientists to disprove the recent report about global warming.
    • philngrvn, on 10/12/2007, -10/+1I think I am going to pull all my money out of Exxon and put it into a company that cares more about doing the right thing then making a profit... come on guys... are you with me!!!
    • ryanissuper, on 10/12/2007, -3/+3There are mutual funds of socially conscience corporations that consistently outperform the market.
    • philngrvn, on 10/12/2007, -5/+0Where is Gordon Geko when you need him?
    • mavere, on 10/12/2007, -3/+4"I still don't understand how a business can be considered successful while it guiltlessly ignores the negative externalities associated with its practices. It's completely shameful."

      So I'm guessing oil companies are threatining to kill all 300 million Americans if they don't go out and buy gas? And that we're just innocent bystanders while the companies pump out billions of tons of greenhouse gases out of their own volition?
  • Ark7, on 10/12/2007, -14/+15What's funny is that a company in a capatilist society is "sparking a furor" because it (gasp!) makes money while Hillary Clinton saying that as President she would be allowed to take the profits of companies and redistribute their money as she saw fit gets buried on digg. ***** this community.
    • diggapleeeze, on 10/12/2007, -12/+6Don't let the door hit your ass on the way out. On second thought, let it.
    • Urusai, on 10/12/2007, -9/+8The Liberals are coming! The Liberals are coming!

      Idiot. And as to taking profits, the ***** government is soaking me for $3500 this tax season, presumably to distribute to Halliburton. So screw your bleeding heart conservatism. I work at a non-profit, btw.
    • kelbear, on 10/12/2007, -4/+3A high price on oil would be a good thing. It'd increase the need for alternative energies and reduce optional consumption. Tax the profits off and give it back to the consumer through reduced taxes. What you'd /see/ is a boost in price. What'd you'd get is the same thing.
    • obamarama, on 10/12/2007, -1/+2"the ***** government is soaking me for $3500 this tax season"

      $3500? Come back and let us know how much you like the annual IRS ass-rape when you make more than $10 an hour. Our household paid over $70K in taxes to the feds last year, thanks mostly to my wife and I working our butts off 12 hours a day 6 days a week. Limousine liberals like Hillary, Edwards & Obama consider me rich (silly me, I thought rich people had time to sleep and see their families!) would like nothing better than to give me the Hillary Exxon treatment so they can try to build their socialist utopia on my ***** back.

      Halliburton has got NOTHING on our government's yearly entitlement and porkbarrel spending.
    • mabhatter, on 10/12/2007, -1/+1@obamarama
      sorry, nobody feels sorry for you. The average yearly salary in the US is only about $35K.... half what you had for taxes. You are very rich even by USA standards.
  • alphaeno, on 10/12/2007, -8/+9Stop whining and invest in oil, then we can all be rich!
  • tont0r, on 10/12/2007, -6/+11it made me smile when my stocks went up.
  • sjl127, on 10/12/2007, -7/+17It's their profits - and they're entitled to them. I'm tired of hearing of this communistic / socialistic pitty party.
  • philngrvn, on 10/12/2007, -1/+11Let me get my math straight here... currently... oil cost + taxes + profit = consumer getting screwed. Future... oil cost + more taxes + profit = better for consumer ????? whoa... no wonder I suck at business. Since I don't have enough money to start an oil company it sounds like the best deal for me is to open a alternative fuel company and get some government grants. Maybe I'm not such a bad business man after all.
  • redrevolt, on 10/12/2007, -5/+12There are a way too many stupid, politically motivated people on digg. They are a massive company that possess' tons of assets. They turn a normal profit margin (10%). By comparison most TV stations turn up to a 45% profit margin. You can't come down on them for being smart. If there was conclusive evidence of wrong doing, lets be honest, it would be on Digg. They're smart businessmen (and women) you can't fault them for that.
    • gamasutra, on 10/12/2007, -10/+4Or they could be corrupt businessmen lining the pockets of politicians and impeding the development of alternative sources of energy.
  • Avalontor, on 10/12/2007, -2/+1This page intentionally left blank.
  • AdrenyleneJ, on 10/12/2007, -2/+1Pictures to prove you don't drive an suv or no moral preaching.
  • goingmobile, on 10/12/2007, -6/+2It is two of the previously largest American oil companies merged into one [essobil]. Sand may be second to water as the least fuel efficient terrain for motor vehicles. Exxon sounds like Enron. ***** Big Oil.
  • PRlME, on 10/12/2007, -4/+2I say Cheers to Exxon and Cheers to Bush. Its 2007 and they can fuq us all over so easily. You have to give respect where its due.
  • PotIsYourFriend, on 10/12/2007, -9/+2Sorry guys but we have a contract with this Company and they have to get a 25% discount on our survey fees an yet they can nickel and dime our company and still yeild this much of a profit.. How does it feal to pay 3 bucks a gallon of gas or have that 300 dollar electric bill? I'm sure Exxon and all the other companies that live of fossil fuel love to tell you how expensive it is to buy oil is but turn around and make Billions off us..

    F.U.C.K.ING TAKE A STAND!!!!!!!!!!!!!!!!!!!!!!
    • musicmantrs, on 10/12/2007, -2/+5Yeah its not like they spend 5 years and billions to build an oil rig, spend another year floating it out and drilling, then have to wait 3 years after drilling starts to recoup the cost for that rig, and finally turn a profit after a 9 year investment. [sarcasm] Its just sitting out there waiting for them to come by with a net and pick it up...
    • obamarama, on 10/12/2007, -0/+1My car runs on rosepetals and puppy farts, and my household energy needs are met by tapping into the positive vibrations of the millions of self-satisfied boomers still alive in the US.
  • EtherGnat, on 10/12/2007, -4/+7Is it really surprising that the world's largest corporation has the world's largest profit? The question I have is why were Exxon and Mobile allowed to merge in the first place? We split up Standard Oil, we split up AT&T, and now we're letting these companies merge back into even larger entities. Competition is a good thing for consumers, and that is what antitrust laws are supposed to protect.
    • laut, on 10/12/2007, -1/+0Anti-trust laws are violating property rights. Property rights are good for consumers (and producers). Anti-trust laws are not.

      The market works if government doesn't interfere. Even if Exxon merged with every oil company today, new oil companies would soon emerge if they saw an opportunity to make money.
    • kuzotz, on 10/12/2007, -0/+1the market turns to a corrupt piece of ***** if the government doesn't somewhat regulate it...

      Remember the Gilded Age--late 19th century America sucked if you were the average consumer..... No safety nets for workers. no benefits..

      A pure free market has proven that if a company isn't forced to put safety measures, and some safety nets in terms of its employees well being if they are insured on the job, and a check on how our food is being processed to make sure you know........ Some guy in the asembly line doesn't ***** on a piece of steak that gets packed and sold in stores,..... Anyway point is a pure free market is just as bad as a pure state ran market... In the end in a pure free market. Companies do what is best for the money. Advancing tech cost money.. no sir we won't do it sir... This is what a free market dictates. Competition gets smaller, and smaller, and prices get higher while wages drop so that companies can save more money....

      Damn why the ***** do libertarians waste their damn time on digg.com trying to spout an ideaology that has been tried, and has failed.
  • ChewyBass, on 10/12/2007, -1/+4The fact that they made records profits just prove that we are willing to spend whatever so we can drive 20 miles and to buy a pack of bubble gum. If you don't like record profits, stay off the road and drive stock piles up, which in turn will reduce prices and profits. Why is it every time a company makes a profit the government wants to raise their taxes, oh yeah that rights, the government doesn't make a profit, they just steal it from us so they can turn around and fund pork projects and then tell us what a great job they are doing so we have to re-elect them. And please tell me why global warming proponents can fund projects to try and prove their "theory", but when others try to do the same and disprove it there is shock and gasp at the notion. If it's the fact it is the facts no matter what you wish or feel about it.
    • kuzotz, on 10/12/2007, -0/+1Sir I live in oklahoma city sir.

      There is no public transit, and so pretty much if you don't have a car you are ***** out of luck
  • COMCON4US, on 10/12/2007, -3/+2Would it be a crazy idea to just BUY stock in Exxon? I mean, if big gov is guna back this type of corportate fleecing, shouldn't we all just get in on it, or would that make us bad people?
    • gamasutra, on 10/12/2007, -4/+4Hell yeah. And while your at it don't forget to pick up some stock in cigarette and gun companies too. Don't let ethics stand in the way of money.
  • diggguru, on 10/12/2007, -2/+3use hybrid cars.
    http://www.digg.com/business_finance/Time_is_Money_well_yeah_in_the_case_of_EXXON_Mobile
    They are making money because people are willing to pay anything to run cars. I still dont know why these hybrid cars are so pricey.Common people cant afford to buy it even if there is tax refund.

    Rich parents -> top level colleges for kids->Google job-> $5000 for hybrid car -> save money on gas -> much cleaner environment(will not be if they own private jets & not working at Google)

    Poor(or middle class) parents ->less than an average /average college education for kids-> may end up in walmart/store/average job-> second hand car/normal car -> more money one gas ->polluting the environment

    Poor people needs to get Rich -> How?-> Double tax Exxon (note: Exxon made $75000 a minute in 2006.)

    enough of my BS .hehe. Well I go under poor/middle class :( Give me some money Exxonnnnnnnnnnnnnnnnnnnn
  • TheDiggPig, on 10/12/2007, -1/+1When they raise gas prices and give no real reason why and then you see these record earning but there is no investigation...then it's pretty obvious that these corporation's are running our country and NOT the people we voted for.

    The real question is,How do we take back our Country?
    • musicmantrs, on 10/12/2007, -1/+4Yeah I mean after this calm hurricane season where no refineries were knocked out they didnt lower prices... oh wait they did (I paid 1.99 today).
    • jdun, on 10/12/2007, -3/+3@TheDiggPig

      You are a stupid moron. Stop posting here and learn some basic economics.
  • geekee, on 10/12/2007, -1/+6No one cared when they were losing money. It's called supply and demand. Consumers are just as responsible for the price of oil as they are. Look in the mirror if you want to blame someone.
  • diggdood, on 10/12/2007, -1/+1Exxon making a big profit is not a wrong thing, companies exist to make profit!!
    But if their profits come at the expense of me, its a problem...
    If their profits are the reason, I had to pay $3 a gallon (normally $2/gallon) for a good part of last year, then its clearly a problem.
    If we are truly a free economy, and we have so many oil companies competing with each other; but almost everyone ending up with huge profits, there should be something wrong somewhere.
    (case in point: in other industries the more the competition, the lesser the profits of everyone involved)
  • nbcivic, on 10/12/2007, -1/+1I think exxon did a great job, and they have a supply based company. I would love a job with exxon, cause at this rate, looks like their profits will keep rising.

    but hey, who needs a 4 cylinder, let's all buy those v8's and burn some oil and gas!
  • jdun, on 10/12/2007, -3/+7Never amaze me how stupid people are in Digg.

    Oil is a commodity and thus the price is determined by the future market and not Exxon. In other words if demand is low then Exxon will earn less money. If demands are high then Exxon will earn more money. That’s the reason why every day price of gas changes.
    • gamasutra, on 10/12/2007, -3/+5Way to oversimplify the picture moron. It's not just about supply and demand. There is a whole pile of government intervention like tax breaks, subsidies for oil exploration, subsidies given to hybrid purchases that all affect the price you pay vs the profits they make.
    • Wyattx17, on 10/12/2007, -2/+2I don't think people are In Dig.. :)
  • norsurfit, on 10/12/2007, -2/+5What is unethical is ExxonMobil's financial support of phony pseudo-science designed to interject doubt into the global warming debate. Money from Exxon and from the American Petroleum institute have been behind many of these public efforts to undermine the scientific message. This is unethical. This is disgusting. For example, Senator James Inhofe, one of the people most responsible for publicly suggesting that there is "doubt" about global warming, is one of the biggest recipients of funds from ExxonMobil. Former lobbyists and employees of the American Petroleum Institute have been in prominent positions throughout the Bush administration, looking to undermine the global warming message at any opportunity. Merely because discussions about global warming are bad for business.
  • dle5, on 10/12/2007, -4/+5Oh noes a oil company made a profit. Time for super left wing Digg to be outraged. OUTRAGED~!
    • FunkyPits, on 10/12/2007, -3/+1The outrage comes from the fact that everytime Ann Coulter spreads her legs my funace kicks in.
  • Chivalrysae, on 10/12/2007, -2/+1The excuses for raising the prices may actually be valid. Therefore they have an incentive to increase the prices. However, after the events blow over (Katrina, war, political tensions, etc.) There really is not buisness incentive for them to lower their prices. If you were able to increase prices due to expected supply and demand, and then those events go away, would you lower your prices if people continues to pay the high prices? Lets face it...the cost for this industry lowered, and their profit margins increased because they did not readjust their prices down. Why? Because it doesn't make sense to lower your profit.

    This is why the government needs to do more than slap them on the wrist and tell them their naughty. This isn't the first year this has happened. And because of all these increases and no real material decrease in the prices, it's basically considered price gouging compared to the prices we should be paying. The government has historically come in and placed price floors and ceilings on eletricity as well as put things in place insure that your utility bills are reasonable. It's come to a point where the government needs to step in a tell them once their excuse for raising prices is not longer valid, they need to lower their prices or face fines/penalties. We need to change their behavior by doing something that impacts their business decisions.
  • cycledesign, on 10/12/2007, -3/+4This saddens me because people are outraged over this when record profits should be something to celebrate. Many of you fail to understand, it is not an oil company's obligation to give you a "fair" price. It is their obligation to charge you the most that they can. And in this, they have succeeded. Congratulations Exxon.
    • Egoist, on 10/12/2007, -0/+3You're apparently the one who fails to understand. Exxon mobile doesn't set the price of oil. They can control output, but oil is a commodity and the price is determined on the futures market.
  • TheDiggPig, on 10/12/2007, -1/+1@jdunYou
    "are a stupid moron. Stop posting here and learn some basic economics."

    economics? Try paying $1.42 a litre when you have to to put food on the table and clothes on your kids back not to mention morgage, car ,insurance,heating and hydro payments and not including Christmas and all other things.

    I'm not saying I'm the only one who has to pay bills but it gets very frustrating when you see ***** like this.

    • pogfreak, on 10/12/2007, -0/+3just curious: who forced you into that mortgage? Into the car? Ok maybe you have to pay insurance by law, but oh yes spending thousands+ on Christmas is definitely a necessity. Whatever happened to being responsible? Why do do people feel some inalienable right to fuel at a certain price (a price relative to most other countries is still DIRT CHEAP)?
    • dle5, on 10/12/2007, -0/+3Indeed. I bet DiggPig and children all have cell phones. I bet they have cable television. I bet they buy lottery tickets each week. Then they wonder where the ***** their money went.

      Here's a tip: Don't have children(read: sex) until you're financially stable.
    • MrFlibble1, on 10/12/2007, -1/+1As someone who has been to Africa, and seen the squalor there first hand, I have no sympathy for you. I at least went there with my own money, and helped to build a medical clinic for a village that needed one since 1952. It was finally finished in 1991. Most people there have AIDS, many are dying. None own cars, have television sets, in fact, most did not even have power or running water.

      The difference between those people in Northern Kenya, and you, is that you have a better life as I see it - you own a car, you can post to the "internets" You have a MORTGAGE, so you own property. You are, in my books, fairly well off.

      However, the main difference here is that you have many more choices than those people in Kenya do. Since I have been to Africa, I am comfortable changing my lifestyle - I made a choice.

      Here is what I have done. I bought a house with a basement suite. I live in the suite, and rent out the rest, so the house costs are covered. I bought a super-cheap used car that is good on gas. I invest at least 18% of the money I make. I don't buy pointless expensive things.

      Guess what? I am not hurting with the gas prices at all. Oh, and I am well on my way to getting rich. What is the difference here? I made a choice. I looked at those people in Kenya, and realized that they have limited options in life, but I don't. So, I chose to take responsibility for my life, and be prepared for anything that might come my way. I don't live a consumerism lifestyle that puts my bills so close to the edge that a sudden rise in gas prices could bankrupt me. So, remember, in North America, we have choices. Those in Africa don't have much to choose from, they at least have an excuse. But over here, if your life has turned miserable because of economics, you have no one to blame but yourself.
    • kuzotz, on 10/12/2007, -0/+1I come from a working clas family, and ***** we arne't hurting from the rising gas prices. Even if it is $1.97 per gallon here.. (Live in oklahoma bitches)



      actually that's probaly why we aren't hurting..

      Anyway that and we don't buy useless *****.
  • pogfreak, on 10/12/2007, -1/+2So far we've come where we think having to pay an extra dollar for a gallon of fuel is some kind of treasonous outrage.
  • gback2000, on 10/12/2007, -2/+0All profit is bad, unless Apple, Inc profits then it is OK in my book!
  • e3boy, on 10/12/2007, -2/+4I wish gas was even MORE expensive, then people would:

    1 - use more fuel efficient vehicles.
    2 - use more mass transit or car-pool.
    = less pollution & less profits for big oil.

    No one made you buy a car that does < 20 MPG.
    and look at any major highway and see how many SUVs have only 1 person in them.
    It's your own damn fault!
    • dle5, on 10/12/2007, -1/+2Agreed. If gas was $5.00 a gallon, there wouldn't be so many ***** poor people clogging up the roads with their piece of ***** cars.
    • kuzotz, on 10/12/2007, -0/+1WElly ou just screwed over half the people who live in the plains region, and in Oklahoma. MAss transit is non-existing in that part of the US..

      BTW oklahoma is one of those few places were if you see someone in a gas guzzler most likely they are hailling ***** off. If oyu see 1 person in a gas guzzler not hailling ***** off then they are from a Texas suburb....
  • TheDiggPig, on 10/12/2007, -3/+0just curious: who forced you into that mortgage? Into the car? Ok maybe you have to pay insurance by law, but oh yes spending thousands+ on Christmas is definitely a necessity. Whatever happened to being responsible? Why do do people feel some inalienable right to fuel at a certain price (a price relative to most other countries is still DIRT CHEAP)?

    pogfreak-what do you want me to do take my family and live in a cardboard box?Maybe live in my 91 dodge spirit that I need to get to work? Maybe I could tell my kids the Santa Clause never came this year?

    "Whatever happened to being responsible?"
    Yeah,your asking the wrong people that question.
    • dle5, on 10/12/2007, -1/+3Do you have cell phones? Do you have cable? Do you buy tons of ***** you don't need every year while bitching about not having enough money?
    • MrFlibble1, on 10/12/2007, -1/+1You know, you might want to take the time to pick up a copy of "The Millionaire Next Door" because you will be shocked when you find out what kind of lifestyles most millionairs ACTUALLY lead.

      You have a choice in learning how money works, you have a choice in what you do with your life. You still have the choice to further educate yourself so that you are not so constrained by finances as you seem to be.

      Make use of that ability to choose.
  • TheDiggPig, on 10/12/2007, -1/+0"Do you have cell phones? Do you have cable? Do you buy tons of ***** you don't need every year while bitching about not having enough money?"

    Actually now that you mention it I just bought a new 50 inch Plasma,I spend $130 for satellite,and I'm currently holding out to buy a new apple Iphone.... ...why do you ask?
  • JesusIsSatan, on 10/12/2007, -2/+1I have no problem with oil companies making profits as any business should be entitled, but it's obvious they milk the Bush/GOP handouts. Pharmaceuticals and most tech companies like Intel and Cisco also have to spend billions on research and development. I'd be curious how much the government funds their R&D.
    And the oil companies along with the GOP/Bush should be ashamed of themselves for denying global warming even exists. I haven't heard something so blatantly unscrupulous as when Gotti's attorney said "Mafia? What's the mafia?"
    • Egoist, on 10/12/2007, -2/+2First, like all large corporations, they utilize handouts from both sides of the aisle.

      Second, Exxon's profit margin was a little over 8% this year. That means that of the $377 billion that they made in 2006, about $347 billion was spent in R&D, infrastructure, salaries, etc.

      And again, the debate isn't about whether global warming exists. The debate is about whether or not it's caused by man or if it's apart of the Earth's natural warming cycle.
  • brindon, on 10/12/2007, -5/+3The time has come for these companies to simply stop making money. As long as a single individual in this world is in pain or suffering no profits should be made by anyone.
    • Cage123au, on 10/12/2007, -1/+1The bottom line here is people, if the human race stopped breeding out of control, we would not be in this mess. STOP BREEDING, means LESS people which means LESS POLLUTION etc etc etc................get the idea.
    • Egoist, on 10/12/2007, -1/+3@brindon: So because someone else in the world is suffering, we all must suffer? Get a grip and grow up.
    • Eallan, on 10/12/2007, -0/+3I believe that was sarcasm towards everyone else damning them for making a buck.
  • MacBastard, on 10/12/2007, -2/+2Since it's pretty damn obvious they have the extra cash laying around, are they actually going to pay up their court-ordered penalty from the Exxon Valdez disaster?

    They've appealed the punitive damage amount over the years and got the original figure reduced on December 22, 2006 to $2.5 billion from the original $5 billion (which was based on one year of Exxon's profit in 1990), but still won't pay. So, even though Exxon lost in court over their negligence, they will not come clean over a HUGE catastrophe that still has repercussions for the economy and environment in Alaska.

    This is the lesson of big business in America: If you have enough money, you can ***** on anyone you want to, even if it's your ***** to begin with.

    The Bastard
  • Eallan, on 10/12/2007, -2/+6Working in the oilfield will show you a few things.

    1. The average American has no idea what it takes to get a gallon of gasoline into their Honda.

    2. The oil industry supports many supplemental industries like: Steel, trucking, food, etc. Some small towns exist solely because there is oil nearby.

    3. Most people that work in the oilfield are good people, especially the Roughnecks.

    You always have the option to stop bitching about these profits and stop buying gas. Bicycles are cheap. Quit paying for gas if you're going to complain about profits.

    When did it become American to hate a company that makes large profits? Move to Europe and pay through the nose for gas if you like. I get sick of hating companies providing services everyone of you uses.
    • xcoastie, on 10/12/2007, -4/+3 America began hating profits when it started to shift toward socialism. The jealous dems only see profits as money they should be able to get their hands on, so they can subsidize people who do not work at all.
      If capitalism is not what you want, move. I am tired of people trying to change America into something it is not.
      @vidorian gives a perfect example of capitalism working for everyone willing to put forth some effort.
      His grandfather made the effort to better himself and was rewarded with a good life. This could not happen without capitalism.
  • vidorian, on 10/12/2007, -1/+3I grew up in south Louisiana and most of my family worked in the gulf on oil rigs. What you never hear in news reports is how good oil companies are to their employees. Way back in the early 80s my uncle was making over $20 an hour as a mechanic for Shell Oil. (84 hours a week 7 on 7 off) A good friend of mine started at the end of a shovel for Texaco . Both of them retired after 20+ years of service and are worth over a million dollars each. They both have excellent health insurance and pensions.

    My grandfather who was never afforded an opportunity to go to school (taught himself to read and write) Drilled the first Oil well in South Louisiana for shell. He retired very comfortably.

    Where was all the government interest when the oil boom busted in the 80's when oil was so cheap, when many people where forced to be laid off. Where was the government interest when the oil companies were forced to merge to remain competitive?

    I say so what they made money we are a capitalist society after all, How proud would you be if the company you worked for was able to turn a profit like this. And why don't you come back in 6 months and find out where they spent those profits. Chances are the lions share will go to R&d and exploration.

    Gas is 1.99 a gallon right now. I was paying 1.05 in the early 90's in 10 years it has gone up a buck. In those same years a pound of ground beef has gone from 99 cents to 2.59 a pound. Milk from 1.99 to 3.20 a gallon. Butter 1.50 to 3.00.

    Hurry senate hearings into the price of beef!!!!!

  • macewan, on 10/12/2007, -4/+2@vidorian, Look at a time line of the price of gas over the 17 years. I can't help but think that the two oil men in office right now along with our invasion of an oil rich country has more to do with this conversation than a sliced cow.
  • tooasianguys, on 10/12/2007, -3/+4Did Exxon make a buttload of money? Yes. Did our consumption of their products regardless of what they told us (when I say "us" I mean all nations who rely on foreign oil) it would cost lead to this? Yes.

    Today when you get into your car, and drive 2 blocks to the convenient store, think about it. Unless you by chance drive a hydrogen-powered car, or you walk or ride a bike, or are lucky enough to have a horse-drawn carriage at your disposal.*

    *please obey all local traffic laws
  • jwbales, on 10/12/2007, -4/+4Exon has earned every penny of its $40,000,000,000 profit.

    I for one am glad to see someone with deep pockets going against the lemming tide in the current hysteria over global warming.

    I know, I know. If we don't fatally cripple our industrial society we face the horrible prospect of global temperatures almost as hot as those during the time of the Roman empire. What a calamity!

    Exxon, in looking after its own interests is also acting in the world's best interests.
  • tkloppel, on 10/12/2007, -3/+4Vote Stalin '08!
  • tkloppel, on 10/12/2007, -4/+4Do you communists realize how many jobs this will create?

    I guess not.. Just give all of the money to the under productive ambition lacking looters.
  • atb12688, on 10/12/2007, -3/+4Without Exxon-Mobil, our cars would not run...
  • dleach, on 10/12/2007, -1/+4It is stupid to be bitching about Exxon's profits of $39.5B. Their profit margin was just 10.4% of sales! If you have enough sales of a product any company can show a record dollar amount of profit.

    Now let's consider what their profit would have been if they matched the margins of the following companies:

    McDonalds: 12% ===> Exxon's Profit would have been $45B
    Apple: 14% ===>Exxon's Profit would have been $52.8B
    Marvell: 14% ===> Exxon's Profit would have been: $52.8B
    Yahoo: 16% ===> Exxon's Profit would have been: $60B
    Microsoft: 28% ===> Exxon's profit would have been: $105,733B!!!! (as it was, Microsoft made $12B on $44B sales)

    Too bad they were not "raping" their customers at the same margin as some of these companies!
  • undergroundman, on 10/12/2007, -2/+2The oil industry is significantly subsidized when it should be taxed. The externalities imposed on the world as well as communities by oil are undeniable. Ask any economist; in fact, check out a list of high-profile free-market economists in favor of a Pigovian (externality) tax on the carbon here: http://gregmankiw.blogspot.com/2006/06/pigou-club.html

    Greg Mankiw is an economist, Gary Becker is a Nobel-Prize winning economist, look up the rest of those guys if you're dubious.

    I posted about the issue briefly here: http://samethoughts.blogspot.com/2007/01/big-oil-cronies.html

    and here: http://samethoughts.blogspot.com/2007/01/tax-oilgasoline.htm
  • Dhalsim007, on 10/12/2007, -1/+3Right now, according to the Exxon company report, 20% of its budget goes into R&D and cleaner-burn technologies. So that means $8B of that quarter's profit will go back, re-invested in its development efforts.

    To think that Exxon is laughing at new-fuel efforts would be riduculous ... they want to be part of that gravy train when it comes about. And if they can discover the "breakthrough" no- or low-pollute fuel first and patent it and profit from it, good for them. Then would you laugh at those profits or hail Exxon as the savior?
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