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00vertableGT -> RE: Fill it up! .19 Cents Per Gallon (5/9/2008 12:17:30 PM)
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quote:
ORIGINAL: Riptide Exxon made a 40 billion dollar profit on 400 billion in revenue at the last report. That sounds like a lot but it's only a 10% margin. If Exxon sold you gasoline at cost it would only be 10% off. That isn't the difference everyone is looking for. The main issue is rampant speculation driving up crude prices. There is room for a price increase because demand hasn't kept up with supply. Refining is coming up a little short. Geopolitical instability. But it's noowhere near enough to explain this huge crude oil price increase. It's not so much Exxon but the speculators and the major crude producers that are at fault for oil prices going so high. Maybe I'm not fully understanding this, but wouldn't they have not done 400 billion in revenue if they weren't charging so much for gas in the first place? For example if they jack the price up to where they are doing 500 billion in revenue wouldn't they make $50 billion in profit?
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