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ExxonMobil to sell 2,220 gas stations - 6/14/2008 12:51:39 PM

TieNTeas

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For those of you who thing the oil companies are making "windfall profits" or even gouging at the pump, I'm sure this move by Exxon/Mobil will leave you scrathing your heads.

http://www.cnn.com/2008/US/06/12/exxon.mobil/index.html?section=cnn_latest
updated 8:44 a.m. EDT, Fri June 13, 2008
CNN -- Oil giant Exxon Mobil Corp. plans to sell its company-owned gas stations, saying they aren't profitable enough even with gasoline selling at $4 per gallon.
The 2,220 stations make up about 1/5 of the Exxon and Mobil stations in the United States.

The nation's largest oil company, which earned nearly $41 billion last year, says it will sell more than 2,000 stations over the next few years.
"The fuels marketing sector is a very challenging market," ExxonMobil spokesperson Prem Nair said, adding that the company is feeling particular pressure from hypermarkets like Wal-Mart that sell gasoline. ExxonMobil plans to sell 820 owned and operated stations as well as 1,400 stations leased to dealers. The 2,220 stations make up about 1/5 of the Exxon and Mobil stations in the United States. The company says the stations to be sold will continue to sell ExxonMobil product. "As the highly competitive fuels marketing business in the U.S. continues to evolve, we believe this transition is the best way for ExxonMobil to compete and grow in the future," said Ben Soraci, U.S. director of retail sales for ExxonMobil.
The states with the largest number of ExxonMobil-owned stations are California and New York, each with more than 200. ExxonMobil also has a large concentration of stations in Texas, Florida, Maryland, Tennessee and Virginia

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RE: ExxonMobil to sell 2,220 gas stations - 6/14/2008 1:02:29 PM

NumberSix

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No, it doesn't make anything confusing, the 10-15 cents on a gallon of gasoline that the mom and pops are making is a convenience to draw them in, Exxon is not in the pizza and cola business.

The windfall profits are much avowed, and far more interesting to Exxon than loaves of bread sold, or batteries.

Ron

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RE: ExxonMobil to sell 2,220 gas stations - 6/14/2008 1:33:40 PM

petdave

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That's nothing new... the plan has been underway for a while now.
More interesting is the fact that BP-Amoco is doing the same thing, so it's a buyer's market right now if you want to own a gas station...

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RE: ExxonMobil to sell 2,220 gas stations - 6/14/2008 3:18:41 PM

DomKen

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Funny. They're trying to sell something that they all but say isn't viable. Now how do they expect to make these sales? Sounds more like an attempt to produce evidence for the eventual anti trust suits.

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RE: ExxonMobil to sell 2,220 gas stations - 6/14/2008 3:20:38 PM

KatyLied

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quote:

For those of you who thing the oil companies are making "windfall profits" or even gouging at the pump, I'm sure this move by Exxon/Mobil will leave you scrathing your heads.

Not at all because of this statement: they aren't profitable enough

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RE: ExxonMobil to sell 2,220 gas stations - 6/14/2008 4:02:42 PM

happypervert

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quote:

For those of you who thing the oil companies are making "windfall profits" or even gouging at the pump, I'm sure this move by Exxon/Mobil will leave you scrathing your heads.

What has me scratching my head is that anyone could think that gasoline retailing has anything to do with the windfall profits -- those are coming from wholesale prices well over $100/bbl for the same oil that was profitable to produce at under $40/bbl in 2004. Gasoline is a commodity after all, so retailers don't have any pricing power to command a premium, and the price increases are driven entirely supply (basically fixed) and demand (which has been increasing as China and other economies develop).

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RE: ExxonMobil to sell 2,220 gas stations - 6/14/2008 4:43:56 PM

pahunkboy

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oil comps colluded on many interstate locations... in attempt to control the market. they would buy up land cheap often on 4 cornrers of an intersection, and along the interstate to stop any competetion. often they ran out the mom and pops stores

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