RE: I'm pissed as hell! Not going to take it anymore

RE: I'm pissed as hell! Not going to take it anymore (Full Version)

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kdsub -> RE: I'm pissed as hell! Not going to take it anymore (8/6/2008 12:47:28 PM)
OK then how do these figures fit your example? In Feb of 1999 cost of crude $12/ per barrel At 19.5 gallons per barrel then each gallon cost = $0.62 Average cost per gallon regular $1.10 Profit margin claimed by Exxon….10 percent. Jan 1, 2008 cost of crude per barrel $100.00 At 19.5 gallons per barrel then each gallon cost =$5.13 Average cost per gallon regular $3.00 Profit margin claimed by Exxon 11 percent If the percentage of cost to price at the pump in 1999 was 177 percent then the cost per gallon in 2008 should be close to 5.13 x 1.77 or $9.10 In both 1999 and 2007 the profit margin for Exxon was close to 10 percent. The figures above make no sense to me…either they were grossly over charging in 1999 and making much more then 10 percent or they are grossly undercharging in 2008 and not making the 10 percent profit margin claimed. I wonder which it is? Damn your right I did forget they are selling a lot more donuts and QT today. Butch

Archer -> RE: I'm pissed as hell! Not going to take it anymore (8/6/2008 1:02:39 PM)
remember that little (message)? (But they also make money on the other products that come from oil so it's lower than that) they take oil and they make Gasoline diesel, kerosene, heating oil, asphalt, plastic stocks and a dozen or so other products. When they lose money in one area they make it up somewhere else. Sorry forgot can't use any made up numbers because you'll mix them with real numbers and try to make sense out of that. That's my bad. If they lose money on gasoline they make it up on diesel or heating oil or some other product. regardless the business side of the Oil business demands 10% profit margin on the ammount of money spent overall. Otherwise the investment dollars go elsewhere. revenue - expences = profit profit / revenue = profit margin They aim for a 10% profit margin reguardless of if they spend 100 billion or 200 billion If they spend 100 billion they shoot for 10 billion profit If the spend 200 billion they shoot for 20 billion profit And they adjust their prices one all products from oil to make that happen.

kdsub -> RE: I'm pissed as hell! Not going to take it anymore (8/6/2008 2:51:50 PM)
See I just assumed you knew what you were talking about...not your bad.... mine. although my numbers are not made up... they reflect the cost of crude and price per gallon then and now...You are right when I don't believe as you say ... . "If they lose money on gasoline they make it up on diesel or heating oil or some other product" As if they're loosing money on gas...yea right. But I'm sure you can find some numbers somewhere to back it up....can't you? you know show where they have lost money on gas... and where they overcame that deficit with diesel and heating oil. To make your search easy just limit it to 2007 and 2008 to date. Butch

OrionTheWolf -> RE: I'm pissed as hell! Not going to take it anymore (8/6/2008 4:13:08 PM)
One reflection of what Archer is speaking of, remember when diesel used to be so much cheaper than gas? Have you seen the price lately? Have you seen the consumption figures? Have you checked price increases in tires, plastics and other prodicts that use petroleum? I admit I have not looked into any of these, but I do understand business practices, as it is what I do for a living.

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