Oil Companies Profits

[dingdongrb]

I just read online today where Royal Dutch Shell reported this quarters earnings of $11.6 Billion USD in PROFITS! Just now I have read where Exxon Mobile just reported this quarters PROFITS of $11.68 Billion USD.... I ask what the He77 is going on here? I hear where the gas prices in the USA (as well as other parts of the world) are at record highs and these companies are raking in the cash. Without looking at their websites I am sure the CEOs of these companies are making bonuses of tens of millions of dollars. I am wondering since the gas prices in Thailand are regulated do the Thailand oil companies make large profits as well? Does anyone know?

....and what are your thoughts on these enormous profits these companies are posting?

[Bluelotus]

polluting the planet is profitable.

[GuestHouse]

polluting the planet is profitable.

I guess you missed the point that it is Oil Companies who produce fuels and people like yourself who burn the stuff.

--

Oil company profits - Great news - I'm loving it! .. and so is my Pension Fund!!

[dingdongrb]

polluting the planet is profitable.

I guess you missed the point that it is Oil Companies who produce fuels and people like yourself who burn the stuff.

--

Oil company profits - Great news - I'm loving it! .. and so is my Pension Fund!!

Yeah, I'm kicking myself in the arse because I sold my 'Nabors' stocks a few years back with a moderate profit, and since then they have split and gone above where I sold them at...... ye ole 'hindsight' saying.....

Also polluting the planet is not always profitable.... If that were the case there would be many rich Thais for tossing trash out their windows like it was helping the planet.... (Hence pollution does not get generated by big businesses alone.)

Edited July 31, 2008 by dingdongrb

[jetjock]

PTT is a Thailand state owned integrated oil company and Thailand's largest company so I have no idea if they are profitable. Chevron however is Thailand's largest oil importer. I have no problem if an oil company makes huge profits as long as much of the profit is put back into research and exploration however if those immense profits are just used the line the pockets of stockholders with huge returns and the expense of everyone else then that is a totally different picture. ( I cannot believe I said that since I have profited heavily this year because I have been heavily invested in oil and natural gas [but a least I am am a money grubbing capitalist and honest about it ] )

[dingdongrb]

PTT is a Thailand state owned integrated oil company and Thailand's largest company so I have no idea if they are profitable. Chevron however is Thailand's largest oil importer. I have no problem if an oil company makes huge profits as long as much of the profit is put back into research and exploration however if those immense profits are just used the line the pockets of stockholders with huge returns and the expense of everyone else then that is a totally different picture. ( I cannot believe I said that since I have profited heavily this year because I have been heavily invested in oil and natural gas [but a least I am am a money grubbing capitalist and honest about it ] )

I totally agree with you jetjock about putting the profits back into R&D and possibly even exploring alternative energy sources (which I doubt that spend that much on), but I am a big believer that much of the profits are lining the pockets of the top management group and the some smaller percentage in dividends to the shareholders. It just kills me when gas is $4 gallon in the USA and the CEO is probably making 2-10 million a year in salary, another 2-10 million a year in bonuses, and then probably 10s of millions in stock options. No one person is valued that much to do a job in my honest opinion.

...but then again a lot of athletes get these kinds of wages as well...... Why couldn't I be born with the ability to throw a 95 mph fastball?

[dotcom]

Exxon Mobil pays as much tax as the lowest 40% of US taxpayers COMBINED.

Polluting the planet? Let's cut your electricity off first.

PTTEP had profits in the 10's of billions of baht. I preferred when it was a state owned monopoly.

[CCCP]

The Queen of the Netherlands is loving all the submissive people around the globe. She along with others have us just where they want us for the time being.

Edited July 31, 2008 by CCCP

[dingdongrb]

Exxon Mobil pays as much tax as the lowest 40% of US taxpayers COMBINED.

Polluting the planet? Let's cut your electricity off first.

PTTEP had profits in the 10's of billions of baht. I preferred when it was a state owned monopoly.

I hear what you're saying dotcom, but over 11 billion in profits for one company in one quarter... Let the profits fall to 5 billion and have them pay taxes that equate to 50% of the taxpayers or better yet, lower the gas prices so that people can afford to pay the taxes. But 11+ billion in profit......Bahhhhh

I do believe that the majority of generated electricity in the USA is still coal burning furnances.

[dotcom]

Correct.

Have any of you ever thought that maybe companies like Royal Dutch or Exxon Mobil or Chevron or Conoco Phillips are owned by the shareholders? Profits after taxes flow to the shareholders.

Risk/reward

Drilling for oil is a risky business. 9 out of 10 holes are dry.

Today most of the deals are to develop oil fields for nation states. Plus Royal Dutch is big into refineries, petro chem, pipelines etc.

[dotcom]

PTTEP profits

[jetjock]

I totally agree with you jetjock about putting the profits back into R&D and possibly even exploring alternative energy sources (which I doubt that spend that much on), but I am a big believer that much of the profits are lining the pockets of the top management group and the some smaller percentage in dividends to the shareholders. It just kills me when gas is $4 gallon in the USA and the CEO is probably making 2-10 million a year in salary, another 2-10 million a year in bonuses, and then probably 10s of millions in stock options. No one person is valued that much to do a job in my honest opinion.

...but then again a lot of athletes get these kinds of wages as well...... Why couldn't I be born with the ability to throw a 95 mph fastball?

You hit the nail on the head 'dingdonggrb'. Corporate salaries, not only in the oil industry, but throughout corporations and especially corporate America are out of control with many of the CEO's making hundreds of times more than the average worker. CEO's and top management who are bankrupting or have bankrupted their companies are now walking away with many millions thanks to golden parachutes and other contractual settlements builit into their contracts. Since that is not the subject of this topic I will not expound as I could go on for hours about how great a threat this is to the well being of the average worker and the future of the average citizen.

[jetjock]

As a newsworthy item, right now as I am writing this, Exxon Mobile just announced it's 2nd quarter results, which are a quarterly record profit of almost 12 billion dollars ( the exact amount was $11,970,000,000). The Corporation distributed a total of $10.1 billion to shareholders in the second quarter through dividends of $2.1 billion and share purchases to reduce shares outstanding of $8.0 billion. I am not positive but I think that this may be a quarterly record profit for any corporation.

Edited July 31, 2008 by jetjock

[dingdongrb]

As a newsworthy item, right now as I am writing this, Exxon Mobile just announced it's 2nd quarter results, which are a quarterly record profit of almost 12 billion dollars ( the exact amount was $11,970,000,000). The Corporation distributed a total of $10.1 billion to shareholders in the second quarter through dividends of $2.1 billion and share purchases to reduce shares outstanding of $8.0 billion. I am not positive but I think that this may be a quarterly record profit for any corporation.

You were just probably reading an update on what my OP was started from, I guess when I opened this thread until the time you read the latest news, they found an extra few hundred million bucks.....ahhh just 'chump change'.... Or it could be like any news reporting there are always some variances to the story...

By the way, I totally agree with the corporate greed you refer to...

I guess little boys are going to stop dreaming about throwing that 95 mph fastball and dream about being a CEO instead, less exercise required.

[OriginalPoster]

I hear what you're saying dotcom, but over 11 billion in profits for one company in one quarter... Let the profits fall to 5 billion and have them pay taxes that equate to 50% of the taxpayers or better yet, lower the gas prices so that people can afford to pay the taxes. But 11+ billion in profit......Bahhhhh

What is the maximum amount of profit that a company should be allowed to earn?

[Groongthep]

As a newsworthy item, right now as I am writing this, Exxon Mobile just announced it's 2nd quarter results, which are a quarterly record profit of almost 12 billion dollars ( the exact amount was $11,970,000,000). The Corporation distributed a total of $10.1 billion to shareholders in the second quarter through dividends of $2.1 billion and share purchases to reduce shares outstanding of $8.0 billion. I am not positive but I think that this may be a quarterly record profit for any corporation.

Making money is what a company is supposed to do. They pay back the profits to the shareholders (who are the owners) through dividends. There are hundreds of thousands of us who are not tycoons or oil barrons who own shares in these companies. I'm quite happy they are doing well. BTW, the four big oil majors, Exxon Mobil, Chevron Texaco, BP and Shell, combined control less than 10% of the world's oil reserves. If they are doing so well can you imagine how much the OPEC countries must be making?

[dotcom]

I totally agree with you jetjock about putting the profits back into R&D and possibly even exploring alternative energy sources (which I doubt that spend that much on), but I am a big believer that much of the profits are lining the pockets of the top management group and the some smaller percentage in dividends to the shareholders. It just kills me when gas is $4 gallon in the USA and the CEO is probably making 2-10 million a year in salary, another 2-10 million a year in bonuses, and then probably 10s of millions in stock options. No one person is valued that much to do a job in my honest opinion.

...but then again a lot of athletes get these kinds of wages as well...... Why couldn't I be born with the ability to throw a 95 mph fastball?

You hit the nail on the head 'dingdonggrb'. Corporate salaries, not only in the oil industry, but throughout corporations and especially corporate America are out of control with many of the CEO's making hundreds of times more than the average worker. CEO's and top management who are bankrupting or have bankrupted their companies are now walking away with many millions thanks to golden parachutes and other contractual settlements builit into their contracts. Since that is not the subject of this topic I will not expound as I could go on for hours about how great a threat this is to the well being of the average worker and the future of the average citizen.

Said like a good little marxist.

NO NO NO BAMA.

[dotcom]

Jetjock.

You make 1000's of times what a banana picker in Honduras makes. Aren't you ashamed?

Not to mention the colossal harm your airplanes do to the ozone layer. lol.

[jetjock]

Jetjock.

You make 1000's of times what a banana picker in Honduras makes. Aren't you ashamed?

Not to mention the colossal harm your airplanes do to the ozone layer. lol.

I would have felt a little guilty because I love flying so much that I would have been willing to pilot their airplanes for free but I always felt that they were paying me several hundreds of thousands of dollars a year not just to fly their airplanes but to put up with their bullshit and that of the FAA that went along with the flying. As for the damage to the ozone layer, I don't build them I just fly them. My motto has always been that when in doubt, just take the money and run !

[jetjock]

I totally agree with you jetjock about putting the profits back into R&D and possibly even exploring alternative energy sources (which I doubt that spend that much on), but I am a big believer that much of the profits are lining the pockets of the top management group and the some smaller percentage in dividends to the shareholders. It just kills me when gas is $4 gallon in the USA and the CEO is probably making 2-10 million a year in salary, another 2-10 million a year in bonuses, and then probably 10s of millions in stock options. No one person is valued that much to do a job in my honest opinion.

...but then again a lot of athletes get these kinds of wages as well...... Why couldn't I be born with the ability to throw a 95 mph fastball?

You hit the nail on the head 'dingdonggrb'. Corporate salaries, not only in the oil industry, but throughout corporations and especially corporate America are out of control with many of the CEO's making hundreds of times more than the average worker. CEO's and top management who are bankrupting or have bankrupted their companies are now walking away with many millions thanks to golden parachutes and other contractual settlements builit into their contracts. Since that is not the subject of this topic I will not expound as I could go on for hours about how great a threat this is to the well being of the average worker and the future of the average citizen.

Said like a good little marxist.

NO NO NO BAMA.

Just remember that to be a good marxist in the US, it helps to have alot of money like Ted Kennedy and the other extreme left wing democrats in Congress ! Warren Buffet is also behind Obama which is really interesting food for thought (perhaps he is a marxist at heart ! lol). I could never afford to be a marxist so I am just a greedy capitalist that is just honest enough to readily admit my faults. I am probably like the majority of Americans that cannot stand the corrupt politicians of either of the parties. I realize that I am perhaps not being politically correct by saying that however I am not one of those politically correct people that actually believe that they can pick up a turd from the clean end.

[AmeriThai]

I just read online today where Royal Dutch Shell reported this quarters earnings of $11.6 Billion USD in PROFITS! Just now I have read where Exxon Mobile just reported this quarters PROFITS of $11.68 Billion USD.... I ask what the He77 is going on here? I hear where the gas prices in the USA (as well as other parts of the world) are at record highs and these companies are raking in the cash. Without looking at their websites I am sure the CEOs of these companies are making bonuses of tens of millions of dollars. I am wondering since the gas prices in Thailand are regulated do the Thailand oil companies make large profits as well? Does anyone know?

....and what are your thoughts on these enormous profits these companies are posting?

Fuel prices in the U.S. dropped slightly in the U.S. a couple of weeks ago, and seem to be holding somewhat steady at the moment. How much longer is another story. Exxon's profits ring to the tune of nearly $1500 per second. Someone on CNN Headline News today accused Exxon of having used its profits to buy up its own stocks, then sell them back on the market at higher prices. No idea how reliable that info is though.

[cophen]

What's the ROI in the oil industry? How much money did they have to spend to generate those profits?

[bkkjames]

I just read online today where Royal Dutch Shell reported this quarters earnings of $11.6 Billion USD in PROFITS! Just now I have read where Exxon Mobile just reported this quarters PROFITS of $11.68 Billion USD.... I ask what the He77 is going on here? I hear where the gas prices in the USA (as well as other parts of the world) are at record highs and these companies are raking in the cash. Without looking at their websites I am sure the CEOs of these companies are making bonuses of tens of millions of dollars. I am wondering since the gas prices in Thailand are regulated do the Thailand oil companies make large profits as well? Does anyone know?

....and what are your thoughts on these enormous profits these companies are posting?

My thoughts are that I wished I bought shares in them a decade ago.

[siamamerican]

I just read online today where Royal Dutch Shell reported this quarters earnings of $11.6 Billion USD in PROFITS! Just now I have read where Exxon Mobile just reported this quarters PROFITS of $11.68 Billion USD.... I ask what the He77 is going on here? I hear where the gas prices in the USA (as well as other parts of the world) are at record highs and these companies are raking in the cash. Without looking at their websites I am sure the CEOs of these companies are making bonuses of tens of millions of dollars. I am wondering since the gas prices in Thailand are regulated do the Thailand oil companies make large profits as well? Does anyone know?

....and what are your thoughts on these enormous profits these companies are posting?

My thoughts are that I wished I bought shares in them a decade ago.

Exxon stock dropped nearly 5% after announcing record profits. The street expected more.

The profits are enormous as well as other oil companies around the world. Excessively taxing Exxon and not taxing companies in Asia wouldn't accomplish anything. I doubt all countries are going to agree to a impose higher taxes on oil companies. Who is to say they wouldn't just pass the costs along to the consumer anyway.

In lieu of blaming oil companies, why not not blame consumers that waste oil.

* Those that have moved away form the city to a big house in the burbs

* Commute to work in an SUVs

* Live in house 4000 square foot house that consumes exorbitant amounts of energy

Better yet, don't blame anyone. If you choose, change your own consumption habits. Ride a bike, buy a smaller car, take public transportation...

[GuestHouse]

Better yet, don't blame anyone. If you choose, change your own consumption habits. Ride a bike, buy a smaller car, take public transportation...

Absolutely right ... but remember, blaming others is far more comforting.

A better life that requires personal sacrifice is not what people want to hear.

---

For the record, I've turned down my company car here in Saudi Arabia and on my last two assignments - Personal choices make a difference.

So ask the question: Are you personally willing to make the choice - If not quit moaning.

[pampal]

politics causing instability/conflict in oil producing regions=profits for oil industry

[vagabond48]

Better yet, don't blame anyone. If you choose, change your own consumption habits. Ride a bike, buy a smaller car, take public transportation...

So ask the question: Are you personally willing to make the choice - If not quit moaning.

After 9/11, I said to myself scr#w the middle east oil producing countries and the oil companies that promote them and started using my bicycle again to commute, do local food shopping etc. I averaged 22 to 30 miles a day when I was riding for recreational purposes only. The only mistake I made was not selling my 92 Camry at that time but waited until late 2007 when I realized I would probably be away from the USA, possibly for years. Between auto insurance and depreciation, waiting the 6 years to sell my car cost me over $10k.

But getting back to the thread, I am trying to understand how the oil companies are making so much money since I believe the $120 to $140 price of oil is the cost the oil countries can sell their oil, so how much are the oil companies marking up beyond those prices. Even if they were making 5% on $70/barrel, are they choosing to continue to make 5% of $140/barrel which would double their profit even though technically, it is probably cost them the same to produce gas and other related products.

[vagabond48]

Better yet, don't blame anyone. If you choose, change your own consumption habits. Ride a bike, buy a smaller car, take public transportation...

So ask the question: Are you personally willing to make the choice - If not quit moaning.

After 9/11, I said to myself scr#w the middle east oil producing countries and the oil companies that promote them and started using my bicycle again to commute, do local food shopping etc. I averaged 22 to 30 miles a day when I was riding for recreational purposes only. The only mistake I made was not selling my 92 Camry at that time but waited until late 2007 when I realized I would probably be away from the USA, possibly for years. Between auto insurance and depreciation, waiting the 6 years to sell my car cost me over $10k.

But getting back to the thread, I am trying to understand how the oil companies are making so much money since I believe the $120 to $140 price of oil is the cost the oil countries can sell their oil, so how much are the oil companies marking up beyond those prices. Even if they were making 5% on $70/barrel, are they choosing to continue to make 5% of $140/barrel which would double their profit even though technically, it is probably cost them the same to produce gas and other related products.

[siamamerican]

But getting back to the thread, I am trying to understand how the oil companies are making so much money since I believe the $120 to $140 price of oil is the cost the oil countries can sell their oil, so how much are the oil companies marking up beyond those prices. Even if they were making 5% on $70/barrel, are they choosing to continue to make 5% of $140/barrel which would double their profit even though technically, it is probably cost them the same to produce gas and other related products.

Use Exxon as an example:

They have the largest reserve of discovered oil which they sell. They also make money down stream from production ( refining, retail gas stations, lubricants ...)

[Sir Burr]

But getting back to the thread, I am trying to understand how the oil companies are making so much money since I believe the $120 to $140 price of oil is the cost the oil countries can sell their oil, so how much are the oil companies marking up beyond those prices. Even if they were making 5% on $70/barrel, are they choosing to continue to make 5% of $140/barrel which would double their profit even though technically, it is probably cost them the same to produce gas and other related products.

That price is on the spot market. It includes the money paid to the host country, the oil company's cost and profit, the cost of transportation and all the middle men's mark-up.