Exxon Mobil reports $39.5B annual profit

<div class='quotetop'>QUOTE(daniel @ Feb 6 2007, 12:38 PM) [snapback]386251[/snapback]</div>

Well, I think you're wrong on the retail level; they never deplete the stock since it is mixed with the new stock that comes in those big shiny trucks. So their price increase or decrease never really matches, exactly, what their stock cost them.

A station can be mid-tank, with another few days until the big shiny truck arrives, and they will lower their prices. Usually because the guy across the street just received his big shiny truck, and he lowered his prices. So competition drives the price down, as well as increased costs drive it up. The retailer is also faced with the prospect that if he's a penny more than the guy across the street, the lines will form over there and he'll be left with a lot of expensive stock and no cash flow. So the increases are usually moderated a bit too.

They make about 2% profit overall, according to some stats I've seen. That's not a lot, but then you have to realize they don't have to do too much to gain that profit; its not like they have a crew of guys running around cleaning windows and checking the air in your tires.. So it is all about volume pumped.

 

<div class='quotetop'>QUOTE(TonyPSchaefer @ Feb 1 2007, 12:24 PM) [snapback]383982[/snapback]</div>

No, they earned it by raping the American people because they are special interest and have carte blanche to do so.

Let's say you sell widgets. Due to a shortage of raw materials your supplier has to raise his price. You have to pay more and pass on the cost to your customers. Do you make more money charging them more? No. You paid more, your customers paid more to make up for it, and you come out the same as before the shortage.

Now, look at Exxon-Mobile. The "infamous" oil shortage causes Exxon-Mobile to raise prices. That increase is passed on to consumers. Did Exxon-Mobile break even passing on their higher cost to us? No! There was no higher cost to them. They raised prices and made more profit than any other company since the dawn of civilization.