As I'm digging in my pocket for spare change to fill up my gas tank I hear that Exxon Mobil posted a record profit over the radio. Exxon was close to making $40 billion dollars in profit, making it the largest annual profit in US history. Well good for them, if I ran a company I'd want them to make a huge profit. Who wants to be a loser? We Americans can gripe about the price of gas, but we've got some of the lowest prices for gas in the world. We can spend $5 dollars on a cup of Starbucks coffee but we can't shell out $5 dollars for 2 gallons of gasoline? I don't blame Exxon for making a product that we are dependent upon, they are just catering to our needs.
I'm glad that American automakers are finally waking up to the fact that they need to make some more fuel efficient vehicles. Vehicles in Europe are very fuel efficient, and stylish, and have impressive handling. American appetites favor large, bulky pick ups and SUVs, but even they are weaning. Pick up and SUV sales are declining. My parents tell me that their friends in Europe who drive SUVs are paying $100 dollars every trip to the station. Though America will probably have a revolution before that happens, we need to start thinking about alternative fuels and equipment. Interestingly enough the companies that we criticize, such as Exxon, or Shell, or BP, are at the forefront of alternative fuel research. They don't pocket all of that $40 billion dollars, they invest a chunk of that in ethanol, hydrogen, and other alternative fuel research. They also donate a lot of money to environmental protection and even global warming mitigation initiatives, if you can believe that. Still, they could always do more, but quite frankly, what would you do if you ran a large, profitable, and successful company? It's always easier to criticize when you are a have-not like myself, but what if the roles were reversed?
2 comments:
Here is what many are overlooking with respect to the profit reports.
Oil is purchased using the practice of hedging. The profits they recorded are based on the fact that they had purchased the current supply (to consumers) at a much lower rate than what a barrel currently grabs on the market. This means, that their profits are going to be extremely large.
What is being overlooked is the fact that they have been paying the highest prices per barrel in eons now.
While you may feel you're paying more money while they make the profits, you need to give consideration to the fact that their revenue is going back into buy more crude and paying for the refinement costs.
If you look at it from the perspective of hedging, it's only a matter of numbers and somewhat legitimate.
Nothing to get upset over.
Now...if you want to eject toys from the pram, consider the wages and compensation being offered to the Officers of the organization and ask yourself if they are really worth that sort of money?
I just want to get paid! :)
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