ExxonMobil getting out of the gas business

[Flammable]

Text

surprising seeing as they cite the reason for closing because of the crude oil price...

 

[her209]

:Q

 

[Eli]

Weird.....

 

[ViviTheMage]

what...!

 

[kranky]

They are selling off the stations they own. Gas stations make very little on gas.

I read a story the other day which pointed out the profit margin for the gas station on gas sales is so low that they can actually lose money if a driver uses a credit card to purchase it due to the fees the banks charge for a credit card transaction.

 

[RichUK]

"Exxon getting out of retail gas business"

I think people should take note of the operative word here, including the op.

Reading comprehension FTW.

 

[judasmachine]

Originally posted by: RichUK
"Exxon getting out of retail gas business"

I think people should take note of the operative word here, including the op.

Reading comprehension FTW.

yep this way they can reduce overhead and still collect the billions in profit.

 

[Jassi]

I'm not surprised. Wholesale gouging is where its at.

 

[cruzer]

Who would want to buy those stations if they just said they are not very profitable?

 

[Crusty]

Originally posted by: cruzer
Who would want to buy those stations if they just said they are not very profitable?

There's a sucker born every minute.

 

[SZLiao214]

Where are all the people siting record profits?

 

[AgaBoogaBoo]

Originally posted by: Crusty

Originally posted by: cruzer
Who would want to buy those stations if they just said they are not very profitable?

There's a sucker born every minute.

It might not be profitable enough to be worth their time, but for others, it could be just the kind of business they were involved in and would love to have, especially if it's the competitor across the street.

 

[sniperruff]

1) welcome to last thursday

2) it's exxon mobil selling its retail gasoline franchise business, not "the gas business"

3) a retail gasoline franchise makes most of its money from the convenience store/garage that people operate alongside the gas stations

 

[imported_Baloo]

Originally posted by: SZLiao214
Where are all the people siting record profits?

They are waiting to see the even higher record profits Exxonmobile will report once they've sold all the gas stations.

 

[ja1484]

For some reason, people can't seem to grasp the concept that oil companies are posting record profits because there is record demand for oil in the world today, not because prices are being gouged, fixed, or whatever.

The profit margin on gas hasn't really changed over the past several years - Big oil still makes something close to 10% profit, which really isn't much when you consider that most products sold at retail are marked up between 30 and 60%.

There are just more people buying energy now than ever before thanks to the rapid modernization of India and China, so demand stays high regardless of what the American public's gas buying behavior is. Any drop of gasoline we don't buy, China and India will. People in this country are just stupid and are so used to America being the only kid on the block that they can't seem to wrap their head around this "multi-national corporation" idea.


So please, stop whining about how the oil companies are killing you. It's not them - it's the failed energy policy of every presidential administration and US congress since the 1960s that's killing you. The math was plain for anyone to see for decades now that if other large third world countries modernized, there would not be enough energy to go around, not by a long shot. Instead of investing in more efficient energy methods, the politicians, Repub AND Democrat, just cuddled up to middle east oil states.

Well guess what? The chickens are home, and they want to roost. Welcome to the future.

 

[Special K]

Originally posted by: ja1484

For some reason, people can't seem to grasp the concept that oil companies are posting record profits because there is record demand for oil in the world today, not because prices are being gouged, fixed, or whatever.

The profit margin on gas hasn't really changed over the past several years - Big oil still makes something close to 10% profit, which really isn't much when you consider that most products sold at retail are marked up between 30 and 60%.

There are just more people buying energy now than ever before thanks to the rapid modernization of India and China, so demand stays high regardless of what the American public's gas buying behavior is. Any drop of gasoline we don't buy, China and India will. People in this country are just stupid and are so used to America being the only kid on the block that they can't seem to wrap their head around this "multi-national corporation" idea.


So please, stop whining about how the oil companies are killing you. It's not them - it's the failed energy policy of every presidential administration and US congress since the 1960s that's killing you. The math was plain for anyone to see for decades now that if other large third world countries modernized, there would not be enough energy to go around, not by a long shot. Instead of investing in more efficient energy methods, the politicians, Repub AND Democrat, just cuddled up to middle east oil states.

Well guess what? The chickens are home, and they want to roost. Welcome to the future.

So you don't think speculation has contributed to the current increase in prices?

 

[ja1484]

Originally posted by: Special K

Originally posted by: ja1484

For some reason, people can't seem to grasp the concept that oil companies are posting record profits because there is record demand for oil in the world today, not because prices are being gouged, fixed, or whatever.

The profit margin on gas hasn't really changed over the past several years - Big oil still makes something close to 10% profit, which really isn't much when you consider that most products sold at retail are marked up between 30 and 60%.

There are just more people buying energy now than ever before thanks to the rapid modernization of India and China, so demand stays high regardless of what the American public's gas buying behavior is. Any drop of gasoline we don't buy, China and India will. People in this country are just stupid and are so used to America being the only kid on the block that they can't seem to wrap their head around this "multi-national corporation" idea.


So please, stop whining about how the oil companies are killing you. It's not them - it's the failed energy policy of every presidential administration and US congress since the 1960s that's killing you. The math was plain for anyone to see for decades now that if other large third world countries modernized, there would not be enough energy to go around, not by a long shot. Instead of investing in more efficient energy methods, the politicians, Repub AND Democrat, just cuddled up to middle east oil states.

Well guess what? The chickens are home, and they want to roost. Welcome to the future.

So you don't think speculation has contributed to the current increase in prices?

I don't think it matters. China and India are going to buy the energy at either price even if we don't because we figured out the "big speculation secret". In the end, you get the same market force, speculation or no speculation.

Until energy gets to a price point where east asia can't economically continue to consume it to modernize their infrastructure, or they finish modernizing their entire society, the price is going to keep going up.

 

[alkemyst]

expecting tons of spam come monday because of this. Probably telling me that due to this BP and others are also closing their stations and soon gas will no longer be available.

 

[randomlinh]

Originally posted by: ja1484
Until energy gets to a price point where east asia can't economically continue to consume it to modernize their infrastructure, or they finish modernizing their entire society, the price is going to keep going up.

sadly, this is where I see this going. I don't see any "relief" anytime. At best, stabilization of gas prices.

 

[CPA]

Exxon is a oil company, not a gas company. Retail gas stations are a vertical business component of it's core business - oil exploration. They are the largest and best company in exploring for and extracting out oil. The don't need to be in the gas retail business and they definitely should NOT be in the alternative fuel business. They need to do what they do best and what they hire people to do and that's discover, drill and pump out oil.

 

[ja1484]

Originally posted by: CPA
Exxon is a oil company, not a gas company. Retail gas stations are a vertical business component of it's core business - oil exploration. They are the largest and best company in exploring for and extracting out oil. The don't need to be in the gas retail business and they definitely should NOT be in the alternative fuel business. They need to do what they do best and what they hire people to do and that's discover, drill and pump out oil.

Almost. Exxon is an energy company who just happens to be known for oil work because, let's face it, most of the energy used in the world today is coming from petroleum sources.

And they SHOULD and DO have their fingers in alternative energy research, because where do the profits come from once we run out of the black stuff?

 

[moparacer]

I don't think it matters.

Well they need to DO SOMETHING about the speculation for a month or so and see if it makes a difference or not. If it doesnt, alrightly then lets move on to the real problem with high gas prices.

If it does, then they need to pass laws and regulations to the effect that if you do not physically have possession of crude oil, you cant sell it and if you are not going to take delivery of it, YOU CANT BUY IT.

Alrighty then high gas price problem fixed...

 

[jpeyton]

Why would Exxon bother with chicken-feed profits from gas stations when they're r[e]aping billions from Americans?

Does anyone remember the good old days of $3/gallon gas? You know, way back in February 2008?

 

[alkemyst]

I think the current best estimates peg gas at around $4 for another decade...I think they just did this whole 'spin' to take us to the next level of spending to profit as much as possible as we learn to depend less on oil over the next few years. The fairy tale of cars getting 40+mpg has already been proven and surpassed.

 

[CPA]

Originally posted by: ja1484

Originally posted by: CPA
Exxon is a oil company, not a gas company. Retail gas stations are a vertical business component of it's core business - oil exploration. They are the largest and best company in exploring for and extracting out oil. The don't need to be in the gas retail business and they definitely should NOT be in the alternative fuel business. They need to do what they do best and what they hire people to do and that's discover, drill and pump out oil.

Almost. Exxon is an energy company who just happens to be known for oil work because, let's face it, most of the energy used in the world today is coming from petroleum sources.

And they SHOULD and DO have their fingers in alternative energy research, because where do the profits come from once we run out of the black stuff?

I would agree with you IF we were running out of resources, but the truth is we are only "running out" because of our absurd regulations in drilling.