Lucky... 0 #26 May 24, 2006 QuoteQuoteQuoteQuoteQuack! what? Don't expect a lot more from him. Ask a stupid question............ Get a Gravitymaster answer????? Quote Share this post Link to post Share on other sites
billvon 3,116 #27 May 24, 2006 >You might also research how much American oil Co's. made per >gallon of gas before the war and how much they make now. Exxon made $16 billion profit (net earnings) in 2000, and $36.1 billion in 2005. I don't know how much gas was sold by Exxon in 2000 and 2005 - but it didn't double. So at least Exxon makes a lot more per gallon now. Quote Share this post Link to post Share on other sites
nanook 1 #28 May 24, 2006 QuoteCan you explain to me how when the price of crude goes up, the price of the pump goes up the next day. But, when the price of crude goes down, it takes a couple of days for the price at the pump to go down? While the price hikes are market driven, the lag in price drops have more variables. It's caused by consumer behavior. Consumers don't search for better prices when prices are falling or even stabilizing, only when the prices start to rise. Also, contractors' locked in rates among other things and futures. Gas is sold with the fact that the present stock that was bought cheaper yesterday has to be replaced by more expensive stock tomorrow. Going in reverse, it's going to have a lag as since the previous price was more expensive. also demand increases because of cheaper prices so it also slows the price's descent._____________________________ "The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln Quote Share this post Link to post Share on other sites
Gravitymaster 0 #29 May 24, 2006 Quote>You might also research how much American oil Co's. made per >gallon of gas before the war and how much they make now. Exxon made $16 billion profit (net earnings) in 2000, and $36.1 billion in 2005. I don't know how much gas was sold by Exxon in 2000 and 2005 - but it didn't double. So at least Exxon makes a lot more per gallon now. I don't have the figures in front of me, but only a portion of their profits come from gasoline sold to consumers. Even with that included, their profits for the last quarter of 2005 were about 9%. By comparison to the Insurance and Medical Industries, Telecomunications, that's fairly small. Out of about $9b in profits, about $15b went to new exploration and production, refining capacity and new energy-saving and environmental technologies. By comparison, the govt. gets almost 20% of all gasoline revenues from all oil companies within the U.S. Heck, my homeoweners insurance went up almost 40% in one year because of all the hail claims they have paid in my area in the last few years. Let's not even get into the profits by the telecommunications industry. Quote Share this post Link to post Share on other sites
billvon 3,116 #30 May 24, 2006 >I don't have the figures in front of me, but only a portion of their >profits come from gasoline sold to consumers. I agree - but the very large majority of their profit comes from selling petroleum products from gasoline to diesel to avgas to asphalt ingredients. Their usage of oil did not double, but their profits more than doubled. So per gallon of gasoline OR per gallon of oil processed they are making far more than they were before. >the govt. gets almost 20% of all gasoline revenues from all >oil companies within the U.S. I'm suprised that it's not closer to 80%! Who else makes gasoline in the US? Quote Share this post Link to post Share on other sites
kallend 2,148 #31 May 24, 2006 QuoteQuote>You might also research how much American oil Co's. made per >gallon of gas before the war and how much they make now. Exxon made $16 billion profit (net earnings) in 2000, and $36.1 billion in 2005. I don't know how much gas was sold by Exxon in 2000 and 2005 - but it didn't double. So at least Exxon makes a lot more per gallon now. I don't have the figures in front of me, but only a portion of their profits come from gasoline sold to consumers. Even with that included, their profits for the last quarter of 2005 were about 9%. By comparison to the Insurance and Medical Industries, Telecomunications, that's fairly small. Out of about $9b in profits, about $15b went to new exploration and production, refining capacity and new energy-saving and environmental technologies. By comparison, the govt. gets almost 20% of all gasoline revenues from all oil companies within the U.S. Heck, my homeoweners insurance went up almost 40% in one year because of all the hail claims they have paid in my area in the last few years. Let's not even get into the profits by the telecommunications industry. Nice try at distraction. Now back to the question at hand....... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
Gravitymaster 0 #32 May 24, 2006 QuoteQuoteQuote>You might also research how much American oil Co's. made per >gallon of gas before the war and how much they make now. Exxon made $16 billion profit (net earnings) in 2000, and $36.1 billion in 2005. I don't know how much gas was sold by Exxon in 2000 and 2005 - but it didn't double. So at least Exxon makes a lot more per gallon now. I don't have the figures in front of me, but only a portion of their profits come from gasoline sold to consumers. Even with that included, their profits for the last quarter of 2005 were about 9%. By comparison to the Insurance and Medical Industries, Telecomunications, that's fairly small. Out of about $9b in profits, about $15b went to new exploration and production, refining capacity and new energy-saving and environmental technologies. By comparison, the govt. gets almost 20% of all gasoline revenues from all oil companies within the U.S. Heck, my homeoweners insurance went up almost 40% in one year because of all the hail claims they have paid in my area in the last few years. Let's not even get into the profits by the telecommunications industry. Nice try at distraction. Now back to the question at hand.... The question was if there was any collusion on gas prices. The investigation showed there wasn't. Please present the evidence you have this report was wrong. I can tell you that having been in business for many years, there's no way I could make it on 9% profit. I don't know how the oil companies manage it. Quote Share this post Link to post Share on other sites
rehmwa 2 #33 May 24, 2006 QuoteI can tell you that having been in business for many years, there's no way I could make it on 9% profit. I don't know how the oil companies manage it. Reminds me of the Saturday Night Live skit on making change: "If you give me a 20 and want a ten, a five and five ones,,, then you get a ten, a five and five ones. two fives and ten ones?,, you get two fives and ten ones", "how do you make a profit?" "Volume" ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
SkyDekker 1,465 #34 May 24, 2006 QuoteI can tell you that having been in business for many years, there's no way I could make it on 9% profit. I don't know how the oil companies manage it. Margins in grocery stores typically average around 2%. That would be well below the 9% profit margin you don't understand. (note that the 2% isn't a profit margin, but a margin between COGS and selling price, meaning the profit margin is actually lower). Since you have been in business so long I figured you would have realized there are widely different profit margins, ranging from the low double digits to the high triple digits which can be found in the higher end jewellery stores. Quote Share this post Link to post Share on other sites
kelpdiver 2 #35 May 24, 2006 QuoteQuoteCan you explain to me how when the price of crude goes up, the price of the pump goes up the next day. But, when the price of crude goes down, it takes a couple of days for the price at the pump to go down? While the price hikes are market driven, the lag in price drops have more variables. It's caused by consumer behavior. Consumers don't search for better prices when prices are falling or even stabilizing, only when the prices start to rise. Also, contractors' locked in rates among other things and futures. Gas is sold with the fact that the present stock that was bought cheaper yesterday has to be replaced by more expensive stock tomorrow. Going in reverse, it's going to have a lag as since the previous price was more expensive. also demand increases because of cheaper prices so it also slows the price's descent. funny stuff. So the previous price only matters when it's more expensive?! So removing all the BS excuse making - seller raises prices ahead of the curve, but lags behind on descent. Better bottom line. Quote Share this post Link to post Share on other sites
idrankwhat 0 #36 May 24, 2006 Quote I can tell you that having been in business for many years, there's no way I could make it on 9% profit. I don't know how the oil companies manage it. They don't. They bury their profits overseas. That's the benefit of being multinational. Quote Share this post Link to post Share on other sites
unformed 0 #37 May 24, 2006 QuoteI can tell you that having been in business for many years, there's no way I could make it on 9% profit. I don't know how the oil companies manage it. Different businesses. A friend of mine sells electronics online. Due to the ridiculously large amount of competition (I know becuase I tried getting in the market as well), his markup is often as low as 1%. He makes a living because he moves a few hundred thousand dollars worth of merchandise in a month. High volume actually does make up for lower markups; ou just need to be more efficient in other spendings.This ad space for sale. Quote Share this post Link to post Share on other sites
nanook 1 #38 May 24, 2006 Quotefunny stuff. So the previous price only matters when it's more expensive?! and when oil prices are cheaper. If you graph it, prices vs. time/date you can see the price of oil and price at the pump swap and invert on the downturn(drop in price) as a result of buying for the future. They don't have a choice. If a company wants to go bankrupt, it can choose to not allow its price to decrease and lose its customers to cheaper places(Game Theory stuff). As said before, another cause of the lag is driven by consumers, not the companies. QuoteSo removing all the BS excuse making - seller raises prices ahead of the curve, but lags behind on descent. Better bottom line market raises prices ahead of the curve, market, consumer behavior lags behind on the descent. In free market societies, it is very rare for a business, especially in perfect competition or oligopolies, to be the price pushers._____________________________ "The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln Quote Share this post Link to post Share on other sites
rushmc 23 #39 May 24, 2006 QuoteQuoteQuoteQuack! what? Don't expect a lot more from him. nice "America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
ahegeman 0 #40 May 25, 2006 Quotethe high triple digits which can be found in the higher end jewellery stores. Over 100% margin? Wow, that's quite a trick. I'd like to get into that business.--------------------------------------------------------------- There is a fine line between 'hobby' and 'mental illness'. --Dave Barry Quote Share this post Link to post Share on other sites
kallend 2,148 #41 May 25, 2006 QuoteQuotethe high triple digits which can be found in the higher end jewellery stores. Over 100% margin? Wow, that's quite a trick. I'd like to get into that business. When I had a small software business, my distributor had a margin of well over 100%.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
ahegeman 0 #42 May 25, 2006 I think you two are confusing margin with mark-up.--------------------------------------------------------------- There is a fine line between 'hobby' and 'mental illness'. --Dave Barry Quote Share this post Link to post Share on other sites
SkyDekker 1,465 #43 May 26, 2006 QuoteI think you two are confusing margin with mark-up. technically you are correct yes, though it is a bit of a semantics argument Quote Share this post Link to post Share on other sites
