Gas Has Very little To Do With It
ExxonMobil has just released their latest Quarterly Report, 14.83 Billion in profits, WOW! Mr. Rockefeller would be pleased with his company.
At first blush, most assume all this cash was made on the back of the US Driver. As much because the poplulation seems to believe, the reality is kind of the alternative. Very little of the profit generated by ExxonMobil is derived from the sale of gasoline to drivers. The segment of Fuels Marketing (Exxon, Mobil, and On the run Stations) generates very little revenue for ExxonMobil in proportion to all their sources of revenue.
Before someone can put the blame on the ‘oil’ companies, you have got to understand what OIL is used for and where are the profits to be made.
Products: Fertilizer, Candles, Detergent, Vitamins. CDs and dvds, Plastic, ink, Film are just among the examples of normal everyday goods that need oil.
So the following time an individual tends to their garden, romances a woman, washes their clothes, tries to live healthy, rents a movie or buys a Cd, has a picnic or buys your child school supplies, ensure you remember you could have just contributed to the massive profits of ExxonMobil. As a bonus remember you almost certainly used your car to go to all these places. So, if everyone within the US stopped driving tomorrow, ExxonMobil would still generate 85-90% of the money they took on this last quarter.
Below is a description of the operations of ExxonMobil:
ExxonMobil’s asset base is large, geographically diverse, and economically robust across a range of business environments. The company holds exploration and production acreage in 36 countries and production operations in 24 countries world wide. In 2007, seven major upstream projects started production. ExxonMobil sells natural gas in almost all major and developing markets to power companies, industrial users, and distributors. Total 2007 oil and gas production available on the market averaged 4.2 million derry oil prices oil-equivalent barrels per day.
ExxonMobil’s network of reliable and efficient manufacturing plants, transportation systems, and distribution centers provides clean fuels, lubricants, and other high-value products and feedstocks to customers around the globe. ExxonMobil has interests in 38 refineries located in 21 countries and markets its products through more than 32,000 retail derry oil prices service stations. derry oil prices Our services are also provided to nearly 1 million customers worldwide through our three business-to-business segments-Industrial and Wholesale, Aviation, and Marine. In 2007, refinery throughput averaged 5.6 million barrels per day, and petroleum product sales were 7.1 million barrels per day. ExxonMobil is the world’s No. 1 supplier of lube basestocks and a pacesetter in marketing finished lubricants, asphalt, and specialty products. Worldwide, we market products under the Exxon, Mobil, and Esso brands.
ExxonMobil is a pacesetter within the petrochemical industry with interest in 49 wholly owned and joint-venture facilities around the world. We hold strong positions in lots of the most important-volume and highest-growth petrochemicals in the global economy. The company is considered one of the most important producers of olefins, the fundamental petrochemical building block. We are also one in every of the largest producers of polyolefins, which include polyethylene, the biggest-volume plastic, and polypropylene, one of many fastest-growing polymers. Greater than 90 percent of chemical capacity is employed in businesses where we rank first or second in worldwide market position.
A fast take a look at their 2007 (2008 is not yet available) Annual report sheds light on where the cash is coming from. ExxonMobil’s ‘Upsteam'(see above for definition) operations pulls in probably the most revenue, specifically, operations outside of the US. In other words, ExxonMobil is making their money from the sale of oil, not the sale of gas on the retail level. Because the market pushed the worth up, so went margins. As world demand ramped up, so did the value of oil.
Those on US soil often forget or are too ignorant to realize ExxonMobil is a worldwide company and the remainder of the world is catching up in demand for oil. China and India have growing middle classes equating to the size of your entire US population. Just just like the Middleclass in the US, they are buying “stuff”, cars and more ‘stuff’.
This text was not meant to defend the oil companies, lots of their currupt actions have encouraged the dependency North Americans have on their product. However, in order to attack an enemy or place blame, one should be fully be enlightened.
When it comes right down to it, North Americans should demand a quicker conversion to alternative fuels from their governments and industry. Don’t be angry with the OIL companies, be angered by the lack of action taken by your government and yourself. Being angry at the ExxonMobil’s of the world could be as illogical as a crack addict being mad at their dealer.