Yes, we can.

[scaeagles]

It was hypothetical example to explain "windfall' profits and why they perhaps aren't always a bad thing, in that they bring others into the market creating competition and lowering prices.

Sheesh. Of course there are people who help for free. It wasn't meant to be a comparison to the oil companies and it wouldn't be a good one anyway.....the simple matter of fact is that the oil companies are NOT gouging ANYONE!

In 2007, Exxon earned a 7.6% profit margin. The average of most major manufacturers was 5.8%. Throw out the auto industry and that average goes to 9.2%. I can't find data for this year yet.

Over the last 5 years, Microsoft has averaged 27.9%. In March, Apple perfromed lower than expectations with only 32.9%, down from 35.1% a year ago. Doesn't pretty much everyone need a computer to get by? How dare Microsoft and Apple make so much!

Walmart, another retailer everyone loves to hate, only made 3.5% average in the last 5 years (by the way, I don't shop there, but not because I hate them).

7.6% is not a big profit margin. I really fail to see how eliminating all of their profits on the sale of gasoline would do much anyway. It's about 9 cents a gallon. Yes, everyone uses it and it certainly affects the price of everything else. But the oil companies are not the bad guys for making 9 cents a gallon.

And yes, CP, we do use it to run everything, period. Perhaps this is why we might want to think about drilling for and using our own natural resources because it is going to be a really, really long time before everything doesn't run on it. Meanwhile, everyone will continue to whine and Congress will threaten to sue OPEC and Pelosi and company will shut down debate on the issue becase they are on the unpopular side.

[BarTopDancer]

Originally Posted by scaeagles

Over the last 5 years, Microsoft has averaged 27.9%. In March, Apple perfromed lower than expectations with only 32.9%, down from 35.1% a year ago. Doesn't pretty much everyone need a computer to get by? How dare Microsoft and Apple make so much!

Believe it or not, computers are still a luxury item. Yes, you have a better chance of increasing your earning potential if you have computer skills but a computer in your home is still a luxury.

Paying the utility bills, buying food is not.

[scaeagles]

Originally Posted by BarTopDancer

Believe it or not, computers are still a luxury item. Yes, you have a better chance of increasing your earning potential if you have computer skills but a computer in your home is still a luxury.

Paying the utility bills, buying food is not.

I agree. I just got a notice of a rate increase request from my electric company. I'm pissed off about it, but I'm pissed off about it because we haven't built a new nuclear power plant 30 years, not at the utility companies. I could find the other 123 companies on the fortune 500 that make a higher margin (or whatever it is....I think that was the ranking of Exxon in terms of profit margin last year) and discuss each one and the impact on those affected by them, but the point stands that 7.6% is not a high profit margin.

[BarTopDancer]

Originally Posted by scaeagles

but the point stands that 7.6% is not a high profit margin.

I must have missed where you showed the source for the 7.6% profit margin. Regardless of the profit margin, they are making record breaking profits.

I'd like to see something adjusted for inflation. Much like movie sales records being broken, prices change.

[Strangler Lewis]

Originally Posted by scaeagles

It was hypothetical example to explain "windfall' profits and why they perhaps aren't always a bad thing, in that they bring others into the market creating competition and lowering prices.

If I tell you that I am an oil man . . .


Seriously, are there Jet Blue equivalents entering the oil production business with any regularly?

[scaeagles]

Originally Posted by Strangler Lewis

If I tell you that I am an oil man . . .


Seriously, are there Jet Blue equivalents entering the oil production business with any regularly?

But the free market example still stands. Why are oil prices so high? Because of speculation that supplies aer going to be cut off, primarily. So if that pressure is taken off the market because of US drilling, then that is a step in the right direction. I would also figure that if domestic supplies of oil were opened for easy access there would be several venture capitalists wanting to get in on it and perhaps starting up that Jet Blue you are talking about it. Maybe csome guy figures out a cost effective way of extracting oil from oil shale. Who knows?

[sleepyjeff]

Originally Posted by scaeagles

In 2007, Exxon earned a 7.6% profit margin. ....
7.6% is not a big profit margin. I really fail to see how eliminating all of their profits on the sale of gasoline would do much anyway. It's about 9 cents a gallon. Yes, everyone uses it and it certainly affects the price of everything else. But the oil companies are not the bad guys for making 9 cents a gallon.

..... Meanwhile, everyone will continue to whine and Congress will threaten to sue OPEC and Pelosi and company will shut down debate on the issue becase they are on the unpopular side.

[Cadaverous Pallor]

Originally Posted by scaeagles

7.6% is not a big profit margin.

There must be something here I'm missing. They make more money than any company ever in the history of man. The price for the product has double in a very short period. Is their profit margin the same as it was? If so, why are they making so much right now? The amount of gas/oil purchased does go up each year even in the face of alternative technology, but I'm assuming it didn't skyrocket. Shouldn't their earnings be steady, not shooting up? (They are quite larger than 5 years ago, correct?)

I would do research but I'm on a quickie break and don't have time now.