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CEO of Exxon Says Use Less
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: CEO of Exxon Says Use Less
Posted by shamrock12472
Posted by Blu-ize
Bush is the oil man here. 
There is way more control in the gov't than we think.
That is untrue. He can offer rebates but he has absolutely no control over private industry. As a previous poster said, oil is a commodity and the price is set in the commodities market. The prices are high because of the industrialization in China and India as well as geopolictical events.
I meant the companies offering rebates.
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Posted 5/3/06 11:54 AM  |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: CEO of Exxon Says Use Less
Posted by Blu-ize
Posted by shamrock12472
Posted by Blu-ize
Bush is the oil man here.
There is way more control in the gov't than we think.
That is untrue. He can offer rebates but he has absolutely no control over private industry. As a previous poster said, oil is a commodity and the price is set in the commodities market. The prices are high because of the industrialization in China and India as well as geopolictical events.
I meant the companies offering rebates.
I would be surprised to see that happen. Pfizer didn't do it when the FDA approved Viagra and it hit the market. They made an incredible amount of money but that didn't lower the cost of prescription drugs. Hopefully, some of this money will be allocated to R&D for alternative enegry sources.
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| Posted 5/3/06 12:05 PM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: CEO of Exxon Says Use Less
Posted by Blu-ize
Posted by shamrock12472
Posted by Blu-ize
Bush is the oil man here.
There is way more control in the gov't than we think.
That is untrue. He can offer rebates but he has absolutely no control over private industry. As a previous poster said, oil is a commodity and the price is set in the commodities market. The prices are high because of the industrialization in China and India as well as geopolictical events.
I meant the companies offering rebates.
they would never do that.
they are publically traded companies- they are beholden to the shareholders, not the public.
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| Posted 5/3/06 12:06 PM |
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oneday
<3
Member since 5/05 4319 total posts
Name:
Pam
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Re: CEO of Exxon Says Use Less
I understand that the cost of oil is not set by Exxon, et.al., and I understand supply and demand - we use more, it costs more, etc, but, if the oil costs more, why are these companies making SO much profit. Wouldn't it make sense that thier profit margin should stay the same? I saw a woman from the Wall Street Journal try and explain it to Jon Stewart on the Daily Show the other night, and I still don't get it. They are charging more, because it cost them more, so why would the profits be soooo much higher? Or what am I missing?
(I felt good knowing Jon didn't seem to understand the reasoning either.)
Can someone explain?
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| Posted 5/3/06 12:10 PM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: CEO of Exxon Says Use Less
Because they're in it to make money, not to lower our prices. If we'll buy it at that price, they'll see it at that price. It's the same reason that whatever the "hot" sneaker or toy is is more expensive. High Demand. I know there's more to it. I don't really understand how commidities work, but if there's a high demand for something, in an open market, you raise prices.
If I make sweaters and I can sell them for $100, wven if they only cost me $30 to make, I'm gonna sell it for $100, not $40.
Message edited 5/3/2006 12:19:25 PM.
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| Posted 5/3/06 12:18 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: CEO of Exxon Says Use Less
Posted by oneday
I understand that the cost of oil is not set by Exxon, et.al., and I understand supply and demand - we use more, it costs more, etc, but, if the oil costs more, why are these companies making SO much profit. Wouldn't it make sense that thier profit margin should stay the same? I saw a woman from the Wall Street Journal try and explain it to Jon Stewart on the Daily Show the other night, and I still don't get it. They are charging more, because it cost them more, so why would the profits be soooo much higher? Or what am I missing?
(I felt good knowing Jon didn't seem to understand the reasoning either.)
Can someone explain?
Let's say, I have a barrel of oil that I mined for a total cost of $5.00. If the market value of that oil is $7.00, I have a $2.00 profit. However, if the market value of oil jumps up to $15.00, I have a $10.00 profit. At a profit of $2, I made 40% but at a profit of $10, I made $200%. Big difference.
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| Posted 5/3/06 12:18 PM |
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| Pages: 1 [2] |
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