We got hosed, Timmy. We got hosed. (http://news.yahoo.com/s/ap/20051027/ap_on_bi_ge/earns_exxon_mobil_5;_ylt=AsAOVwys4IkSwJhEPwGsC4eAs nsA;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl)

Largest posted profits ever, yet XOM is down $0.05 today. I don't get the market.

Maybe the market forsees the People getting pissed at paying crazy natural gas rates for heat this winter and lynching exxon =D

Pfft. Like the market would actually hinge on something that... realistic. I still think monkeys with abacuses, personally.

Geez, no wonder the guy in the picture has so many chins!

Ok, so while on one hand I think this is disgusting, the other hand is stroking my energy sector fund.

Largest posted profits ever, yet XOM is down $0.05 today. I don't get the market.Take a look at the annual chart. It's been going down lately but it's still considerably higher than a year ago. :)

http://moneycentral.msn.com/investor/research/msnbc/newsnap.asp?Symbol=XOM

Royal Dutch Shell posted record profits, too.

I seem to recall some post a while back where someone said that people who own oil company stock aren't too bright.... :p :p :p :p

Yeah, up from a 3yr standpoint, but down on the day they announced high earnings. Blearg.

Figured as much.

No no it's supply and demand. :rolleyes:

That smug fat fvcking harelip needs to get lynched.


Profitting off Katrina like that has THIS Libertarian sincerely beginning to think that the American oil and and natural gas fields should be nationalized.

I seem to recall some post a while back where someone said that people who own oil company stock aren't too bright.... :p :p :p :p

That was me, but you didn't get it right. I stay away from integrated oil companies. I invest heavily in pure oil/gas production companies. It's interesting that integrated oil companies have similar opinions. Encana is the largest independent oil/gas producer in Canada. Royal Dutch Shell is making a play to buy out Encana. I've made a killing on Encana stock, and will make a pile more if Royal Dutch Shell is successful.

The reason not to buy integrated oils is vividly illustrated by this thread. Prices of gasoline, natural gas and home heating fuel are ALWAYS in the public eye. When most companies make record profits, it goes unnoticed except by investors and the business community. When an integrated oil company makes record profits, it's dirty and a rip-off. There are calls for government intervention, boycotts, restrictions, regulation and all other sorts of share-price killing stuff.

It's not surprising that novice investors think that record profits mean higher share prices. I suggest that folks look at recent share prices for Exxon-Mobil and Royal Dutch Shell... They've been dropping. Imagine that :) . I'll leave you to figure out why... or... for a small fee, I'll provide more specific investment advice :physics: .

The reason not to buy integrated oils is vividly illustrated by this thread. Prices of gasoline, natural gas and home heating fuel are ALWAYS in the public eye. When most companies make record profits, it goes unnoticed except by investors and the business community. When an integrated oil company makes record profits, it's dirty and a rip-off. There are calls for government intervention, boycotts, restrictions, regulation and all other sorts of share-price killing stuff.

Its when an integrated oil company makes record profits during a year when gasoline and natural gas prices both reached record highs supposedly because of a great natural disaster...but in reality so the fat cats could continue to line their own pockets.

Its when an integrated oil company makes record profits during a year when gasoline and natural gas prices both reached record highs supposedly because of a great natural disaster...but in reality so the fat cats could continue to line their own pockets.

Wow... is there a tinge of pink in this comment? :) Isn't the U.S. the bastion of free enterprise?

You set up an economy using one of a number of models. It can be communist, socialist, capitalist and a variety of flavors and colors. Each have benefits and drawbacks. What do you expect companies to do in an open market? How about... "oh gosh, we will willingly cut our profits to show our love for our customers and they will appreciate us for doing so"... *group hug*.

This can actually be illegal. I can read the headlines now... "Big oil slashes prices, dumps product to wipe out small competitors. Disaster excuse merely a ruse to consolidate monopoly."

Can you see ANY scenario, where big integrated oil would be viewed favorably by the public? I can't. If gasoline prices dropped to 50 cents a gallon, people would still think that they were being ripped off.

Economics 101 includes the concept of Supply and Demand. When you have a natural disaster that reduces oil/gas production, and shuts down refineries, the supply goes down, and prices go up. Companies that have supply make piles of money. The business grows, money gets invested etc. etc. If you don't like the system, change it. There was a guy called Marx with an alternative.

Oh, and gasoline and natural gas prices have reached record highs in countries where there haven't been great natural disasters.

I never claimed to be a capitalist. I do, and will continue, to fault companies which make their fortune by bilking the people.

I think its silly that oil and natural gas industries do not fall under the public utility catagory thus making providing federal and/or state regulation.

A good case can be made for regulating portions of the oil industry similar to public utilities. Specifically, home heating fuels and gasoline can be targets.

The tiny Prince Edward Island (PEI) is the smallest of the ten Canadian provinces. It's mostly rural with a population of about 140,000 people. The province regulates home heating fuel and gasoline. Some comments about their experience.

* Prices are little different than nearby unregulated markets. There are fewer swings, but products are not cheaper.

* Every once in a while, an oil company suggests that it may not deliver to PEI because of poor profits, but this is hot air.

* Prince Edward Island has no oil/natural gas production, nor refining. Although the market is regulated, all energy sources come from non-regulated sources.

* Oil companies privately like regulation for consumer oil products. You are ensured of a nice regulated rate of return, and don't have to worry much about competitiveness.

* In summary, regulation has neither helped nor hurt consumers or oil companies.

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Next topic:

In the late 1970's Canada went through the great economic experiment called The National Energy Policy. Oil/natural gas prices were nationally regulated and kept lower than world prices. The policy was a disaster, resulted in huge conflicts between energy producing and energy consuming provinces, resulted in political defeat for the government and was totally scrapped.

The economic fall-out was severe. Canadian energy companies were artificially favored over multi-national integrated oil companies. After the National Energy Policy was cancelled, these Canadian companies (primarily Dome Petroleum and Nova) imploded and were gobbled up. Foreign investment dried up. The federally owned national oil company, Petrocan, was formed during the regulated years, but has since been privatized.

The reason that Canada could even contemplate the National Energy Policy fiasco was because the country was energy self-sufficient.

Energy investment in Canada suffered for decades, and has only recovered in the last ten years. What international energy company in their right mind would invest in a country that nationalizes its energy industry? It was the classic example of killing the golden goose.

The U.S. was indirectly hurt by Canada's National Energy Policy. Canadian energy production and export to the U.S. could have been growing instead of being stifled by regulation.

I wouldn't recommend the U.S. try anything similar, unless you want Texans to actively favor leaving the Union :) . Ok, so maybe some of you would like to see that.

I never claimed to be a capitalist. I do, and will continue, to fault companies which make their fortune by bilking the people.

I think its silly that oil and natural gas industries do not fall under the public utility catagory thus making providing federal and/or state regulation.

If the goverment provided us with our energy - your gallon of unleaded would cost you $10 instead of what it is.

For some reason, I have my doubts about that.

Hell, with the profits Exxon made this year we could fix Social Security.

You realize Exxon was making something like $1726 per second?

Have to see what the 4th quarter brings. Remember, they stockpile fuel so the fuel you got today could've been made before the hurricanes hit. Thus making a greater profit vs something made today. 4th quarter will prove if oil companies over charged the people. Of course oil companies will always make a profit, how much they make in the 4th quarter will prove alot.

Airline companies will also be in this vote. Airlines stockpile fuel, even though many lost billions this past quarter most still were paying a cheaper amount for fuel. Come this quarter most will have a higher fuel cost, and we should see more airlines about to go belly up. Continental comes to mind. Continental posted in the black this past quarter however, they still had a old fuel rate from before the weather hit. Once they have to lock in a new rate, we should see a loss from Continental sometime in the next 2 quarters.

I think its silly that oil and natural gas industries do not fall under the public utility catagory thus making providing federal and/or state regulation.

Why? These industries run most of the modern world. We made all this happen by building our world around their product. Almost everything you buy uses some form of oil. We let oil companies do this to us.

I still think we should be making a Space Race out of finding an alternative to fossil fuels.