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Exxon Mobil posts U.S. record profits

JOHN PORRETTO

The Associated Press

Latest comment posted at 9:54 AM EDT 01/02/08

Energy giant's results for year, quarter are biggest in U.S. history ...Read the full article

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  1. paul rankin from Canada writes: And yet they are the first in line to whine that the royalties in Alberta are too expensive and need to be reduced..............
  2. Robert Miller from Halifax, Canada writes: Danny Williams was too hard on us in the Hebron negotiations...

    Cry me a river!!!
  3. Robert Miller from Halifax, Canada writes: Please keep your money (from your record profits) for those creepy think tanks like the Fraser Institute south of the border too...

    Halifax's Joe Howe stood up for something called Freedom of the Press in Canada... Not freedom to buy the press in order to print your think tank's press releases...
  4. The Iconoclast from Canada writes: Yet they are still fighting the judgment on the oil spill by Exxon Valdez 10 years ago.
  5. Commander Adama from Caprica, Canada writes: I dont know if anyone has noticed but this the Business Section; I would imagine the first two posters are not invested in the energy industry.

    So go pound sand, and wine , and go hope the government will take of you.

    In the meantime this is good news.
  6. Silent Majority from Canada writes: Paul,

    You are the demand side of the economic equation. Your consumption is what drives these profits but it's better to just criticise others so you don't have to take responsibility.
  7. Gern Blandston from Mississausage, Canada writes: No problem with making profit, just clean up the messes you are leaving behind. 100's of gas stations in Canada owned by Esso are contaminated and impacting groundwater and instead of cleaning them up they 'manage' their risk, i.e. do as little as possible. A fraction of the 40 bill could go along way in cleaning up these sites once and for all. My kids will thank you.
  8. Silent Majority from Canada writes: Gern,

    Fair comment.
  9. Jerry Hung from Waterloo, Canada writes: The best I can do is to not fill up at Esso gas station (hasn't been in a while, and will not be for a long while too). Especially they increased the difference between 87 and 89 to 7 cents from 6 cents (while 7-11/Pioneer are 5 cents), and Canadian Tire is 6 cents (CT gets gas from Esso)

    Guess next year may be another record 2008 year, which beats 2007, which beats 2006
  10. Mark H from Columbus, IN, United States writes: Ahhh....this is awesome! My portfolio needed a boost.
  11. Carl White from Canada writes: Entirely predictable.

    May the impediments that are blocking the introduction of the electric car to Canada soon dissolve.

    Then we can begin the business of getting to cheap and relatively clean transportation.
  12. Robert Miller from Halifax, Canada writes: Paul Rankin from Canada:

    Actually, it's Ralph Klein that seems to do the whining about the raise in royalties in Alberta... Things that make you say hmmm...

    PO, Commander.
  13. Jean Luft from Canada writes: paul rankin...pretty clear you know nothing about the industry. Exxon has very small holdings in Alberta relative to their overall holdings. The increased royalties in Alberta (which, by the way, has already led to a net loss of revenue for the government) don't concern Exxon....they simply move their activity to friendlier jurisdictions.

    Paul Jones from kitchener....your comments are typical left wing rhetoric with no basis in fact. Centre-right? Yeah, sure you are, comrade.
  14. Robert Miller from Halifax, Canada writes: Silent Majority from Canada:

    I would expect that this article from the Economist outlines what drives these profits:

    http://www.economist.com/displaystory.cfm?story_id=10091402

    Isn't Ralph Klein also a senior fellow at the Fraser Institute if memory serves me correctly?

    Nothing to see here folks... just keep blaming the consumer for these guys' record profits.
  15. Joel S. from Canada writes: I hope we aren't subsidizing them.
  16. Winifreed Pugnacio from Canada writes: The investor classes have as much blood for oil on their hands as the company principals. The war profiteers carry on as usual while the business press crows and praises their success.

    How many Iraqii's per gallon does your car get?
  17. Charles Martel from Don't Tase Me, Bro!, Canada writes: Winifreed Pugnacio from Canada writes: The investor classes have as much blood for oil on their hands as the company principals. The war profiteers carry on as usual while the business press crows and praises their success.

    How many Iraqii's per gallon does your car get?

    ---------

    Well, let me see. Saddam took the proceeds from the oil to run his little dictatorship and keep the rape rooms open 24/7. The new Iraqi government is flowing the money back into Iraq, and selling their oil on the world market. So, simply put, America didn't steal any oil from anyone.

    Now, lets talk about the growth rate of the Iraqi economy:

    http://www.menafn.com/qnnewsstory_s.asp?StoryId=1093182451

    That 7% is a better growth rate than Canada!
  18. L.B. MURRAY from Canada writes: OIL and WAR bring record profits.
    .ChaneyBush and their ''Base'' of mega-billionnaires must be so happy and so busy shipping all their wealth to Dubai...

    Did you folks know that Haliburton, among others, has transferred its ''head office'' to Dubai ??

    Isn't that being ''good Americans'', sending other people's kids to die and get maimed in Iraq while the profiteers are getting ever more filthy and filthy rich.

    The New American Way, PNAC style.

    Enough.
    -
  19. The Wight from Canada writes: 'Centre-right? Yeah, sure you are, comrade.'

    To the right hand, everything is left.
  20. The Wight from Canada writes: 'That 7% is a better growth rate than Canada!'

    That's not the percentage that matters, though, is it? What percentage of that growth (and the profits contained in that number) end up in the hands of Iraqis and how much ends up in the hands of US and European profiteers?

    I'm quite sure the World Bank, IMF and other organizations pat themselves on the back for the great performance of the economies they aid with loans, but too many studies have shown their benefits to be vastly skewed to aiding US and European multinationals invade and buy up native industries for me to trust their growth numbers anymore.
  21. The Wight from Canada writes: 'The increased royalties in Alberta (which, by the way, has already led to a net loss of revenue for the government) don't concern Exxon....they simply move their activity to friendlier jurisdictions.'

    Where do you get the numbers to support this, Jean (the net loss portion)? With Suncor nearly tripling their Q4 results from last year and Syncrude over double theirs, I can't see how this can possibly be.
  22. S. H. from Waldhof, Canada writes: 100,00 teachers can't be wrong. They have their pensions invested in oil.
  23. Rocky Balboa from United States writes: Instead of whining about the high price of gas, buy oil company shares.
  24. The Wight from Canada writes: 'Instead of whining about the high price of gas, buy oil company shares.'

    Exactly. There are plenty of ways to take your profit and put it to a greener use. Take your house off the grid by using your profits to fund the switch to solar and wind. Buy a smaller car and sell the SUV. Buy bikes and ride to work during the summer (if possible). Swap your lights for LEDs. Heck, buy enough shares that you can show up at the AGM and lobby from within. Exxon shareholders did exactly that in 2006.

    Plenty of options.
  25. Stop! Think! from Canada writes: I just have a few points...40.6 Billion of PROFIT....WOW...Lucky if you own shares..

    However, at what point do we as the 'consumer', demand fairer prices??

    Oil is owned and operated by a small handful of people, and we have no choice but to buy from them, so when do we get 'help'...

    Could someone please answer a question:

    If oil is $100/bbl, and prices have to go up because oil is a :world' commodity, how did profits rise at an even higher rate...Should they have not stayed the same or go down???

    This only leads to one conclusion: We are being gouged. Its called raquetteering and profiteering...It's illegal, look it up...
  26. Bryan . from Canada writes: Stop! Think! from Canada writes: I just have a few points...40.6 Billion of PROFIT....WOW...Lucky if you own shares..

    However, at what point do we as the 'consumer', demand fairer prices??

    Oil is owned and operated by a small handful of people, and we have no choice but to buy from them, so when do we get 'help'...

    Could someone please answer a question:

    If oil is $100/bbl, and prices have to go up because oil is a :world' commodity, how did profits rise at an even higher rate...Should they have not stayed the same or go down???

    This only leads to one conclusion: We are being gouged. Its called raquetteering and profiteering...It's illegal, look it up...

    ---------------------------------------------------------------------------------

    Though the 40.6 billion seems like alot and it is, the actual profits as a percentage of revenue is small. They needed 404 billion in revenue to produce that number. Those margins do not suggest gouging in any way shape and form.

    Secondly, with records to your comments about world oil. Though profits have not gone down, reserves have, Exxon is actually shrinking and should continue to do so as they cannot replace their reserves - hence the increases in oil.

    Though you may not like the price of gas. The refinery operations where the sore point of the company recently as the crack spreads have been slim recently
  27. The Wight from Canada writes: 'This only leads to one conclusion: We are being gouged. Its called raquetteering and profiteering...It's illegal, look it up...'

    In Suncor's profit report from this last quarter, they cite drastic improvements in refining techniques, which would seriously cut their costs, that would increase profit greater than just the rising cost of the oil.
  28. Peter Kells from Bytown, Canada writes: In the tradition of industrial barons of the 19th Century, I think that the Exxon corporation should fund the formation of a regiment for service in the middle east. Lord Strathcona of Canada acted in such a way during the South African War by funding the formation of Lord Strathcona's Horse which is still an active regiment in the Canadian Forces.

    These Exxon guys should give something back to the US people in gratitude for all those young soldiers dying in far off lands to secure US oil supplies. Who needs the marines if they could get the Exxon Raiders.
  29. nick oliver from halifax, ns, Canada writes: Charles Martel from Don't Tase Me, Bro!, Canada writes: Saddam took the proceeds from the oil to run his little dictatorship and keep the rape rooms open 24/7. The new Iraqi government is flowing the money back into Iraq, and selling their oil on the world market. So, simply put, America didn't steal any oil from anyone.
    ...............................................................................................................................................

    shows how much you know. Saddam hadn't been able to sell oil to anyone but the UN and only for food and medicine for the last 10 years of his regime, all the while being bombed every day by the allies. and when UNSC 1483 directive gave the CPA in Iraq the $23 Billion that rightfully belongs to the citizens of Iraq, it was taken to Iraq in bundles after the invasion and was never seen, or accounted for, again. all that money was in american hands and is now gone. since money is never really 'lost', it was stolen by somebody. in the end, lost or stolen, it doesn't really matter. it all amounts to the same thing: no accountability. it was not treated like the property of citizens of a sovereign nation.

    and those rape rooms are still open my friend, just under new management. how many photos & videos taken by american soldiers from abu ghraib would you have to see? or is every iraqi now speaking about what happened when held there and was later released a liar?

    www.washingtonpost.com/wp-srv/ world/iraq/abughraib/swornstatements042104.html

    5 months after the routing of the Iraqi army from Kuwait, Baghdad had electricity and water running again. it's been 5 years in Iraq and even with buckets of money at their disposal, the USA still can't run the place as well as a seriously weakened Saddam could. but, hey, under american rule the oil still keeps on pumping. plenty of security for the oil, just not enough to protect the people. darn. and we wonder why they hate us...
  30. Carl White from Canada writes: 'Rocky Balboa from United States writes: Instead of whining about the high price of gas, buy oil company shares.'

    Where does that leave all the families (especially in the U.S.) that can barely make ends meet, much less start an investment porfolio, Mr. Free Enterprise?
  31. Carl White from Canada writes: 'Jean Luft from Canada writes: Robert Miller from Halifax....stop buying products from the oil and gas industry. If you don't like the profits that's just too bad for you, I guess. Typical whining, bitching Canadian leftie.'

    Seems like the 'let them eat cake' crowd is out in force.

    I'm glad that you have a lucrative stock portfolio and that the rising cost of gas (and, along with it, food, transportation and many oil-based products) does not inconvenience you in any way.

    What you don't seem to realize (or simple don't care, either way) is that many less fortunate are being hit by the inflation of prices, especially in developing nations.

    Try to find money to invest in oil companies when you have a sick kid and no medical plan or when you're trying to make ends meet for your family.

    It's that which upsets people about bloated profits, when it comes hand in hand with increased hardships for many.
  32. Non Conformist from Halifax, Canada writes: Exxon, which made $40 billion in profit, owns 70% of Imperial Oil which is seeking $2 to $3 billion in subsidies from the Canadian government to construct the Mackenzie Gas Project. That is just amazing !
  33. Ricky for a Centrist Canada from Canada writes:
    Oil companies are scum.

    Period.
  34. M. Mark from Victoria, Canada writes: Before we criticise the profits of big corporations and banks, consider two points:

    1. When we invest our savings in a mutual fund or a bank account, we expect to earn a certain percent of profit from it. While $40 billion is an extremely large amount of money, I expect it represents a reasonable percentage return on the huge amount of capital that the corporation has invested in it's operations.

    2. Who are the largest shareholders of these large corporatations and banks? Our pension plans and mutual funds own large chunks of these businesses and collect a lot of the profits from them. Forcing a reduction in corporate profits is going to hurt our own pensions in the long run.
  35. jan bakker from Canada writes: That means exxon made $4.634 million an hour profit or $1287.00 per second. The owners, stock holders, and government are being pumped full. while the consummer is being pumped at the pump.
  36. Armchair March from Canada writes: Exxon should be shut-down due to their shameful funding of climate change deniers. See Monbiot's book 'Heat' for details.
  37. Stop! Think! from Canada writes: Bryan - Thanks for the info, but there is still a flaw in your argument...You assume that the make their profits from 'revenue'...Hence 10% of 404 billion...The thing is that their expenses are minuscule..ie: A barrel of oil from Alberta is one of the most expensive to get it costs about $5-$10 per barrel to produce...So they sell it at $90..
    .Sounds like profiteering to me....

    I'm not whining about the price of gas...Just that the guys who provide it are raking in Record after Record and we have NO CHOICE but to deal with it....Oh well...C'est la vie!!
  38. Tony . from Waterloo, Canada writes: Stop! Think! from Canada writes: 'Oil is owned and operated by a small handful of people'

    Do you have ANY concept of how many millions of people are involved in the oil and gas industry?! Exxon alone has about 100,000 employees and million shareholders, either directly or indirectly through mutual funds, retirement plans, etc.

    There are probably more people involved in the owning and operation of oil and gas firms that nearly any other business on the planet.

    'Should they have not stayed the same or go down???'

    Economics 101 my friend, supply and demand. YOU and everyone else in the world have decided that $100/barrel is the price you're willing to pay. Oil is very much a demand-side driven commodity because the supply is relatively fixed (with the exception of a couple OPEC countries), pretty much anyone who can produce oil IS producing oil.

    Oil consumption worldwide is over 80 billion barrels per day. It doesn't take much profit margins to make money with volumes like that.. Case in point, Exxons gross margins were less than 10% here, HARDLY gouging in any industry!

    'We are being gouged'

    YOU decide that the price is correct by buying oil-based products. Therefore how can you be getting gouged? If you WERE getting gouged you would stop buying all these oil-derived products, including gas, plastics, any produce not grown locally, asphalt, food grown with fertilizer... just to name a few.

    A very slight drop in consumption levels over the past two months has resulted in a 10% drop in oil prices. That should tell you what you need to do if you don't like Exxon's profits.
  39. Tony . from Waterloo, Canada writes: Stop! Think! from Canada writes: 'ou assume that the make their profits from 'revenue'...Hence 10% of 404 billion...The thing is that their expenses are minuscule.'

    What the?!?! Where exactly do YOU think they're making their profits from if not from revenue?! Do they pick the money off the secret money tree?

    And how are their expenses of $363 BILLION dollars a year 'minuscule'?! You do realize that they needed to pay over $105 billion in taxes alone this year, right?

    I'm sorry for being blunt here but you seem to have absolutely no grasp of the fundamentals of economics!
  40. No More Bush league from Canada writes: When Americans wake up to the fact that their country is destroyed and bankrupt at the same time that these companies (Exxon and Shell), announce massive, record setting profits, won't the fur fly?

    The PNAC ba$tards not only have blood on their hands overseas, they have done immense damage on this continent.

    Someone actually asked if we are subsidizing them?

    Who do you think pays for the billions upon billions poured into Iraq?

    Certainly not Exxon Mobil.

    Keep those printing presses rolling, Central Banks.

    Please note the fact that American neocon and habitual liar, Charles Martel, has defended these clowns.
  41. F Isher from Canada writes: What's the matter with the Government of NWT, while cutting it's own budget for public services, that it won't subsidize Imperial to build the MacKenzie Valley pipeline? Don't cheap out boys, these slimeballs need more cash. Forget about social programs. The oil industry needs to suck everyone dry.
  42. Robert Miller from Halifax, Canada writes: F Isher from Canada:

    This is no surprise really.

    The Oil Sands and Oil industry have been receiving billions in Federal Money in Canada for years. People like Commander Adama probably think that it's the creeps and bums in Canada who are stealing his tax dollars while the Federal Government amasses $55 billion surpluses and growing on Employment Insurance... Meanwhile, Mobil Exxon cries foul and walks away from the table if Premier Williams asks for a reasonable deal for his Province's Oil on the Hebron oil field...

    Of course, the Commander doesn't care about any of that -- as long as his personal portfolio looks good at the end of the day!
  43. Robert Miller from Halifax, Canada writes: Jean Luft from Calgary, Canada writes:

    'Robert Miller from Halifax...stop buying products from the oil and gas industry...'

    Cannot wait to do so, Jean!

    With new Hydroelectricity projects in the Lower Churchill, Tidal Power Development in the Bay of Fundy, and the prospect of another Nuclear Reactor at Point Lepreau, hopefully, one day another Atlantic Premier will be able to up and walk away from the negotiation table on the Mobil Exxon types...

    Of course, I know that all good Albertan Conservatives reach for their ankles when oil companies walk near them so I take your slur, 'whining, bitching, leftie' as a compliment...

    Thanks, Jean!
  44. Black Jerry is a idiot from Canada writes: If the the government of Alberta has a brain royalty relief should be out of the question.
  45. Percy from NL from Canada writes: Yep, Danny Williams and the people of NL are proving how smart we really are by partnering with big oil on both sides of the equation. Pandering to them will obviously make you popular in the boardrooms and will get you a pat on the back, but it won't get you their respect. While slick public presentation may impress some, substance is proving to be much more important :-).
  46. Bryan . from Canada writes: Tony . from Waterloo, Canada writes: Stop! Think! from Canada writes: 'ou assume that the make their profits from 'revenue'...Hence 10% of 404 billion...The thing is that their expenses are minuscule.'

    What the?!?! Where exactly do YOU think they're making their profits from if not from revenue?! Do they pick the money off the secret money tree?

    And how are their expenses of $363 BILLION dollars a year 'minuscule'?! You do realize that they needed to pay over $105 billion in taxes alone this year, right?

    I'm sorry for being blunt here but you seem to have absolutely no grasp of the fundamentals of economics!

    Thank you for answering Tony...saved me the trouble.
  47. Steve Mack from Winnipeg, Canada writes: Don't try and argue morals and values with business minded individuals. They are simply endoctrinated into the falsehood of profits over people. These type of poorly educated persons are completely unable to understand the big picture, they only see what their blinders allow: Capital.
  48. Dr Demento from Canada writes: How much of this did Cheney make?
  49. harry carnie from Northern, B.C., Canada writes: Free enterprise at work.! As long as these companies are paying their fair share of royalties and taxes..this is WHAT KEEPS Canada / U.S.A.
    GOING..thank God for that.

    If you think the profit is excessive..drive a smaller vehicle and take public transport..otherwise STOP BITCHING.
  50. No more Bush league tactics from Halifax, Canada writes: harry carnie from Northern BC, Canada writes:

    'Free enterprise at work! As long as these companies are paying their fair share of royalties...'

    Have you always been such a comedian, Harry?
  51. No more Bush league tactics from Halifax, Canada writes: Somewhat strange that defunct King Ralph took a vow of silence today...

    Is that even possible for Klein?
  52. vic w from Canada writes: I love how people still insist to defend oil companies to the death because it's what their leaders do. Gentlepeople, the emperor is wearing no clothes you know...
  53. Jerry Ackerman from Parham, Canada writes: NAFTA requires that Canada sends 70% of the oil we produce annually SOUTH. We are not
    allowed to charge Canadians any less. The
    pipelines to the US refineries are controlled
    by the friendly (except when it comes to softwood lumber) neighbours.
    The permanent destruction of Alberta's environment does not get factored into Exxon's business decisions, NOR into the profit calculations.Subsidies and immediate write-offs keep Canadian crude the world's cheapest
    What more could be expected from IMPERIALIST Oil -- a better team for the T.O. Maple Leafs ?
    Can anyone remember when Canada was a modest, struggling society ? ----when Canadians made their own decisions IN THEIR
    BEST INTEREST ?
    Did anyone ever notice the Canadian ACTION
    party's website ? ---only party that means to
    cancel NAFTA with Six Months notice.
    Final question : Do most of us Canucks love to be ' diddled' ?
  54. boo bear from saint john, Canada writes: bottom line the people get what they deserve.
  55. j boland from United States writes: The insanity and stupidity of the left knows no bounds. Perhaps the two most important developments that have lifted much of the masses of humanity in the past 150-200 years from the wretched lives they used to live for eons to the far better ones they live now are capitalism and oil. Nothing else comes close, and that has happened despite the best efforts of the left to keep those masses in poverty and subjecation.

    The oil companies, albeit profit driven, are among the heroes of the past couple of centuries.

    As for profts, good grief, people. The meagre profits as a percentage of effort and total revenues is still pretty small. The real profiteers, the ones who gouge and do nothing to contribute, are the governments who rake off obscene profits in taxes, far beyond even what Mobil has produced this quarter.
  56. DL BARTA from Canada writes: All right - Why should the banks get all the money.......
  57. GlynnMhor of Skywall from Canada writes: Stop! Think! from Canada writes:"... at what point do we as the 'consumer', demand fairer prices?"

    Every time you choose to buy (or not to buy) gas you get to dmeand fairer prices. If the price is higher than you think you want to pay, then you don't buy the gas. As demand falls, prices will drop.
  58. GlynnMhor of Skywall from Canada writes: Jerry Ackerman from Parham, Canada writes: "NAFTA requires that Canada sends 70% of the oil we produce annually SOUTH. We are not allowed to charge Canadians any less."

    The latter is true, NAFTA says we can't degrade the marketplace with politically popular but economically ruinous discriminatory pricing.

    The former is just nonsense. We send south as much oil as the Americans are willing to buy, but nothing prevents Canadians from buying more of it if we want to.

    On the other hand, most of the consumption is in eastern Canada, and the production in western Canada, with very limited ability to transport the stuff from here to there. that means that we sell oil to the US in the west, and buy it from them and from others (eg- Venezuela) in the east.

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