3 Comments

  1. Heavenly Ryan
    April 25, 2006 @ 12:00 am

    Interesting to see the parallels of Green Mountain Coffee Roasters & Exxon Mobil 🙂

    Now, what I’d personally like to see is if everyone only took that same opinion that they have about gas prices increasing, and applying it to taxes that the government imposes. 😉

    Reply

  2. n/a
    April 25, 2006 @ 12:00 am

    Comparing stock price increase percentages serves to prove nothing to your argument: “ExxonMobil’s profits are not so hot for everything they put up with”.

    Stock prices do not reflect profits. If they did, then XM Satellite Radio – which had to borrow a quarter of a trillion dollars just to get out of the starting gate – would not have a stock price today of $22.23 (or a 133% increase over 5 years ago). To this day, they remain riddled with debt. In short, stock prices certainly have profits as one of their factors, but there is a whole lot more involved than profits to justify your nifty charts and argument.

    ExxonMobil indeed makes obscene profits on the backs on American consumers. This is no exaggeration. They are the same company who, for 2005, achieved the highest profits of any corporation in history: $36 billion. In one year! In profits only (that’s above and beyond operating costs)! Furthermore, ExxonMobil’s CEO received from his handpicked board finance committee a $400 million retirement package.

    On another of your arguments, you think government regulation is keeping oil companies from opening new refineries (as implied above)? Think again. Fact is, oil companies don’t want new refineries. Why? Market instability. By investing $5 billion in a new refinery, they need to put their long-term hopes for return-on-investment (ROI) at the whims of OPEC, U.S. tensions with Venezuela, automakers diminishing fascination with low-gas-mileage vehicles, and so on. Ironic to think that market forces are what is keeping more refineries from being built, eh?

    But to your larger argument about price gouging, it’s a tricky endeavor to regulate pricing structures. The only reason there is talk to regulate it is because profiteering negatively impacts the economy. The only feasible way to do it is implement price controls (such as Canada does with pharmaceuticals). So it all comes down to choice: do we allow the oil companies to stymie the economy so that their CEO’s can retire in filthy luxury? Or do we risk slimmer profits and angry stockholders by regulating the industry and therefore boosting our economy?

    Reply

  3. n/a
    April 27, 2006 @ 12:00 am

    “Stock prices do not reflect profits.”

    Brilliant.

    Reply

Leave a Reply

%d bloggers like this: