Retail price $2.56 per gallon March 2007
Taxes 15%
Distribution 9%
Refining 24%
Crude oil 52%
Exxon Mobil Corp. Profits July 2005 $7.64 billion
Exxon Mobil Corp. on Thursday |Feb 1 2007; posted the largest annual profit by a U.S. company—$39.5 billion
Shell Profits April 2007 $7.28 billion
Chevron Profits April 2007 $4.7 billion
Is this profiteering?
The frustration can be seen in a flood of e-mails proposing a national boycott of gasoline on May 15. Craigslist reports more than 300 postings by people urging others to join. On MySpace.com, scores of people are vowing to avoid the pumps.
The cost of tanking up has become so high that some gasoline stations report almost 80 percent of their customers are using credit cards to pay the bill. Economists worry that consumer confidence could be damaged, with potential implications for the economy. It could be worse, though: Wholesale prices have moved up so quickly that many service stations haven't had a chance to fully ratchet up prices at the pump. But even though wholesale prices have dropped in recent days, the costs are not likely to change much for the consumer.
"You can appreciate that the consumer is frustrated," says Sam Turner, president of Calfee Co. of Dalton, which owns about two dozen convenience stores and gasoline stations in coastal Alabama and Florida. "We are, too."
E-mails about the proposed boycott claim that after a similar "gas-out" in April 1997, the price of gasoline dropped 30 cents a gallon overnight.


Comments: 60
We have one bus that comes twice a day, in the A.M. and one in the P.M.
Give us your thoughts.
$5.00 per gallon, or do we all stop driving? What about all the commuters, that travel from 30-60 miles or more to work? It will have a negative effect on our economy, unless they can get the gasoline prices down.
Oh maybe just a little ;-(
ExxonMobil's profit margin was 11.97%, only slightly higher than the industy average of 10.5%. That is lower than other consumer goods that people can't live without these days - Tim Hortons' was 15.64% and Microsoft's profits were 25.86%, more than double that of ExxonMobil's.
What irritates me more is that no one notices the high profits in the financial sectors. Why am I only making a paltry 1-2% on my savings when the financial guys are raking in ridiculous profits? JP Morgan Chase - 26.14%, Bank of America 31.28%, and Morgan Stanley at 23.61%, to name a few. To me they are guilty of profiteering yet no one complains about that. (All profit figures were just looked up on Yahoo Finance).
I have heard too that Americans are wasteful and should walk to work, ride a bicycle, etc.
Thanks for your input.
You make an excellent point! I would just say that Exxon's profit margin doesn't include hidden costs that consumers pay for gas - just not at the pump. Hidden costs are paid in taxes (really, deficits), like half a $Trillion war in the mideast. If we really paid the full cost of gas, Exxon's profits would be substantially lower - and consumers would be paying $15-$20 a gallon.
But you're right! The financial sector is stealing us blind, and no one complains - except maybe about the new bankruptcy laws that make it more difficult for individuals to go bankrupt - but not corporations.
Thanks for the alert. Maybe people should be complaining. Are there any watchdog groups that keep an eye on this - that you know of?
Point being, we "can" save gas and spend less at the pump, just by watching our own habits. Those who have to drive fairly long distances to work, how about carpools?
Buying a hybrid car wouldn't help us really, as most of the time, it'd be stop and go here, so we'd be using gas anyways.
C'mon- don't you think every single Senator, Congressperson owns stock in the oil companies? Party affilation aside? I remember the gas lines in the 70's and not only was it expensive, you were lucky if your gas station got enough gas for you to get some.
And they're all making profits off of us - a lot - though it's the Americans that want everything new and up-to date, so who should we really blame?
Marilyn
We are in very serious trouble.
We have to find ways to cut emissions before we hit the tipping point (454 ppm). We are already at 382 and are on track to hit that tipping point all too soon. Getting to work will be the least of our worries when the world starts to dramatically change.
If you care about your children or your grandchildren, you will do more in your power to end the deadly addiction to gasoline. Despite high prices in Europe, people still use their vehicles excessively. It just costs more. Hiking gas prices is only one way of encouraging changes, but as we can see by Europe's example, not the most effective.
The times they are achanging. And its not going to get better. Not without the collective action of everyone on the planet.
But it begins with one person. You.
And it can't wait.
Another factor to consider is that at a time when demand is increasing due to the summer months many refineries are being closed cutting their overall output just in time for the intense driving season coming up...! "Coincidence"? Higher demand, less output, higher gas prices...! Arrogant S.O.B's....yes I'm in May 15th.
And while so many Americans, myself included, have to drive a car where they live, nothing says so many people have to drive gas-guzzling SUVs.
I could go on. Suburban sprawl. The ever-increasing size of the average American home. Roads that don't allow for safe bicycling. The oil companies may be powerful and manipulative, but we only have ourselves to blame. We had our first wake-up call in the seventies when OPEC screwed with our economy. Now we have big oil, plus global warming.
Let's wake up!
I still stick with my usual reply to this kind of thing. Americans used to be able to make a difference. Why can we not do so now???
When gas prices spike, you always hear the same old stuff. Demand is up because of the beginning of the summer vacation season. Some senator or congressman cries foul - the oil companies are gouging the consumer - and they plan to get to the bottom of it. I can see the commodity trading middlemen quaking in their boots now.
Because the real American citizen now is the multi-national corporation - the American people, not so much, except for the vote. Most do not vote, of if they do, they follow the marketing of the corporate media (manipulation) regarding for whom they will vote. I mean, look at the purpose of this article. Individuals trying to organize to affect corporate pricing of a commodity on which they depend.
It is possibly the hardest message for people to hear, that lifestyles are going to have to change because of the climate challenge. There is a huge disconnect because the consequences seem so remote. And they aren't.
This isn't an aberration. This summer is going to be hot. There will be stress on water and energy supplies. The North Pole ice cap is now expected to be gone completely by 2020 and went it goes, the heating will begin to increase exponentially.
Gas prices. I strongly suspect people at that time will be saying 'why didn't they increase gas prices sooner?'
In the meantime, people will do their best to ignore the situation and look at life in purely economic terms.
Now some would like to know what good a boycott do? Well it doesn't have to mean just lower the prices. I live in a city of 200,000 and yet the transit system is lacking the service people really need.
If everyone and mean everyone didn't buy gas for one day it would get the attention of not only oil companies but our government to try and make our transit system a service that could really help.
Many people can't just go out and buy another car their thinning budgets do not allow for it when most are having problems just paying their bills and putting food on the table.
America is not Europe and people are spread out some not by choice.
Gas prices are very high, I agree. But I still am not as shocked as the rest of you because I come from India where the average middle class person cannot afford to use his/her car on a daily basis. They drive two-wheelers instead, saving car trips for special occasions. Here, even with the rising prices, most people can still afford to drive.
What can I say, I'm an incurable optimist. ;-)
As for the title of this piece, of course oil companies are profiting and a one day boycott is a farce, although it might feel good. What happened the day after the boycott in 1997? Or the week after? I can't seem to find any substantial data on this subject. Can you provide any?
I like the idea of any of us planning a long trip to organize a boycott the day before we leave. Then we can individually benefit as wee need to, just like the oil companies!
Oh wait, that's pretty selfish.
How about we organize a boycott one day a week, or a month. Car pool anyone?
This is all inconvenient right now, but I think that dwindling potable water is going to be the thing that everyone is really going to freak out about in this century.
Finally - I will agree not to buy gas on May 15th just to see what happens. Do you all promise to vote?
The point of the boycott is not just to save money by lowering gas prices; it is also to reject a lifestyle that is dependant on rapid consumption. Price is high because demand is high. This is a choice we have made, and we can change our minds. When people stand up for what they believe and refuse to sit down and be quiet, they are always heard. That is why we no longer have slavery in America, why we have the Clean Air and Clean Water acts, why all citizens can vote, why we have a minimum wage and Social Security.
The government and the private sector almost never do what is best for everyone; they do what is best for the interests of the rich and powerful. All the things we love about our country, our freedoms, our rights and liberties, have generally not been given to us but have been won by the struggles of average people.
So will the May 15 gas boycott be effective? It matters how you look at it, and it matters how many people decide they care enough to act. If few participate, then effectiveness is strongly limited. If many act, then we can send a clear message to oil companies, auto manufacturers, and our government, that we are tired of paying through the nose for gas. We want fuel efficient cars. We want a mass transit system that works and reduces traffic congestion and our dependency on oil. We want to shape our lives and our society, in the truest democratic tradition. We want our choices limited by real constraints, not by corporate interests. If we continue to act, by extending the boycott and by actively trying to use less gas, we send and even stronger message. Who wouldn't want to drive less if we had an effective mass transit system? Sure it would probably cost more than a trillion dollars to put a good national system in place, but wouldn't we rather spend our money on this than on waging war overseas?
I urge everyone who reads this to not buy gas on May 15.
NOTHING
The oil companies have their hands tied, they can NOT build new refineries, thank you libs.
They can NOT explore new oil fields, thank you libs.
They can NOT drill, thank you libs.
And the price is set by commodity brokers.
Me, I'm filling up my 20gallon tank BMW on May 15.
There was no nationwide "gas out" in 1997. There was one in 1999, but it didn't cause gas prices to drop 30 cents per gallon overnight. In fact, it didn't cause them to drop at all. Despite the popularity of the email campaign, the event itself attracted scant participation and was completely ineffectual.
2. There are over 205 million Internet users in the United States, far more than the 73 million claimed.
3. If, say, a hundred million drivers refused en masse to fill up their tanks on May 15, the total of what they didn't spend could amount to as much as $3 billion. However, it doesn't follow that such a boycott would actually decrease oil companies' revenues by that amount, given that the average sales of gasoline across the entire U.S. is under $1 billion per day in the first place.
4. Whether the total impact was a half-billion, 3 billion, or 10 billion dollars, the sales missed due to a one-day consumer boycott wouldn't hurt the oil companies one bit. Think about it. Every single American who doesn't buy gas on Tuesday is still going to have to fill up their tank on Wednesday, Thursday, or Friday, making up for Tuesday's losses. Sales for the whole week would be normal, or very close to it.
A meaningful boycott would entail participants actually consuming less fuel -- and doing so in a sustained, disciplined fashion over a defined period of time -- not just choosing to wait a day or two before filling up as usual.
Spartan.....The US is bigger than Europe. People are spread out and we enjoy our freedom, it has nothing to do with the Auto maufacturers If you live in the city, fine, owning a car would be a pain and not worth it. However, people like me who live in the country and commute many miles, public transportation would be impossible. And it's NOT "American Auto makers and Oil companies have made sure Americans are dependent on the automobile." it's our quest and need for freedom, at least for me. And btw, I do not own a GM/Ford/Chevy/Chrysler.......... Nor will I ever again.
For every person that's out there buying a fuel efficient car there are just as many out buying a "bigger and better" SUV.
I'd like to see the federal government enact much stricter fuel standards but that won't happen under the current administration. This administration not only has a personal interest in the petroleum industry but they are also all about business. They don't really care about the environment, just the economy.
I won't buy into the liberal scenarios and scare tactics they use to attempt to take away individual rights. I don't get caught up in the fever of the liberal crisis of the week. And I will NOT sacrifice my freedom. Will you?
The liberal agenda has always had a hidden political agenda, hiding behind scare "tactics". Scare tactics like, the coming Ice Age in the '70's, the demise of the Spotted Owl (which are thriving now) the hole in the ozone layer (havent' heard much about that lately), acid rain (hmmmmm, we still have trees), and the latest scam, Global Warming.
The blind biased hatred the liberal left has of this administration is apparent in how they ignore facts and truths and hard data that disagrees with their theories.
Wanna a walnetto?
I do not get my "news" from the main stream media. Besides that, I'm on my way to work by the time the main stream biased media comes on. I work for a living.
I don't see any hatred from his own party.
What is GW ignoring? Polls? Good, anyone who makes decisions that effect the world based on meaningless polls is showing good judgement. If you think he is "ignoring" the wishes of the American people, lets put it to vote.
Liberals are just po'd that he doesn't kow tow to worthless polls like their hero Clinton, who would drop his pants if the polls suggested he do that. Oh wait.........
Gas prices will come PLUMETTING down.
Sometime in October 2008.
I can guarantee it.
Repubicans revolt against Bush
Though Democrats are now in charge of both houses, the lawmakers to watch are the Republicans, who for the first time are charting their own course on Iraq. At least a dozen G.O.P. Senators have expressed opposition to Bush's "surge" plan, and one-- potential presidential contender Chuck Hagel of Nebraska--is even working with leading Democrats to pass a resolution against it. Hagel, a twice-wounded Vietnam veteran, has said Bush's plan to increase U.S. troop strength in Iraq by 21,500 represents "the most dangerous foreign policy blunder since Vietnam, and I intend to resist it."
WashingtonPost.com
Bush's Bubble Breached
By Dan Froomkin
Special to washingtonpost.com
Thursday, May 10, 2007; 4:30 PM
The significant breach in the Bush Bubble being widely reported today may be a sign that the president can no longer count on members of his own party to shield him from the ugly realities he has created.
Gas was $1.70 a gallon May 23, 2001.
Bush is not getting a dime from the gas prices people. You are naive to think so.
Talk about taxes, it the Democrats that RAISE them. Clinton = the HIGHEST tax rate EVER! No US president raised taxes higher or more then Clinton.
We need to build new refineries. We need to explore and drill for more oil. Before you all Gasp in horror, do you have a problem with Venezuala drilling for more oil, in the GOM?? Do you have a problem with Chavez stealing the refineries from private businesses and profiteering and putting the money in HIS pocket while Venezualians starve?
LMAO!! can't type
laughing
tears
laughing
funnest ...............posts................................. ever
why not quote Doonsbury while y'all at it!
It is simply impossible to reason with the intellectually challenged. People who feel that Faux news is the only source of news without a liberal bias, and completely unaware that the media is not liberally biased . . . who believe in their hearts that an oilman in the whitehouse cannot profit from war or increased oil prices . . . people who believe Faux news is fair and unbiased . . . I think it cannot be done.
As to the question posed by the article? Please! I payed $3.44 this morning. Record profits . . . unsurpassed in history are being reported. Lease revenue goes uncollected. Why, one must wonder, if they are reporting RECORD profits do we hear the tired supply / demand argument? A refinery off-line results in price increases within hours. It comes back into production and weeks later prices MIGHT start to drop. How freekin' naive can people get??
Is the water wet was a generous analogy. More accurate would be to ask "Is the water water?"
Regards,
Doyle I <~~~~~
If we can not get on the same page here how in Gods name can we make changes.
Cindy do you remember Dick C talking oil in the east. He was trying to setup contracts. The US government doesn't want us using different sources for energy, too many of their supporters would lose money.
This article is about showing our government we want options, we want to be able to pay bills, put food on the table, and yes I am pretty most want cleaner air and water for our children and to save the ozone. There are already so many people cutting back and yet it is not helping.
If you think the boycott should be longer, give us some ideas. Some could ride bikes to work, just don't get run over.
LETS HEAR YOUR IDEAS .........
Lets join others to fight these inflated prices or we're all going to be pretty much living on the streets.
IF the oil companies could build new refineries and drill for more oil (ANWR & Gulf of Mexico & Gulf of Maine) we could have lower prices. It is not hard to grasp this simple concept. However, thanks to liberals, the oil companies can NOT build new refineries, can not explore and drill for more oil. A refinery has not been built in over 25 years, yet the world, yes, the world's demand for oil has increased due to India and China become more and more industrialized.
That IS my idea and MY thoughts. Sorry if you don't like them or agree with them. You asked and I answered.
As far as using different sources, what happened to all the nuclear power plants? Oh, that's right.....the libs didn't like 'em, so, now a source of cheap, clean reliable energy can't be used here. Coal? Only in China and India can you use coal. HMMM< let's see now......wind farms!! Oh, they decimate the bird population and are ineffecient and no one wants them in thier backyard, not even Ted Kennedy. Well, until fuel cells become a reality, we are pretty much stuck with oil.....MY idea is to go ahead and drill the crap out of ANWR, GOMx, GOMe etc..... Build new and effecient refineries. Build a decent car that is practicle that gets over 100 mph....oh, that's been done but Cheney killed the guy who invented that engine.....right?......
But again, until then....we are stuck with oil.
It doesn't matter to me personally what the price of gas is, it won't stop me from driving the way I do. We still have it WAY better and cheaper than they do in EU.
If you end up living on the street because the price of gas goes up....you either need to budget better or get a better job.
I hope you are always able to keep up with inflation.
As far as blaming Bush for the price of oil? In the late 1970s, prices of most petroleum products were subjected to Federal Government price control regulations. On January 28, 1981, all remaining product and crude oil prices were decontrolled, establishing a free market for petroleum pricing. Refiner, distributor, and retailer pricing decisions for petroleum products are now based on the operation of a free market economy and may, therefore, differ not only from region to region, but from STATE to STATE, and even from one area to another in the same State. The average cost of crude oil to U.S. refineries (referred to as the "composite refiner acquisition cost") greatly affects the final cost of petroleum products.
With blind hatred, blame Bush.
Gas keeps rising ......
As long as the people don't have to tighten their belts so to speak they will not be a force for change.
Blessings
..
U
Thank you for dropping by and commenting.
Blessings
I would like to say sorry for taking a while to get to your article. I have been away from gather for a while and I am finally getting to the 3000 plus emails I have awaiting me on here to go through. so I am starting from the most recent received to the first I ever received.... So now I am finally able to read your piece. Thank you for sending me the link to this article.
Now second thing:
Sorry dont have much to say currently and anything thought provoking... Starting to run of energy right now. Thanks for sharing the article with us. Great work.
**Don't Speed On June 1st**
As you may have noticed, the price of oil, gas, and food has begun to skyrocket. This has really made life difficult for most of us. What I propose is that we make June 1st, 2008 a day in which we don't speed while driving. Yes, you may have to leave a little earlier, but the benefits are great. If we all decide not to speed on June 1st:
Our fuel usage will be lower (your gas mileage goes up when you slow down).
The demand for gas will be lower and will help drive down gas prices (the "don't buy gas on May 19th" scheme didn't work since people would either buy gas the day before or the day after, which only raised prices and didn't lower demand).
The price of food will be lower (the increased fuel prices affect truckers and raise the price of our food).
There will be fewer accidents (with more people driving slower, the roads will be safer).
You will help fight global warming (by decreasing the amount of gas we burn, we will lower the amount of carbon dioxide that goes into the atmosphere).
You will save money (by helping to lower the price of gas and food, you will save money and help others to save as well).
For all of these reasons and more, I would like to propose that we make June 1st, 2008 a day that we don't speed. Pass this along to everyone that you know and get the word out!
Thanks!!
--Dan H.
!!!Please Read And Repost This As A New Article!!!