Math: Exxon profit and gas consumption

[ProSense]

Exxon Makes $104 Million In Profit Per Day So Far In 2012, While Americans Are Stuck With A Higher Gas Bill
http://thinkprogress.org/climate/2012/04/26/471469/exxon-takes-104-million-profits-per-day-so-far-in-2012-while-americans-are-stuck-with-a-higher-gas-bill/

U.S. Transportation fuel consumption accounts for over 70 percent of total U.S. oil consumption, and more than 65 percent of that amount is for personal vehicles. American drivers consume about nine million barrels of gasoline per day for personal transportation—378 million gallons every day—about 45 percent of total U.S. oil consumption.

http://www.americanenergyindependence.com/fuels.aspx

Profits per day: $104 million
Consumption per day: 378 million gallons.

That's roughly 27 cents on every gallon consumed in one day.

One oil company, one day.

It's simplistic, but eye opening.

[ProSense]

1. Kick! n/t

[hughee99]

2. So they're making about 27 cents per gallon

on a roughly $4 gallon of gas? I don't think that 6% profit margin is going to gin up as much outrage as you think. The federal government is making about .18 cents per gallon and my own state of Massachusetts is making roughly another .23 cents on that same gallon of gas.

[ProSense]

3. I suppose

So they're making about 27 cents per gallon

on a roughly $4 gallon of gas? I don't think that 6% profit margin is going to gin up as much outrage as you think. The federal government is making about .18 cents per gallon and my own state of Massachusetts is making roughly another .23 cents on that same gallon of gas.

...that would make sense if Exxon was selling all 378 million gallons.

One oil company, one day!

[hughee99]

4. Do virtually any search on Exxon's profit margin

and you'll find something between 6-10% depending on year. As I said, it's not going to work up the excitement you're expecting to see when you "simplified" the numbers.

No, Exxon didn't sell all 387 million gallons, but that doesn't even account for HALF of the oil consumption either.

[ProSense]

6. What

Do virtually any search on Exxon's profit margin

and you'll find something between 6-10% depending on year. As I said, it's not going to work up the excitement you're expecting to see when you "simplified" the numbers.

No, Exxon didn't sell all 387 million gallons, but that doesn't even account for HALF of the oil consumption either.

...the hell are you talking about? The number is all consumption for personal transportation. No one said it included commercial transportation. That said, the snip in the OP clearly shows this is only 45 pecent of total per-day consumption. It's completely relevant that Exxon isn't selling the entire 378 million.

The point is specific to the profit the company made in the first quarter 2012 in relation to U.S. personal per-day gas consumption.

I mean, if you want to include other factors, we could discuss Exxon's corporate taxes, executive compensation and subsidies.

[hughee99]

8. The profit margin is roughly 6-10%

For every $100 they bring in, somewhere between $6 and $10 is actually profit. That's an actual number that's easy to understand, The the company does tremendous volume, which is one of the reasons it's profits are so high. Yes, the executive compensation is F'd and the tax breaks are ridiculous, but neither is resulting them in the US consumer being grossly overcharged. The company makes profit on far MORE than just selling gasoline, so comparing the gross profits to gasoline consumption is not nearly the good comparison you seem to think.

You want to make a simple and better argument?
In 2009 Exxon made about 45 billion in profits and paid NO federal income taxes. They paid less in income taxes than a single school teacher and made more in profits than most states entire education budgets.

[ProSense]

12. Well,

For every $100 they bring in, somewhere between $6 and $10 is actually profit. That's an actual number that's easy to understand, The the company does tremendous volume, which is one of the reasons it's profits are so high. Yes, the executive compensation is F'd and the tax breaks are ridiculous, but neither is resulting them in the US consumer being grossly overcharged. The company makes profit on far MORE than just selling gasoline, so comparing the gross profits to gasoline consumption is not nearly the good comparison you seem to think.

You want to make a simple and better argument?
In 2009 Exxon made about 45 billion in profits and paid NO federal income taxes. They paid less in income taxes than a single school teacher and made more in profits than most states entire education budgets.

...you're free to make that argument, but it has nothing to do with the OP. I mean, you're citing profit margins of 6 percent to 10 percent as reasonable to reject a simplistic comparison that made no attempt to argue Exxon's actual profit margins.

Yet here you are making an argument about taxes and comparing the company's profits negatively to "states entire education budgets."

[rfranklin]

5. and how many roads and highways has Exxon built lately?

None that I can recall.

Gas taxes are collected to build and maintain roads.

[hughee99]

7. Welll if your concern is about the price of gas

doesn't it make sense to consider ALL factors that contribute to price, not just the small percentage that is their profits?

[rfranklin]

9. Why are you concerned about Exxon?

They should be scalped in every way possible. And they should certainly not receive subsidies from the government when they have no concern for the greater good of the American people.

[hughee99]

10. I'm not concerned at all about exxon,

but every weak argument against them makes the strong arguments against them easier to dismiss.

[ProSense]

11. Nonsense.

"I'm not concerned at all about exxon, but every weak argument against them makes the strong arguments against them easier to dismiss."

The OP wasn't an argument, it was a simple exercise to show a contrast.

[Angleae]

13. Not quite.

Gasoline for cars/trucks aren't the only thing they make. They also make kerosene, jet fuel, fuel oils (like for ships), lubricating oils, asphalt/tar, etc.