MSNBC just said EXXON was getting out of retail gas market.

[Ilsa]

Said they'd be selling their retail gas stores because profits are down because of the cost of oil.

Did I miss this yesterday? Day before?

[LSK]

1. do they own oil wells?

Maybe when it costs them $20 to pump the oil and they can sell it for $135, why would they stay in the gas station business with all that overhead?

[Fleshdancer]

2. Here's a link to a small AP article:

http://www.reuters.com/article/businessNews/idUSN1248232220080612

NEW YORK (Reuters) - Exxon is getting out of retail gas business, according to the Dallas Morning News and Fox Business News.

Exxon was not immediately available to comment on the news.

The Dallas Morning News reported Exxon said it will sell the 2,220 service stations it still owns across the United States. There are 12,000 Exxon Mobil branded stations, the majority of which are already owned by families or companies outside of Exxon. (Reporting by Edward Tobin; Editing by Gary Hill)

[Initech]

3. It's their own fucking fault.

:nopity:

[maddezmom]

4. nope is from today

©2008 Google - Map data ©2008 LeadDog Consulting, NAVTEQ™ - Terms of UseExxon getting out of retail gas business
1 hour ago

HOUSTON (AP) — Exxon Mobil is getting out of the retail gasoline business, a market where profits have gotten tougher because of high crude oil prices.

The world's largest publicly traded oil company said Thursday it will sell its 820-company owned stations and another 1,400 outlets operated by dealers to gasoline distributors across the U.S.

The Irving-based company didn't disclose financial details but said the transition will take place over a "multiyear period."

~snip~

more:http://ap.google.com/article/ALeqM5iRf7L-3NKAKsyZI9AoEQWoGoICBQD918OHV80

[cal04]

5. Exxon Mobil

http://news.yahoo.com/s/nm/20080612/bs_nm/exxon_dc

Exxon Mobil Corp (XOM.N) on Thursday said it is getting out of the retail gas business in the United States, citing the "very challenging" business conditions for its service stations.

Exxon, the world's largest publicly traded oil company, said it will sell the roughly 2,220 service stations it still owns across the United States, including about 820 that it also operates.

(snip)
Service stations have struggled, even with soaring gasoline prices, as they have not been able to push sky-high costs of crude oil on to customers.

(snip)
"We are in a very, very challenging market. Margins are reduced," said Nair. "We feel the best way for us to grow and compete is through our distributor network."

[BootinUp]

6. They are complaining about profits?

:rofl:

[malaise]

9. That's the part that hit me

:rofl:

[aquart]

11. Poor dears.

[Initech]

14. Yeah, they only made $11 billion instead of $15 billion.

:rofl:

[hokies4ever]

7. The story is misleading

They're just selling off their gas stations. They'll still be selling gas to the stations though, just won't own the stations. One has to think that the stations aren't too profitable, which is why they probably made this move. Much more profitable to be selling the gas to the station right now. The gas station is just the store clerk passing on the price to the consumers that they pay for the gas.

[Ilsa]

12. Yep, they'll be wholesaling consumer gasoline. nt

[alstephenson]

16. Yep, you're right.

They've already sold off or closed most of their "company owned" gas stations. The retail gas stations are known as the "downstream" segment - very little profit margin there. However, the "upstream" segment (exploration through refining) - has extremely high profit potential right now. The big oil companies used to be involved in both segments because when one was down, the other was up. Now that there is no such thing as "cheap oil", the big oil companies are not interested in the small margins provided by the downstream sector.

[On the Road]

19. Right, and There Will Still be Exxon Stations

They will just be franchised rather than company owned.

[ima_sinnic]

8. maybe, just maybe, it has something to do with the years-old boycott

I was surprised to learn a few years ago that my then-boss, a RWer who loved FOX news and voted for Bush, had been boycotting Exxon since the Valdez. I had to ride with him to a conference and he made a point of avoiding Exxon, even though it would have been more convenient on our trip to get gas there at one point, and said he hated them ever since the Valdez thing. This made me wonder how many other Americans have just gotten into the habit since the 1980s of boycotting Exxon. I know I never buy gas there, myself.

Combine that with the the cost of oil, and, yes, their profits would be down ??

[sarcasmo]

10. This one made me actually smile, Thanks for the article.

FUC$$$$$$ Exxon.

[skooooo]

13. I doubt this will benefit consumers tho....

Somehow this move will screw us over too.

[sarcasmo]

17. That is probably correct, but it made me smile for a moment.

The only way this gets corrected is with a mass produced electric car that can go 100 miles on a charge.

[Lone_Star_Dem]

15. It would appear we've reached the threshold price where the consumer has to cut back on gas

Which makes retail less profitable for Exxon. Better to just stay in the drilling/refining/wholesaling business where all the profits are.

Consumers are still screwed. But Exxon will remain a record profit setting company.

[Mr. Blonde]

27. I don't believe

that the actual selling of gas to consumers is ever actually that profitable for gas stations. It is the bait to get them in the store where they make money off chips and drinks and all of that other good stuff.

Now, since all of the money is already being spent at the pump and no one is buying anything in the store, owning the stores isn't worth it. Before they were just getting you twice, now they are settling for just the once.

[weezy2736]

18. Great! Now they'll be able to make even more money!

That's exactly what they need!

[Orsino]

20. They know the real profit is in speculation. n/t

[chill_wind]

21. K & R n/t

[TahitiNut]

22. (sigh) I remember when their maps were free, and they ALL had them.

:shrug:

[aint_no_life_nowhere]

23. Maps were free, and you got your gas pumped for you, your oil checked

your radiator and clutch and brake fluid levels checked as well as tire pressure. And you got your windshield cleaned. And often you got free stuff like dishes, drinking glasses and t-shirts. When I was a kid in the 50s, I got a free plastic fireman's hat from the Texaco station. I'm talking about the old days in America, when some things were slower-paced and more civilized.

Something tells me that this will only result in higher gas prices. Oil companies could absorb losses on their stations if they were unprofitable. But if those stations have to stand alone and all have to show a profit, I'm not so sure.

[Athens30603]

25. Sounds like paradise to me. n/t

[hunter]

24. There's no future in it...

Who wants to be around if people start rioting and breaking windows and stuff?

It's all about limiting exposure. Gasoline stations are often a liability now for environmental reasons and as hotspots for crime, and the situation is probably going to get worse.

[KatyMan]

26. It's not an unusual move, IIRC

I don't believe Shell owns any of their stations (that is, Royal Dutch Shell as opposed to Shell Oil Products, which is a subsidiary), and I believe all Texaco stations in the US are owned by Shell Oil Products. I could be wrong, but I believe that's the case.