Oil price over $147 for the first time-now above $80

[JonathanBelles]

Gas prices are steady on the low end, but the high end has gone down a dime since last week.

[DanKellFla]

Down to 4.06 here.

[senorpepr]

Gas prices here have fallen quickly. A couple of weeks ago, we topped out at $4.099. With steady declines, the current price for 87-octane is $3.759

[gtalum]

Oil is down more than $3 so far today. Yep folks, I think the bubble is definitely popping. Even relatively major stressful events can't prop the price up for long any more.

[Matt-hurricanewatcher]

Exxon Posts Record $32.36 Billion TAX Payment
istockanalyst.com ^ | July 31, 2008 | Mark J. Perry


Exxon Posts Record $32.36 Billion Tax Payment

Although the way CNN reported it is "Exxon posts record $11.68 billion profit."

According to CNN, Exxon Mobil once again reported the largest quarterly profit in U.S. history Thursday, posting net income of $11.68 billion on revenue of $138 billion in the second quarter. That profit works out to $1,485.55 a second.

Buried in the story we also find that "In addition to making hefty profits, Exxon also had a hefty tax bill. Worldwide, the company paid $10.5 billion in income taxes in the second quarter, $9.5 billion in sales taxes, and over $12 billion in what it called 'other taxes.'"

MP: In other words, Exxon Mobil paid $32.361 billion in taxes in the second quarter, which works out to $4,114 in taxes per second. Another way to look at it - Exxon paid almost $3 in taxes ($32.361 billion) for every $1 in profits ($11.68 billion), see chart above.


(Excerpt) Read more at istockanalyst.com ...


Exxon Mobil had to pay nearly 20 billion more in taxes then they profited. In yet we went to take more money away from them? No wonder they can't go out in find oil for us. We should be allowing them to keep more of their money to explore for oil. What is wrong with us? We should be doing everything in our power to make sure they have the money to keep oil flowing into our economy.

Because oil is so important to us is the reason why Exxon Mobile makes a lot of money. Like anyone that has something "good" to offer us and we buy it, like the computer, then you are going to get something that sells and makes someone rich; that makes thousands if not tens of thousands of jobs for us Americans; that is a good thing!. That is America. It is a very good thing for all of us. I don't understand the hatred of Exxon at all.

[DanKellFla]

I really hope that I am wrong. So, I will say that it is a coincedence that the election is about 1 quater away and that the gas prices are dropping. If there is a spike in gas prices 2 weeks after the election, then it might be a bit blatant.

[vbhoutex]

I really hope that I am wrong. So, I will say that it is a coincedence that the election is about 1 quater away and that the gas prices are dropping. If there is a spike in gas prices 2 weeks after the election, then it might be a bit blatant.

Care to explain further without getting political? I want to be sure I am understanding what you are saying here.

[Stephanie]

The REAL question is how they are spending their record profits, or where is the cash going?

The biggest and most important financial statement, IMHO, is called the Cash Flow statement. It shows where the cash goes for Operations, Investments and Financing. The big question would revolve around Investments - are they exploring for more oil? Are they making improvements to their oil lines, rigs, etc. That's called capital investment.

I looked up XOM under Morningstar to get a perspective of their investments versus their cash income year over year. Here's the link; http://quicktake.morningstar.com/stockn ... Symbol=XOM

I focused on the change in Cash from Operations between 2006, $49,286 and 2007, $52,002, an increase of 5.5% and then the change in Capital Expenditures between 2006, $15,462 and 2007, $15,387 or a decrease of .49%. Now, at the half way mark for 2008, their Cash from Operations has exploded to $59,136 and their Capital Expenditures have also exploded to $16,260. Hopefully, the pace in which they are racking up the Cash from Operations will still be matched by the Capital Expenditures. So far for 2008, 27.5% of the Cash from Operations is going towards Capital Expenditures. In 2007, even though the Capital Expenditures were lower than 2006, it was actually 29.6% of the Cash from Operations.

At least there isn't a drastic reduction in capital expenditures or investments, but you have to wonder where the rest of the money is going to. As per the link, it isn't an increase in dividends and their financing is steady. It's all ending up under the "Free Cash Flow" line, meaning pure cash in the bank.

IMHO, do they need the higher gas prices that they are charging - the answer is no.

[george_r_1961]

Did anyone hear Goldman Sachs is predicting $149 a barrel by years end?

Dont get too comfy folks. This decline is only temporary.

[Derek Ortt]

The REAL question is how they are spending their record profits, or where is the cash going?

The biggest and most important financial statement, IMHO, is called the Cash Flow statement. It shows where the cash goes for Operations, Investments and Financing. The big question would revolve around Investments - are they exploring for more oil? Are they making improvements to their oil lines, rigs, etc. That's called capital investment.

I looked up XOM under Morningstar to get a perspective of their investments versus their cash income year over year. Here's the link; http://quicktake.morningstar.com/stockn ... Symbol=XOM

I focused on the change in Cash from Operations between 2006, $49,286 and 2007, $52,002, an increase of 5.5% and then the change in Capital Expenditures between 2006, $15,462 and 2007, $15,387 or a decrease of .49%. Now, at the half way mark for 2008, their Cash from Operations has exploded to $59,136 and their Capital Expenditures have also exploded to $16,260. Hopefully, the pace in which they are racking up the Cash from Operations will still be matched by the Capital Expenditures. So far for 2008, 27.5% of the Cash from Operations is going towards Capital Expenditures. In 2007, even though the Capital Expenditures were lower than 2006, it was actually 29.6% of the Cash from Operations.

At least there isn't a drastic reduction in capital expenditures or investments, but you have to wonder where the rest of the money is going to. As per the link, it isn't an increase in dividends and their financing is steady. It's all ending up under the "Free Cash Flow" line, meaning pure cash in the bank.

IMHO, do they need the higher gas prices that they are charging - the answer is no.

if the oil companies charge less, they will lose money

Do not pay attention on the raw profit. Pay attention to the profit margin. The profit margin for the oil companies is far less than most other businesses. They are making only about 8 cents per dollar they spend

[gtalum]

Did anyone hear Goldman Sachs is predicting $149 a barrel by years end?

Of course if you look closely, Goldman Sachs is heavy in oil futures and needs prices to go back up to avoid locing their butts. They have an incentive to make peopel think that oil prices are going back up, and they try to do so by making hysterical predictions.

Even Iran's saber-rattling can't prop up prices. They're unsupportable at this level.

[cycloneye]

Expect a rise in oil prices on Monday as TS Edouard tracks thru the GOM.

[george_r_1961]

Did anyone hear Goldman Sachs is predicting $149 a barrel by years end?

Of course if you look closely, Goldman Sachs is heavy in oil futures and needs prices to go back up to avoid locing their butts. They have an incentive to make peopel think that oil prices are going back up, and they try to do so by making hysterical predictions.

Even Iran's saber-rattling can't prop up prices. They're unsupportable at this level.

Unfortunately when Goldman Sachs speaks people listen. We also have a tropical cyclone in the GOM. The latter alone will drive prices up and investors will be pouring money into oil futures again.

Look for at least a $5 a barrel jump monday.

[gtalum]

Look for at least a $5 a barrel jump monday.

Nope. Even hurricanes and terrorists can't prop the price up any more. Oil went up as much as $1.20 earlier, but for now it's settled back to just $0.20 up.

Edit: Now it's down $4.00.

[lurkey]

Oil Tumbles Below $120 on Signs Storm to Miss Gulf Facilities

By Margot Habiby

Aug. 4 (Bloomberg) -- Crude oil fell below $120 a barrel for the first time since May amid speculation that Tropical Storm Edouard will miss most offshore oil facilities as it approaches the coast of Texas.

Futures fell as much as $5.60 a barrel, shrugging off port closings and rig evacuations in the Gulf, a threat to oil supplies from Iran and a fire at Valero Energy Corp.'s Houston refinery. Edouard, which may become a hurricane tomorrow, is on a course for Galveston, Texas, the biggest U.S. petroleum port. . . . .

[Skyhawk]

The REAL question is how they are spending their record profits, or where is the cash going?[/Quote]

Shouldn't be in a free society. They earned the money in a legal business after making huge investments. The money should be theirs to do with as they wish. Of course, in fact they invest large amounts back into the business. Businesses exist to make a profit for the shareholders, a concept that is often forgotten.

[gtalum]

The REAL question is how they are spending their record profits, or where is the cash going?

Just read their financial statements, if you're honestly curious. It's all public record.

[JonathanBelles]

Still tumbling, now even faster. 3.69 today!!!!!!

[DanKellFla]

3.87 in Palm Beach

[lurkey]

Just filled up . . .3.56/gallon . . . Raleigh down from 3.61 on Sunday. .