Tag: ExxonMobil

Waxman details How Oil Companies deal with Real Risk

Most Companies face the common dilemma of how to best minimize their Risks, while somehow, managing to make a Profit. It’s what makes ‘Starting a Business’ a Risky proposition for most folks — there are few “sure fire” deals in the Business World.

This little “constraint” is apparently not much of a factor, in the High Tech world of deepwater drilling, however.  They have simply managed to ‘paper-over’ any Real Risks they incur for decades now.  Oil CEO’s are accustom to seeing it, as an Easy Money Gig.

Their little “risk management” charade has been coming out lately, in the Congressional Inquiries been held by Henry Waxman.

“Rubber Stamp” may take on a whole new meaning, given the way these Exec’s seem to like to ‘copy each others Homework’ …

Iraqi Oil Contracts – It’s the Perception That Matters

Have you ever wondered why…

… it has been the practice of the major media to avoid mentioning oil in connection with military activity in Iraq; something also common in the Congress, all following the lead of the Bush administration.

UPI.com

Shouldn’t we all be shocked then? Shouldn’t we be shocked to learn, after the US – British led invasion of Iraq to save the world from the dangers of Saddam’s non-existant WMDs, struck Iraq with a shock and awe which was to have become the centerpiece for a GWOT, that as Reuters reported on Tuesday:

Iraq opened its giant oilfields to foreign firms on Monday, putting British and U.S. companies in pole position five years after U.S.-led troops invaded the country to oust Saddam Hussein.

Bite Size Bad News 7–Gas Stations

 

I saw something rather startling in Northwest Connecticut on the weekend. Each pump at the local gas station had a handlettered sign taped to it, informing customers that all purchases must be paid for in advance. I asked Michael, behind the counter, if he had a lot of customers drive off without paying. “Not anymore,” he deadpanned.

Mind you, this is an area where many people don't lock their houses; hell, some locals don't even have locks. But drive-offs have become a national problem as soaring gas prices in this car-dependent society have more and more people desperate. Up 60% this year in the Lynchberg, VA area. 10% in Pell City, AL. Almost doubled in Bismarck, ND.

This hits gas station owners pretty hard. As a rule they make a profit of 1.5 to 3 cents per gallon — at best — on gasoline sales. So if somebody guns it out of the station after topping off the tank with $60 on the pump, they have sell an extra 2-4,000 gallons to make up for it.

And drive-offs can be controlled by demanding pre-payment, like Michael has been forced to do. Station owners face other, less tractable problems. Soaring fuel prices have meant that more drivers are using credit cards to buy gas, because they simply don't have 50 or 60 bucks in their wallets. On top of an initial transaction fee, the credit card companies charge 2-3 percent. In a low-margin, price-competitive business like selling gasoline, that's a nasty bite. The Robinson Oil Corp. of California, for instance, is no mom and pop operation–they own 34 stations. At six of them, credit card fees are the largest single expense, more than rent or labor!

Perhaps the biggest problem of all for station owners is operating capital–they need more. They are paying twice what they did a year ago to fill their storage tanks, but competition keeps the profit per gallon in the same 1.5 to 3 cent range. They just don't have the dough on hand to handle the increased nut. Suppliers resist giving additional credit or stretching out payment schedules, and, as you may have noticed, banks aren't doing much lending these days.

To rub salt in the wounds, the owners have to listen to jokes about how rich they're getting with the higher prices. But thanks to the magic of the free market, the picture isn't totally gloomy. True, drivers are in a world of hurt. True, the small businesspeople who own most of the gas stations are being stretched beyond their limits. But look on the bright side: Exxon Mobil's take last year was $40.6 billion, the largest corporate profit on record, and they are on track to beat that number this year.

Oh, yeah, company spokespersons announced Monday that Exxon Mobil will be selling all 2,200 of the U.S. gas stations they don't license, but own outright. Just not profitable enough, the company says.

[This is one more in a series of short snapshots of aspects of the economy I've been posting over at Fire on the Mountain under the heading “Bite Size Bad News.”]

Mission Accomplished – The Door to Iraq’s Oil Will Soon Be Open

George W. Bush, his neo-con backers, his supporters in Congress, from both sides of the isle, the establishment media, the MIC and on Wall Street have accomplished their mission in Iraq. If there was ever any doubt about what that mission was then perhaps this article from Asia Times will make it clear. The article is rather long  and so I’ll try to provide some of the highlights here. The blockquotes are from that article.

And, as former Fed Chief Alan Greenspan wrote in his memoir – The Age of Turbulence: Adventures in a New World. “I am saddened that it is politically inconvenient to acknowledge what everyone knows: The Iraq war is largely about oil.”

It appears that John McCain might well get his wish – 100 years of US occupation of Iraq.

Iraqi Oil Minister Shahristani is described in this article as being “not too religious, not too political, not too secular and not too pro-American. He is a Shiite who was imprisoned by Saddam Husein and held in solitary confinement by Saddam Hussein for 10 years. He is now the Oil Minister of Iraq.

Shahristani finds himself in an enviable position as a creator of wealth for the Western world. He holds the key to the door that opens out to the magical world of Iraqi oil.

Let Blackwater Stay Bring Home The Troops

subtitled: America, the militia with corporate sponsorship.

We all know that Blackwater is made up of American militia members, often addicted to crystal meth, known for their racial hatred and itchy trigger fingers.  We also know that Exxon and other oil firms have been using Blackwater for some time now.  So I say let a few guys from Exxon and all of Blackwater stay to guard their precious oil and let everyone else come home.  This is the Exxon War after all, so let’s let a few tweakers go down in flames in Iraq and bring back our honorable soldiers.

Now let’s take a look at a few other corporate sponsors of the Exxon War below the fold.