How do the Oil companies, like Exxon, make ';historic Net Profits'; ?

';Historic net profits'; when there is not enough oil supply to sell in the US market ?





How is it possible to make that much with limited supply ?How do the Oil companies, like Exxon, make ';historic Net Profits'; ?
By maintaining the same profit margin, and selling much more gas at a higher price (due to the cost of oil), then their profits go up.





They're bigger, because they merged with Mobil in 1999.





And because of the price of oil, they have become the company with the largest revenue in the world.





So, with their record sales would naturally come a record profit. But their profit margin of slightly over 9% is not excessive by any economic measure.How do the Oil companies, like Exxon, make ';historic Net Profits'; ?
Exxon Mobil is an end to end oil producing %26amp; marketing company %26amp; given that its the largest oil producing company %26amp; the high global crude oil prices they are experiencing a great sweep in profits .


As the prices of crude are at all time high so these oil producing companies %26amp; the marketing companies (which don't have lateral pressure of subsidizing) are harvesting this situation to harvest higher profits.


The scenario is not that grim that its not possible to supply crude to US.Actually the supply of crude had remained same through many months 7 there are speculations 7 great demand for oil from the developing nations for the crude which is driving the oil prices.


The credit of high profits even during stagnating oil production goes to high global crude oil prices.
because with their 9% margins they have few places to reinivest. The taliberals keeps them from reinvesting in Alaska, or off the coast of the USA, or even in Colorado for shale oil. Ths instead of spending it or more oil wells, they just make profit.





China now has an oil rig 160 miles off of Florida in international waters, but the lis keep American oil companies from drill there or anywhere.
They only make 7% profit or 7 cents on the dollar. They just sell more then anyone else. And good for them, I love capitalism.
simple mathematics . 7% of $120 a barrel is a whole lot more than 7% of $80 a barrel...$8.40 per barrel profit on $120 vs $5.60 per barrel profit on $80
Supply %26amp; demand!
There is plenty of oil in the market - more than we can refine.
High prices, very little real competition, large volume.
I believe you already know the answer to this question.
Its called the law of supply and demand!!
provide a product and service everyone in the world needs
Well, they have a best friend in the white house...
Well stupid people will tell you that it is due to Bush. The real reason is because consumption is so high.
Hmmm....its called Friends in High Places
because they don't compete?
Who cares. My dividend check is gonna be sweet though!