It’s the Profits Stupid!

[Joanne98]

The Rise and Rise of Exxon’s Take From America

by Nomi Prins
How sad. Exxon Mobil, the universe’s largest publicly traded company, which also happens to be enjoying some of its biggest profits ever thanks to the almost doubled price of oil during the past year, didn’t quite live up to Wall Street expectations this week. In fact, its stock fell nearly 4% the day it announced its first quarter of 2008 earnings.

Unfortunately, this does not make the pain at the pump pulsing through the nation any more bearable. Apparently, Exxon could have made more profit, had it not chosen to hold back further gas price hikes. Instead, earnings in its refining business (which converts crude oil to gallons of useable gas) weren’t as strong as it had wanted. Yes, that’s right — Exxon would have made even more money had they passed more pain onto the public. They were just being “nice.” Right.

As people contemplate paying $4 per gallon for gas, not to mention the havoc those higher oil prices wreak on their home fuel costs, Exxon isn’t really skimming less off the top in order to be a Team America player. Nor does Exxon feel the same pain from these high oil prices that ordinary citizens feel while driving to school, work, the grocery store or childcare. The $21.7 million paycheck (18% more than last year) of Exxon’s CEO, Rex Tillerson, certainly covers a whole lot of gas.

No, that Exxon didn’t quite live up to Wall Street expectations is just pre-election spin, ensuring that whichever candidate gets into the Oval Office doesn’t try to take some of their profits away by taxing them. (Not that they’d have to worry if John McCain wins the election.)
http://www.commondreams.org/archive/2008/05/05/8722/

[AndyTiedye]

1. They May Trim Prices a Bit to Help the Repiggies in the Elections

Look for prices to drop below $3 in certain "swing" states this summer and fall.
It has gone over $4 here, and will likely stay there, because we're a blue state.