Exxon Oil, why are they doing so well

Question

Does anybody other than me finding it very strange that Exxon Mobil (an oil company) is making more than they ever have... Well more than ANY American Company has. 11.68 billion. That makes me wonder what is going on seeing as the cost of oil is rising and the shortage of oil. What do u have to say about it??

Answer 1

Do you think Exxon has any oil in its reserves or does it go right from the well to your car?  It takes a while, and they have reserves like any smart company.  Since oil has gone up so much in value, the oil they held for production has increase.  They sell it on the open market and make more money.  It is no different than a Jeweler having "raw" gold in his safe and when the prices goes up, he makes more money.

I just think they are in the right business now.  They do NOT set the price of gas, they do NOT even affect it that much (talk to OPEC if you have a problem with that)

Government has done nothing to fix energy problems, and now people are looking for someone to blame.  I think we should add another $5/gallon in taxes on gasoline and use it to build more trains/subways/electric buses/nuclear power plants/... and then we can get away from importing oil.