Thursday, October 30, 2008

Exxon Corporafornicates on U.S. Consumer, Already Soiled by Big Oil

Big oil claimed record summer gas prices were caused by "supply & demand." ExxonMobil's third quarter profit was $14.83 billion, shattering the prior quarter's record of $11.68 billion. Netting out one time charges, Exxon's profit grew $1.7 billion from the 2nd to 3rd quarter.

What happened with demand during this period? It raced downhill. Exxon produced less oil than the third quarter last year, but profits were $4 billion higher. They sold less oil and made 40% more? Bang, another hole in big oil's supply and demand theory.

Sinking the theory altogether is the relationship between consumer driving and gas prices:

The first week of October saw demand for gas 9.5% lower than last year.

September demand for oil dropped 7%
--gas up .91 a gallon

August citizens drove 5.7% less
--gasoline rose $1.00

July consumers drove 3.6% fewer miles
--fuel up by $1.13

June miles driven were 4.7% lower
--gas higher by .30

May auto use fell 3.8%
--fuel up .32

April miles driven dropped 1.8%
---gas up .18

March miles dropped 4.3%
--gasoline up .65 per gallon

Supply and demand would suggest falling gasoline prices over the period, not record high prices and yet another profit bursting quarter from ExxonMobil and BP. Yes Virginia, BP made $8 billion in profits, nearly double their year ago results. Chevron announces next in the oily Corporafornication profit explosion.