Thursday, April 26, 2007

Exxon Posts More Record Earnings

I'll be the first to tell you that I am a fairly strong believer in capitalism, and allowing companies to make crazy profits if they deserve it. However, when I see that Exxon is once again making record earnings while the price of gas continues to rise, I really have to wonder. From the article, it looks like the main reason that they are able to make such gains is largely due to cost savings. That is all well and good, but if this company is going to tell consumers that the price of gas is rising due to increased cost of oil, and increased demand, why then are they able to post such huge profits? When you look at another large company that is usually hated for making money, Wal-Mart, you see that they are making money hand over fist, but at the same time the price of my groceries is actually getting lower. Sure, you may say that they are able to do that because they treat their workers like crap, or because they get a bunch of freebies from the government, but the fact remains that they are passing those savings on to the consumer, albeit just barely. If Exxon is able to keep such a tight lid on its costs, does it not make sense that it should also be able to keep a lid on the prices it charges? I mean, they essentially say that the cost of production is decreasing, while they are also increasing their prices. Don't get me wrong, I don't think that they should just be giving us the gas for free, but the least they can do is not tell consumers that the price of oil is skyrocketing so they have to increase the price of fuel while at the same time they make record profits. They should at least just honest and say, "Hey, we're charging more for gas because we can, and there is not much you can do about it."

Labels: ,

0 Comments:

Post a Comment

<< Home