Gas prices, anyone notice...

[DPI]

Conoco's 2011 profit was $12B not the $231B in your mind. This is a 5.1% profit margin.

Apple's profit for 2011 was $26B on $ 108.6B. That is a profit margin of 24%.



http://thinkprogress.org/climate/2012/01/25/411601/conocophillips-q4-profits/?mobile=wp

 

[_CY_]

Conoco's 2011 profit was $12B not the $231B in your mind. This is a 5.1% profit margin.

Apple's profit for 2011 was $26B on $ 108.6B. That is a profit margin of 24%.

http://thinkprogress.org/climate/2012/01/25/411601/conocophillips-q4-profits/?mobile=wp

again ... gross profits or grossly sheltered net profits has nothing to do with the fact that BIG oil took in $1.13 Trillion from US consumers. no matter how you slice it... it's impossible for that much $$$ to change hands and not cause a HUGE effect.

you folks that don't understand this .. might be the one's that need to revisit economics 101 ...

 

[_CY_]

Dude, that is not ANY profit. That is gross sales before expenses, employee paychecks, anything. You need to slow down a bit and read or take a remedial business class.

economics has been a passion of mine for quite sometime... which by the way exceeds any remedial business class.

 

[_CY_]

CY so are you saying this vast amount of money they are pulling from the economy is just poof magically disappears, is hoarded away, or paid out in royalty payments, employee salaries, and vendor payments? Because money paid to employees and vendors paying there employees is the fastest way to return that money back to the economy.

nope .. how in the world are you getting all that crap out of hard numbers I've been posting?

 

[DPI]

economics has been a passion of mine for quite sometime... which by the way exceeds any remedial business class.

The problem is that economist do not understand how business works. You have clearly shown this by your total misuse and misunderstanding of gross sales vs gross profit. These two things have nothing to do with each other. You are using them interchangeably and that is flat out WRONG!

 

[ZombieHunter]

what total BS!

measured by what? manipulated net profits %, not even looking at gross receipts that total in $$$ trillion dollars. again BIG oil like any HUGE corporate has teams of tax accountants who's job is to pay the lowest tax possible.

look at the mass consolidation of BIG oil the last few years... BIG oil had no choice but to spend those MASSIVE cash receipts on assets or pay taxes on it. note in no way shape or form am I saying software companies are not making $$$ ... but to compare net % profits to a business like BIG oil who is completely different in terms of hard assets makes NO sense at all.

unfortunately there are LOTS of folks just like you, who actually believe in this BS!
BIG oil are the most profitable companies on the face of the earth....

in America due to the MEGA mergers that was allowed by so called regulators ... cost of production for fuel has NOTHING to do with supply and demand for almost a decade. it took Katrina 8 years ago to give BIG oil an excuse to jack up fuel prices by double almost overnight.

for all practical purposes .. there is NO competition.. no collusion needed to jack up fuel prices, BIG oil controls such HUGE regions that they simply change prices at will.

unlike software ... we've got no choice but to pay what ever is charged for fuel to get to work. no one has to buy Apple... they compete by offering world class products. now that Samsung is also offering world class goods, they are now dominating. vs how much difference are there really from fuel brand to brand? sad truth is we've got NO choice but to pay what ever is charged to get to work.

BIG oil extracted $1.135 Trillion dollars from US economy in 2011. when numbers comes out for 2012, should be the same or slightly higher. there is NO way yanking that much $$$ out of US economy and not effect it. higher fuel prices are one of the main causes for the worst recession since 1929.

conoco/phillips gross sales for 2011 according to sec filings is 230.56B
apple gross sales for 2011 according to sec filings is 108.6B

Exxon Mobil gross sales for 2011 according to sec filings is 433.53B
BP Amoco gross sales for 2011 according to sec filings is 234.25B
Chevron gross sales for 2011 according to sec filings is 236.54B

^ This freaking guy gets it, Big Oil wins hand down, he said the magic word in my opinion....HARD ASSETS, unlike TECH or software corporations whos assets lie in mysital 1's and 0's inside a computer, as well as things like facebook where the POPULATION and CONSUMER is the PRODUCT, No one quite realizes that the Oil and Exploration Partnerships are out buying up REAL value, they are called MINERAL RIGHTS, WATER RIGHTS, and SURFACE RIGHTS (what you think of as property).

If you have the time WATCH what this partnership...The Pebble Partnership Want to do to one of the most important and sustainable Salmon Fish hatcheries in the WORLD in Alaska, they have spent probably $8-12 BILLION just on environmental studies and feasibility to try and prove they can be the FIRST EVER OPEN PIT MINE TO NEVER FAIL.....let that sink in, just the arrogance they have in believing they can be the first to defeat mother nature's wrath on tailing ponds. And not only do they want to dig an OPEN PIT MINE, they want to dig the largest one in the world at over 3 Miles wide and a Mile and a 1/4 deep, the raw battery acid waste (tailings) will be the largest 2 man made structures in the WORLD at over 10 BILLION TONNES of waste, which will INEVITABLY leech into the groundwater as EVERY tailings pond has, and destroy the most sustainable food source we have on earth, where we can harvest HALF of the estimated 120-165 million salmon every year, and sustain that cycle for ALL ETERNITY.

 

[Oklahomabassin]

BS! what I'm stating is backed up by facts... tin foil, red herring my ass..
most folks sadly don't understand economics.

in America due to the MEGA mergers that was allowed by so called regulators ... cost of production for fuel has NOTHING to do with supply and demand for almost a decade. it took Katrina 8 years ago to give BIG oil an excuse to jack up fuel prices by double almost overnight.

for all practical purposes .. there is NO competition.. no collusion needed to jack up fuel prices, BIG oil controls such HUGE regions that they simply change prices at will.

unlike software ... we've got no choice but to pay what ever is charged for fuel to get to work. no one has to buy Apple... they compete by offering world class products. now that Samsung is also offering world class goods, they are now dominating. vs how much difference are there really from fuel brand to brand? sad truth is we've got NO choice but to pay what ever is charged to get to work.

BIG oil extracted $1.135 Trillion dollars from US economy in 2011. when numbers comes out for 2012, should be the same or slightly higher. there is NO way yanking that much $$$ out of US economy and not effect it. higher fuel prices are one of the main causes for the worst recession since 1929.

conoco/phillips gross sales for 2011 according to sec filings is 230.56B
apple gross sales for 2011 according to sec filings is 108.6B

Exxon Mobil gross sales for 2011 according to sec filings is 433.53B
BP Amoco gross sales for 2011 according to sec filings is 234.25B
Chevron gross sales for 2011 according to sec filings is 236.54B

nope .. how in the world are you getting all that crap out of hard numbers I've been posting?

The bold in your quote.

 

[ZombieHunter]

economics has been a passion of mine for quite sometime... which by the way exceeds any remedial business class.

How about that Austrian School of Economics? Good stuff right? and on your subject of transfer of wealth it would actually have been the Bank Bailout in terms of actual cost and what they scammed, over $700 billion in pure cash given to banks for insurance payouts on bad debt...that they previously sold for profit and held no interest in. The fact that The General Public did not fully understand and still does not the simplicity of what they were doing, and how financially irresponsible it is (still doing it to this day) makes this the single largest transfer of wealth in the history of corporate America. Think about it, not a single operating cost or hard asset was lost or purchased, just a crap ton of $ for nothing, its as simple an analogy as me insuring everyone on OSA's house and car with full loss and liability insurance, and reaping the profits before you see a dime if ever. The banks insurance policies trump any and all things you could ever dream of thinking existed.

Much like the Petroleum industry's stranglehold on minerals, and T. Boone Pickens massive Water Rights Holdings, those people know what TRUE value is, Water will be among the scarcest most coveted resources in the next 20 years.

I fully expect to see city dwelling and other major metro areas in the future littered with dead bodies of those who had no water to drink, or who drank tainted water. Those with a brain will have water rights on their own land, and catch rainwater, and filter and purify accordingly, it will be a normal thing.

 

[_CY_]

The problem is that economist do not understand how business works. You have clearly shown this by your total misuse and misunderstanding of gross sales vs gross profit. These two things have nothing to do with each other. You are using them interchangeably and that is flat out WRONG!

BS! have been part of several successful businesses for 20+ years and have beat odds of small business failure rates by a substantial margin. you don't do that by not understanding how business works.

small business failure rates by sector for five years

startup survival rates

 

[_CY_]

How about that Austrian School of Economics? Good stuff right? and on your subject of transfer of wealth it would actually have been the Bank Bailout in terms of actual cost and what they scammed, over $700 billion in pure cash given to banks for insurance payouts on bad debt...that they previously sold for profit and held no interest in. The fact that The General Public did not fully understand and still does not the simplicity of what they were doing, and how financially irresponsible it is (still doing it to this day) makes this the single largest transfer of wealth in the history of corporate America. Think about it, not a single operating cost or hard asset was lost or purchased, just a crap ton of $ for nothing, its as simple an analogy as me insuring everyone on OSA's house and car with full loss and liability insurance, and reaping the profits before you see a dime if ever. The banks insurance policies trump any and all things you could ever dream of thinking existed.

Much like the Petroleum industry's stranglehold on minerals, and T. Boone Pickens massive Water Rights Holdings, those people know what TRUE value is, Water will be among the scarcest most coveted resources in the next 20 years.

other than Austrian School of Economics not being part of mainstream economics .. most folks don't think much of them. no argument of bailout resulting in one of the largest transfers of wealth anywhere, but at's peanuts compared to what effect BIG oil had on world's economies.

Chrysler was basically given away to Renault-Nissan for little to nothing. they essentially fronted up almost no cash on the deal. talk about a giveaway on a massive scale!

one fact that I'm particularly proud of is my ability to write about very complex topics without putting folks to sleep. fact is economic can be a very complex topic ... too much technical details will put most folks to sleep and/or fly over their heads.

when trying to explain purchasing parity... what I prefer is the Big Mac index ... which is a light hearted way to compare if a particular currency is over or undervalued as compared to the us dollar, when compared to a like basket of goods (Big Mac) found all over the world.

here's the latest interactive Big Mac index ... just out
http://www.economist.com/content/big-mac-index

past years ... Big Mac index
http://www.economist.com/search/apachesolr_search/big mac index