Reply
 
Thread Tools Display Modes
 
Old 11-12-2014, 11:57 AM   #21
Guru
 
City: Satsuma FL
Country: United States
Vessel Name: No Mo Trawla
Vessel Model: Hurricane SS188
Join Date: Jul 2014
Posts: 1,677
Exxon Mobil has over 4.2 billion common stock shares outstanding. That is well over 10 shares for every man, woman and child in this country. An awful lot of us have an ownership interest in it whether directly as stockholders or through mutual funds, trust funds, insurance reserves, ETFs and pension funds. They make a lot of money but the majority of it goes back into the business for exploration and other capital investment. It's dividend rate is a paltry 2.9%. I have roughly 30 stocks in my portfolio. Only 4 of them have lower payouts and one of those 4 was spun off last week. Most of the other oil majors are similar although most have higher payout rates.

I don't like high oil or energy prices any more than anyone else but oil is a finite resource which requires R&D and hefty risky investments to meet consumption demands. As a stockholder, I certainly would like Exxon to do better in terms of profitability and dividends but as a consumer I am glad to see lower prices and wish the price of diesel was dropping as much as no-lead gasoline
__________________
Advertisement

Donsan is online now   Reply With Quote
Old 11-12-2014, 06:32 PM   #22
Guru
 
kthoennes's Avatar
 
City: Sioux Falls, South Dakota
Country: USA
Vessel Name: Xanadu
Vessel Model: Mainship 37 Motor Yacht
Join Date: Oct 2013
Posts: 857
Quote:
Originally Posted by Moonstruck View Post
Steve, a 10% net profit on sales is very good. On the other hand, what really counts is the return on investment...
I guess everything is relative. As I recall Darden owned Red Lobster last year, RL returned 11% and the business media kept hammering Red Lobster as a "troubled" restaurant chain, and of course Darden dumped RL last summer. Every time I'd read one of those articles I thought to myself, I'd be perfectly happy if I owned a business that returned 11% profit. Heck of a lot better than a lot of my investments long term. I left a previous employer in 1998 and left my retirement in a managed S&P index fund. After subtracting inflation and management fees (had no choice, locked into a menu of options), even with the roaring rise in the S&P lately, my rate of return is exactly zero over 16 years. Wish I had owned a piece of "failing" Red Lobster instead. I should have cashed out that retirement account, taken the giant tax hit, and bought a bigger boat.

Anyway, my point is that the media hammers the "rapacious" oil industry for profit margins far lower that 11%, but then pronounces other businesses as troubled or "weak" performers with that same profit margin -- utterly inconsistent, no logic or reason behind it whatsoever.
__________________

kthoennes is offline   Reply With Quote
Old 11-13-2014, 07:24 AM   #23
FF
Guru
 
FF's Avatar
 
Join Date: Oct 2007
Posts: 16,525
>but oil is a finite resource which requires R&D and hefty risky investments to meet consumption demands.<

Not according to the current thinking , it is created by the Earth from methane.

Scientists Prove Abiotic Oil Is Real! - Viewzone

www.viewzone.com/abioticoilx.html
Viewzone Magazine offers a look at life and humanity from different angles. Fossils From Animals And Plants Are Not Necessary For Crude Oil And Natural Gas.


Discovery backs theory oil not 'fossil fuel' - WorldNetDaily

www.wnd.com/2008/02/45838/WorldNetDaily


Feb 1, 2008 - A study published in Science Magazine today presents new evidence supporting the abiotic theory for the origin of oil, which asserts oil is a .
FF is offline   Reply With Quote
Old 11-13-2014, 08:38 AM   #24
Guru
 
City: Satsuma FL
Country: United States
Vessel Name: No Mo Trawla
Vessel Model: Hurricane SS188
Join Date: Jul 2014
Posts: 1,677
Quote:
Originally Posted by FF View Post
Not according to the current thinking , it is created by the Earth from methane.
That may or not be true but it doesn't defeat the argument that oil is a finite resource giving the length of time it wold take generate more oil through the abiotic oil process. This theory is not comforting at all. If it weren't for fracking, we would be in some deep kimchi.
Donsan is online now   Reply With Quote
Old 11-14-2014, 06:40 AM   #25
FF
Guru
 
FF's Avatar
 
Join Date: Oct 2007
Posts: 16,525
>If it weren't for fracking, we would be in some deep kimchi.<

The right folks have had the bumper sticker for decades

Drill Here Drill Now

The left claimed it was not a cure because it would take a decade, and blocked drilling with the Fed Dead Hand.

Since Fracking does not require fed >permission< it now privatly hass solved much of our energy needs ., for 200-500 years .

The free market works , whenever it can get away from the Dead Hand of gov.
FF is offline   Reply With Quote
Old 11-14-2014, 06:55 AM   #26
Guru
 
City: Satsuma FL
Country: United States
Vessel Name: No Mo Trawla
Vessel Model: Hurricane SS188
Join Date: Jul 2014
Posts: 1,677
Quote:
Originally Posted by FF View Post
The free market works , whenever it can get away from the Dead Hand of gov.
My theory is the free market works when OPEC gets busted. Sorry to differ.
Donsan is online now   Reply With Quote
Old 11-14-2014, 07:50 AM   #27
FF
Guru
 
FF's Avatar
 
Join Date: Oct 2007
Posts: 16,525
>My theory is the free market works when OPEC gets busted. Sorry to differ.<

OPEC IS busted !, as more and more oil is located worldwide ,the hold they had on oil prices is mostly gone .

CNG is the worlds future energy source ,

at least for a decade or two till Fusion finally gets to be common.

Its been over 100years of research , but eventually we will have better energy storage than batteries ,and many of the billions of world citizens will be able to create more income than the $2.00 a day , they now exist on.

IF their govs allow it.
__________________

FF is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off





All times are GMT -5. The time now is 12:22 PM.


Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.0
Copyright 2006 - 2012