Unbalanced: Exxon’s Profits soar and we pay….more? April 28, 2011

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Above, is where our money goes.

Costs of Crude Oil rise, and so does the price at the pump. Makes sense, right? If you look at the next chart, you’ll see just how much money we’re dishing out.

While companies like Exxon Mobile don’t set these prices, they certainly benefit when the market tightens. Recently CNNmoney.com announced Exxon’s profits surged 69% recently, raking in $10 Billion USD in the first quarter of 2011.

Why?

Well, the crude oil market operates like all markets do. Governed by supply and demand. There is an ever-increasing amount of global demand/dependence, and a perception that supply is diminishing.

Whether or not we’ve actually produced more than half of our crude oil resources, the market indicates we think we have. Check out some recent headlines:

“The age of cheap fuel is over: IEA” abc news

“Is Peak Oil Behind us?” New York Times

“Why the Oil Crunch May Grow Worse” LA Times

“Why the Decline in World Oil Supply Will Be Faster Than Anyone Expects” BusinessInsider.com

Even if we haven’t produced more than half of our crude oil resources, we sure think we do. This attributes to the 68%/gallon we pay at the pump.

Exxon claims to only makes 2-3 cents on every gallon of gas on their online blog. They also maintain 1% of the global market share.

[Perception]

As a society, we should maintain more control our markets, and be weary of stipulation.

I encourage everyone to open up discussions to figure out a solution.

A global problem, will require a global collaboration.