Exxon sells US gas stations to distributors

[ctrlraven]

http://finance.comcast.net/www/news.html?x=http://absorigins.comcast.net/data/news/2008/06/12/984966.xml



HOUSTON - Exxon Mobil Corp. said Thursday it's getting out of the retail gasoline business, following other major oil companies who've been selling their low-margin stations to gasoline distributors.

Motorists, however, will continue to see Exxon's Tiger-themed stations and Mobil outlets in their neighborhoods. Already, about 75 percent of Exxon Mobil's roughly 12,000 stations in the U.S. are owned by branded distributors, who buy Exxon Mobil products and pay to use the name.

Irving-based Exxon, the world's biggest publicly traded oil company, said it now plans to sell to distributors its remaining 820 company-owned stations and another 1,400 outlets operated by dealers. Exxon Mobil didn't disclose financial details but said the sales will take place over a "multiyear period."

Texas has the most company-owned retail locations with about 190. Florida is next with 170.

"As the highly competitive fuels marketing business in the U.S. continues to evolve, we believe this transition is the best way for Exxon Mobil to compete and grow in the future," said Ben Soraci, the director of Exxon Mobil's U.S. retail sales.

Exxon Mobil is not alone among Big Oil exiting the retail gas business, a market where profits have gotten tougher as crude oil prices have risen. In fact, industry officials say the major oil companies own fewer than 5 percent of U.S. gas stations.

Gas prices reached a new record at the pump Thursday, rising to a national average of $4.06 a gallon. Still, station owners say they're struggling to turn a profit on gas because while wholesale gasoline prices have risen sharply in recent months, they've been unable to raise pump prices fast enough to keep pace.

Most gasoline retailers long ago got past any illusion they can make money by selling gas. They rely on gas sales to drive traffic to their shops, where they hope auto repairs or food and drink sales will help them turn a profit.

Jeff Lenard, a spokesman for the National Association of Convenience Stores, said Exxon Mobil's decision to sell its stations is not surprising given similar moves by BP, Shell and others.

"They can actually point their attention to some other area where you can make money," Lenard said. "Retail is incredibly volatile. This way, they can (sell gasoline) wholesale and count on a fairly predictable income."

Exxon Mobil said it sells about 14 billion gallons of gasoline annually at its U.S. branded stations.

Its shares fell $1.55, or 1.75 percent, to close at $87.06 in trading Thursday. They've traded in a range of $77.55 to $96.12 in the past year.

[RF Overlord]

"As the highly competitive fuels marketing business in the U.S. continues to evolve, we believe this transition is the best way for Exxon Mobil to compete and grow in the future,"

What a major crock! If the gas business was actually "highly competititive", then there'd be price wars...

Remember, this kind of claptrap is from the same company that claims there's no collusion or price fixing... :shake:

[Haggis]

What a major crock! If the gas business was actually "highly competititive", then there'd be price wars...

Remember, this kind of claptrap is from the same company that claims there's no collusion or price fixing... :shake:

But Man, do they pay a good dividend. :D

[sailsmen]

What a major crock! If the gas business was actually "highly competititive", then there'd be price wars...

Remember, this kind of claptrap is from the same company that claims there's no collusion or price fixing... :shake:

A few simple facts;
Who owns 67% of the untapped oil below US Land? Answer "Big Gov't"

Who owns 100% of the untapped oil off US Coast? Answer "Big Gov't"

Who refuses to sell this oil? Answer "Big Gov't"

How much is this oil that "Big Gov't" refuses to sell? The same amount of oil we are currently buying from the Middle East.

For every dollar of sales "Big Oil" makes 8 cents profit.

For every dollar of gasoline "Big Oil" makes 4 cents profit.

For every dollar of gasoline "Big Gov't" makes 15 cents in taxes.

The average price paid for a gallon of gas in March 2008 was 10% lower in todays dollars than March 1982.

Chemical, Non-auto mfg, drug, alchohol and tabacco industries in 2007 were more profitable than "Big Oil" in 2007.

In 2007 the market capialization of "Big Oil" which consist of 184 companies was $1.6 trillion. "Big Gov't" takes $4.5 trillion per year in taxes.

Exxon sells 3.2% of the World Supply and owns .62% of the World's known reserves.

2,000 Acres of ANWAR would replace the oil we buy from Saudi Arabia.

Timline for land is 3 years and offshore is 6 years to begin flowing the oil.

Stop "Blood for Oil" by lifting the ban on US Oil. Made in USA Oil protects USA jobs!



Panel Preserves Coast Drilling Ban
Source: Tampa Tribune
Publication date: 2008-06-12


Jun. 12--WASHINGTON -- A leading congressional proponent of opening up offshore oil drilling closer to Florida's Gulf Coast promised on Wednesday to continue his fight, after being dealt yet another defeat.

A Democratic-controlled House panel voted 9-6 in a party-line vote against lifting the 27-year-old offshore drilling moratorium, at a time when gasoline prices are expected to float at or above $4 a gallon for the rest of the summer.

As with Florida, the amendment by GOP Rep. John Peterson of Pennsylvania also would have opened up drilling in now-protected areas 50 to 200 miles off the East and West coasts, including off North Carolina, Virginia and South Carolina.

The first 50 miles offshore would not be opened to drilling.

"There is no valid reason for Congress to continue keeping Americans from the energy resources they own and are in dire need of," Peterson said.

The U.S. Minerals and Management Service estimates there are 86 billion barrels of oil under the Outer Continental Shelf, the sloping undersea plain between the continent and the deep ocean. By some estimates, there could be 3.88 billion barrels of oil within 125 miles of Florida's Gulf coastline alone.

Even if that oil supply could not be developed and made available to consumers for several years -- as some Florida-based environmentalists point out -- Peterson argues that opening up more offshore drilling would send energy markets a message that "vast amounts of our own oil and natural gas supply are now in play."

He said that would help stabilize oil prices, dampening the rampant speculation on oil in world markets.

But opponents argued before the vote by members of the House Appropriations Subcommittee on Interior, Environment and Related Issues that much of the federal land already leased to oil and gas companies is not being aggressively developed.

New York Democratic Rep. Maurice Hinchey asked: "Why are they not producing? That is the real question here. ... We need to get the oil companies to start acting responsibly."

And House Appropriations Committee Chairman David Obey, a Wisconsin Democrat, said he thinks Peterson's amendment sets up a "false dichotomy between protection of our beaches and our wild lands, and energy efficiency."

Obey said the real issue is that both parties in Washington have been negligent in developing alternative energy and energy conservation methods.

"We are kidding ourselves if we think we can drill our way out of these problems," said Obey, noting that no matter how U.S. oil sources are pursued, "we still have a tiny portion of the world supply."

The idea of unlocking the offshore oil and gas is not seen as having wide support in the Senate, and is opposed by the White House.

But Peterson, who is not seeking re-election this fall, signaled that he and fellow Republicans plan to keep raising the issue and making Democrats cast repeated votes on it -- perhaps again as early as next week when the full House Appropriations Committee considers the same spending bill.

"Whether we appreciate it or not, the American people are going to have a lot to say about this," Peterson said.

Reporter Billy House can be reached at bhouse@tampatrib.com or (202) 662-7673.

-----

To see more of the Tampa Tribune or to subscribe to the newspaper, go to http://www.tampatrib.com.

Copyright (c) 2008, Tampa Tribune, Fla.

Distributed by McClatchy-Tribune Information Services.

[Aren Jay]

Imperial Oil up here still owns it's gas stations.

[BruteForce]

A few simple facts;...

Why not just put that all in your sig? Then you wouldn't have to keep posting it every chance you get. It could be there all the time. :lol:

[MarauderTJA]

Posting the facts on the oil crisis we need to have it publized anywhere and everywhere we can. It is a shame on what is happening here in this country. Drive through areas of Texas and see thousands of oil wells sitting still. Alaska alone has more oil than Kuwait. And the oil Alaska does produce is shipped over seas. Sooner or later this country has to start taking care of itself with the oil reserves that are available yet ignored, at least until alternative energy sources are developed. It will probably take the price to escalate to $8.00 per gallon before the idiots in Washington get with the program. And just one serious terrorsit act in the middle east on the oil infrastructure will be all it takes, or, a serious hurricane that destroys a major refinery here in the U.S.

[imorb1994]

Posting the facts on the oil crisis we are in needs to be publized anywhere and everywhere we can. It is a shame on what is happening here in this country. Drive through areas of Texas and see thousands of oil wells sitting still. Alaska alone has more oil than Kuwait. And the oil Alaska does produce is shipped over seas. Sooner or later this country has to start taking care of itself with the oil reserves that are available yet ignored, at least until alternative energy sources are developed. It will probably take the price to escalate to $8.00 per gallon before the idiots in Washington get with the program. And just one serious terrorsit act in the middle east on the oil infrastructure will be all it takes, or, a serious hurricane that destroys a major refinery here in the U.S.

Anybody remember the movie that FX made a few years back called Oil Storm. Was just meant as an eye opener, but is now coming true. Like TJA said only one refinery here.
http://www.fxnetworks.com/shows/originals/oilstorm/main.html
http://www.dailyreckoning.com/Issues/2005/DR070905.html

[chicago_cop]

Posting the facts on the oil crisis we are in needs to be publized anywhere and everywhere we can. It is a shame on what is happening here in this country. Drive through areas of Texas and see thousands of oil wells sitting still. Alaska alone has more oil than Kuwait. And the oil Alaska does produce is shipped over seas. Sooner or later this country has to start taking care of itself with the oil reserves that are available yet ignored, at least until alternative energy sources are developed. It will probably take the price to escalate to $8.00 per gallon before the idiots in Washington get with the program. And just one serious terrorsit act in the middle east on the oil infrastructure will be all it takes, or, a serious hurricane that destroys a major refinery here in the U.S.

There's no reason for certain members of Congress to co-operate. They will wait until after Nov election and then think to take credit for any fix. THEY CARE MORE ABOUT THEMSELVES AND THEIR PARTY. People are just fodder to them. My 2cts

[sailsmen]

Why not just put that all in your sig? Then you wouldn't have to keep posting it every chance you get. It could be there all the time. :lol:

Ironic coming from what is your sig.

[BruteForce]

Ironic coming from what is your sig.


What in my sig? If you're referring to the quotes, they are random and different each time they are viewed so vague references to any particular quote is meaningless 'cause we don't see the same one you do even at the same time of day. But you knew that... or at least you will claim so.