Another year has passed — one that saw gas prices spike to well over $3.00 a gallon in many parts of the U.S. — and the folks at Exxon Mobile are breaking record profits:
Exxon Mobil Corp. roared past Wall Street expectations and set a new record for the highest profit ever earned by a U.S. company in a single year.
Exxon said today the company’s 2006 profits reached $39.5 billion, trumping its own 2005 record of $36.1 billion. Excluding a $410 million tax benefit, annual profits reached $39 billion &#xu2;014 still nearly $2 billion higher than the $37.1 billion analysts expected.
Not that Exxon Mobil is alone in their accomplishment, several other oil companies also did very well:
The Hague-based Royal Dutch Shell earned $5.28 billion in the quarter, a 21 percent jump over $4.39 billion in the fourth quarter of 2005. Full-year earnings were $25.4 billion, a 1 percent rise over $25.3 billion in 2005.
And Marathon earned $1.08 billion, or $3.06 per share, a 17 percent drop from $1.26 billion, or $3.43 per share in the fourth quarter of 2005. Excluding one-time items, Marathon earned $838 million, or $2.38 per share, compared to $1.33 billion, or $3.61 per share in the year-ago period.
Either way, Marathon exceeded Wall Street expectations. Analysts surveyed by Thomson Financial expected earnings of $2.26 per share for the quarter.
For the year, Marathon earned $5.2 billion, or $14.50 per share, up from $3 billion or $8.44 per share in 2005.
Hopefully they’re putting some of that money into researching alternative fuel sources seeing as the oil isn’t going to last forever.


















We’ve had £1/litre in the uk in the past, at the moment it’s 90p ish per litre. Most of it is tax, and the demand is fairly inelastic in terms of price - people will keep buying it as long as they can because they need it, and because there isn’t much in the way of filling stations for alternative feuls, as well as many people not being able to afford to convert. There is competition in the UK but prices are controlled by oligopolies in many things, that and market forces.
If they want to survive long term they will need to, but the current directors and shareholders will probably not be the same directors and shareholders 50 years down the line, and so it benefits them more individually to not spend any money. Reminds me of polititions spending loads of public money because they know their time in the job is limited.
Whether market forces will be strong enough to force us to prepare alternatives to oil just as we run out has yet to be seen, people in the developed world might starve due to lack of transportation options, we would have to take a serious look again at sailships, horsecarts, etc. I would expect other fossil feuls and nuclear will be enough to provide electricity and keep trains running, at least to some extent in some places - trains would be packed without cars but imagine the economic disruption if people’s commutes were limited to the range of bicycles