Automobile companies are closing factories. Airlines are reducing the number of flights they offer. These businesses are affected by the price of oil. Now, ExxonMobil is selling all of its gas stations. Seems Big Oil doesn’t see the profit in selling gasoline.
CNN: ExxonMobil to sell 2,220 gas stations
Oil giant Exxon Mobil Corp. plans to sell its company-owned gas stations, saying they aren’t profitable enough even with gasoline selling at $4 per gallon.
The nation’s largest oil company, which earned nearly $41 billion last year, says it will sell more than 2,000 stations over the next few years.
Maybe someone should tell ExxonMobil it’s only a bubble.
The money isn’t being made at the pump, it’s made at the well. And Big Oil (ExxonMobil, BP, Royal Dutch Shell, Total S.A.,Chevron, and ConocoPhillips) only controls around 10% of that. Shell now controls even less.
Bloomberg.com: Oil Rebounds After Nigeria Announces Ogoni Operation Takeover
Crude oil rebounded after Nigeria’s president said the country’s state-owned oil company will take over operations in the Ogoni district of southern Nigeria from a Royal Dutch Shell Plc joint venture…
“The market is so concerned about supply that just about any headline can unnerve traders,” said Phil Flynn, senior trader at Alaron Trading Corp. in Chicago.
Maybe someone should tell Nigeria’s president it’s only a bubble.
Methane hydrate; read about this at the library. If we could find a way to pull this out inexpensively, there are reserve equivalents to 56 trillion barrels of oil.
DOE link for info: http://fossil.energy.gov/programs/oilgas/hydrates/
I say we should capitalize on this decline wisely. Stock markets have quite a few good alternative fuel companies, even the big oil industry will ultimately turn to an alternative process.
Any thoughts anyone?
It’s an interesting alternative, but still beyond us technologically. The big question is whether we have the time to figure out how to pull it commercially, and then the time to build out the infrastructure to do so, before all heck hits the fan.
Some interesting stuff turned up in researching this just now. A post will follow. Thanks for the topic.
Dear Mr. Exon:
Its only a bubble.
Dear Mr. Nigerian President:
Its only a bubble.
(anything else need doing P-man?)
But seriously, getting out of the gas station market is smart but a bit late, though better late than never. Demand is way down and most stations, who’s prices are strictly controlled by the oil companies, make only a penny or two on the gallon. Lower demand means less people buying that roll, beverage, smoke, lotto ticket etc.
Its a tough business made tougher by the economic downturn and will probably continue to get tougher for the next year or so.
Nationalizing resources has always made sense, either in friendly style or not so friendly style (although I suspect China may have something to do with Nigeria’s move.)