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Exxon Mobil Rakes in $10 Billion

Nationwide Average Price Falls to $2.94

By Joe Benton
ConsumerAffairs.com

July 26, 2007

• Gas Prices Head Lower as Economy Slows • Gas Price Declines for 9 Days • Gas Prices Continue Downward Trend • Oil Prices Surge By Record $25 a Barrel • Gas Prices Drop for 5 Days • Price-Gouging Probes Spread to 6 States • Investigations of $5 Gas in North Carolina, Florida, and Virginia • Shortages, Price Hikes Follow Ike in Southeast • States Investigate Gasoline Price Gouging Claims • Pumping More U.S. Oil Won't Lower Prices, Consumer Group Says • Oil Prices Fall, Gas Prices Surge • Gas Prices Slide 8 Percent from Record --- • More ...

The worlds largest publicly-owned oil company reported over $10 billion in quarterly profits as higher gasoline prices helped offset a decline in revenue from natural gas.

Nevertheless, Exxon Mobil profits fell short of Wall Street estimates and were lower than the $10.7 billion the oil giant reported in the fourth quarter of 2005; that was the highest quarterly corporate profit ever.

The average price for a gallon of regular gasoline hit an all-time high of $3.23 in May, according to AAA. High prices were blamed on strong demand and a series of accidents that shut down refineries in the U.S.

Exxon contends that gasoline production in the U.S. is at an all-time high and that the high gasoline prices are the result of high crude prices and record U.S. demand.

Consumer groups complain that the oil industry is deliberately restricting supply of gasoline to drive pump prices up and a consumer watchdog charged that the oil companies are manipulating prices.

"Refiners can neglect infrastructure, make too little gasoline, suppress inventories and still haul in record profits," said Judy Dugan, research director at OilWatchdog.

"Refiners restricted gasoline inventories instead of boosting them over the winter and early spring, then planned long maintenance shutdowns," she said.

"Even this spring's unplanned refinery outages were not just acts of fate. They are directly related to lack of modernization and quality of maintenance on aging equipment."

The study is published by OilWatchdog and The Foundation for Taxpayer and Consumer Rights: The "Katrina Syndrome: Low Supplies = High Profits in 2007.

Across the country, the average price for a gallon was regular self-serve gasoline is now $2.94.

One month ago regular self-serve gasoline sold for $2.98 a gallon and one year ago a gallon sold for $3.00.

The average price of midgrade unleaded gasoline is now $3.12. The price of premium unleaded gasoline slipped to $3.23 a gallon, down 7 cents from four days ago.

At $4.16 a gallon, drivers in Beaver Island, Michigan, are paying the highest gasoline price in the country. Drivers in Urban, Ohio are seeing the lowest, at $2.43 a gallon.

Here is a look at some prices from around the country in the ConsumerAffairs.com Gas Price Round Up.

Wisconsin: Gasoline prices in the Green Bay area are between $3.02 and $3.07 a gallon, but lower prices can be found outside of town. One station dropped its price to $2.99 a gallon.

Here is a look at some prices for a gallon of unleaded, regular gasoline in the Green Bay area; Corner Store Mobil, $3.02; Packerland Shell, $3.07; Walnut One Stop, $3.07 and Kwik Trip, $3.07.

New Mexico: Above-average local gasoline prices have not hurt tourism in the state.

In speaking with travelers, AAA has learned they continue to drive but alter plans to save money. Tourists may pack their lunches and plan to stay with family to avoid hotel fees. They may travel shorter distances and stay fewer days, but they do not cancel plans.

Tourists are not even complaining about gas prices or even remarking they are unusually high. That could be because one of the largest tourism markets comes from California where the average price for regular gasoline is $3.11.

The Las Cruces average dipped one-tenth of a cent to $3.04.

In El Paso the average price for a gallon of unleaded regular gasoline fell nine-tenths of a cent to $2.96. according to, AAA New Mexico.

El Paso's average has dropped 6.8 cents since Friday.

The Texas statewide average dropped a half-cent to $2.86, while the New Mexico average declined 1.3 cents to $3.13.

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