Exxon Mobil has record numbers because they exploit the difference between the open market barrel price and their actual cost of oil.

You see little Johnny, big oil companies have their own oil fields. If the “market price” is higher than what is costs them to use the oil they already own, big oil companies will still charge the higher price to the gas refiners. And since most big oil companies own refining operations and gas stations, they can always move profits around from one pocket to another as necessary.

While every business is entitled to a fair profit and no one loves capitalism better than the good old USA, just remember that the big oil companies are not making a simple “cost plus” profit. They are making an extreme profit.

Just something to keep in mind the next time our politicians tell us that we need to give the oil companies more tax breaks or build them a new refinery.

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