Big Oil's Big Profits - Not as big as you'd think

ExxonMobil spends roughly $1 billion per day in operating expenses, according to Chairman and CEO Rex Tillerson (in an interview with ABC's Charles Gibson). If that doesn't put Exxon's "outrageous" quarterly profit of $11.7 billion in a reasonable perspective, then try these figures:

• Responding to the criticism that Exxon makes "$1,400 in profit per second," Tillerson replied: "we paid $4,000 a second in taxes, and we spent $15,000 a second in cost."
• According to the Wall Street Journal, ExxonMobil's profit margin was 10% in 2007. Comfortable? Yes. Outrageous? Hardly. The oil industry profit margin is 8.3%.
• Compare Exxon's 10% profit margin with the chemical industry (12.7%); or the computer industry (13.7%); or Pharmaceuticals (18.4%); or tobacco (19.1%); or long distance carriers (26.4%). Thank you to Carpe Diem blog for those figures.
• Take a look at Yahoo's Industry Summary, which displays current profit margins for all US industries. Oil ranks 60, meaning Oil is only the 60th most profitable industry in the United States.

I'm no economist, but to me, these figures put the debate over gas prices and profit margins in a more accurate context. I would ask those who support a windfall profits tax on the oil industry one question: why oil and not Microsoft (27.1% profit margin)?

Update: Powell Denies...

Colin Powell just told ABC News: "I do not have time to waste on Bill Kristol's musings... I am not going to the convention. I have made this clear."

No specific denial about the endorsement, however...

Colin Powell endorses... Obama.

Bill Kristol of the Weekly Standard is reporting on FOX News that Colin Powell will endorse Barack Obama for president, and may give a prime-time speech at the Democratic National Convention.

Although disappointed to some extent, I'm not at all surprised. It's common knowledge that there's been bad blood between Powell and certain elements of the Republican Party for quite some time. He clearly feels little loyalty to his own party. At the same time, his policy preferences clearly comport more closely with those of Obama than with McCain. He's pro-choice. He supports Affirmative Action. He privately opposed the Iraq War. He opposed the Surge, and he at one point seemed to question the moral basis of the Global War on Terror. In addition to this, Powell is a staunch multilateralist. All of these positions are held strongly by Barack Obama.

Big news? Yes. Will it sway many votes? I doubt it. An endorsement by General Powell will certainly boost Obama's foreign policy standing, but do endorsements really mean that much? The American people understand that Barack Obama - should he be elected president - will be the one calling the shots and making the tough choices. Come November, a Powell nod will be a distant memory.

I still hold that in this increasingly turbulent world we live in, Americans will choose tried and true experience and gravitas (McCain) over a vacuous, inexperienced, waffling "community organizer"/activist, to be President and Commander in Chief.

Gag me...

This is the only reason you needed not to vote for Barack Obama...

McCain edges Obama in poll

According to the latest Rasmussen presidential daily tracking poll, both candidates are tied at 44%. However, when voters who are "leaning" towards one candidate or the other are included, McCain is ahead 47 - 46%. Although statistically inconclusive, this is the first time McCain has been on top.

More tellingly, McCain has swung into a wide lead among "unaffiliated" voters: 52 -37%.

Also of note, and this surprises me: McCain is viewed more favorably among Republicans (87%), than Obama is among Democrats (83%).