Related stuff: Iowa and Illinois flooding may drive up gasoline prices.
CNN.com reports that ExxonMobile will sell over 2,200 of its gas stations because of poor profits.
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.
“The fuels marketing sector is a very challenging market,” ExxonMobil spokesperson Prem Nair said, adding that the company is feeling particular pressure from hypermarkets like Wal-Mart that sell gasoline.
A hypermarket is a department store combined with a supermarket. We have one in Farmville, VA, but it doesn’t sell gas.
Burnick’s Global Market Blog finds little about ExxonMobile’s business practices worth praising.
12 June 2008 at 7:48 pm |
If Exxon Mobile’s gas stations are not profitable enough, where did Exxon’s record profits come from? Oil speculation?
12 June 2008 at 9:41 pm |
This is some bull. Read this article:
http://www.businessweek.com/magazine/content/07_22/b4036057.htm
13 June 2008 at 7:02 pm |
Exxon-Mobile is worried that there is going to be a transition to electric cars and that profits from gas stations will decline. So, they are getting out while others are unaware of this, while they can still get good prices for a technology that is going to go down gradually. They are scared to death of electric vehicles.