ExxonMobil does not own any U.S. gas stations

[BillKidd + 139]

In this article by Robert Rapier, he says ExxonMobil does not own any gas stations in the USA. So, what is the working relationship with a convenience store operator who displays the Exxon name? BTW, his article below seems well-written other than the above, it seems to have factual info. Curious how gasoline distribution works for the big companies.

https://oilprice.com/Energy/Oil-Prices/Is-It-Fair-To-Blame-Oil-Companies-For-High-Prices.html

Edited June 5, 2022 by BillKidd

[Jay McKinsey + 1,490]

4 hours ago, BillKidd said:

In this article by Robert Rapier, he says ExxonMobil does not own any gas stations in the USA. So, what is the working relationship with a convenience store operator who displays the Exxon name? BTW, his article below seems well-written other than the above, it seems to have factual info. Curious how gasoline distribution works for the big companies.

https://oilprice.com/Energy/Oil-Prices/Is-It-Fair-To-Blame-Oil-Companies-For-High-Prices.html

Here is the franchise agreement: https://www.sec.gov/Archives/edgar/data/1323468/000110465911002124/a11-4279_1ex10d6.htm

[BillKidd + 139]

Thank you Jay.

In my digging, I did not find what Exxon gets out of a franchise (other than I know they charge fees to get one going) but it doesn't matter much, I was just curious if they get a royalty or percentage of revenue. I did happen upon an article from 2008 where they announced they were to sell all their stations because they make such little profit even at high oil prices!

https://www.reuters.com/article/us-exxon/exxon-to-exit-u-s-retail-gas-business-idUSN1238193020080612

 

Edited June 6, 2022 by BillKidd

[Starschy + 211]

Exxon has about 11'000 Gas Stations and 800 Gas Stations for the Airline Industry. 

[Eric Gagen + 713]

On 6/6/2022 at 9:18 AM, BillKidd said:

Thank you Jay.

In my digging, I did not find what Exxon gets out of a franchise (other than I know they charge fees to get one going) but it doesn't matter much, I was just curious if they get a royalty or percentage of revenue. I did happen upon an article from 2008 where they announced they were to sell all their stations because they make such little profit even at high oil prices!

https://www.reuters.com/article/us-exxon/exxon-to-exit-u-s-retail-gas-business-idUSN1238193020080612

 

Most (not all, but a large majority) gas stations are franchises, exactly like McDonald’s or Popeyes or Starbucks.  The corporation doesn’t make money on the retail grind of dealing with small volume consumers on a day to day basis. It’s simply not worth the bother.  It IS worth it to a franchisee who rolls the profits and their normal ‘salary’ together into a single compensation package.

 

corporate stores will only be in places where the company sees a strategic advantage to being in a specific place that might not be really profitable yet (usually with the intention to sell them for a profit once they have a stable income) or places that are so obviously going to be profitable that they don’t want to give away huge excess profits to a franchisee.

Edited June 8, 2022 by Eric Gagen

[Ecocharger + 1,477]

Oil and gasoline and refining are not monopolistic marketplaces, there is plenty of competition, and the largest firms are price-takers, not makers.

For politicians like the Prez to agitate for monopolistic profit taxes on this sector is an assault on the facts.

If the White House wants to blow off steam about the oil and gasoline sector, let them produce some data to back their case.

Edited June 11, 2022 by Ecocharger