Oil Companies continue to fleece Americans

[oregonpackfan]

Today, representatives of the five largest oil companies were grilled by Congress over the $123 billion in profits they made in 2007. While average Americans struggle to make ends meet with rising gas prices of near $3.40 per gallon and $4 for diesel, the oil companies continue to reap in record profits every year.

What is particularly maddening is the fact the US gave over 18 billion dollars in tax breaks to these same oil companies.

http://finance.comcast.net/www/news.html?x=http://absorigins.comcast.net/data/news/2008/04/01/926621.xml

[HarveyWallbangers]

I love fuzzy math.

We should all push harder for biofuels.

http://www.time.com/time/magazine/article/0,9171,1725975,00.html

The best place to see this is America's biofuel mecca: Iowa. Last year fewer than 2% of U.S. gas stations offered ethanol, and the country produced 7 billion gal. (26.5 billion L) of biofuel, which cost taxpayers at least $8 billion in subsidies.

All to make global warming even worse.

[LL2]

I think it's a joke that Congress grilled the execs from the oil companies. Sure the high prices of gas is a big issue for most Americans, and that is why they did it. It makes the Congress men and women look good in front of their constituents, but you don't see other companies being grilled for being profitable. Isn't that the purpose of business? To make as much money as possible?

[Kiwon]

$18 Billion dollars in tax breaks over 10 years - $1.8 Billion a year.

How much money does Congress waste in one week?

How much of that price at the pump is local, state, and federal taxes?

Edward Markey from Taxachusetts is a socialist. He's anti-business through and through.

Oil companies make money, they lose money. They spend billions on R and D, exploration, on and on. I guess Ed Markey wants these private businesses and their shareholders to risk their own capital in doing the R and D and then subsidize the American consumer at the final stage by undercharging at the pump. Isn't that fair?

No, it's not. In 2006, Exxon Mobil paid $27.9 Billion in Federal Taxes. They retained $39.5 Billion in after tax income. That's a 41% tax rate.

In 2004, the bottom half of 130 million tax returns paid $27.4 Billion in Federal Taxes on an adjusted income of $922 Billion. That's a tax rate of 2.7%.

In 2007 alone, Exxon will over $30 Billion in Federal Taxes. One company is paying more in taxes at a much higher rate than 50% of all taxpayers. And, of course, a sizeable percentage of those taxes is YOUR MONEY that the government requires them to collect from you.

Much of the oil profits will be plugged back into R and D. Some of it will go to reward the shareholders and the company execs and employees. That's the way profitable businesses work.

Oil companies are making record profit as the Chinese and Indian economies (2 countries accounting for 40% of humanity) are developing and driving up the cost of oil. That's reality. Deal with it.

The government won't allow the oil companies to drill off the coasts and in Alaska, they can't build new refineries, they force them to make dozens and dozens of fuel blends, they add all kinds of taxes to the bottom line to fund their spending programs and then they want to complain over high prices and record profits during a time of unprecedented demand?

This is a Stalinist show trial by the House Select Committee on Energy Independence and Global Warming. Oh boy, I love that title. Congress is going to solve "Global Warming." I wonder how much that is going to cost everyone in new taxes?

[Partial]

Excellent posts by Kiwon and LL2

[Zool]

Congress is going to solve "Global Warming." I wonder how much that is going to cost everyone in new taxes?

I assume about 2.7%

[The Leaper]

Re: Oil Companies continue to fleece Americans

Today, representatives of the five largest oil companies were grilled by Congress over the $123 billion in profits they made in 2007. While average Americans struggle to make ends meet with rising gas prices of near $3.40 per gallon and $4 for diesel, the oil companies continue to reap in record profits every year.

News to OPF:

The government (feds and state) make far more off your gallon of gasoline than Big Oil does.

Congress is filled with hypocrites and dumbasses. Follow them at your own peril.

[Scott Campbell]

I guess this carefully orchestrated spectacle was newsy, but it really doesn't do anything to address the cause of the problem.

[Deputy Nutz]

Re: Oil Companies continue to fleece Americans

Today, representatives of the five largest oil companies were grilled by Congress over the $123 billion in profits they made in 2007. While average Americans struggle to make ends meet with rising gas prices of near $3.40 per gallon and $4 for diesel, the oil companies continue to reap in record profits every year.

News to OPF:

The government (feds and state) make far more off your gallon of gasoline than Big Oil does.

Congress is filled with hypocrites and dumbasses. Follow them at your own peril.

well I don't know if "Big Oil" makes more than the governement, but I do know that the actual fueling stations make far and away less per gallon on gas than the federal and state governments. Fueling stations sadly only make pennies per gallon of fuel.

[Partial]

Re: Oil Companies continue to fleece Americans

Today, representatives of the five largest oil companies were grilled by Congress over the $123 billion in profits they made in 2007. While average Americans struggle to make ends meet with rising gas prices of near $3.40 per gallon and $4 for diesel, the oil companies continue to reap in record profits every year.

News to OPF:

The government (feds and state) make far more off your gallon of gasoline than Big Oil does.

Congress is filled with hypocrites and dumbasses. Follow them at your own peril.

well I don't know if "Big Oil" makes more than the governement, but I do know that the actual fueling stations make far and away less per gallon on gas than the federal and state governments. Fueling stations sadly only make pennies per gallon of fuel.

It's really dumb the way our government works. Why tax the hell out of gas? It's such bullshit and just another thing the government should mind its business about. These companies are getting taxed to high hell (imagine if they weren't in Texas and were paying an additional 5-10% on state income tax), the consumer is being taxed to high hell on gas, and the middle man is getting a raw deal as well. WTF is with it? Personally, I don't see a need to tax these businesses or the consumers on gas at all. It's just more dollars turned into pennies by Washington.

[oregonpackfan]

Perhaps Americans should be asking if allowing oil companies to serve their own financial interests at the expense of American citizens is in the best long term interests of the country.

In addition, giving oil companies billions of dollars to research alternative sources of energy is like giving money to Subway to explore the possibility of opening up a Deli sandwich shop down the street. It is also like paying the fox to build an alternative hen house.

[Freak Out]

Re: Oil Companies continue to fleece Americans

Today, representatives of the five largest oil companies were grilled by Congress over the $123 billion in profits they made in 2007. While average Americans struggle to make ends meet with rising gas prices of near $3.40 per gallon and $4 for diesel, the oil companies continue to reap in record profits every year.

News to OPF:

The government (feds and state) make far more off your gallon of gasoline than Big Oil does.

Congress is filled with hypocrites and dumbasses. Follow them at your own peril.

well I don't know if "Big Oil" makes more than the governement, but I do know that the actual fueling stations make far and away less per gallon on gas than the federal and state governments. Fueling stations sadly only make pennies per gallon of fuel.

It's really dumb the way our government works. Why tax the hell out of gas? It's such bullshit and just another thing the government should mind its business about. These companies are getting taxed to high hell (imagine if they weren't in Texas and were paying an additional 5-10% on state income tax), the consumer is being taxed to high hell on gas, and the middle man is getting a raw deal as well. WTF is with it? Personally, I don't see a need to tax these businesses or the consumers on gas at all. It's just more dollars turned into pennies by Washington.

So you don't know what the purpose of the gas tax is in this country?

[Freak Out]

The tax breaks are a fucking joke ATM.....they were put in place when oil was $10 a barrel and we needed to give some sort of incentive to explore and produce oil domestically. We just changed the tax structure here under oil company protests and warnings and still set records at lease sales in some of the toughest places to drill in the world.

[packinpatland]

I heard yesterday that one CEO's payout equated to something like $140,000 A DAY!

[The Leaper]

In addition, giving oil companies billions of dollars to research alternative sources of energy is like giving money to Subway to explore the possibility of opening up a Deli sandwich shop down the street. It is also like paying the fox to build an alternative hen house.

Not entirely.

Oil companies are well aware that they are dealing with a substance that is limited in quantity. As time goes on, oil is going to become less and less of an affordable resource.

Oil companies also are not in charge of the Middle East...and recognize that volatility there threatens their own livelihood if they have no stake in alternative energy.

Oil companies have the greatest resources and experience when it comes to developing energy-related technologies. I really don't see who would be better at accomplishing what we need. The key is giving the oil companies INCENTIVES for investing in alternative energies, because there is some truth in what you suggest. Perhaps switch their tax credits to be based on their progress in alternative fuel R&D? However, to suggest that oil companies should not be involved in the process seems counterproductive considering the talents working for those companies and the massive amounts of money they can throw toward something if motivated.