Rising Gas Prices Expected To Increase Exxon’s Earnings By More Than 50%

[deminks]

http://thinkprogress.org/2011/04/25/big-oil-2010/

The country’s five biggest oil companies — BP, Chevron, ConocoPhillips, ExxonMobil, and Shell — made a total profit of nearly $1 trillion over the last ten years. In 2008, ExxonMobil broke its own record for most profitable year for a public company in history by making more than $45 billion. And according to an analysis in the Wall Street Journal, rising oil prices in 2010 mean that Big Oil’s profits this year “could come close to rivaling the industry’s record year in 2008”:

First-quarter crude prices averaged about $100 a barrel, or about 20% higher than a year ago, pushed upward by oil-supply concerns due to political unrest in the Arab World and a recovering global economy. That spike is expected to lift earnings by about 50% at Exxon Mobil Corp., and about 33% each at Chevron Corp. and ConocoPhillips, compared with a year earlier.

Despite these sky-high profits, House Republicans voted unanimously last month to preserve the billions in subsidies that oil companies receive from the federal government every year. Gas prices in many parts of the country are currently higher than $4 per gallon.

(end snip)

50% of a gazilliontrillion is half a gazilliontrillion. How much money does one need? When you can no longer count that high, is that enough?

[KittyWampus]

1. "Republicans voted unanimously last month to preserve the billions in subsidies"

[aquart]

2. Windfall profits tax.

[bullwinkle428]

3. Mission accomplished.

[Horse with no Name]

4. This is where the disconnect comes

That profits would NOT be sky-high if they were not gouging us. There really are ONLY two scenarios here:

increased production costs=higher gas prices=flat profits

OR

normal production costs=higher gas prices=increased profits

[Tippy]

5. But I thought the price was so high because of market manipulation....

[Schema Thing]

11. it is.

What does that have to do with this?

[Blecht]

6. More profits --> more power

--> more control over government --> more profits -->

[Historic NY]

7. I'm so glad the Republicans voted to give them a subsidy too

...increase the profit line for the share holders. We must do all we can to support the rich companies who don't pay US income taxes.

<snip>
What the financial statement says is that ExxonMobil, in 2009, after a handful of deferrals, recorded a total U.S. income tax benefit (i.e., a refund) of $46 million. Next to this, it shows total non-U.S. income taxes of $15.165 billion.

My mistake was in thinking that these figures somehow reflected actual tax benefits and liabilities. So what we should have written was that ExxonMobil “recorded” no U.S. income taxes for 2009 instead of “paid.” All you re-bloggers out there, please note the clarification. Mea culpa.

And for all you commenters outraged that Exxon isn’t paying taxes in the U.S., don’t worry, it is. Our article only focused on income taxes, but it’s worth noting that the 10-k also records $7.7 billion in other taxes in the U.S. (like sales taxes) and more than $50 billion of other taxes and duties paid (I mean recorded) overseas.
<snip)

http://blogs.forbes.com/energysource/2010/04/07/exxon-says-it-does-pay-u-s-income-taxes/

[xchrom]

8. Recommend

[Octafish]

9. Funny. How that works...

...Start a war. Oil prices skyrocket. Oil Companies make huge windfall. Repeat until we run out of gas or soldiers, whichever comes first.

[Zoeisright]

10. And where's the fucking windfall profits tax???

Christ.

[Initech]

12. We'd balance the budget ALONE just by taxing the fucking oil companies.

They're earning $1 trillion? Tax it 80%.