Cynical Synapse

Sun, 31 Jul 2011

These Are Not the Oil Profits You’re Looking For

Filed under: Business, Congress, Economy, Gas Prices, Government, Greed, Hypocrits, Oil, Politics, Rants, Taxes — cynicalsynapse @ 2:41 pm

big oil's big gusher

ConocoPhillips, BP, Royal Dutch Shell, Chevron, and Exxon Mobil, the five biggest oil companies, reported skyrocketing profits for the second quarter. The profit jumps result from higher oil prices, which seems counterintuitive to me. Obviously the cost is simply passed along to consumers and not absorbed by the oil companies. The top 5 Big Oil companies increased profits almost 10% over second quarter 2010. Their combined profit for second quarter 2011 was $35.1 billion.

Although second quarter profits were up 41% compared to last year, the results are “below expectations.” Investors called BP’s 13% improvement in profit over 2010 “disappointing” at $5.6 billion in the second quarter 2011.

Hoekstra on healthcare

On top of increased, but disappointing profits, Exxon Mobil pays a lower effective tax rate than individuals, at 17.6% compared to 20.4% for individual US Federal taxpayers.

With record profits and low effective tax rates, why do big oil companies get $70+ billion in tax breaks? How about slashing those to reduce the deficit? Silly me, Big Oil owns Congress.

Previously on Oil:

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