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.
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.
Previously on Oil:
- Signs of Spring: Rising Gas Prices
- Oil and Gas Prices Make No Sense
- Lower Oil Prices Make Arrogant Chavez Antsy
- An Apple a Day…
- Is Big Oil the Victim?
- Profiteering From Your Neighbors
- Fact or Fiction—Obscene Gas Prices
- Oil Costs Higher than Just Record Profits