Big Oil: Profits and Taxes

The Constitution Club ^ | 05-23-11 | Pino

[TheConservativeCitizen]

Big Oil.

We love, LOVE, to hate Big Oil.

As we’re paying more and more at the pump, and as we continue to flounder in this post recession economy, it’s hard to look at the Big Oil companies , their profits and think anything other than greed.

But is that fair? Let’s check.

Recently, the big oil companies announced their profits for the first quarter of 2011. And they are impressive numbers to be sure:

■Exxon Mobile – $10.7 billion ■Chevron – $6.2 billion ■ConocoPhilips – $3.0 billion THAT is a lot of billions. A LOT! But is it really as big as we’re making it out to be? For example, consider two investment vehicles that I would like to offer you. You may choose which of the two you would prefer to invest in:

1.This investment will take your money and place it in stocks and bonds. After 1 year, you will receive $100.00. 2.This investment will take your money and place it in stocks and bonds. After 1 year, you will receive $125.00. Which do you choose?

If you are today’s media you’ll take option 2 every time. After all, $125 is more money than $100. And that, as they say, is that. But is it?

When we talk about profit MARGIN and not sheer profit, things look a little different:

■Exxon Mobile – 8.2% ■Chevron – 9.6% ■ConocoPhillips – 6.0% Not nearly as impressive. In fact, as a group, Big Oil ranks 114th out of 215 industries by profit margin. One Hundred Fourteenth! There are 113 OTHER industries that make more money, as described by margin, as oil.

To say that the profits being “raked in” by Big Oil are excessive is rather ridiculous.

However, there is even more to the story. The taxes. How much does Big Oil pay in taxes?

Again, from their links above:

■Exxon Mobile – $21,561,000,000 ■Chevron – $12,919,000,000 ■ConocoPhillips – $8,333,000,000 That’s a grand total of $42,700,000,000. $42 billion from just 3 companies. In one year. For some perspective, in 2008 -most recent year available- the first 34,172,692 tax payers paid only $29,244,370,000 in taxes. In fact, if we DO use the 2008 figures, those three oil companies paid:

■Exxon Mobile – $36,530,000,000 ■Chevron – $19,026,000,000 ■ConocoPhillips $13,405,000,000 For a total of $68.9 billion! That’s more than the first 48 million tax payers paid in 2008. And THAT represents nearly half of all American tax payers! In other words, those three companies alone, ALONE, pair more in taxes than half the American’s did.

And if that isn’t enough, if even those numbers are enough to convince you that these companies aren’t getting by scott free, consider this:

Exxon is reporting that they are making a $0.07 profit on each gallon of gasoline and other finished product sold here in the US. Government? $0.48. That’s 700% MORE than the folks doing the work!

Don’t fall for it folks. These guys aren’t ripping us off; it’s a story being sold to us by the Leftists!

[Uncle Miltie]

So, the Government makes 59 cents per gallon, and the entire supply chain makes 82 cents per gallon, according to this graph.

[Uncle Miltie]

Note too that “Extraction Profits” rae 73 of the 82 cents, and that extraction is usually done by government monopolies around the world (Saudi, Venezuela, Mexico, etc.)

That means that almost every profit cent in the price of a gallon of gas goes to a government.

[BooBoo1000]

In the state of Nevada, the State makes more on sale of a gallon of gas than the producer. If you add in the amount that the Federal Government makes on a gallon of fuel, it is very easy to see who the big winner is. Exxon nets less than .05 cents per gallon of fuel sold. It is easy to see who the big robbers are.

[snowrip]

Copied and forwarded to everyone I know.

[goat granny]

The profits made by government vs tobacco co. is much higher than what they make from big oil.....

[21twelve]

“There are 113 OTHER industries that make more money, as described by margin, as oil.”

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These less than 10% profits are fairly consistent IIRC with old numbers as well. Perhaps they were a bit above 10%. I think my college prof said if you weren’t making at least 10% profit (or was it 15%) you should shut the doors.

I recall when these oil profits were touted during the Bush years, the banking industry was averaging about 35% profits or so. You know - the guys we bailed out as “too big to fail”.

[familyop]

Big taxes (including Alaska royalties) against “big oil” and the “good ol’ boys” are part of the problem. Default and small government are the answer. And no, a commie government can’t exist without a large manufacturing base with internationally worthless revenues. And both political parties are obviously full of socialists.