Posted on 05/01/2011 11:47:02 AM PDT by safetysign
The Democrats are furiously demagoguing energy costs, hoping to dodge the blame for their failed policies. When gas prices spiked in 2008, whom did they blame? Nancy Pelosi attributed high gasoline prices to the "oil men in the White House." This time around, she is staying out of sight.
Other Washington Democrats are blaming the oil companies, and are trying to change the subject to alleged "subsidies"--which, of course, have nothing to do with oil prices. ExxonMobil counters the Democrats' myths with facts:
The part of [our] business that refines and sells gasoline and diesel in the United States represents less than 3 percent - or 3 cents on the dollar - of our total earnings. For every gallon of gasoline, diesel or finished products we manufactured and sold in the United States in the last three months of 2010, we earned a little more than 2 cents per gallon. That's not a typo. Two cents.
Taxes represent around 48 cents per gallon, on the average--twenty-four times as much as ExxonMobil's profit. So who's gouging?
ExxonMobil makes a point that we, too, have made repeatedly over the years. The United States has the world's largest energy resources, but because of our government's foolish policies, American oil companies have access to very little crude oil:
Take a look at the chart at right. ExxonMobil owns less than 1 percent of the world's oil reserves, and it produces less than 3 percent of the world's daily oil supply, so it's really not credible to suggest that we are responsible for world oil prices. [Click to enlarge.]
ExxonMobil actually buys more crude oil than we produce. Last year, we spent $198 billion on crude oil, which we used to make refined products such as gasoline.
Contrary to the administration's claims about "subsidies," ExxonMobil is a huge taxpayer, as are the other privately-owned oil companies. There is a real irony here; the "green" energy that the Obama administration prizes really is subsidized--it represents a net drain on the taxpayers.
Last year, our total taxes and duties to the U.S. government topped $9.8 billion, which includes an income tax expense of $1.6 billion. Over the past five years, we incurred a total U.S. tax expense of almost $59 billion, which is $18 billion more than we earned in the United States during the same period. Critics often try to ignore these facts by saying the oil and gas industry receives "subsidies." But what they really mean is that they want to increase our taxes by taking away long-standing deductions for our industry while leaving these same deductions in place for other sectors of the economy.
So ExxonMobil functions, in economic terms, mainly as a tax collector. Unbelievable. Once again, it is the government that is gouging, not the oil companies.
The Wall Street Journal editorialized this morning:
One of the main so-called subsidies that Mr. Obama wants to eliminate is for the expensing of intangible drilling costs, which has been part of the tax code since its inception. This immediate deduction--rather than amortizing the costs of development over a longer period--provides the capital and cash flow necessary in an industry where the risks are huge and returns are realized over many years, if not decades.
The rest of the items on Mr. Obama's list are tax credits offered to all manufacturers, not just oil and gas. Mr. Boehner's full comments at least revealed the right instincts--namely, proposing to eliminate such carve-outs in return for a lower corporate tax rate as in the Republican budget. The same reform should apply to clean (as well as all other) energy concerns too.
The liberal drive to tax Big Oil is rooted in an ideological commitment to higher energy prices, not consumer relief.
Nazi (No oil for YOU!) Pelosi’s fault.
The Cretin-in-Chief is harping on oil company profits, hoping that there are enough ignorant voters who will swallow this drivel. The measly four billion dollars in depletion allowance the companies get are the same sort of break that farmers and manufacturers get for the depreciation of their equipment.
The C-i-C thinks we don’t know that all taxes will be paid by the consumer anyway. Corporations do not really pay taxes. Taxes are an expense that is built into the cost of the product when it is sold.
Do you think this is accidental?
America EXPORTS, that's right, exports ethanol fuel, AKA corn squeezins, AKA corn liquor. We ship around 1.4 million barrels a month overseas. About 350,000 barrels a month go to the ..........United Arab Emirates. Here's the link to our own gov records of how much oil America exports every month:
http://www.eia.doe.gov/dnav/pet/pet_move_expc_a_EP00_EEX_mbbl_m.htm
Go to the drop down under products to see the American exports of various forms of oil.
Do you think this is accidental?
NO, EVERYTHING Obama does is to hurt America.
We have a $1.65 trillion annual deficit, rapidly declining standard of living and civility, millions of illegal immigrants on the dole, open borders, regulations preventing domestic energy production...
and the media parrots back this sub-topic, to target oil companies which have delivered gasoline efficiantly, for my lifetime.
What about big government, big media, big medicine, big groceries, big autos, big government unions, big lawyers, etc????
I want to hear what GOP hopefuls have to say about improving this country.
Don’t forget, the majority of the money spent by Exxon for crude oil, went to the OPEC Nations. If that money had remained in the U.S. It could have been used to produce jobs which is the only thing that will bring us out of this depression.
Why? Incompetent like Jimmy Carter OR a terrorist like Osama?
The answer to that question is made obvious by actions in Libya, overthrow a government to put Al Qaeda in power. Same solution in Egypt (Muslim Brotherhood).
Our terrorist in chief wants Radical Muslim regimes in Egypt, Libya and Iran. (Hint: Obama said nothing to encourage "rebels/students in Iran).
Thanks gandalftb for the info and the link.
I’ll make your link clickable.
http://www.eia.doe.gov/dnav/pet/pet_move_expc_a_EP00_EEX_mbbl_m.htm
Thanks gandalftb.
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