Posted on 05/15/2011 5:55:07 AM PDT by Clive
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All of those “Oil Profits” are put back in the ground. Do you people think that oil companies have some kind of giant vault that they put the money in?
I would like to remind everyone here that the price of OIL has not gone up, THE VALUE OF YOUR MONEY HAS BEEN STOLEN BY CONGRESS AND THE FED.
I dunno, I thought Exxon-Mobil made about $0.02/gallon profit, while los Federales take about $0.57 and the Commonwealth of Massachusetts awared itself %0.21.
We need an audit of how Gov't spends their take.... and I think we'll find out why gas prices are so high.
——Gov’t gets a lion’s share——
Last week the former Shell CEO who has become the industry spokesman said that the solution was to issue permits and produce oil. The government gets an 18% royalty on permitted oil. He ran through some figures and it is apparent to even the most stupid that the royalty is extremely beneficial while the lack of royalty from imported oils is not.
Bottom line....... new oil pays the government big time, surpassing the dreamed green benefits with reality of bankable money.
“In politics, nothing happens by accident. If it happens, you can bet it was planned that way.” -Franklin D. Roosevelt
With all due respect, the price of oil HAS gone up in real terms — and the dollar has also devalued. It is both, making it a perfect storm.
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Now we just need more refineries along with new drilling or it's not going to do us much good....IMHO
Please define “you people”
You mean that royalty payment is not a balance sheet deduction. Dang, I did not know that, I thought it was a business expense, sort of like moving five dollars from your left pocket to your right pocket after the depletion allowance.
And now the administration has announced that there will be more drilling on federally owned lands which will benefit the government even more.
-——You mean that royalty payment is not a balance sheet deduction.———
I do not know how the transaction develops. I assumed that when the crude was extracted the royalty became due at the applicable rate on that day.
The man is on Cavuto fairly often and made the statement but did not go into detail. I Binged the subject and learned it is complex beyond my understanding for a reply this morning.
“Federal crude oil royalty payment” Binged yields a lot of detail
While it is true that oil companies make only pennies per gallon net profit from the sale of wholesale gasoline, there is a reason that whenever the price per barrel of oil spikes, oil company profits skyrocket.
Oil companies sell oil. If Exxon Mobile lifts oil from a well that cost them $20 per barrel in production cost, and is able to sell that barrel for $100, that is a tidy profit.
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