Oil companies spend more on taxes than on oil supply development

American Thinker ^ | June 13, 2008 | Christopher Alleva

[neverdem]

If didn't know better, I would think the Democrats are really trying to lose this election. First they offered up the cap and trade global warming bill in the Senate that was quickly withdrawn when they realized what a debacle they were creating for themselves. Then this week they planned to use a windfall profits tax to vilify the oil companies and distract the public from their negligence and malfeasance for failing to enact laws and make policies to encourage the production and distribution of the life-blood of the nation- oil.

Congress has repeatedly failed to produce legislation to that would lead to more meaningful energy supplies, preferring instead to pass bills that payoff favored special interests and rent seekers. This effort has been largely lead by the Democrats with RINOs aiding and abetting the cause.

There is considerable debate among energy producers about how to meet growing worldwide demand. According the Energy Information agency, there is a daily supply deficit approaching one-million barrels a day. Coincidently, this approximates the amount of oil that is projected to be lifted out of ANWR in Alaska that the Democrats with assistance from a few Republicans have been blocking for almost 3 decades.  In the debate over the windfall tax Democrat Senator Chuck Schumer mindlessly argued that bringing the new Alaska production online would not materially reduce the price of gas.  

Historically, daily world supply and demand track very closely. The graph below shows daily average production and consumption since 2003. This shows alternating supply deficits and surpluses through the third quarter of 2006 that turns to a persistent deficit thereafter. Clearly small incremental changes in supply and demand cause huge price fluxuations. In an interview several years ago, then Exxon CEO Lee Raymond, indicated that they don't even attempt price forecasts when they make multi-decade future investment plans.  

Over the last several the major oil companies have been driven away from investing money in future exploration and production. The so-called Supermajors, Exxon, BP, Shell, Chevron. Conoco, and Total have paid more in taxes than they have invested in the oil business. For the three year period, 2005 to 2007 these companies have paid $292 billion in taxes and invested $265 billion in capital projects. Stunningly, Exxon has spent nearly twice as much buying back it's own stock ($78 billion) as it has on capital projects ($44 billion).
 

Exxon Mobil has been a favorite whipping boy in Washington, even Standard Oil scion Democrat Senator Jay Rockefeller couldn't resist getting in on the fun. While. dilletantes like Rockefeller and many of his Senate brethren, can afford to play around like with this, the country cannot afford this luxury. Exxon Mobil's three year record of capital spending, stock buybacks and tax payments are indicative of serious secular and structural changes in the provision of energy.  Exxon Mobil is buying back stock because they can't find enough energy investments to deploy their excess cashflow. Domestic drilling is severely constrained and international opportunities are scarce. If the business was so great they would use more money to invest in exploration.

 

The voters are rapidly awakening to this policy and legislative failure. Beware, Democrats.

Posted at 11:01 AM | Email | Permalink

[Lumper20]

Think about it

The OPEC minister will look you in the eyes and state:
“ We are at war with you infidels. Have been since the embargo in the 1970s. You are so arrogant you haven’t even recognized it. You have more missiles, bombs, and technology; so we are fighting with the best weapon we have and extracting on a net basis about $700 billion/year out of your economy. We will destroy you! Death to the infidels!

While I am here I would like to thank you for the following: Not developing your 250-300 year supply of oil shale and tarsands. we know if you did this, it would create millions of jobs for US citizens, expand your engineering capabilities, and keep the wealth in the US instead of sending it to us to finance our war against you bastards.

Thanks for limiting defense dept. purchases of oil sands from your neighbors to the north. We love it when you confuse your allies.

Thanks for over regulating every segment of your economy and thus delaying, by decades, the development of alternate fuel technologies.

Thanks for limiting drilling off your coasts, in Alaska , and anywhere there is a bug, bird, fish, or plant that might be inconvenienced. Better that your people suffer! Glad to see our lobbying efforts have been so effective.

Corn based Ethanol. Praise Allah for this sham program! Perhaps you will destroy yourself from the inside with these types of policies. This is a gift from Allah, praise his name! We never would have thought of this one! This is better than when you pay your farmers NOT TO GROW FOOD. Have them use more energy to create less energy, and simultaneously drive food prices through the roof.
Thank you US Congress!!!!

And finally, we appreciate you letting us fleece you without end. You will be glad to know we have been accumulating shares in your banks, real estate, and publicly held companies. We also finance a good portion of your debt and now manipulate your markets, currency, and economies to our benefit.

THANK YOU AMERICA !”

[griswold3]

That’s a good one.

Corn based Ethanol.

Corn price $7.09 6/13/08
7.09 7/08
7.36 1/1/09

[AZLiberty]

Nothing saps energy like giving away your money to the government. Especially if you’re an oil company.

[neverdem]

BTTT!

[DHerion]

I’d like to know the amount of money Mexico, Venezuela, Iran, Nigeria, Libya and others are investing to increase their produiction. I’m guessing they are not investing near the percentages private oil companies are - they are spending it to stay in power and buy weapons and support terrorism. They are clearly more worried about today than five-tenyears from now.

[neverdem]

http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html

Can anyone reproduce those world oil supply & demand numbers from this website?

[hosepipe]

And not a word about the Gull Island 60 mile long 30 mile wide 1200ft deep pool of oil at a couple thousand ft. depth under and west of Prudeau Bay.. NOT A WORD..

You'd think some Congressmen would be shouting it from the rooftops.. We're talking multi trillions of barrels.. dwarfing Saudi reserves..

[Recovering_Democrat]

thanks for posting this

[PugetSoundSoldier]

And not a word about the Gull Island 60 mile long 30 mile wide 1200ft deep pool of oil at a couple thousand ft. depth under and west of Prudeau Bay.. NOT A WORD..

Probably because it's a fantasy...

[BOBTHENAILER]

Have them use more energy to create less energy, and simultaneously drive food prices through the roof. Thank you US Congress!!!!

Nicely done L20!!!

[haroldeveryman]

“If didn’t know better, I would think the Democrats are really trying to lose this election.”

I wish McCain would give them a little help.

[PubliusMM]

Or, giving your money to the jihadists against we are engaged in Afghanistan and Iraq...

Surely, at some point even the LibTards will have to wake up to the fact that we are funding BOTH sides of the WOT...

Unforgiveable.

[hosepipe]

[ Probably because it's a fantasy... ]

You mean Gull Island, Alaska is a fantasy or the two other massive oils fields to the left and north of it are?.. The one to the north is reported to be 4 times bigger.. but I suspect its only two times bigger..

I don't how to deal with the oil thing though.. I am still not comfortable with John McLaim becoming the republican candidate.. Where most republicans despise the little weasle.. now thats some serious ballot box stuffing.. The mother of all conpiracys must be working..

[PugetSoundSoldier]

The two massive oil fields. You don’t hide something that big; even at $10 a barrel, you would have $1 trillion worth of oil sitting there. At today’s prices, that would be essentially equal to our GDP. That kind of a resource doesn’t sit “hidden”...

Any links to corroborate the story of the oil other than the single, solitary minister’s recollections from 30 years ago?

[Lumper20]

TY. This was sent to me by a man far smarter then I am.

It is not my creation, as I am not in his intellectual league.

[hosepipe]

[ Any links to corroborate the story of the oil other than the single, solitary minister’s recollections from 30 years ago? ]

No... But I believe him.. The evidence of Congresses actions for decades limiting and outright prohibiting drilling and putting obstacles to any development of Nuclear and other known massive offshore and Bakken resources and forbidding building of refinerys.. shows a tendancy to do what Williams says.. exactly as he says it.. Not to speak of oil shale and oil sands.. lying fallow.. Even Now with $5.00 gas they don't care.. as Williams says.. the price of gas will go up much further too...

Conspiracy?.. absolutely.. Vince Foster was murdered.. and it made a statement.. Most republicans became instant RINOs.. and its gotten worse..

[PugetSoundSoldier]

Except that EVERY other resource you mention is known, has been known, and has had limited extraction so far by the oil companies.

Gull Island has none of these. What proof or even report is there to show a hint of the resource? We know of the Bakken, oil shale, and Gulf oil fields but are restricted from pumping. But we do know, and have data.

Bottom line: a $15 TRILLION dollar field (that’s just the 30 mile x 60 mile x 1200 foot pool, not the other, equally large pool) isn’t sitting untapped or unknown.

[neverdem]

And not a word about the Gull Island 60 mile long 30 mile wide 1200ft deep pool of oil at a couple thousand ft. depth under and west of Prudeau Bay.. NOT A WORD..

Alaska’s Gull Island Oil Fields Could Power U.S. for 200 Years

The Energy Non-Crisis Google video with an audio track better than YouTube's(sp?).

They sound like a John Birch conspiracy with about as much credibility as man made global warming.

[Lumper20]

Do you know he-”Graham” IS BS?