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 First they offered up the cap and trade global warming bill in the Senate that was quickly withdrawn when they realized what a debacle they were creating for themselves.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]

I believe him. I believe we have oil out the a in this country. America “Drill it or lose it.”

[neverdem]

Do you know he-”Graham” IS BS?

Lindsey Williams? I don't know about him or Gull Island's veracity. However, nobody denies other known sources of fuel in or around North America. We should be selling energy.

[singfreedom]

Every citizen in the country needs to read this article! According to a poll, Americans are catching on to the fact that it is NOT the oil companies fault—it is CONGRESS! Our own government is conspiring against us!!

I just ordered 10 bumper stickers from World Net Daily that say: Drill American Oil Now! I would advise EVERYONE to get one.

[singfreedom]

Yes. We are probably financing Iran’s nuclear program. Ironic, isn’t it.

[singfreedom]

VERY well said!

[singfreedom]

I hear you, hosepipe, and I hope Congress is listening to you, too!

[singfreedom]

It doesn’t matter whether Gull Island is “for real” or not. There are plenty of other places in this country where we know there is oil and plenty of other places to look. The real point is we are not even being allowed to LOOK!!

The inaction of Congress is a travesty.

[hosepipe]

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

Funny you mention John Birch.. he was mostly correct you know.. and Joseph McCarthy was 100% correct.. as research in KGB Archives in Moscow has since PROVED..

There has been and ARE NOW several conspiracys against the American people being promulgated with three stooges precision.. They make huge mistakes but the idiots discount that they even "IS" a conspiracy..

[hosepipe]

[ 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. ]

The way I calculate it Gull Island and the other fields there would bring several hundred trillion dollars in revenue.. But unlike Williams I think that resource would strengthen the dollar and increase Americas economic strengh.. Not to speak of bring commerce(JOBS) back to the U.S..

The only way I can see this NOT HAPPENING is as if U.S. officials DONT WANT THIS TO HAPPEN.. Which seems to be the case.. I highly suspect a shadow government directing maneuvers behind the scenes.. i.e. the Vince Foster saga.. and the instant republican RINOS created because of his death/murder..

[hosepipe]

[ Gull Island has none of these. What proof or even report is there to show a hint of the resource? ]

Well DUUUGH.. thats Williams POINT!... as he said himself in the videos..

This data is being withheld/hidden/secret/omitted/guarded/redacted/not noised about/not celebrated from WHOM?.. The American people and not openly debated considered and handled..

Geeze.. dude.. SLAP.. SLAP.. eye poke.. head slap..

[neverdem]

Funny you mention John Birch.. he was mostly correct you know.. and Joseph McCarthy was 100% correct.. as research in KGB Archives in Moscow has since PROVED..

I don't believe Joseph McCarthy was 100% correct, maybe 90 - 95% correct. Because of the few he got wrong or couldn't prove at the time, the left goes on to say he was a big meany and needlessly cruel.

William F. Buckley: Goldwater, the John Birch Society, and Me

P.S. I know about Venona.

[neverdem]

Unlike Others, U.S. Defends Freedom to Offend in Speech

Return of the Dupes and the Anti-Anti-Communists

Cold War myths Here's one of the above.

It's time for a ban on handgun bans

From time to time, I’ll ping on noteworthy articles about politics, foreign and military affairs. FReepmail me if you want on or off my list.

[Quix]

OF COURSE.

Though it has little to do with legislative failure.

The Congress has done exactly as their NWO GLOBALIST bosses have ordered.

30-50 years ago . . . depending on where in the process . . . certainly during Ike’s Presidency, the powers that be—decided to withhold major USA oil finds from development and use the world’s oil until we were left holding what was left.

See FR thread on Gull Island:

http://www.freerepublic.com/focus/f-news/2027598/posts

The good Chaplain has been on record quite a number of years.

And, IIRC, there’s a North/South Dakota oil field that’s also super huge. And there are already proven NORTH SLOPE/ARCTIC fields not begun to be tapped that are huge.

The puppet masters deliberately planned way back THEN to drive gasoline to $10.00/gallon.

They are deliberately crashing the US DOLLAR.

They are deliberately planning to starve and otherwise kill Billions of people, with a B.

These just happen to be facts. Folks in denial are less prepared to deal with them than those who are finally beginning to wake up.

Scripture/God declares FEAR NOT—walk close to HIM; Trust in HIM.

They will eventually try and prove that Almighty God is merely another ‘ET’ who they plan to DEFEAT at Armageddon.

Satan knows better but has convinced them of that. They are in for some major shocks after being sooooo astronomically destructive to so many.

Thankfully, God will shorten the time, else, as Scripture says, no flesh would be saved.

[hosepipe]

Good Buckley thread.. It was veritably legal to be a communist or a socialist, still is.. That drove more than a few anti socialists a bit nuts.. Commies were everywhere and nowhere.. I know I'm a bit nuts over it.. even more with academia and the media, Hollywood, the North East States and the whole democrat party in total control of them.. John McLaim becoming the republican candidate thru I don't know what gambit is a bit scary too..

There seems to be ZERO right wing in America these days.. Its like the right wing said screw it, we're screwed.. call me for the revolution..

[neverdem]

The author of “Return of the Dupes and the Anti-Anti-Communists” that I linked in comment# 32, Paul Kengor, was on CSpan2 just before and probably other later segments tomorrow.

[hosepipe]

Will be looking for it..

[Quix]

We tossed the TV out a year and a half ago and finally took it to the dump several months ago.

Maybe it will show up on YouTube.

Thanks.

[Quix]

Thankfully,

God has already won and will overtly win BIG TIME in the end.

It’s the blood between here and there that’s . . . beyond awful.

Overwhelmingly propagated by those who think they are saving the planet from . . . us.

[Salvation]

Eat that, congress critters!

U. S. Senate

U. S. House of Representatives

[hosepipe]

[ God has already won and will overtly win BIG TIME in the end. ]

Many I know "feel" something important is about to happen.. They don't know what.. but they sense something.. Privately of course.. they would never speak openly of it.. I'm talking about a good number of people..

I do too.. upon being questioned about WHAT WILL HAPPEN?.. I would demur.. I believe its wise to go day by day (as Jesus suggests).. even moment by moment.. because the future AND past is made of moments.. Handle the moments wisely and the future will take care of itself.. We could all use help with the word "wisely" though.. Faith is now and will, I beleive, become even more of a blessing in the future..