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Oil Profits: Govt Makes $54 BILLION

Discussion in 'The OT' started by durl, Apr 26, 2006.

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  1. durl

    durl Hall Of Fame

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    We're hearing a lot about oil company profits being out of control. But who makes the most profit from a gallon of gas? Government.

    Last year, oil companies had profits of $36 billion while the US government profited $54 billion from oil taxes. Since 1977, miscellaneous levels of government have collected more than twice the domestic profits my major US oil companies.

    Democrats are very busy right now claiming that oil company profits are killing off the middle class, but I haven't heard a one call for a reduction in the gasoline tax. Millionaires and those making $10K/year pay the same amount of tax per gallon of gas. And some Democrats are calling for windfall profit taxes in order to "punish" oil companies when the last time it was tried, it backfired. (Since when did politicians looking for an election issue actually try to learn from the past?)

    Right now, we pay on average about 46 cents per gallon in taxes. In 1981, the federal gas tax was 4 cents/gallon. By 1993, the tax had increased 360%, hardly in line with inflation.

    Profit margins? "Exxon’s profit margin for its high-earnings quarter (dividing $9.9 billion by revenue of $100 billion) was almost 10 percent. But a look at Fortune’s Global 500 list from July 2005 shows that is not unusual – and some companies surpassed that in earlier quarters. Johnson and Johnson showed profits of almost 18 percent in the July report, while Bank of America enjoyed more than 22 percent." - http://www.freemarketproject.org/news/2005/news20051102.asp
     

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  2. Capmeister

    Capmeister Large Hairless ApeCutting Edge: ECHELON '08

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  3. invaliduser88

    invaliduser88 Welcome to Torchwood DBSTalk Gold Club

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    A buffalo farted in Africa and caused gas prices to go up by another 0.15.

    The gas producer are using FUD to drive up prices.
     
  4. Eagles

    Eagles Godfather/Supporter DBSTalk Gold Club

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    Talk about price gouging. These politicians rely on the emotion and the ignorance (not stupidity) of the average person to demonize "BIG OIL", when in fact big oil is a main component in the engine which drives this country. A couple of things to consider to put this in perspective. Exxon-Mobil (BIG OIL) is a mega huge company. The profits realized in static terms are mega huge as it relates to the size of the company. As far as profit margin, they are nowhere near the top of the list. In fact their profit margin of 10.6% is ranked 116th on Fortunes list of top 500 companies. Compare this to Microsoft at 30.8%. I know some of you out there will argue that this is apples and oranges as oil/gasoline is a necessity and software is not. Another thing to consider using the Exxon-Mobil example. People tend to forget that this "EVIL" company is made up of 99.9% blue collar average Joes making very average wages, who depend on those wages and the company's profitability to support and feed their families. A very minute almost non existent percentage of the employees are the big evil corporate tycoons with $400 million separation packages. I would love to see one of these big oil CEOs who are called to testify in front of congress about price gouging call their bluff and throw some of those tax numbers back at those pompous ass congressmen on both sides of the aisle.
     
  5. jonstad

    jonstad Hall Of Fame

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    Well, ya got me convinced.:yesman: The oil companies are being made the scapegoats and villains here. After all, even benevolent:sure: health supply providers and credit card companies have greater profit margins!

    A couple small questions though?:scratchin

    Without the gasoline taxes, how're we gonna pay to build and maintain the roads, which would seem to benefit oil companies?

    And how're we gonna pay for wars to invade countries with lots of oil, which would seem to benefit oil companies?
     
  6. Bogy

    Bogy Hall Of Fame

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    Mar 23, 2002
    I realize the oil companies are really suffering right now, having to figure out what to do with record profits and so on, but DO companies who are making record profits really need corporate welfare? We subsidize oil companies to the tune of 20 to 55 billion dollars a year, the higher figure including the cost of gulf wars. Windfall taxes are one thing, subsidies for robust companies is another.
     
  7. tomcrown1

    tomcrown1 Hall Of Fame

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    http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/04/26/BAG4CIFE721.DTL

    Ultimately, however, there's not much Sacramento can do about rising prices, even if the pols want to, said Severin Borenstein, director of the University of California's Energy Institute.

    "Most of this is the world oil market, and the world oil market is telling us the prices are very high because there is a real shortage,'' Borenstein said.

    He agrees that refiners are "making a ton of money'' -- about 30 cents a gallon more than they earned at the start of the year -- because of a refining capacity shortage.

    But he also added, "Contrary to what many believe, we don't have a God-given right to unlimited quantities of gas at a price we choose.''

    Hey good idea lets get off gas and get on to coal energy(let her rip)
     
  8. Opynion

    Opynion Godfather

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    Alot of people don't complain about the price of gas, they even buy an ATV to each kid they have, those kids don't seem to get tired of riding everyday, maybe the price of gas has to go higher for some people. ;)
     
  9. skidog

    skidog Godfather

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    My atv gets 22 miles to the gallon, so I can go quite a ways on a little money.
     
  10. Danny R

    Danny R Goblin the Pug DBSTalk Gold Club

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    while the US government profited $54 billion from oil taxes

    Sorry, thats not "profit." For one thing, the "Highway" bill was $286 billion. Of course I'd be more than willing to drop the gas tax if we also cut out all the pork in that piece of legislation.

    Democrats are very busy right now claiming that oil company profits are killing off the middle class, but I haven't heard a one call for a reduction in the gasoline tax.

    You're not paying attention. Here is one. I found others:
    But to be fair, both parties have proposed tax cuts on gas and both parties have blocked such actions (you can't claim republicans haven't... who's in power now?)

    Its not really a party line issue but more of a state one depending on how dependent they are on transportation pork, er funds.

    On the state level, a quick search shows that state gas cuts have been proposed by both parties as well. I don't see this as a real partisan issue.
     
  11. Opynion

    Opynion Godfather

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    The new Toyota yaris, 40 mpg :rolleyes:
    and some kids prefer to drive the ATV, instead of playing with the video games, they must be fed up with those games, not even the 360box gets them off the atv's. :cool:
     
  12. invaliduser88

    invaliduser88 Welcome to Torchwood DBSTalk Gold Club

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    The gas tax doesn't get set by speculators that raise the price after every hype story you hear on CNN.

    BTW, go to the UK the taxes on gas there make what we pay look like nothing.
     
  13. rickfromthesticks

    rickfromthesticks AllStar

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    If Mobil-Exxon was using the money it would get circulated somewhat, but according to the aritcle I read they had 40 BILLION dollars in the bank (as of 9/30/05). Beyond their drilling & exploration budget. Excess cash, no record disbursment to their stockholders, no new charities, just a 400 million dollar retirement plan for the chief. Give me a break.

    By the way, the Feds have cut the tax on gasoline every time we get better mileage or just drive less. Their cut is per GALLON. The 10% profit is per DOLLAR. As prices go up the profits increase, but as we buy less the Feds get less.

    My ATV gets 50 mpg. I guess I'll have to start driving it to work, but they won't license it to be on the road. Go figure.

    Rick
     
  14. Opynion

    Opynion Godfather

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    Taxes on gas, as someone might say,
    it's only a little money. :cool: :lol:
     
  15. Capmeister

    Capmeister Large Hairless ApeCutting Edge: ECHELON '08

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    No one--no company, no individual--should receive welfare of any kind.

    That doesn't mean 10% profit margin is outrageous and therefore the gov't should step in.
     
  16. Capmeister

    Capmeister Large Hairless ApeCutting Edge: ECHELON '08

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    Money in banks is how banks loan money to others.
     
  17. lastmanstanding

    lastmanstanding Godfather

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    Bogy,

    I see that you are the top poster. Congratulations. Over 12000 posts. That deserves a prize or something.

    As far as oil prices, much of the run up is due to commodity mania. First dot coms, then condominiums, now commodities. Seems that there is a mass of eager money that keeps rotating venues.

    Personally, I hope oil prices stay high enough long enough to let alternatives get off the ground for real this time. A prediction, I don't think they will. There is plenty of oil out there and at these prices it will find its way onto the market.

    1980 all over again. Oh well.

    Fun to watch all the lather about hybrid cars. Even at $3.00 gas it takes a decade of driving to pay off. Turns out those big batteries are a real plague for the landfills, so there goes the environmental benefit.

    How about a nice uranium battery? A box the size of a picnic cooler would power a car for 200,000 miles and cost $3000. Some schmuck would pry the thing open, and UBL's playmates would do worse with them.

    Anyway Bogy, keep on posting!

    LMS
     
  18. Richard King

    Richard King Hall Of Fame

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    The solution to Exon Mobile having the highest profits in the history of American industry is simple. Split the company up into 10 equal size companies, distribute the stock in those 10 companies to the existing shareholders of Exon Mobile. Suddenly you have 10 companies making 1/10 of what the former parent company was making and all problems are solved. :rolleyes: The next time a company DARES to hit record profits ever again, do the same thing to it, no matter what the industry. Companies should NEVER be allowed to make record profits, EVER. Afterall, everyone knows "profit" is a dirty word.
     
  19. olgeezer

    olgeezer Guest

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    Thanks Danny for the reasonable post. The great roads we drive on today are do in large part by fuel taxes. Believe it or not there are taxes that advance a society. While the only truly fair tax is income tax, there are usage taxes that serve a purpose improving society. For you libertarians out their, who was the fellow who said to paraphrase that taxes were something that we do in a civilized society? ( sorry about not remembering the quote but the fella was right)
     
  20. lastmanstanding

    lastmanstanding Godfather

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    Rich,

    That's right. That's why Microsoft stock was leveled off when all the lawsuits started. Rather than grow the company and profits, it became politically expedient duck and cover. So they piled up cash beyond all reason rather than grow and attract more ire.

    Achievement must be punished! Better yourself and suffer! Or something.

    LMS
     
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