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Top Oil Giants Exxon And Shell Earn $54 Billion So Far In 2012, After Taking $800 Million In Annual Tax Breaks
By Rebecca Leber on Nov 1, 2012 at 11:44 am
by Rebecca Leber and Jackie Weidman
ExxonMobil and Royal Dutch Shell, No. 1 and No. 2 on the Fortune 500 Global companies list, announced their third-quarter earnings on Thursday. Compared to last year’s earnings, both companies’ profits are down slightly — 7 percent for Exxon and 15 percent for Shell — on weaker oil prices. However, ExxonMobil and Shell earned $9.6 billion and $6.1 billion respectively, bringing their total 2012 profits to $35 billion for Exxon and $18.9 billion for Shell.
These two companies, along with the rest of the Big Five, continue to receive century-old annual tax breaks. At the same time, Exxon and Shell funnel a portion of their dollars toward lobbying against environment and public health protections, while also funding climate denier candidates. This summer, Exxon CEO Rex Tillerson said that he recognized carbon pollution causes warming, but minimized the full impact saying “those consequences are manageable.” Meanwhile, extreme weather damages in the U.S. alone have potentially cost up to $144 billion since 2011.
Below are the highlights of where Exxon and Shell spend their earnings:
ExxonMobil:
– Exxon received an estimated $600 million in annual tax breaks. It paid just a 13 percent federal tax rate. – Exxon spent $5.1 billion — or 53 percent– of this quarter’s profits to buy back its own stock, which enriches the largest shareholders. – Oil production for Exxon for Q3 in 2012 is 5 percent lower than this time last year (2.1 million of barrels per day in Q3 2012 vs. 2.2 million in Q3 2011). – In 2012 alone, Exxon spent $12.7 million lobbying Congress, according to the latest Federal Election Commission figures. – Exxon spent $2.1 million on direct federal and congressional campaign contributions so far in the 2012 election cycle, with 90 percent going to Republicans. – Some of the biggest Congressional recipients include Senate Minority Leader Mitch McConnell (R-KY), Sen. John Barrasso (R-WY), and Speaker of the House John Boehner (R-OH). – Exxon’s CEO Rex Tillerson’s total compensation in 2011 was $34.9 million.
Royal Dutch Shell:
– Shell received a $200 million annual tax break in 2011. – Shell has $18.8 billion in cash-on-hand. – In the third quarter, Shell used $149 million of its profits to buy back its own stock. – Shell’s oil production decreased by 5 percent compared to this time last year (1.59 million of barrels per day in 2012 vs. 1.67 million in 2011). – Shell spent more on lobbying than the other Big Oil companies – $12.9 million so far in the 2012 election cycle – according to the latest Federal Election Commission figures. –Shell just finished drilling top holes in Arctic waters for the year, after issues with its containment barge and ice flows created delays.
The last of the Big Five oil companies, Chevron, will release its third quarter profits Friday.
Posts: 3827 | From: beautiful California | Registered: Sep 2008
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posted
Do you have the numbers on how much money in royalties they paid to the US Government on their oil and nat gas production? Of course you dont. Think progress would never look at that. It would never be enough anyway to some people. Millions per day paid to the US Treasury, and what happens to it...it gets squandered away. That is why we should raise taxes, because the more money that Washington gets, the more responsible they are with it. Right?
BTW, Royal Dutch Shell is headquartered in the Netherlands.
Looks to me like they are just behaving like General Electric which took in massive amounts of stimulus money, sent it to China for turbines, and paid 0 in federal taxes. The CEO of GE sits on Obamas "innovation and jobs council".
Obama never did pound his fist on the podium demanding tax code reform. He had control of the house and senate for years and could have done something. Closed the loopholes, etc. His idea of tax reform is just raising taxes.
-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so. Posts: 6949 | Registered: Apr 2004
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Hi dim wit, royalties are a cost that is passed on to the consumer. You have brought this up before remember!
-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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quote:Originally posted by raybond: Hi dim wit, royalties are a cost that is passed on to the consumer. You have brought this up before remember!
Are they? How are royalties a cost that are passed to the consumer?
U.S. federal oil and gas royalties are payments made by firms to the federal government in exchange for the opportunity to explore for oil and gas on government-owned land or water. Traditionally, most of the funds generated by these royalties have gone directly into the general U.S. Treasury. Some of the funds have been directed to the Historical Preservation Trust Fund and the Land and Water Conservation Fund. During most of the twentieth century, oil and gas companies generally paid between 12.5 and 16.7 percent in royalties for a lease to drill on public land or water. Over time, these royalty payments generated over $100 billion in revenues.
Posts: 6949 | Registered: Apr 2004
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LOL cash, you're hopeless... you should look up royalties in other countries.... you will find that the US has some of the lowest roytlies anywhere, and some of the lowest taxes on oil and oil co's anywhere.. but i know you won't do that because the little man in your TV toldja not to
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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If you are a company footing 100% of the exploration costs then 12.5-20% profit sharing on the government side is not a bad deal at all. If the government is not going to put money into 3D seismic, drilling and completion of a 20 million dollar well in the gulf of mexico, then I would say keeping 20% of the profits from that well without any skin in the game is a good deal.
If you own land and I say I am going to spend 20 million to drill, and you keep 20% of the profits without putting any money into it, I would say it is a good deal for you. The mistake made about it is thinking they deserve more without any equity in the deal.
-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so. Posts: 6949 | Registered: Apr 2004
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first off cash, the US govt "keeps" absolutely nothing. the chinese govt does keep maoney. secondly? the royalties paid are auctioned off like treasuries are... whoever offers the highest gets the lease... there's no actual rates applied like there are in almost all other countries...
you seem to have ignored my statement that the US has the lowest amount of net taxes worldwide. that's because you know i am correst even tho all th epolitical BSers like to point a the schedules that show high rates. the FACT is that wehn oil co's hire an accountant? they end up geting several dollars back in taxes for every dollar you pay the accountant, whose pay is also deductible...
the 'scam" here is in the accounting.
until people in general recognise teh real problems? the US is doomed. and you have been given all the information you need to recognise the real problem and you just continue to mime the liars... so you you and the people just like are what the real probelms is here
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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there's another issue here that you fail to recognise too cash.
the oil in the leases actaully belongs to the American People by way of their government. that is how the other countries that charge as much 90%.. yeah Nigeria, libya (which is now deceased) Abu dahbi... and saudi arabia? I beleiv that if you peel back thecurtians there you'll find the oil money IS the govternmnt...
in other words, the oil co's love to do business here, it is profitable, and they bid to lease that land and use the oil in it from the American people. it's nothte "the government"... now if you are willing to become one of the people who demands that the Governmnt be accoutnable to the people? you need to first drop allthe partisan parroting...
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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of course oil royalties are paid at the pump they are figured into the price per barrle no business takes just some of the cost of production into the price of there product. They figure all the cost.
You remind me of a car dealer that feels sales tax is a tax that they pay because they right a monthly check for it. Believe me there are lots of merchants that feel that way. So cash don't tell me about the poor oil companies.
-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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the last, and prolly most important factor here moocow, is that ANY consumable resource, (as opposed to a recyclable) like nat gas and oil that is NOT leased,drilled adn used today is there in "the bank" ofr our descndants... i know this is ahrd concept for you, but these resources are most definitely finite, and when they are gone, they are gone. so waiting a few years just means more for our children to use when they NEED them, nd everyone elses are already gone? they will be infinitley more valuable....
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so. Posts: 6949 | Registered: Apr 2004
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it's like the fracking issues cash, fracking works, i followed it form it's inception, even made some trades on one of the first wells it was used..
back then? the frackers admitted the problems they were facing.. after acouple successes? everybody and his brother started doing it and the problem was not with Fracking itslef, it was witht he cheapskates hwo cut corners... they made fracking into a 'bad" thing in the public eye...
in the future? fracking will prolly be done using jellied propane which will then be fully recovered byt eh well for use as product... but using water and god knows what has caused alot of uneeded pollution..
as to saving the fuel for our kids? i hope we can get off carbon based fuels before we run out. that cost moeny right? it has to come form somewhere, and i know enough about how funding research works to know that it needs to come NOW and come form the fuel we are using now, which is paid for int he end by us consumers...
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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