Friday, August 01, 2008


“Rising Oil Prices Lift Exxon to Record Profit”

I’ve noted it a few times before, but here it is again:

Profits at oil companies this quarter continued to reflect oil prices that almost doubled in the second quarter from the year earlier.

Exxon Mobil on Thursday reported that second-quarter profit rose 14 percent, to $11.68 billion, the highest-ever profit by an American company. Exxon broke its own record.

The profit of $2.22 a share compared with $10.26 billion, or $1.83 a share, in the quarter a year ago.

Earlier in London, Royal Dutch Shell, Europe’s largest oil company, reported a 33 percent increase in second-quarter profit on Thursday, helped by a higher oil price even as production declined.

It seems very, very clear: limit profits, limit fuel prices. Or say “We can’t,” and accept that a few oil executives will buy new mansions at the expense of everyone who drives a car or stays warm in the winter.


Laurie said...

Gah! Sorry. This is one of my husband's pet peeves. It is absolutely disgusting what these people are being allowed to do.

Anonymous said...

This past quarter, ExxonMobil made what some deem a fat profit [actually not so fat – that's about 8.5 cents per dollar of sales], but the company also had a fat tax bill. On a worldwide basis, ExxonMobil paid over $10 billion in corporate income taxes in the second quarter alone, $9.5 billion in sales taxes, and over $12 billion in other taxes.

In other words, ExxonMobil paid (or at least collected) $32.361 billion in taxes in the second quarter. Or to look at it another way - Exxon paid (or collected) almost $3 in taxes ($32.361 billion) for every $1 in profits ($11.68 billion).

That means that for every dollar in Exxon sales – not profits, SALES -- 23.4 cents is for taxes. And that is averaged over all types of sales – not just gasoline.

For the financially illiterate who wish to verify these figures, here's a URL for the company's quarterly earnings statement (if this board allows URL's -- otherwise Google it):

andrew said...

well its no wonder they are seeing record profits. I mean look at the amount of taxes they have to pay. Lower the oil companies taxes and then they will have no reason to increase their profit as much. The main point of owning a company is to make money. Especially if you are in the stock market. These oil companies shareholders are invested in this oil company to make money. By reducing its profits and letting democrats raise their taxes shareholders will sell their stocks in these oil companies. Now I do not care who you are anyone in these CEO positions would do the exact same thing that is happening right now. What im trying to say is that while we mope and whine about their record profits take a look at the amount we tax them. As far as i am concerned we have brought this upon ourselves by trying to boss oil companies around with heavy taxes. We penalize them for being a company that is trying to do its best as a company. I dont see people complaining about how expensive a pair of pants is from true religion when it costs them a total of a few dollars to make their jeans that they sell for three hundred dollars to the consumer.

The Ridger, FCD said...

So, if they weren't paying those taxes they'd be raking in even more? Can't say that makes me feel even the slightest bit sorry for them. The fact is that right now price is unrelated to supply - it's artificially high due to market speculation. The companies are benefitting as much as the speculators.

Barry Leiba said...

Oh, look!: Mr Anonymous is a sock puppet. How quaint. I wasn't sure whether to approve the comment or reject it, but it is on topic and it's not obscene, so.... My "rules" don't bar sock puppets. I just figure that if Exxon wants to comment, they're welcome to do it openly, instead of hiding like that.

But, you know, whatever.