Sunday, May 1, 2011

Does A Rich Big Goil Need A Handout?

      The big news this week - that is, in addition to Donald Trump finally realizing that President Obama is not the Lion King - are the huge profits announced by big oil companies.  As gas prices soar to $4 per gallon and beyond at the pump,  the following first quarter earnings were announced:

·         Exxon Mobil:  $10.7 billion (up from $6.3 billion)

·         Royal Dutch Shell:  $6.3 billion (up from $4.8 billion)

·         Chevron:   $6.2 billion (up 36%)

·         British Petroleum (BP):  $5.48 billion (down from $5.60 billion during the first quarter a year ago -- including a charge of $384 million related to the oil spill in the Gulf of Mexico)

·         Conoco Phillips:  $3 billion (up from $2.1 billion)

·         Valero Energy Corp:  (the largest independent U.S. refiner):  $98 million, up from a $113 million loss during the same period last year (due, in part, to maintenance expenses)

·         Marathon Oil Co. is slated to announce its first quarter earnings on Tuesday.
     The first quarter of 2011 represented a return to profit levels briefly reached by the major oil companies in 2008, when oil prices hit their all-time high of $145 per barrel. Oil prices are currently around $112 per barrel. 

     While big oil has obviously profited from ever-increasing gas prices, the American taxpayer-consumer has not.  Rising gas prices are taking a big bite out of the American workers' net income and, consequently, having a negative impact on the US economy.  The American consumer has less money to spend, which has slowed the economy and impacted businesses.  In addition, increased gas prices have caused an increase in the cost of other goods and services, as shipping costs increase.  Considering this, should American taxpayers continue to contribute to multi-million dollar tax subsidies for these same oil companies? 
     There have been a lot of suggestions from pundits and politicians, including, of course, continuing to pay big oil companies subsidies while cutting costs in other areas, such as education, Social Security, Medicare, and Medicaid, further slamming the American taxpayer-consumer.  I believe that whatever suggestions are ultimately implemented - discontinuing subsidies for big oil must end, and giving moderate tax breaks to companies that promote renewable fuels and conservation must begin.
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This Week's Recommended Product:
St. Ives 100% Moisturizer - Made in USA by St. Ives Laboratories, Inc. in Los Angeles, CA
(http://www.stives.com/)

(Ed. Note:  There are no US oil companies I could find that primarily use US sources of oil. Therefore, I'm recommending a petroleum-containing product. Lotion is made from a petroleum derivative - petrolatum.)
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