Big Oil
Otherwise known as Exxon Mobil, Royal Dutch Shell, British Petroleum, Chevron, Conoco Phillips, and Total SA. First of all let’s talk about the name. This of course is the name that the press or politicians use when they are complaining and moaning about the price of gas which has nothing to do oil companies.
Newsflash: Oil companies have to be big. The reason for this? They have to be big to create the enormous economies of scale that allows them to produce gasoline at the price that you and I buy it for. There is nothing wrong with being a big company, it simply lets BP pump, refine, ship, and sell crude at lot sizes of 100,000 barrels per. If there was a mom and pop oil company it would sell oil at $50 a gallon for premium!
If certain politicians, environmentalists, and celebrities had their way laws and taxes would make being “big oil” unprofitable and drive them out of business. When did selling a product that people want to buy for a profit become faux pa? I hear chatter on the news about levying additional taxes on the oil industry.
80,000,000,000! Yes thats right eighty billion, and that is Billion, with a B.
That is what big oil made in profits in 2007. Excessive? Maybe. Should we tax them more? Of course not! They already paid 40,000,000,000 in taxes!
Net Income Income Tax
ExxonMobil (XOM) 40,610,000 29,864,000
RDS No Income Statement
BP (BP) 21,169,000 10,442,000
Chevron Corporation (CVX) 18,688,000 13,479,000
ConocoPhillips (COP) 11,891,000 11,381,000
Total S.A. (TOT) 19,935,702 19,994,618
Totals 81,714,702 41,817,618
