Oil execs at Congress today: Defending tax breaks, explaining oil prices

The absurdity of ANY oil company getting "tax breaks" under the existing exorbitant price escalations for petroleum is almost too ridiculous to address.

The same applies to subsidies for growing corn for ethanol fuel. The impact of the subsidies for this are significantlyy responsible for some of the escalations in food prices . . . a large amount of foods have corn byproducts in them . . . corn oil, corn starch, etc.

Subsidies are not lowering prices to any degree; especially for petroleum. This is a total charade and a massive rip off of our nation's economy. They are bleeding our country dry from EVERY ASPECT and Congress is doing absolutely NOTHING about any of it.

It's time to elect new Congressmen who will represent the best interests of ALL AMERICANS.

How can it be that out of 150 MILLION people with computers, I am the ONLY person to post a comment here?

This doesn't look too logical. And I have noticed that many other comments are "disappearing from various sites. Is there some sort of "censorship going on on the Internet?

Could be some truth in what you are saying about the censorship part B. Harrison. I've had my suspicions also elsewhere. Nevertheless, the oil companies are undoubdtedly riipping the american consumer off. I mean, Exxon makes nearly 41 billion in PROFITS, yes profits, in one year, unbelievable. Can it then summarily be deduced, and I know that it can't simply be stated this way, due to the many contributing factors that goes into what defines profits, but, in simple mathematical terms that a kindergardener would understand................if we, instead of paying $3.50 p/gal. were instead paying about half that, say $1.75-$2.00, would it not make sense that their profits would still amount to somewhere around the 10-20 billion dollar annually? That don't sound too shabby to me. Would you not agree?

The reason prices are raised is to prevent shortages. The normal reaction from gasoline consumers would be to reduce demand, yet we are consuming more and more mindlessly. Congress is too scared to tell us off because they need our ignorant votes.... Congress is trying to wriggle around politically without doing much anyway.. They are just posturing themselves for reelection and returning to their marble walled offices as usual... Sure, Congress solves problems but not all of them as we would think... Again, it is poliitics.. meaning the same as being careful not to make someone pissed off....tolerance, tolerance, tolerance...

OK you 2, let me explain. The $42 billion profit was earned on revenues of $358 billion, representing a net profit of 11%. That's pretty damn poor considering the risks of the oil business. I sure as hell wouldn't take an 11% return investing my money in a business that has a 1 in 10 chance of succeeding in even finding a product to sell; and if either of you is halfway intellegent neither would you. The we talk about the risk of the business in terms of lives. People get killed in the oil business, and not a few are murdered by terrorists in countries where the company is drilling. Or the assets of the company get stolen by thugs (Hugo Chavez for example.) Then the compnay is regulated beyond common sense by government(s) trying to be all things to all people. Then lets not forget...there hasn't been a new refinery built in America in over 25 years; Just to damn many regulations, rules and other roadblocks to deal with. That's why you gas is so expensive. There's plenty of crude, it just can't get refined quickly enough. Go talk to the politicians who sold you out to the corn farmers for their vote, and stop bitching about a company making a fair profit for the risk undertaken.

you got to be kidding, i dont get a tax break for
my business why should they. tripple their taxes
and relieve me of mine

................if we, instead of paying $3.50 p/gal. were instead paying about half that, say $1.75-$2.00, would it not make sense that their profits would still amount to somewhere around the 10-20 billion dollar annually? That don't sound too shabby to me. Would you not agree?
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1. If you were paying $1.75 to $2.00 a gallon There would not BE ANY gas!!!!!!! 2. 41 billion profits how much did they pay in taxes ? (41% rate ) 3. What kind of business gets NO tax BREAKS!!!!??????? AS you call them!

I am sick and tired of people bashing the oil companies out of ignorance.

No one seems to stop to consider the fact that the dollars we are using to buy the oil don't buy what they used to. Inflation anyone?

How about the fact that it's our governments stated policy to make enemies of our suppliers?

And then, to the people who complain about oil companies making record profit: shut up, read, listen. The oil companies make about an 8% profit on their total income, which is nothing compared to the 22-25% profit that phama, insurance and banking industries make.

Now tell me who the thieves are?

Oil corporations are strategically positioned to survive any legislative hearing. We have been a century into the addiction, no profitable solutions for withdrawal are on the table. We will keep paying until the posturing is used for the reduction of GW; through the realization that wars are fought for oil, by our sons and daughters. Fine, keep your interstate highways. If we stop buying the product, will there be no incentive to produce it? Can you imagine the planning to get the public to accept the enslavement to transport currently in effect? Is any group planning the next steps around sustainability? That light is the oncoming train. M-I Complex?

Steve in Denver;
BULL! Stockholders expect a 10% return;
a 11% return is excellent! Along with all of the ENORMOUS tax breaks the oil companies have it pretty darn good. As far as people getting killed, they knew the risks when they took the job and they get compensated pretty well for it.. Let's put things in perspective Steve!

The posturing and empty rhetoric on Capital Hill makes me very frustrated. Who voted for all the tax breaks they are complaining about? And has anyone seen some numbers that specify the company and the type and amount of tax break taken by the company? I suspect the "tax breaks" are being utilized by the smaller drillers and producers vs the three companies testifying on Capital Hill today. I would like to see our elected representatives taking action to increase supply or production rather than wasting taxpayer money with these meaningless hearings. As long as we taxpayers support these types of elected "leaders" then we given away our power to a few elitists who think they can rant and rave every other year thus "earning" our vote. Let's get some "doers" instead of "talkers" at the head of government.

The U.S. congress thinks that all Americans are crazy. We all know that the oil companies are ripping us off. The so called middle class now can barely afford to live because of the high gas prices. We still have to drive to work and do other things that require us to use gas. We need to get the congress men and women from the congress and senate and put them in their own private cars and let them pay for the gas they consume instead of the tax payers paying for there transportation. There is something that our congress and senators can do. We would like to go to motorcycles and make the oil companies eat there oil but we know that we cannot do that because of the weather. All the oil companies are just sitting back and making billions while their CEO's are making millions each year in salary. We need to get everyone out of the congree and senate who don't stand up and do something about these high oil prices. We have plenty of water that belongs to the U.S. and Bush will not let the oil companies explore our waters for oil. Maybe alot of people don't know that all of the Bush's are also oil millionaires. Therfore he don't care, for we the tax payers pay for his transportation. The rich is getting richer off of the oil and the middle class is getting poorer because of the oil prices. Do your job senators and congressmen and women and stand up for the states and counties that you are suppose to represent. Enough is enough

Oh the poor oil compaines boo hoo!
How many rubes on here think that oil+ banking
are not intertwined?
Alex you may be living in paradise but the rest of us regular americans are being bled to death by industry and a complicit government.
No you cannot point the finger solely at one entity but doesn't mean the oil companies are helping average americans.

IF EVERYONE WOULD JUST THINK ( BUSH- CHANLEY ) WHILE FILLING THEIR TANKS, THOSE TWO ARE THE ONES RESPOSIBLE FOR THE FUEL PRICES. ONE WHOSE FAMILY MADE THEIR MILLIONS, THE OTHER , A FORMER CEO OF BIG OIL.. HOW MANY BUCKS ARE PASSED UNDER THE TABLE??????????

what are all of the current taxes on oil companies
versus other manufCTURIN COMPANIES

It is very simple math to see if the oil companies are working on the same profit margin, as say 10 years ago.

I do not believe we are using WAY MORE gallons of gas today then we were using in the SUV high days.

If we are not using that much "more" gas, then profits should be very similar for all years in the past.

If profits have quadrupled, then our gas consumption should have done the same.

If Oil companies are making way more profit, but we are not "really" using the same ratio increase in gallons of gas, then something is wrong and could be fixed with a AUDIT.

I believe the gas companies are making more % profit and not the same % profit as 10 years ago, I would like to see them FULLY investigated.

I also would like to see the USA start keeping track of gallons of gas sold each day in the USA .

This would allow congress to see what we the Americans are really using. Then talk would not be needed.

Nikolai...you said keep tings in perspective,how about truthful? Steve said that return wouldn't be enough for a company that has only a 1 in 10 (10%) chance of finding something to sell. I don't think anyone on this blog would undertake such a risk. And a 10% return for an oil company? Many large multinational companies make 15-30%...2-3 times the rate of oil companies....how's that for perspective. An appliance company knows it has washers to sell, a car manufacturer knows it has cars..no guessing. and as for risk? Steve was just pointing out a fact to build his case, no whining at all. It is just true..it is a dangerous business.

Exxon in particular spent nearly 20 Billion in developing renewable and clean fuels...all at a 42% tax rate amounting to some $80 billion dollars in taxes paid out. The $2-3 Billion that went to them for research (they are required to conduct renewable/clean research), wouldn't lower your gas price a bit. The government already makes many times that in oil revenues now, with no risk and no wells.

Why don't you keep things in an honest perspective?