Exxon Posts 32% Rise in Profit as Oil Consumption Grows

E-Z-B

E-Z-B

CAGiversary!
Exxon Posts 32% Rise in Profit as Oil Consumption Grows
The net income is the third-highest in company history. Earnings from crude and natural gas sales jump 28%.
From Bloomberg News
July 29, 2005

Exxon Mobil Corp., the largest publicly traded oil producer, said Thursday that second-quarter net income rose 32% to $7.64 billion as growing economies in Asia and North America consumed more crude and gasoline.

The quarterly profit was the third-highest in the company's 123-year history. Revenue rose 25% to $88.6 billion, a record for a public company. A doubling in oil prices since 2003 has put Irving, Texas-based Exxon Mobil on pace to pass Wal-Mart Stores Inc. in sales this year.

Earnings from oil and natural gas sales jumped 28% to $4.9 billion. The gap between crude costs and prices for refined fuels was the widest ever, as consumption rose faster than supplies. Exxon Mobil's refining profit surged 34%.

Net income climbed to $1.20 a share from 88 cents, or $5.79 billion, a year earlier, Exxon Mobil said. Chief Executive Lee Raymond is investing in oil and gas fields in Africa and the Middle East as demand grows and output declines from older wells in Europe and North America. The company pumps more oil than any member of the Organization of the Petroleum Exporting Countries except Saudi Arabia and Iran.

http://www.latimes.com/business/la-...coll=la-headlines-business&ctrack=1&cset=true

It's amazing that the Republican-controlled congress passed an energy bill yesterday that gave billions of dollars in tax breaks to the oil companies.

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I still see the bright side of this, though -- Americans are embracing more fuel-efficient vehicles now more than ever. I was amazed to see a dodge ram take $50 in gas last night at the gas station.
 
On the one hand, this is bad for the environment.

On the other hand I made a ton of money because I own a shitload of Exxon stock.
 
[quote name='E-Z-B']It's amazing that the Republican-controlled congress passed an energy bill yesterday that gave billions of dollars in tax breaks to the oil companies.[/QUOTE]
If by amazing you mean totally predictable, then I agree.
 
I find it more amazing that the democrats didn't mount a filibuster. Once again, the middle and lower classes are getting screwed.
 
One more reason everyone--liberals, conservatives, etc--should support the FairTax. The whole reason for tax exceptions and loopholes is because the tax system is such a monstrosity, there's so much room for loopholes, and that's primarily why lobbyists support politicians [tax benefits, including 'give us more tax money', and legal benefits, as in 'make what we do legal, and punish our competitors--see NAB].
Simple FairTax--no room for loopholes, and money gets taxed as it gets spent.
However, i don't see anything wrong with a company making money. They're not the only company or organization lobbying for tax breaks or tax dollars--even some of those vaunted Blue Companies do the same.
And no one is forcing anyone [consumers] to buy oil. As you say, there are hybrids and alternatives available.
Not to mention, 'consumer transportation use' only accounts for something like 20% of domestic oil usage.
 
I am not against companies making money. I am against the government giving huge tax breaks to companies. Unless there is a huge benefit to the American tax payer, these kinds of tax breaks should not be allowed. Once upon a time, the Republican party was against these kinds of shenanigans. Now they, like most democrats, will sell themselves to the highest bidder.
 
[quote name='coffman'] Unless there is a huge benefit to the American tax payer....[/QUOTE]

Cheap and continuing energy sources qualify for that without question.

I honestly don't think much about giving tax breaks and credits to corporations. The flat tax is a better solution.

However if you're competing with nationalized energy companies or state subsidized energy companies on the worldwide markets you have to do something.
 
[quote name='PittsburghAfterDark']Cheap and continuing energy sources qualify for that without question.

I honestly don't think much about giving tax breaks and credits to corporations. The flat tax is a better solution.

However if you're competing with nationalized energy companies or state subsidized energy companies on the worldwide markets you have to do something.[/QUOTE]

But it's not really cheap. We're still paying for it, just through taxes. It would be much better to apply those taxes to developing alternative sources of energy so that we can break away from OPEC.
 
Gas at $2.10-2.20 is cheap when Western Europe and Japan pay $6 or more.

I'd love to see a Manhattan or Apollo Project type effort to making hydrogen or fuel cells energy sources. I'd be all for it. I also wish we'd go nuclear again. The rest of the world has been building 30 years worth of refined and far less toxic reactors than us.
 
[quote name='coffman']But it's not really cheap. We're still paying for it, just through taxes. It would be much better to apply those taxes to developing alternative sources of energy so that we can break away from OPEC.[/QUOTE]

Or even better, eliminate *all* the tax breaks and dodges, pass all costs to the consumer, so that they will say "Hey oil companies, we want and are willing to pay for alternatives."
Private dollars are almost always more productive, and result in greater discoveries, than tax dollars.
 
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