[fyshstykr]

Well this ought to be interesting to hear what they have to say;


Oil executives to go before Congress to defend large profits


CAPITOL HILL (AP) - Executives from the big five oil companies will appear before Congress today to answer questions about how they're raking in big profits while consumers are being hammered at the pump.

Exxon Mobil, Shell, BP America, Chevron and Conoco-Phillips earned a combined $123 billion last year because of rising prices.

The House Select Committee on Energy Independence and Global Warming wants to know why, with such big profits, the oil industry is trying to hold on to $18 billion in tax breaks.

The oil companies have argued that they need the tax breaks for continued investment in exploration, production and refinery expansion. Lawmakers say the profits they're making should be enough incentive.

The House has approved legislation to end the tax breaks but it hasn't made it through the Senate. President Bush has threatened to veto any such bill that does.

[BigCliff]

Well if you compare their profits relative to their total revenue, they actually have a smaller profit margin than other industries, like consumer products and such.

But the tax breaks and government research funds they get really need to go away. Its pretty obvious that they don't need help staying in the black. Or maybe we should just apply "Will's Law"- Crooks and Liars » This Week: Will’s Law and Agreeable Auxiliaries

[fyshstykr]

Cliff,
That is a great idea, absolutely spot on!

[Fly2Fish]

Yes, there's no economic incentive need for petroleum industry tax breaks under today's conditions. Of course, don't recall Congress holding hearings when the price of oil was at $10/barrel and a massive depression with huge layoffs was occurring in the oil patch back in the mid-1980s. Lot of deja vu with the 1970s going on here, and it doesn't look like we've learned a damn thing since then.

[fyshstykr]

Amen!
I about cried 2 weeks ago whan we did our taxes, I spent a lot of $$$ on gas last year with the business, between a v-10 and trying to keep mowers filled up, glad for the write off.

On the upside atleast I don't have to run any diesel.

[fyshstykr]

Seen something about these hearings with the Big oil companies, apparently the representitives for the oil companies were not sworn in before the hearings, seems a little odd doesn't it? especially when Baseball players in the "H.G.H." hearings were sworn in, and are potentially being threatened with charges of purgery(sp).

Things that make ya go hmmm........

[layla17]

That does raise a lot of questions... if they weren't sworn in then it really doesn't mean much.

[fyshstykr]

Hello Layla, glad to meet you.

Yes, it does bringup alot of questions if they were not, in this day and age it doesn't surprise me though.

A little f.y.i.....
I posted this without verifying it, I don't usually do that sort of thing, but I felt it to be a reliable source, but I may look to verify it just to be safe..

[tightlines57]

Oil companies have been posting record profits for the past couple of years. An article in the Wall Street Journal lists the top 100 US companies by revenue and profit. The biggest 3 or 4 oil companies are near the top of the list for revenue and profit dollars. Their profit percentage based on revenue is higher than any other industry. While their total revenue is lower then Wal-Mart (always at the top for total revenue) their profit dollars are considerably higher.

It's the oil companies, not the service station retailers, that are reaping the rewards of high gas prices.

[fyshstykr]

Great post Tightlines.