Tag Archives: tax breaks for corporations

Oil Companies -Tax Subsidies

May 12, 2011   Oil Companies-Tax Subsidies
Oil executives and senate democrats battled it out today, on why oil companies should receive subsidies or free money in a recession where gas prices at the pump are at $ 4.00 a gallon. It is political theater to show the public the government really has put oil companies on alert for stern austerity measures in a country that is sinking in debt.

The hearings had an air about them similar to the British petroleum where government has no power and the corporations dictate the rules of the game.  Totally a waste of time of course oil companies will continue to get subsidies and of course they will ream the customer by price gouging and of course there is no oil shortage.

These big oil executives were in attendance:

Exxon Mobil, represented by Rex Tillerson, Chairman and CEO

H. Lamar McKay, Chairman, President of British Petroleum-BP America

John Watson, Chairman and CEO of Chevron Corporation

Marvin Odum US President of Shell Oil Company

None of these men conceded that they were gouging Americans, there was no real shortage of oil and some even threatened to move jobs away from The United States.   The US economy is in such a weakened state that the statements from these men were similar to a threat or blackmail to the government.  The message was: ” if you raise out taxes, we will move our rigs elsewhere”.

Not only are these men responded to the question whether it was  “Un American” to reduce the tax breaks they get since they were on camera.  The Un-American-phrase that came up during the hearings due to a statement made by one of the oil executives to the presss.

These men are a vindictive lot and without regard of destroying the US economy and it’s recovery they protected their corporate tax breaks.

In fact the attitude of these large oil corporations is one of greed and profiteering with a captive audience, a situation similar to a junkie and a drug dealer, the junkie being American car drivers.

The anger from the public of the price gouging at the pumps will be reflected in their consumption habits, with many of them keeping their cars parked in the garage or taking a bus to work and maybe even riding a scooter to work.

Domestic Drilling will Not Reduce Prices at the Pump

If you follow the theory of these oil companies, they state that prices are dictated by the market and supply and demand.

Allowing more oil production on US soil will not change that market demand or prices at all, therefore more consumers are being fooled by domestic drilling promotions by republicans who led the charge to more offshore drills.

Republican Newt Gingrich was one of those politicians who promoted more offshore drilling even suggesting off the coast of Florida’s beaches in the past few years.  This was his policy driven goal before the BP Oil spill of 2010 and then he went into hiding about his statements.

Sarah Palin is another one who promotes more oil drilling namely because her husband’s former employer was British Petroleum.

For some reason, the consumers have been brainwashed to believe that if domestic drilling is increased here in North America that gas prices would come down. This is a scam.

If you look at how the oil companies are producing oil from the Canadian Alberta oil sands and ask a Canadian what they are paying at the pump, it does not matter if production is increased the oil companies will continue to post record profits while charging $ 4.00 to $ 5.00 a gallon to Canadians.

The people of a nation are to share the resources of that country and frankly no corporation likes to share it’s profits with people who helped them earn their billions each year.

The hearing was called to explore all options on eliminating oil, gas tax breaks to help the deficit.  Regardless of having an industry pointing a gun to your head the hearing will accomplish nothing to change prices, only a mass campaign of not purchasing gas for a few weeks.  It could drop prices greatly if Americans got real about driving their 15 foot SUV trucks all day long.

Senator Chuck Schumer said subsidies to oil companies rob Americans of their fair share and those same tax breaks should be going to education.

Democrats from oil producing states are likely to agree with republicans on not banning subsidies to oil companies. Everyone is in it for some skin.

The 36 billion dollars in profits in the first quarter of 2011 alone combined to show that big oil does not need a tax subsidy, and comments from the CEO’s were not all that heartwarming to consumers. When prices go back down at the end of the summer, the consumer will not be complaining and this happens year to year.

In the first Three Months of 2011 The First Quarter Profits are:

10.7  billion for Exxon Mobil
6.3 billion for Shell
5.3 billion for Chevron
5.5 billion for BP Oil

It is all about Wall Street gains for the wealthy on oil and gas stocks and corporate profits for big oil and the consumer is paying the price as usual.