by D. Cupples | Exxon Mobil listed $11.6 billion in quarterly profits -- the highest ever in U.S. corporate history -- and had record annual profits of $40.66 billion in 2007. That's about half of Florida's entire annual budget, Florida being the fourth largest state in our nation.
Profits, of course, are the amount left over after a company pays all of its expenses, including executive salaries, bonuses and perks. Perks can be huge, even beyond the use of corporate crash pads and jets. In 2006, for example, Exxon's ex-CEO Lee Raymond got a $400 million retirement package.
By May 2007, we ordinary Americans paid the highest-ever gas prices -- part of which funded executive perks such as Raymond's. CNN reports:
"The average price for a gallon of regular gasoline hit an all-time high of $3.227 in May, according to the motorist organization AAA. The high prices were blamed on strong demand and a series of accidents that shut down refineries in the U.S. Slack demand for gasoline in the latter half of last year kept gas prices from rising as much as crude prices.
"Exxon's earnings are likely to draw fire from consumer rights groups, who contend the oil industry is deliberately restricting supply and profiting on the back of U.S. motorists. They have previously called for a windfall profit tax on oil firms and have proposed breaking up the big oil companies created during the 1990s merger wave.
"Exxon isn't the only oil giant to report impressive earnings. No. 2 Chevron (CVX, Fortune 500) also reported a jump in quarterly profit on Friday. Conoco (COP, Fortune 500), the nation's third largest oil company, trounced profit estimates by nearly 25% when it reported last week." (CNN, links in original)
While Exxon Mobil executives have been hyper-generous to themselves, they've been expert penny pinchers not only toward us consumers, but also toward us taxpayers.
By 2001, for example, 15 oil companies (including Exxon and Mobil) settled Justice Department lawsuits for a combined $438 million after they allegedly failed to pay us taxpayers the royalties they owed on oil extracted from U.S. government-owned lands. They may have actually owed us more than the settlement amount. Memeorandum has other bloggers' reactions.
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Posted by: SandyCarlson | February 01, 2008 at 10:20 PM
I am all for alternative energy but we also have to realize that why is it always up to the consumer to take the fall...we really have to remember the RECORD PROFITS (in all of history of civilization) that all oil companies are making...does it really make sense to everyone that it is a shortage in production and dependency on foreign sources that is making the American (and global) oil companies REAP RECORD PROFITS!!!...and the consumer is taking it in the pants... Why are prices still going up?? Is it because they do not want to disturb their RECORD projected quarterly profit margins...while prices of necessities to life (food, clothing, etc.) are rapidly increasing as a result and... we really need to take a hard look at this with an intelligent eye... price per barrel + record profits does not equal higher prices... supply and demand has nothing to do with this... It can only equal GREED... all companies and corporations are entitled to make profits...but squeezing the life blood out of humanity for BILLIONS IN PROFITS!!!! I'm sorry but this is not what America (and the world for that matter) should be all about... We need to stand up for ourselves and DEMAND CHANGE!!! DEMAND ACTION!!! We need to DEMAND legislation from our government that will protect it's people (remember the telephone monopoly regulation) There is strength in numbers....We need to ACT NOW!!! because we all know who suffers the most in a over inflated economy... the squeeze is on...
Posted by: Civil Sense | May 14, 2008 at 01:48 AM
I am all for alternative energy but we also have to realize that why is it always up to the consumer to take the fall...we really have to remember the RECORD PROFITS (in all of history of civilization) that all oil companies are making...does it really make sense to everyone that it is a shortage in production and dependency on foreign sources that is making the American (and global) oil companies REAP RECORD PROFITS!!!...and the consumer is taking it in the pants... Why are prices still going up?? Is it because they do not want to disturb their RECORD projected quarterly profit margins...while prices of necessities to life (food, clothing, etc.) are rapidly increasing as a result and... we really need to take a hard look at this with an intelligent eye... price per barrel + record profits does not equal higher prices... supply and demand has nothing to do with this... It can only equal GREED... all companies and corporations are entitled to make profits...but squeezing the life blood out of humanity for BILLIONS IN PROFITS!!!! I'm sorry but this is not what America (and the world for that matter) should be all about... We need to stand up for ourselves and DEMAND CHANGE!!! DEMAND ACTION!!! We need to DEMAND legislation from our government that will protect it's people (remember the telephone monopoly regulation) There is strength in numbers....We need to ACT NOW!!! because we all know who suffers the most in a over inflated economy... the squeeze is on...
Posted by: Civil Sense | May 14, 2008 at 01:49 AM
Civil Sense,
You make some very strong arguments! Thanks.
Posted by: D. Cupples | May 14, 2008 at 02:13 AM