What Oil Companies Do With Their $375 Million a Day Profits

By Rebecca Leber, ThinkProgress 26 July 12 he Big Five oil companies – BP, Chevron, ConocoPhillips, ExxonMobil and Shell – are slated to announce their 2012 second-quarter profits later this week. We can expect these companies, all of which rank in the top 10 of the “Fortune 500 Global Ranking,” to reveal billions of dollars more in profits, after earning $375 million in profits per day in 2011 ($261,000 per minute), and $368 million per day in the first three-months of 2012 — bringing their combined profits to $1 trillion from 2001 through 2011. Below is a quick look at just how much these Big Oil companies are making, and where they are spending their billions in profits. Big Oil’s Big Profits, In 24 Hours •The five biggest oil companies earned a combined profit of $375 million per day, or a record $137 billion profit for the year, in 2011, despite reducing their oil production. •In 60 seconds, these five companies earned $261,000 — more than 96 percent of American households make in one year. •These five oil companies received $6.6 million in federal tax breaks every day. •In 2011, the three largest domestic public oil companies spent $100 million of their profits each day, or over 50 percent, buying back their own stock to enrich their board, senior managers, and largest share holders. •The entire oil and gas industry spent on average $400,000 each day lobbying senators and representatives to weaken public health safeguards and keep big oil tax breaks, totaling nearly $150 million. •Each CEO of the Big Five companies received an average of $60,110 in compensation per day last year. On average, their pay jumped 55 percent in 2011. Exxon CEO Rex Tillerson’s compensation came close to $100,000 per day last year. Millions in Political Contributions and Lobbying •Despite ranking as some of the most successful companies in the world, big oil and gas companies continue to receive $4 billion in tax breaks each year. •The oil and gas industry has already given over $30.5 million in federal campaign contributions this year, with a whopping 88 percent going to Republicans. •Big Oil has spent an additional $37 million on lobbying Congress this year, with the top spenders being Exxon, Shell, Chevron, Koch Industries and BP. •Their efforts are paying off. This is the most anti-environment Congress in history, with the House of Representatives averaging one anti-environment vote per day, or a total 247 votes through mid-June. The biggest beneficiary of these votes has been Big Oil. The House voted to enrich the oil and gas industry 109 times, a total 44 percent of its anti-environment votes. •The House is on track to collect a record amount of oil industry contributions this cycle, having already reached 2008 and 2010 levels. And these are direct donations only — it does not include Super PAC spending or other campaign assistance. Outside Interests and Big Oil Allies Spending Tens of Millions More to Influence the Energy Debate •Fueled by Koch Industries and other Big Oil interests, the industry is spending hundreds of millions to fund false ads in this year’s elections. According to the Annenberg Public Policy Center, 85 percent of the dollars have funded false ad, during a season where most advertising have focused on energy. •Pro-Romney outside interest groups spent $24.6 million on energy ads through June 24, according to Kantar Media CMAG data. This is more than ten-times the amount spent by pro-Obama groups, which spent $2.3 million on energy spots. •American Energy Alliance, Americans for Prosperity, American Future Fund, and Crossroads GPS – the top outside pro-oil and pro-Romney interest group spenders – have spent a total $24.9 million on deceptive ads, many of them energy-related, according to the Annenberg Public Policy Center. •Koch-backed Americans for Prosperity has devoted more than 90 percent of its ad spending to energy ads. Two of the Americans for Prosperity ads pushed patently false claims — roundly debunked by fact checkers — that the stimulus funded jobs overseas. •Fact checkers have thoroughly debunked these anti-clean energy ads. Both Politifact and the Washington Post Fact Checker have given the ad their worst ratings of “pants on fire” and four Pinocchios, respectively. Politifact found all three examples used to be false, with the ad stringing together “alarming” soundbites that are “ultimately ridiculous.” Comments We are concerned about a recent drift towards vitriol in the RSN Reader comments section. There is a fine line between moderation and censorship. No one likes a harsh or confrontational forum atmosphere. At the same time everyone wants to be able to express themselves freely. We'll start by encouraging good judgment. If that doesn't work we'll have to ramp up the moderation. General guidelines: Avoid personal attacks on other forum members; Avoid remarks that are ethnically derogatory; Do not advocate violence, or any illegal activity. Remember that making the world better begins with responsible action. - The RSN Team +5 # Adoregon 2012-07-26 08:22 All the money in the world won't save these rapacious solipsists (hey, solipsists sounds better than calling them deranged fu*ks) and their children from the ecological collapse their actions are responsible for bringing about. +5 # JSRaleigh 2012-07-26 09:02 Quoting Adoregon: All the money in the world won't save these rapacious solipsists (hey, solipsists sounds better than calling them deranged fu*ks) and their children from the ecological collapse their actions are responsible for bringing about. I don't care anything about saving them or their children. I care about what they're doing to my family. +7 # reiverpacific 2012-07-26 08:38 They can't breath or eat their money and may yet choke on their lobbyist maintained lies -or are they building big McMansions in floating bubbles so they can watch the rest of us drown and/or suffocate? The planet has many tricks up it's sleeve and will hit back; already is in fact. Yet the damage marches on and we destroy ourselves, as the natives of this continent predicted. Let them eat tar-sands. +2 # paulrevere 2012-07-26 08:51 Add to all those number manipulations the costs of environmental remediation and health afflictions born by WETHEPEOPLE and these cretins are true vampires on the fiscal jugular of OUR treasury. +4 # Billy Bob 2012-07-26 09:52 The oil industry is using a lot of that money to undermine efforts to fix the environmental devastation they are creating. In another thread one of the right-wing commenters asked, in effect, "how much money was changing hands to 'support the green industry' ". It's not an exact quote, but that was the meaning of the remark. It doesn't deserve an exact quote anyway. Disingenuous arguments by the far right are just as pursuasive as the truth. That fact, alone, is the biggest threat to our ability to actually fix this and the global warming that is taking place as we speak. +8 # The Voice of Reason 2012-07-26 10:30 Well, someone FINALLY writes to complain about the porcine wealth of the Oil Companies and the politicians they own. What's the sudden rush? They have been ripping off the general public for 60 years or more without a complaint (as in 'shouldn't we be paying more for gas?) by selling us a product we don't need (fuel) and designing vehicles that waste this worthless fuel to guarantee their enormous riches. How do we not see this? and for so many, many decades. Until we demand an end to fuel based economies (or sucker economies) and the politicians who support them, we are indeed the suckers who pay for our own poverty. +3 # jwb110 2012-07-26 10:56 You can bet with the 6.6 million dollars in tax breaks that that us the first money to go into the Citizens United pot. So in effect the American Public is beng MADE to contribute to candidates that they may oppose. If this isn't a conflict of interest I don't know what is. +5 # thinkchip 2012-07-26 12:29 Let's not forget it's the deranged fu*ks in government that protect the people in these corporations from facing the consequences of their actions. I'm no fan of corporate oil goons, but what do government people do with the profits from their racket? Imprison millions of innocent people here and abroad, turn middle Eastern children into red mist, pad their own nests, etc. More powerful, better funded government is not the answer to this problem. No longer tolerating exploitation, fraud, theft, and violence wherever it's found is (even under the guise of government). Oh, and raising our children peacefully and respectfully so they never even consider submitting to or allowing this kind of crap. That's the real solution. -4 # Howard T. Lewis III 2012-07-26 13:35 B-A-A-A-A-A-A!! ! +1 # Howard T. Lewis III 2012-07-26 13:37 We are outnumbered by self-involved sheeple. A good overthrow would take care of these suckers just like the crooked bankers and pedophiles of the Bush cabal and various churches with their broad spectrum affronts to humanity. 0 # The Voice of Reason 2012-07-26 18:28 Wheeeeeee! The federal wrist slappers are coming!! 0 # geonomist 2012-08-08 17:25 Most people notice only the size of oil profit, not the kind. Oil companies do earn some money from extraction, transporting, refining, and retailing, but they reap their biggest harvest merely from the value of oil in the ground. Norway charges 80% of the world price to extract their oil yet oil companies still pay it because the other 20% is rewarding enough. Imagine if every government had the guts of Norway; oil companies would be about one fifth their current size and the public treasury that much richer. We could pay ourselves a dividend, invest in alternatives, have time to enjoy life. Let's act! ================== Deputy oil minister: 6 mln liters of gas oil is being smuggled from Iran daily 26 November 2012, 11:38 (GMT+04:00) About 6 million liters of gas oil is being smuggled from Iran each day, deputy oil minister said on Sunday. The prices of fuels in neighboring countries are 7 or 8 times higher than Iran, so smuggling gasoline and gas oil has created a great market for the smugglers, the ISNA news agency quoted Alireza Zeyqami as saying. "Iran needs to increase the price of fuels in order to prevent smuggling," Zeyqami said. Considering the official reference rate of 12,260 rials to the US dollar, the real price of gasoline in Iran is 10,000 rials (about 82 U.S. cents). Currently gasoline is sold at two prices: a 60-liter monthly allowance at 4000 rials (33 cents) per liter, and any amount above that at 7000 rials (57 cents) per liter. Last year the International Monetary Fund commended the Iranian government for the subsidy reform policy, which it said had led to a reduction in fuel consumption. ==================== U.S. judge approves settlement in BP class action suit Fri, Dec 21 21:11 PM EST * Settles claims for economic losses and property damage * Does not cover separate medical benefits settlement * BP expects to pay $7.8 billion to settle class action claims By Terry Baynes Dec 21 (Reuters) - A U.S. judge on Friday gave final approval to BP Plc's settlement with individuals and businesses who lost money and property in the 2010 Gulf of Mexico oil spill. The order only addressed the settlement of economic and property damage claims, not a separate medical benefits settlement for cleanup workers and others who say the spill made them sick. BP has estimated that it will pay $7.8 billion to settle more than 100,000 claims in the class action litigation. U.S. District Judge Carl Barbier initially approved the deal in May, but held a "fairness hearing" in November to weigh objections from about 13,000 claimants challenging the settlement to resolve some of BP's liability for the worst offshore oil spill in U.S. history. London-based BP's Macondo well spewed 4.9 million barrels of oil into the Gulf of Mexico over a period of 87 days. The torrent fouled shorelines from Texas to Alabama and eclipsed the 1989 Exxon Valdez spill in Alaska in severity. Lawyers for some affected parties had objected to the deal, reached in March between BP and lawyers representing plaintiffs ranging from restaurateurs, hoteliers, and oyster men who lost money from the spill. They argued that some claimants would be underpaid or unfairly excluded. But in a 125-page order approving the settlement, Barbier called the deal "fair, reasonable and adequate," citing the low number of class members who objected or opted out. BP welcomed the approval order in a statement, adding that the settlement resolves the majority of economic and property damage claims stemming from the accident. "Today's decision by the Court is another important step forward for BP in meeting its commitment to economic and environmental restoration efforts in the Gulf and in eliminating legal risk facing the company," BP said. Separate from the class action claims, BP has been locked in a year-long legal battle with the U.S. government and Gulf Coast states to settle billions of dollars in civil and criminal liability from the explosion. In a settlement with the U.S. government announced last month, BP agreed to pay $4.5 billion in penalties and plead guilty to felony misconduct. The government also indicted the two highest-ranking BP supervisors aboard the Deepwater Horizon rig during the disaster, charging them with 23 criminal counts including manslaughter. The class action case is In Re: Oil Spill by the Oil Rig "Deepwater Horizon" in the Gulf of Mexico on April 20, 2010, U.S. District Court for the Eastern District of Louisiana, No. 10-2179. ==============