Outcry as Shell and BP make billions on back of price rises

Times Online ^

[Sub-Driver]

Outcry as Shell and BP make billions on back of price rises Robin Pagnamenta and David Robertson

Surging oil prices helped to boost profits at BP and Royal Dutch Shell to a combined record of £7.2 billion for the first quarter of the year.

Amid growing accusations of profiteering by big oil companies, it also emerged that BP had earned a one-off trading profit of $400 million (£203 million) by correctly betting on the direction of oil and gas prices.

The figures provoked an immediate outcry from campaign groups, which said it was a disgrace that at a time of increased public concern about climate change Shell and BP were earning their biggest profits, while compounding the problem of rising global carbon emissions.

A spokesman for the trade union Unite said that the profits were unacceptable and called for them to be used to improve pension provision for staff.

BP’s pre-tax profits surged 48 per cent in the first quarter to £3.3 billion while Shell increased its profits 12 per cent to a record £3.9 billion. The rising profits were driven by spiralling oil prices, which the companies have passed on to consumers in the form of higher petrol and diesel prices. Yesterday the price of crude oil was trading slightly below record highs of $120 a barrel.

Both Shell and BP’s figures were much higher than expected. Jason Kenney, an oil analyst at ING, described them as “blow-away numbers”.

Robin Oakley, from Greenpeace, said that said the results were “totally at odds” with the direction that both companies needed to go in.

[Sub-Driver]

The British viewpoint........same-o same-o.....sounds like Pelosi...

[the anti-liberal]

What Would Stalin Do?

[MNJohnnie]

More ignorance and political posturing by people who have utterly NO clue at all what they are talking about.

[mnehring]

How many who are making the outcry have taken even five minutes to read these company's annual reports or understand the difference between upstream, downstream, and produits blancs (non-fuel petrochemicals)?

[cajunman]

If the Democrats would open up the Arctic National Wildlife Refuge to drilling, oil companies would not have to spend the capital to drill 5 miles underwater in the Gulf of Mexico. Offshore drilling is not cheap.

[umgud]

The gov’t makes more in taxes per gallon than the oil companies do in profit per gallon.

[the_devils_advocate_666]

I read the Miley Cyrus should haul in a billion herself this year. Where is the outrage?

[MEGoody]

The figures provoked an immediate outcry from campaign groups, which said it was a disgrace that at a time of increased public concern about climate change Shell and BP were earning their biggest profits, while compounding the problem of rising global carbon emissions.

:::rolls eyes:::

[SO RIGHT]

HOW MANY BILLIONS DID THE GOV’MINT TAKE IN TAXES?WHO MAKES MORE PER GALLON, OIL COMPANY OR FEDERAL TAXES? ANYONE KNOW THE BREAKDOWN?

[TruthConquers]

Here is an earlier thread from this morning on that very topic:

http://www.freerepublic.com/focus/f-news/2008685/posts

Hint, the government is making more from the rise in gas pump prices than the oil companies. Spread the word.

[netmilsmom]

Let alone the studios that made Miley’s movie and tv show.

I just paid into 20th Century Fox for “27 Dresses”.
How about their profits?

[Vaquero]

Congress refuses to allow drilling and new refineries to be built. this is the core problem. this aids the runaway price rises also fueled by the sub-prime crisis weakening our dollar.....and there is a snowball effect...and we all know the outcome

That being said, I still think there may be hanky panky on the part of certain oil companies/ producing countries/politicians, who are profiting from the facts stated and helping it along with strategic tweaking.

[SkyDancer]

And how much in additional taxes did they rake in - the gov’mint has their hands out - don’t do a thing to earn it ...

[Species8472]

ExxonMobil 2007
2007 Financial & Operating Review
http://www.exxonmobil.com/corporate/files/news_pub_fo_2007.pdf
Revenue $404.6 Billion
Profit $40.6 Billion (10.0%)
Taxes $102.5 Billion (25.3%)
Sales-Based taxes $31.728B
Other taxes and duties $40.953B
Income taxes $29.864B

ConocoPhillips 2007
2007 Annual Report
http://www.conocophillips.com/NR/rdonlyres/3838234F-F20C-4BCE-AE8D-78DE29D67455/0/07RevisedARfinal.pdf
Revenue $194.5 Billion
Profit $11.9 Billion (6.1%)
Taxes $30.4 Billion (15.6%)
Taxes other than income taxes $18.9B
Total Taxes $49.3 Billion

Chevron 2007
2007 Annual Report Supplement
http://media.corporate-ir.net/media_files/irol/13/130102/reports/CVX_ARsupp07.pdf
Revenue $220.9 Billion
Profit $18.7 Billion (8.5%)
Taxes $35.7 Billion (16.2%)
Taxes other than income taxes $22.266B
Income taxes $13.479B

Marathon 2007
2007 Annual Report
http://www.marathon.com/content/documents/investor_center/annual_reports/annual_report_2007_book.pdf
Revenue $62.8 Billion
Profit $4.0 Billion (6.3%)
Taxes $8.5 Billion (13.5%)
Consumer excise taxes $5.163B
Other taxes $0.394B
Income taxes $2.901B

[RC51]

... driven by spiralling oil prices, which the companies have passed on to consumers.

But I thought if tax and regulated the rich corporations then it was supposed to benefit the little guy?

[EBH]

ExxonMobil 2007
Revenue $404.6 Billion
Profit $40.6 Billion (10.0%)
Taxes $102.5 Billion (25.3%)

Sales-Based taxes $31.728B
Other taxes and duties $40.953B
Income taxes $29.864B
2007 Financial & Operating Review
http://www.exxonmobil.com/corporate/files/news_pub_fo_2007.pdf
Page 16

And that is just Exxon...

[count-your-change]

It costs the Treasury about 6 cents to print a hundred dollar bill. EAT YOUR HEART OUT EXXON!

[pallis]

Whatever the oil companies are making, government is making twice as much per every gallon of gas used. See the article above about China’s oil consumption. Drilling and developing ways to refine oil from shale are central to our national security. Someone tell the kooks in Congress.

[fire and forget]

With all those taxes one wonders how the oil companies ever made it when gas was comparatively very cheap.

[Tahoe3002]

Very true, but it sure pays well!