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Editorial: What Biden Is Getting Wrong About Big Oil’s Profits
Posted on 6/22/22 at 11:14 am
Posted on 6/22/22 at 11:14 am
quote:
Last Friday President Biden singled out ExxonMobil for reaping big profits as a result of high oil and gas prices. The President complained “Why don’t you tell them what Exxon’s profits were this year? This quarter? Exxon made more money than God this year. Exxon, start investing. Start paying your taxes.”
quote:
Oil companies aren’t reaping huge profits because they are gouging consumers, and their high profits aren’t driving inflation. The high profits and soaring inflation are both a result of high oil prices, and oil companies have little influence over that.
The oil companies are always a convenient scapegoat, particularly for Democrats. But let’s look at ExxonMobil’s profits in context. Further, let’s compare the company’s net profits to those of Apple over the past 10 quarters.
In the most recent quarter, ExxonMobil reported $5.5 billion in net income. If that’s “more than God”, I wonder how President Biden would quantify Apple’s $25.0 billion for the quarter. Five times more than God? Oh, and ExxonMobil also paid $2.8 billion in taxes for the quarter, so it seems that they are paying their taxes.
quote:
Over the past 12 months, ExxonMobil has reported $25.8 billion in net income versus Apple’s $101.9 billion. But if we look back further, the discrepancy is much worse.
ExxonMobil reported losses in four of the past ten quarters, including a whopping $20.1 billion loss in December 2020. That’s what can happen when you don’t control the price of the product you sell.
You don’t see that happening with Apple. They never earned less than $11.2 billion in any of the past ten quarters.
quote:
Apple has full control over the price of its products and trounces ExxonMobil’s earnings in every quarter. Apple could slash the price of its products and still make a huge profit. But ExxonMobil can’t slash the price of its products because it doesn’t set the price.
Yet it’s ExxonMobil that is accused of gouging.
If you want to know how we end up with bad energy policies, it’s because too many politicians believe things that aren’t true.
LINK
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Posted on 6/22/22 at 11:15 am to ragincajun03
I support Biden. Can you imagine the equitable programs we could get started with those taxes?
Posted on 6/22/22 at 11:16 am to ragincajun03
You could make a much shorter post just explaining what he’s done right.
Posted on 6/22/22 at 11:18 am to dewster
quote:
You could make a much shorter post just explaining what he’s done right.
Posted on 6/22/22 at 11:32 am to ragincajun03
Spot on. Get in here Democrats and bathe yourself in some cold hard facts.
Posted on 6/22/22 at 11:34 am to ragincajun03
I’ve been sharing this graphic for 2 weeks
Posted on 6/22/22 at 11:36 am to ragincajun03
quote:
If you want to know how we end up with bad energy policies, it’s because too many politicians believe things that aren’t true.
You can scratch the word "energy" off that...it's just all policies. We have an administration that thinks printing more money helps the economy. They think that defunding police makes things better/safer. They think that lighting federal buildings on fire is okay in one instance but waltzing into an open door of another is a crime. They think that more gun laws will prevent criminals from committing crime. Etc.
Almost literally nothing they say or do makes any rational sense whatsoever, yet here we are.
ETA:
Also:
quote:
Exxon made more money than God this year. Exxon, start investing. Start paying your taxes.
What a piece of shite thing to say. I assume he said that to generate emotion from his supporters, since they will run with that and assume Exxon doesn't pay their taxes. But still, that's just going out of your way to be an a-hole, and is further evidence that he doesn't know what the frick he is doing and is just trying to create conflict.
This post was edited on 6/22/22 at 11:43 am
Posted on 6/22/22 at 11:36 am to ragincajun03
Tech is off limits, they are partners in the technocracy. BigOil is a populist dream target.
Posted on 6/22/22 at 11:39 am to NIH
quote:
I support Biden.
Another bot confirmed.
Also:
Posted on 6/22/22 at 11:40 am to NIH
quote:
I support Biden. Can you imagine the equitable programs we could get started with those taxes?
Instead it's being laundered through Ukraine by Biden. Thanks for the small part you did wrecking our country.
Posted on 6/22/22 at 11:40 am to ragincajun03
saw this post floating around LinkedIn
quote:
The constant manipulation from career politicians is disgusting...don't be their victim. Some context to consider. Exxon is forecasted to have net income of $43 billion ("more than God" apparently)...compare that to forecasted net income at Google of $76 billion, Microsoft of $80 billion, and Apple of $104 billion. What about profit margins and claims of price gouging? The forecasted 2022 profit margin is 11% for Exxon which is just below the average profit margin across the components of the S&P 500. However, it pales in comparison to the profit margins of the 3 Big Tech giants which is forecasted to be 31% on average. Big Tech could drop their prices 20% tomorrow and still have profit margins on par with the rest of the S&P 500 and Exxon. Who has been gouging and deceiving who? Politicians and central bankers have a lot to answer for as it their promises, threats, myopic agendas, and actions that have created the unbelievably regressive inflation we are witnessing today. #energystrong #context #inflation
6/16/22 Update: Moved my supporting comments up--see the actual comments if you'd like the accompanying charts:
1. Exxon net income margin vs 3 Big Tech giants over the past 20 years...one doesn't look like the other. Exxon margins are relatively flat in a 5-11% range since 2002 except a sharp spike down to -13% in 2000. Meanwhile, the 3 Big Tech giants started out the early 2000s in the low teens, but now are greater than 30%.
2. Exxon did buyback $2 billion of stock in 1Q. Was the first time that they had done any buyback since 2Q of 2020. During the 1Q of this year Apple, Google, and Microsoft bought back $44 billion of their shares. Over the past 10 years, Exxon repurchased $59 billion of stock while the Big 3 Tech giants repurchased $748 billion of their stock.
3. Here are the stunning facts about taxes paid. Over the past ten years, Exxon's cumulative tax bill (current income taxes + production taxes) totaled $418 billion...compared to the total across the Big Tech giants who paid a cumulative $302 billion. In fact, in 8 of the last 10 years, Exxon paid more paid more annual tax by itself than the Big Tech giants combined. It's time to do your (#patriotic) part, Big Tech!
4. Soooo to sum up....over the past 10 years, Exxon paid nearly 10x more in taxes than the amount they spent to buyback their stock, while the Big Tech giants spent 2.5x more on stock buybacks than they paid in taxes.
#cmon #man
Posted on 6/22/22 at 11:43 am to 3nOut
quote:
3nOut
thank you
So annoying when people talk about "obscene" profits of oil companies when most are working on 7-8 cent profit on a gallon of gas, yet the federal government is making 18.4 cents per gallon for doing nothing, investing nothing etc
frick biden and his bullshite "more money than god comment"
if exxon made more money than god...then how much did the federal govenment take in?
Posted on 6/22/22 at 11:50 am to Klark Kent
quote:
3. Here are the stunning facts about taxes paid. Over the past ten years, Exxon's cumulative tax bill (current income taxes + production taxes) totaled $418 billion...compared to the total across the Big Tech giants who paid a cumulative $302 billion. In fact, in 8 of the last 10 years, Exxon paid more paid more annual tax by itself than the Big Tech giants combined. It's time to do your (#patriotic) part, Big Tech!
This is exactly what I was going to ask. I had a hunch that Exon actually paid more taxes than the tech companies. If this is factual, then that hunch was right.
Posted on 6/22/22 at 11:52 am to dewster
quote:
You could make a much shorter post just explaining what he’s done right.
He’s done literally everything right. At least he’s done them right when you consider his goal is to collapse the current system so the Democrat dream of remaking America into a Marxist/socialist single party autocratic country can finally be realized.
In fact he’s been doing an outstanding job.
Posted on 6/22/22 at 12:00 pm to ragincajun03
It is interesting to see the context against other mega companies, but I think the point is flawed. The difference is the cost of produce doesn't go up based on what Apple is charging for their new wireless ear buds. If I don't want the latest and greatest iPhone, there is literally zero impact to my life, other than it defining the going rate of smart phones.
Not all companies/products have the inter-connected dependency that O&G does.
Not all companies/products have the inter-connected dependency that O&G does.
Posted on 6/22/22 at 12:03 pm to Darth_Vader
quote:
He’s done literally everything right.
Correct. The only thing he failed on was to get the 3.5t Biden bill passed.
He's just a puppet and has made the exact calls he was put there to make. He was installed to further divide, not unite.
This post was edited on 6/22/22 at 12:04 pm
Posted on 6/22/22 at 12:08 pm to ragincajun03
I love the report of "losses" thing these companies do. that's some magic accounting there. Hey last quarter we projected we would make 5 billion. Well we only made 4.8 billion so we had a loss of 200 mil. I swear we are struggling.
Biden is still an idiot though.
Biden is still an idiot though.
This post was edited on 6/22/22 at 12:09 pm
Posted on 6/22/22 at 12:12 pm to SprintFun
quote:
It is interesting to see the context against other mega companies, but I think the point is flawed. The difference is the cost of produce doesn't go up based on what Apple is charging for their new wireless ear buds. If I don't want the latest and greatest iPhone, there is literally zero impact to my life, other than it defining the going rate of smart phones.
Not all companies/products have the inter-connected dependency that O&G does.
Understand, though technology has come to a point where more and more people are dependent upon tech products as a necessity, rather than a convenience.
Also, “big oil” has been diverting more and more capital that would have been spent on fossil fuel ops to spend on research and investment in alternatives to prepare for the “energy transition”. These companies aren’t run by idiots.
And this trend of capital diversion was underway before Biden became President.
So when you have comparatively decreased investment in “dirty” energy sources, yet those sources still remain the most efficient and reliable for manufacturing and transportation of goods that our lives all revolve around…well…then those “dirty” energy commodities become more in demand in a growing population at the same time the investment necessary hasn’t been there, so yeah, prices get out of wack in the markets all over.
Posted on 6/22/22 at 12:13 pm to mindbreaker
quote:
I love the report of "losses" thing these companies do. that's some magic accounting there. Hey last quarter we projected we would make 5 billion. Well we only made 4.8 billion so we had a loss of 200 mil. I swear we are struggling.
you sure thats how it works? you sure?
Posted on 6/22/22 at 12:15 pm to mindbreaker
quote:
I love the report of "losses" thing these companies do. that's some magic accounting there. Hey last quarter we projected we would make 5 billion. Well we only made 4.8 billion so we had a loss of 200 mil.
Youre a dunce. That's not what is happening.
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