Exxon Rakes in Record $10 Billion Quarterly Earnings While Cheering OPEC's Readiness to Cut Production
Virtually the same day that Exxon announced their gangbuster record earnings of $10.25 billion the New York Times ("Exxon sets profit record..." 2/2/08) reported that the Organization of Petroleum Exporting Countries (OPEC), having held production levels fast this month, signaled it would be ready to cut production when it meets next month to make up for a seasonal slowdown. "OPEC's actions mean the cartel is determined to keep prices from falling below $80."
Clearly OPEC is Exxon's greatest ally. It has been OPEC's collusionary cuts in oil production that permitted the price of oil to skyrocket. According to a newly awakened New York Times "from a low of around $50 barrel in early 2007 to near $100 barrel by the end of the year -- the biggest jump in oil prices in any one year" (in case you are counting, that $50/bbl difference annualized represents a transfer of wealth from American consumer pocketbooks to oil interests of some $350 billion, or the combined annual budgets for the Army, Air Force, Navy and Marine Corps). The Times finally and for the first time, is laying out the full dimension of the OPEC orchestrated increases, calling it the way it is as this post has done since inception.
Without the OPEC cartel rigging the market Exxon's windfall would not have been possible. President Bush and our Energy Secretary Bodman during their recent visit to Saudi Arabia, the putative leader of the OPEC cartel, pleaded with the Saudis to have their cabal increase production levels. Their pleadings were humiliatingly dismissed out of hand. Certainly Exxon must be cheering in the wings and lobbying to have the president continue his inane threat to veto any legislation that would remove the national sovereignty exemption that makes it impossible to sue OPEC and its national oil companies, such as the Saudi oil entity Aramco, in American courts for restraint of trade and collusion among oil producers. It is the kind of legal action that would be forcefully pursued by our Justice Department against any commercial entity/entities that acted in a manner comparable to that of OPEC and its national oil companies. But that's a long and disheartening story (Please see "Oil: A Defining Moment for Our Political Class and the Press," 07/09/07)
The Exxon earnings are not only obscene they are an outrage in that these are not profits that are earned in a competitive marketplace but simply by tailgating OPEC's manipulation. Exxon barely lifted a finger to earn its additional billions other than go along with prices that were the result of collusion by a cartel, and hardly a reflection of a free and unfettered international marketplace. The oil industry apologists are already lining up. To quote one of the spokesmen for the chief peak oil prankster, and cheerleader for ever higher oil prices, Matt Simmons, "A lot of these larger companies are challenged to grow production. That's one of the reasons that oil prices aren't necessarily expensive at $90 a barrel..." Much like Willy Sutton saying he has to hold up another bank because he needs a new getaway car.
At least one candidate was moved to opine on Exxon's earnings. Barack Obama said Exxon's profits were a sign that the U.S. economy is "out of balance". With that observation he will have in all probability kissed the moneyed oil lobbying kitty goodbye.
With distortions such as these lifted from the pocketbooks of all Americans, where are the tough questions and answers asked of the candidates as to how we as a nation are truly going to come to grips with this issue before we transfer all our wealth to the oil companies and our good friends in Saudi Arabia? (For some questions that might be considered please see "In 2008: A Few Questions On Energy For The Candidate," 12.31.07).
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Bill Learsey where in heavens have you been? Can we just have some common sense here please?
The environmentalist have ham-strung the retrieval of easily accessible oil in a huge Oil Find next to Prudhoe Bay. Billions of barrels of American OIL BILL. WTF were you doing to stop these buearucrats from forcing OIL COMPANIES away from drilling/retireving oil in the Gulf of Mexico, Alaska, more found in Colorado?
We could shed more that 15million barrels per day from imports and keep the money, jobs, political risk here. Where the f... were you? Any oil company will drill for oil where they are allowed to Bill. Ooh, but wait....
some of Santa's reindeer my trip over an oil rig and make a boo-boo on it's knees!! The cola polar bears won't have an iceberg to float upon as they become friends with penguins. Right!
Bill why not just own the stock and shut the f... up! Take your dividends and start a business and hire someone! Give somebody a job like OIL companies.
Why not examine the hold of British Oil Companies such as BP and their effect on oil prices in America. They have corporate bases in the United States and have been building an empire with BP Oil and Gas in the US market. The British were the first to jump on the Bush bandwagon to send troops to Iraq, while other European nations were criticized for not sending troops. Econ 101 references - The Iraq war served to disrupt oil distribution to various nations and drive-up the price of oil. It also helped set up the ongoing game with Iran, since they have a large oil market.
My thought is that: the theory and logic of bashing the Saudi's oil business while trying to gain control of the Iraq oil market using our US troops, and at the same time agitating with the Iranians and vice versa is wrong. It needs rethinking.
Lastly, a more recent development is the claim to Artic/North Pole real estate in order to harness any oil reserves hidden under the polar ice cap. Perhaps the United Nations can oversee this endeavor someday in the near future. "Do not let the door hit you on the way out of the White House, Bush, the oil monger"; The prices of oil have been higher than ever with you as the Commandant
Exxon Mobil pays 13% Fed Tax on their profits.
What do you pay?
There was a false argument proffered recently that stated, " Bush didn't go into Iraq for their oil, there is no Iraqi increased production. "
It is incredible that anyone could believe the above. It only happens because the media has drawn a false circle around OPEC that excludes the multi nationals.
I hope OPEC cuts their production to ZERO. That way, instead of reading about guys like 'jowls' and windFALLS, we'll be reading about companies like Vestas and windMILLS. And ethanol. And hydrogen. And people pulling the stick out of their back pockets about coal, and tidal energy, and and and. And, while we're at it with the oil 'biz, if they can go out umpty-hundred miles and build a platform standing on the ocean floor or whatever, why not a wind/wave generation platform? Got all the ingredients there, plus a little anchovy pee and seagull paint, to get all cray-zeee with the hydrogen production. IF they wanted to.
But, they don't. 'Cause all the Big Buxx are in Big Oil.
A parked car consumes no fuel...
Thats great! So we can expect to see their first payment on that VALDEZ matter in the next day or so right?
Read some where last year that Banks had an income of 50 Billion more than oil Co's..Now they need a bailout?.
This isn't just about Exxon, it's about all
the oil companies, and it's about people like
Bush & Chaney who have oil stock. It's also
about contracts with Iraq promising them
money for oil and US troops staying to protect
those Middle East interests. It's about all
CEO's who cut jobs in the US to make more big
bonuses at the expense of the American market
and the middle class, that struggles with
forclosures, bills and all the real life
that goes on around those CEO's.
It's not enough to not buy gas for a day. It's
time to boycott the abuser. Cut up your Exxon/
Mobil cards and stop buying their gas this year,
or at least a month or two. The bottom line,
profit makes the difference.
"Without the OPEC cartel rigging the market Exxon's windfall would not have been possible."
I might have said:
"Without Bill Clinton's free trade policies to drive demand-side pressure, and George Bush's promotion of war and global instability to decrease supply and increase FUD, and this Administration's refusal to restrain the manipulations of the hedge traders, then neither the OPEC cartel's rigging of the market nor Exxon's windfall profits would have been possible."
But maybe I'm being too particular, cause-and-
The "oil" conundrum is a crisis in need of a soultion, but also one for which the solution is palpably simple as to be almost ridiculous. There is no Congressional will to do what needs to be done to free us from dominance of foreign oil. There is more than sufficient oil resources available in the U.S. and Canada. Unfortunately, the interests and howling at the moon of special interest groups refuses to allow for exploration and production of likely sufficient resources for many decades to come. Oil shale and tar sand petroleum resources in North America far exceed Middle eastern resources. American companies are not permitted to drill off of Florida, although Castro and Cuba have granted drilling and production rights to the Chinese! American companies cannot drill in the Arctic, off Long Island, off California or in any of many more likely reservoir locations. Most European nations and even the Japanese generate most of their electrical needs from nuclear power, yet the "howlers" have prevented the development of new nulear stations in the U.S. We have sufficient coal and col bed methane resources for centuries of use, yet it takes 8 years to permit a new mine mouth power plant. The Chinese are building one a month. Our energy issues are easily resolved if there were Congressional will to ignore the narrow "howlers" opposed to energy self sufficiency and longing for a Neolithic lifestyle in a technological age.
One word: rationing.
I wouldn't worry about Obama and oil lobby money. Or Hillary either.
It's so way past the point of no return with voters on the oil problem.
Because every time they turn on their ignition or thermostat or buy groceries they get painfully reminded that they are paying through the nose for having let Republicans have their looting way for eight long years.
And Big Oil knows that they are in the waning days of getting it while they can.
The next administration is going to make it first priority of the hub of the domestic wheel to end this in its tracks, and they know it.
And so do we.
I suspect the deal will go something like this:
either you finally get very publicly indicted with jail commensurate to your thievery for profiteering during wartime or you clean up this sewer. Immediately.
If you've seen the latest lame Chevron PR on TV, you'd come away thinking that gasoline is now investing in a sacrament and tha the average American has a moral responsibility to be robbed blind by Big Oil.
It's gone spiritual, folks.
Which says a lot about the inherent guilt of a company that has sold out its nation and its citizens to engorge a handful of stockholders.
And is now being followed around by what they are hearing louder and louder in the backnoise.
The whirr of the guillotine blade being sharpened against the wheel.
gala
Bottom line. Exxon et.al, despite increases in price per barrel did not have to raise prices at home. They did so because they wanted more money and don't care about the impact on our econonomy.
Their shareholders obviously possess no patriotic sentiment when it comes between choosing to line their already full pockets and giving something back to the nation.
They will take the money and run every time.
Only in America do we complain so much about the price of oil...when in fact we are only 5% of the world population yet we use 25% of the worlds oil. So either by a car or truck that gets better milage..ta
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Posted February 4, 2008 | 06:26 AM (EST)