Idea of the Day: Big Oil Doesn’t Need Special Tax Breaks
It’s been quite a week for Big Oil. The big five oil companies—BP, Chevron, ConocoPhillips, ExxonMobil, and Shell—reported their second-quarter 2013 profits this week, which were a combined $19.5 billion. That comes out to $145,000 in profit per minute—more than 88 percent of American households earn in an entire year. Despite these large amounts, however, the profits are still lower than analysts’ expectations and less than the second-quarter 2012 profits. This is partly due to lower gasoline prices in the second quarter of 2013 compared to the second quarter of 2012, as tabulated by the Energy Information Administration. Nonetheless, the $47.4 billion in 2013 profits so far is reason enough to end special tax breaks.
Each of the big five oil companies provided a different reason for why its profits were lower in the second quarter of 2013 compared to this quarter last year:
- BP’s profits were lower than expected due to rising claims from its Deepwater Horizon disaster in 2010.
- Chevron’s second-quarter profits were down due to lower oil production, lower prices, and refinery outage.
- ConocoPhillips had lower profits due to “a cost increase in domestic crude processing.”
- ExxonMobil’s profits were lower due to reduced volumes at its refineries.
- Shell’s second-quarter profit was lower than expected, partly due to reduced oil production in Nigeria and expensive tight oil production in North America.
For more on this topic, please see:
- Big Oil Rakes in Huge Profits, Again by Daniel J. Weiss and Jackie Weidman
To speak with our experts on this topic, please contact:
Print: Liz Bartolomeo (poverty, health care)
202.481.8151 or firstname.lastname@example.org
Print: Tom Caiazza (foreign policy, energy and environment, LGBT issues, gun-violence prevention)
202.481.7141 or email@example.com
Print: Allison Preiss (economy, education)
202.478.6331 or firstname.lastname@example.org
Print: Tanya Arditi (immigration, Progress 2050, race issues, demographics, criminal justice, Legal Progress)
202.741.6258 or email@example.com
Print: Chelsea Kiene (women's issues, TalkPoverty.org, faith)
202.478.5328 or firstname.lastname@example.org
Print: Benton Strong (Center for American Progress Action Fund)
202.481.8142 or email@example.com
Spanish-language and ethnic media: Jennifer Molina
202.796.9706 or firstname.lastname@example.org
TV: Rachel Rosen
202.483.2675 or email@example.com
Radio: Sally Tucker
202.481.8103 or firstname.lastname@example.org