- Jul 5, 2004
- Reaction score
...like the thieving Socialist she is. What right does she have to take a company's profits?
Exxon posts mammoth profits
The news out of US-based Exxon Mobile is huge. Last year's $39.5-billion profit comes at a time when oil prices are moving higher. An issue that could prove to be politically difficult for the powerful company.
But the company does have its supporters. "There is nothing wrong with making a profit," says senior energy analyst Oppenheimer Fadel Gheit. "Exxon is run for its shareholders and its customers, so obviously they are very good citizens. I don't see any reason as to why we should worry about Exxon profits. Politically however, some politicians might obviously take a stab at Exxon, but the fact of the matter is that they have been trying for the last 20 years and unsuccessfully to nail Exxon as a factor in higher gasoline prices in the pump or higher oil prices in general."
The issue is that the company is rolling over massive profits at a time when consumers are paying higher pump and electricity prices.
Says Maria Hormata, a New York cab driver, "We feel frustrated because they promised to lower the gas, right? We feel frustrated, I feel frustrated."
The politicians are frustrated too, as they try to roll back tax breaks and make companies pay more for drilling rights.
Exxon's 'outlandish' earnings spark furor
With UN poised to blame global warming on fossil fuels, firm posts $40-billion profit
From Friday's Globe and Mail
OTTAWA — The world's largest publicly owned oil company announced yesterday the largest corporate profit ever, but news of its near $40-billion (U.S.) windfall in 2006 sparked an angry backlash, coming on the eve of a major report blaming the use of fossil fuels for wreaking devastation on the planet.
Exxon Mobil Corp. was accused yesterday of using some of those unprecedented profits to fund a campaign to create skepticism about the impact of climate change and opposition to policies that would reduce the use of gasoline and other oil products.
U.S. Democrats, who now control Congress, slammed the record profits as "outlandish," and vowed to raise taxes against Exxon and other oil companies in order to fund alternative fuels and technologies to increase energy efficiency.
The Irving, Tex.-base company, which sparked a similar row with a record profit the year before, was clearly prepared for the onslaught from its critics.
In a full-page ad that ran in The New York Times and other major U.S. newspapers yesterday, Exxon said that it reinvests its profits to supply growing energy demand, which it said will climb by 40 per cent by 2030.
Exxon wasn't alone in unprecedented oil earnings. Royal Dutch Shell PLC, an Anglo-Dutch company, and U.S.-run Marathon Oil and Valero Energy, also posted best-ever annual results yesterday. And ConocoPhillips Co., also American, last week posted its highest profits. Profits at the five companies together totalled $91.1-billion -- in a year when drivers paid record prices for gasoline.
Senator Hillary Clinton of New York, a leading candidate for the Democratic presidential nomination in 2008, took direct aim yesterday at the oil companies' gains.
"Instead of lining the pockets of big oil, we need a new direction in energy policy that rewards innovation, creates jobs and reduces our dependence on foreign oil," she said in a statement.
She called for the elimination of "oil company tax breaks," with the additional revenue going to fund biofuels and other clean-energy technologies.
Democratic Congressman Ed Markey, a member of the House of Representatives energy committee, called the record profits "outlandish," saying they came "at the expense of the driving public." He vowed to push for an end to tax incentives passed by the Bush administration aimed at encouraging companies to explore and produce more oil in the United States.
Both Democratic and Republican members of Congress have also urged Exxon to end its funding of organizations that deny the existence of -- or minimize the seriousness of -- human-made global warming.