Friday, March 30, 2012

Oil Company Profit: Billions of Dollars

Earlier today (or really, yesterday) the US Senate voted to let the oil companies continue getting 4 billion dollars a year of tax breaks (subsidies!) which was the bill to eliminate unnecessary tax subsidies and promote renewable energy and energy conservation.

It didn't seem to matter to them that the top 5 domestic oil companies have made 32 billion dollars in profit this year. That's in addition to the $130 billion dollars in profit from last year. The heads of the top 5 domestic oil companies testified under oath a few years ago that they do not want, need or ask for these tax breaks, but some of their pals in Congress want to continue with them anyway.

There were 47 senators who voted to end the tax subsidies. They received $5,873,600 in campaign contributions from big oil. There were 51 senators who voted to continue with the tax subsidies. They received a whopping $23,582,500 in campaign contributions. Hmm, what does this tell us?

Here's the link to see how your senator voted:

The 5 top US oil companies control 56.3% of the domestic oil refinery capacity. A barrel of oil is 42 US gallons. It costs the oil companies $2 per barrel to get oil out of the ground in the traditional way (derrick.) It costs them $35 per barrell to get oil out of the ground where they have to go through deep water. So the price of oil that is above $45 per barrel is pure profit.

The current price of a US barrel of oil as of 2:31 am on 3/30/12 is $103.52.

You do the math!

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