Exxon Posts Another Record Profit; McCain Says We Can Trust Them

Exxon CEO Texan Rex Tillerson, whose compensation in 2007 was $21.7 million, including $1.75 million in salary, a $3.36 million bonus for record-breaking profits, and $16.1 million of stock and option awards

Exxon has broken its own profit records yet again, this time for the quarter that ended June 30. As you know from listening to the oil companies, there is no correlation between $4 per gallon gas and this phenomenon.

The world’s largest publicly traded oil company said net income for the April-June period came to $2.22 a share, up from $10.26 billion, or $1.83 a share, a year ago.

Revenue rose 40 percent to $138.1 billion from $98.4 billion in the year-earlier quarter.

It’s hard to comprehend that kind of money when your brain is more used to calculating 15 percent off on the $6.99 pair of shorts at Beall’s Outlet.

McCain: Shame is enough to force oil companies to do the right thing

But John McCain, whose reward from the oil industry for changing his policy on drilling American shorelines was a campaign check for $1.1 million, feels my pain. He explained to ABC’s George Stephanopoulos on This Week, when asked what McCain would do differently than Bush to help the economy, his idiotic gas tax holiday would have helped poor people driving gas guzzlers.

McCain: There are many steps that can be taken, absolutely, including a gas tax holiday. Everybody —

Stephanopoulos: There’s not a single economist in the country who says it works.

Mc: And there’s not a single economist who knows very well the low-income American who drives the furtherst (sic) in the oldest automobile that sometimes can’t even afford to go to work.

St: But they all say that’s not who’s going to get the benefit. The oil companies, the gas companies, are going to absorb —

Mc: You know, they say that, but if one, it didn’t happen before, and two, we wouldn’t let it happen. We wouldn’t let it happen, Americans wouldn’t let them absorb that.

St: How would you prevent it?

Mc: We would make them…shamed into it. We of course know how to, American public opinion, and would penalize them if necessary but they wouldn’t. They would pass it on.

You really have to watch the clip to get the full effect. The part quoted starts at 6:28 and ends at 7:12. McCain is blustery and incredulous that there could be any question his new BFFs would try to make even more obscene gains than they’re making now. Except they are already calling for more.

But [Exxon] investors expected even bigger profits Thursday, especially after Europe’s Royal Dutch Shell reported a 33 percent jump in second-quarter earnings of $11.6 billion, which fell just shy of Exxon’s own record earnings from 2007.

McCain’s right about one thing. “Shame” is the word to use when talking about oil company profits.

4 Comments

  • blaising
    July 31, 2008 - 10:55 am | Permalink

    Yeah…why don’t you take some of that “shame”, wrap it up with a bow, and send it to my landlord.

    McCreepy has got to be delusional. Coporate cats only give a sh*t about one thing…profit!!

  • nikolai
    July 31, 2008 - 11:21 am | Permalink

    Sure the oil companies would pass on the savings, look who’s in office, an OIL MAN. Duh! Still, the amount of gas tax savings passed on to the citizen is laughable, and it’s only for a very short time anyway. Forget implementing your stupid, patronizing “plan”, McCane.

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  • Richard Rider
    August 3, 2008 - 1:55 am | Permalink

    This past quarter, ExxonMobil made what some deem a fat profit [actually not so fat – that’s about 8.5 cents per dollar of sales], but the company also had a fat tax bill. On a worldwide basis, ExxonMobil paid over $10 billion in corporate income taxes in the second quarter alone, $9.5 billion in sales taxes, and over $12 billion in other taxes.

    In other words, ExxonMobil paid (or at least collected) $32.361 billion in taxes in the second quarter. Or to look at it another way – Exxon paid (or collected) almost $3 in taxes ($32.361 billion) for every $1 in profits ($11.68 billion).

    That means that for every dollar in Exxon sales – not profits, SALES — 23.4 cents is for taxes. And that is averaged over all types of sales – not just gasoline.

    For the financially illiterate who wish to verify these figures, here’s a URL for the company’s quarterly earnings statement (if this board allows URL’s — otherwise Google it):
    http://tinyurl.com/5rnmyc

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