Exxon Mobil Part II

The following is a comment one of my esteemed associates left for me on the original Exxon Blog from last week, and I think it deserves a closer look.
"Yeah and then at some point in the future the government will have to subsidize Exxon when oil and profits drop and Exxon is spending $20-30 billion in new development. So Capitalism is fine unless someone actually makes a profit? How about lowering taxes on fuel? How about the millions driving SUVs and increasing demand? How about the speculators adding $10-20 per barrel simply due to geo-political risk? Do you really want to live in a society where the government can arbitrarily pick any company making too much money and appropriate part of their earnings at will?"

OK then, lets look at the bold part from above shall we...........

Had my friend taken the time to do a bit of homework he would have found that there are many Big Oil Government Subsidies currently on the books already and they have been for some time. Here are a few of them.

Firstly, there are the tax breaks at the Federal level which include the Pecentage Depletion Allowance which runs from 784 Million to 1 Billion per year, as well as the Nonconventional Fuel Production Credit at 769 - 900 Million / Year, followed by immediate expensing of exploration and development costs at 200 - 255 Million / Year, then the Enhanced Oil Recovery Credit for 26.3 - 100 Million / Year, Foreign Tax Credits at 1.11 - 3.4 Billion / Year, Foreign income deferrals at 183 - 318 Million / Year, and finally Accelerated Depreciation Allowances of 1.0 - 4.5 Billion / Year.
All that adds up to roughly 10 Billion / Year in Federal subsidies but they don't stop there. Lets move down to the State level now. Most state income taxes are based on oil firms' deflated federal tax bills and results in an undertaxation of 125 - 323 Million / Year. States also impose fuel taxes that are lower than regular sales taxes amounting to a subsidy of 4.8 Billion / Year to gasoline retailers.

New rules under the Taxpayer Relief Act of 1997 provide a further subsidy 2.07 Billion / Year. In total, the annual tax breaks that support gasoline production and use amount to close to 18 Billion / Year.

Now lets discuss the Program subsidies that support the extraction, production, and use of petroleum which totals 38 - 114.6 Billion / Year. Beyond all the above, The government as well as tax payers subsidize a large portion of the protection services that are required by the petroleum producers. Foremost among these costs is the cost of military protection which adds another 55 - 96.3 Billion / Year to the subsidy extravaganza.

All said and told we are talking about a couple of Hundred Billion a year bailout for the Oil Industry and this is while they are making record profits quarter after quarter.

So, it's no wonder that people get ticked when they pay high prices for gas at the pumps Right?
Exactly.

Here endeth the lesson.

Figures used for this commentary were supplied by The Progress Report - What Gas Really Costs Us.

Formula 1 2006 German Grand Prix

The following is quoted from Formula1.com and I think it sums it up pretty nicely.

"Michael Schumacher's third victory in succession - and his fourth in his home Grand Prix - slashed another six points from Fernando Alonso's crumbling world championship lead on Sunday, as the Spaniard could only finish a trailing fifth in the German Grand Prix at Hockenheim."

The key word above being Crumbling, I would have to say that Alonslow is on the back of his heels right now just waiting for a gust of wind from Mikes passing Ferrari at next weekend's race to finally knock him on his ass. It was very nice to hear Slowlonso complain over his radio to the pit crew during Saturdays qualifying that Mikey had pulled out in front of him in the pit lane as he was coming by, ( a perfectly legal move by the way, no one is required to vacate the track just because the Spanish Cherub Jerker is coming along) well Weeee Heeee Alonslack, man up and and try relaxing for once. The fact that your complaining over "supposed" incidents like that just indicates that you are easily unnerved which is NOT the mark of a true champion. Next week, please move over poste haste when Mike comes 'round to lap you.

My congratulations to Mike on his 89th Career Victory, only 11 more for the Century.

Exxon Mobil Corp.

I see by the various headlines today that Exxon Mobil Corp. threw out the number of $10.36 billion in PROFIT for the second quarter………………SECOND QUARTER People. This is the second largest quarterly profit ever reported by a publicly traded U.S. Company. The first largest of some $10.7 billion for the forth quarter in 2005 ALSO came from Exxon. The company makes a cool $1,318.00 per second in profit.






Running the show is one Rex W. Tillerson, he’s the big chief at Exxon and earns roughly $144,573.00 per day for his efforts. Ya gotta know that when he fills up his vehicle at the pumps that he couldn’t care less what the price of gas is, as long as it keeps going up. It’ll just make him more money.

Meanwhile, John Q. Public continues to get raped royally at the gas pump paying in the neighborhood of $3 a gallon or $1.10 a Litre. Do any of you see something VERY wrong with this picture? I sure do.

When in the hell are the legislators going to reign these Fat Cats in and set them straight. Don’t get me wrong, I’m all for making money, but when your pulling 10 bill per quarter and you have people who can’t fill up their tanks because it’s too expensive, I think you gotta give something back no?
C’mon, theres plenty to go round.




But this is what happens when GREED takes over and speculators drive Oil up to $74/barrel on supposed shortages and fear mongering from the Middle East Wars.

The funny thing is this little tidbit that not a lot of people know – Canada is the biggest supplier of oil to the United States. So why all the worry about oil from the Middle East you ask, because They (Big Oil, Big Corporations, Government)want you to be worried. Plain and simple. It makes them a hell of a lot of money in the end among other benefits as well which I won’t get into here.

Hopefully, something will be done soon to bring down the gas price but I seriously doubt it.

It’s all about the money and greed, always has been, and always will be.

Just shameful.

The Federal Reserve

Will they stop raising rates?................




10:00 am News
U.S. HOME PRICE GAINS LOWEST IN 10 YEARS
U.S. JUNE HOME INVENTORY 6.8 MONTHS, 9-YEAR HIGH
U.S. JUNE EXISTING HOME MEDIAN PRICE UP 0.9% Y-O-Y
U.S. JUNE EXISTING HOME INVENTORIES UP 3.8% TO 3.725 MLN
U.S. JUNE HOME SALES ABOVE 6.58 MLN EXPECTED
U.S. JUNE EXISTING HOME SALES FALL 1.3% TO 6.62 MLN
U.S. CONSUMER INFLATION EXPECTATIONS HOLD STEADY IN JULY
U.S. JULY CONSUMER CONFIDENCE ABOVE CONSENSUS 103.9
U.S. JULY CONSUMER CONFIDENCE UP TO 106.5 VS REV 105.4 JUNE

With the above news this morning one wonders if the Fed will raise rates another quarter point in August. After checking around it would seem so. Even though the news released should dictate a pause, if not a full stop. And it's not just today's news that shows it, It's been showing a major slowdown is on the way for months and months. The thing that gets me is that everytime the consumer confidence comes out a few ticks above the consensus number everyone goes Long Dollar even though other reports say that the dollar should tank. And ya gotta love the way they always tweak the previous months report at the same time, that just makes me wonder who the number crunchers are working for, and do they have their own personal positions they need to cover? hmmmmmmmmmmm?

One would think so sometimes.

The Fed knows well and truly that when they pause or stop raising that their beloved USD will be worth next to nothing and shoot to the basement pretty fast. ( that's part of the reason they always jerk around with the previous month's numbers) I think that the Fed will actually reduce the rate starting in October, because as always, they tend to overshoot when raising.

Bernake and the boys have been saying that they are more dependent on current news lately to dictate the rates. That's because they already know the news is garbage and there's no reason to keep raising, but they love to fear monger with inflation and make everyone in the market nervous as hell. I hope that soon, they Man Up and swallow the pill that says Stop Raising.

LONG EUR is the way to be from Late August onwards. You heard it here first.

Jaywalkers

So, on the way to work this morning I drove around a few Jaywalkers and the damnedest thing happened.................They looked at me as I drove by like I was the crazy one and their faces were showing great disdain.

Although the picture is not the exact scene from this morning it is very typical of what happens. These people just casually sache out into the road with the full on belief that myself and other drivers will automatically see them, slow down or even better STOP, and let them pass, thereby ruining the flow of traffic and causing possible accidents just so they can shave a few seconds of their schedule. They carry this air of invincibility about themselves and act as if wherever they happen to be walking, that they have the absolute right of way.

These are probably the same folks whom you see in the mall parking lots on the weekends that insist on walking to their cars or the stores right down the middle of the lane, holding up someone trying to park. And as usual, as if right on que, when you give them a small tap on the horn, they turn around and snarl at you because A) - you scared them and B) - now they have to walk three extra steps.

PIKERS every last one of them.

Yet again, one more example of people not being on their game and preferring to just amble on through life. Pretty sad if you ask me.

TIM HORTONS

YA, THAT'S RIGHT.........TIM F'IN HORTONS.

I'm getting thoroughly tired of the Slack Jaws that seem to be finding their employment with this company, better yet, I'm at a loss as to why this company hires these people in the first place. OH WAIT, I KNOW WHY, because these poor slovenly slack jaws will work for minimum wage.

Either way you cut it the standards of Timmy Ho's have gone well down the slippery slope, Most of their doughnuts are not "Always fresh" as the signage says, but instead stale and hard.

The staff seem to just plod along looking forward to their next longevity cheque. I can remember a time not so long ago when one would be greeted at the counter with a smile and some enthusiasm, you would place your order and be gone in roughly 30 seconds. Now, you wait in line for 10 minutes because they are short staffed and the ones working are slow as molasses.

One of the main reasons these people are slow is because they either don't understand English, or they simply are not paying the slightest bit of attention. Let me ask you this, how many of you have placed your order for say.........a medium regular and chocolate doughnut, only to have Thajinder repeat your order as "Medium double double with an Apple Fritter" and then the guy proceeds to make you a large triple triple and ask's what kind of doughnut you want. Let me tell you, after the second time it gets pretty fuckin ponderous.

Some of you may say "then don't give them your business" and normally you would be correct but because in Canada, Tim Hortons is ingrained at an early age, and they are pretty much on every street corner it's hard to go elsewhere sometimes. And I certainly won't go to Starsluts, because the idea of paying $4.00 or more for a cup of coffee simply irks the hell out of me.

Unfortunately, the situation will sadly not improve itself anytime soon.

Ah well.......................

Formula 1 2006 French Grand Prix

My congratulations to Mike on being the First and Only driver to obtain the Illusive Triple Eights.
88th carrer win, and the 8th win on the French Grand Prix track at Magny-Cours.

Truly the best driver in the history of the sport, and a job well done by the entire Ferrari Team.

Some of the best looking women ever

Quite simply, these are some of the best looking women ever. Questions, queries, comments, concerns. Leave 'em in the comments section.

DRIVERS

WELL,.................
Drivers these days, as usual, are just stupid. Most of the idiot offenders seem to be the timid and scared immigrant population who arrived here between 2 - 7 years ago and picked up their drivers license at the local Rucky Driving School.

These are the ones you see driving 45km/h in the middle lane of the 401, DVP, etc... During rush hour, or any other time of the day for that matter, and they simply plod along without any understanding of their surroundings or the consequences of doing so.

I dare say that if these jagoffs were not on the road, rush hour would almost disappear.
The true shame of it all is this: because there are so many of these people on the roads with their sub-standard driving abilities, those of us who are on our game whilst behind the wheel, get bogged down in their shite and then pretty soon everyone gets bogged down.

This is just a small part of the dumbing down process society is going through, we are becoming too forgiving of people, that for lack of a better description, just don't seem to want to try. It would seem they are quite happy to "just exist".

It is truly a shame.