World's Largest Publicly Traded Oil Firm Makes $11.68 Billion In The Quarter.

Exxon Mobil once again reported the largest quarterly profit in U.S. history Thursday, posting net income of $11.68 billion on revenue of $138 billion in the second quarter.

That profit works out to $1,485.55 a second

So, to reiterate, I bring forward part of one of my articles from July 2006. Enjoy.

Many Big Oil Government Subsidies currently on the books have been there for some time. Here are a few of them.

Firstly, there are the tax breaks at the Federal level which include the Percentage Depletion Allowance which runs from 784 Million to 1 Billion per year, as well as the Non Conventional 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 under taxation 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.

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

The above numbers are Two years old and more than likely they have gone up, just like the profit.

So, it's no wonder that people get ticked when they pay high prices for gas at the pumps Right? Exactly. Shortage Schmortage. There is no oil problem lemmings, all the big boys got you worried with fear. Don’t let ‘em do it. Every single quarter Exxon puts out this ridiculous net profit number and it keeps going up and up and up. Do they care that your hurting at the pumps? Not a good god damn.

Criminals.