Windfall Oil Profits? |

Windfall Oil Profits?

In support of a previous post I made on this topic, here is some more information about the supposed “Big Oil” windfall profits.  This issue “gets my goat” as it’s so obvious the MSM and the left are lying to us.

Cross posted from StopTheACLU.com

What About Those Oil Companies and Their Big Profits?

Posted on August 7, 2008

-By Warner Todd Huston

The Wall Street Journal had a pertinent piece on August 4 that bears some repeating. In it they asked “What is a ‘windfall’ profit anyway?” and provided some much needed context about the money that oil companies make.

On Aug 6, Obama made an amazing policy suggestion. He said that the government should actually confiscate money from private businesses and redistribute that money, giving it away like welfare! This is pure, socialist, redistribution of profits. It is also as anti-American as you can get.

So, the Journal made some pertinent points to ponder about just what the oil company profits are and how they measure against other industries.

First of all, the Journal notes that Exxon, for instance, paid an enormous amount of taxes. “Between 2003 and 2007, Exxon paid $64.7 billion in U.S. taxes, exceeding its after-tax U.S. earnings by more than $19 billion.”

According to the WSJ, here were some more facts about Exxon’s “obscene” profits:

Exxon’s 2007 profit margin = 10%

Here are the profit margins of some of our other industries and companies:

  • Areospace Industry’s 2007 profit margin = 8.2%
  • U.S. Manufacturing Sector’s 2007 profit margin = 8.9%
  • GE’s 2007 profit margin = 10.3%
  • Berkshire Hathaway Investors = 11.47%
  • Chemicals Industry’s 2007 profit margin = 12.7%
  • Computers Industry’s 2007 profit margin = 13.7%
  • Electronics and appliances Industry’s 2007 profit margin = 14.5%
  • Pharmaceuticals Industry’s 2007 profit margin = 18.4%
  • beverages and tobacco Industry’s 2007 profit margin = 19.1%
  • Google’s 2007 profit margin = 25.3%

Want “obscene” profits? How about electronics company LG that saw profits increase 505% in 2007? Maybe we should lay low the evil profits from Abbot Laboratories that saw a 110% increase?

So, why are we attacking just the oil companies again? Could it be that it’s just because the Democrats want a whipping boy? Why, yes. Yes it could be.

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One thought on “Windfall Oil Profits?”

  1. Christopher says:

    I agree with you… Big Oil has become the scapegoat because we Americans refuse to accept responsibility for our actions and our wasteful lifestyle.

    You want to reduce the profits and income of Big Oil…

    inflate your tires…

    don't leave the car idling for 5 minutes in the extreme heat or extreme cold…

    don't use your AC constantly…

    consolidate your trips to run errands and shop…

    carpool…

    use public transportation…

    walk or ride a bike for short trips…

    bring reusable bags to shop with instead of using plastic bags…

    use Tupperware instead of Ziploc bags…

    buy products made from natural materials instead of plastics…

    There are plenty of ways to reduce a person's use of gas and oil and therefore reduce the amount of money Big Oil makes off of you… you just have to change your habits.

    If we American's are willing to shift the way we live, we shouldn't try to impose changes on companies that we've been supporting for decades.

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