Update: ExxonMobil posted its second-quarter 2011 earnings on July 28. Take a look at “ExxonMobil’s earnings, and America’s bottom line” for the latest information and discussion about ExxonMobil’s earnings.
Big numbers make headlines – like our announcement of $10.7 billion in earnings for the first quarter of 2011. What may not make the headlines is the context surrounding that number, so I thought I would share with you what I told reporters following the announcement:
When crude oil prices increase it means higher earnings for oil companies, and more importantly for most Americans – higher gasoline prices. Rising crude and gasoline prices have a very real impact on household budgets across the nation. Gasoline is an essential product, and price rises are felt by families and businesses alike.
Let me start by putting our earnings into context for U.S. motorists.
ExxonMobil’s earnings are from operations in more than 100 countries around the world. During the first quarter, more than three-quarters of our operating earnings came from outside of the United States.
The part of ExxonMobil’s business that refines and sells gasoline, diesel and other products in the United States represents less than 6 percent – or 6 cents on the dollar – of our earnings.
Why so little? Because we actually buy more crude oil to refine into gasoline and diesel in the U.S. than we produce ourselves. And these purchases are made on the open market at the prevailing rates.
During the first three months of this year, for every gallon of gasoline and other products we refined and sold in the United States, we earned about 7 cents. Compare that to the 40 to 60 cents per gallon that went from gasoline consumers to the government (state and federal) in gasoline taxes.
The underlying question people are asking is: Why are oil prices so high at the present time? The answer to this question is important because the price of crude oil accounts for most of the price of gasoline.
There are several factors involved in the rise in oil prices.
First, as a result of the global economy strengthening – particularly in countries like China, India and Brazil – demand for crude oil is on the rise.
Second, political instability in some oil-producing regions is contributing to uncertainty about future oil supplies. Oil markets are well-supplied today, but the issue is this: What will it cost to replace this supply if it is lost in the future? This uncertainty about tomorrow is reflected in prices today.
Finally, another factor behind higher oil prices is unique to the United States. And that’s the weak U.S. dollar. Oil and most other food and industrial commodities are invoiced in dollars. Accordingly, when the dollar goes “down” the price of primary commodities tend to go “up,” and vice versa.
The dollar is at a three-year low against other currencies and is approaching the record low which occurred in 2008, when oil prices were at historically high levels.
The dollar’s decline accelerated last week after a warning by Standard & Poor’s about the country’s $14.3 trillion debt and economic weakness compared to other countries.
So these factors all combine to drive oil prices up.
What is our government doing about it? Unfortunately, they’re reaching for the political playbook rather than seeking real solutions.
We understand that it’s simply too irresistible for many politicians in times of high oil prices and high earnings – they feel they have to demonize our industry.
Predictably last week the Administration established a task force to investigate oil and gas markets, now a time-honored tradition when prices increase.
And we’re seeing a return to the now-familiar misinformation about the oil industry’s taxes.
Over the last week as earnings season has approached, the Democratic Party leadership again talked about removing what they call $4 billion in oil industry subsidies. But what they really mean is that they want to increase our taxes by taking away long-standing deductions for our industry while leaving these same deductions in place for other sectors of the economy. The simple truth is that these are legitimate tax provisions to keep U.S. industry internationally competitive – to keep jobs from being exported to other countries.
Unfortunately, this false discussion about oil industry subsidies also reinforces another falsehood making the rounds: that ExxonMobil doesn’t pay its fair share of income taxes in the United States.
Let me state it unequivocally. Last year, our total taxes and duties to the U.S. government were $9.8 billion, which includes an income tax expense of $1.6 billion. Over the past five years, we incurred a total U.S. tax expense of almost $59 billion, which is $18 billion more than we earned in the United States during the same period.
And during the first quarter of this year, we incurred tax expenses in the United States of more than $3.1 billion on U.S. earnings of $2.6 billion.
So we have seen the predictable political positioning but no action to actually help bring down energy prices. In fact the government has chosen not to help increase supply by refusing to open up the vast energy resources in this country that are off limits to our industry.
We have seen exploration and development in the U.S. Gulf of Mexico – which accounts for 30 percent of all U.S. crude oil production – effectively banned for the past year by the Obama Administration.
In addition, legislation was enacted targeted at restricting the supply of oil from Canada – a country whose oil reserves are second only to Saudi Arabia’s.
Unfortunately, irresistible sound-bite politics rather than sound public policy is dominating the energy agenda in Washington – but there is one reason for optimism about America’s economic and energy security.
That optimism lies in America’s extraordinary natural gas endowment. This resource is providing the United States with an enormous economic advantage as a result of American ingenuity and innovation.
It’s nothing short of revolutionary that our industry has recently unlocked more than a 100 years’ worth of natural gas right here in the United States. And at some of the world’s lowest prices – last month natural gas was selling for 40 percent less in the U.S. than in Europe.
Think of the advantages this is already providing – in the form of power generation and fuel for manufacturing and other industries, not to mention the jobs and taxes natural gas production creates.
But there are concerns that political overreaction to a small number of isolated environmental issues could jeopardize this emerging industry and the benefits it provides.
Government policies did not cause the shale gas revolution in this country – but they could stop it in its tracks.
Policymakers need to look carefully at the facts and avoid a bias against natural gas and fossil fuel development in favor of far more costly energy sources that are already receiving massive subsidies.
In fact, we’ve already spent more on alternative energy subsidies than we did on the Manhattan and Apollo projects combined. And what do we have to show for it? Unreliable and uneconomic energy sources that still can’t compete – even at today’s prices.
On the other hand, natural gas is affordable, available – and doesn’t need taxpayer subsidies.
The technologies and industrial processes involved in developing shale gas are proven – the industry has successfully fracked more than a million wells over the last 60 years. There are thousands of feet of rock between the natural gas deposit where the fracking takes place and the water table.
Risk to water supplies and air quality can be and are being mitigated by using proper well design, operating with care and following industry best practices and procedures that are all subject to regulation and government oversight.
When these technologies are applied properly and the industry remains focused on operational integrity, we can protect our environment and public health and enjoy this unprecedented economic advantage.
Energy policy should enable safe and environmentally responsible development of all of America’s natural resources, which will support economic recovery and improved quality of life.
It’s time for our leaders to stop playing politics with the energy industry and to start working for solutions that will take the pressure off household budgets and enhance our energy security.
I really feel for you guys at Exxon. People are just not going to understand. The attempt at reason in this post is strong at commendable (prior to the devolution to the natural gas lobby, which may or may not be justified, I’m an economist, not an engineer), but I think most of your critics will refuse to believe we live in a closed-form economy in which all things must balance. The attitude appears to be overwhelmingly “there’s money in there somewhere, let’s loot it”.
You guys are performing one of the most difficult tasks man has ever faced, drawing a liquid up from far beneath the Earth’s surface. Until I find a way to do that efficiently on my own, feel free to name your price – you absolutely deserve it.
And here is the big secret to everyone voicing their disdain for Exxon’s profitability: Buy Exxon stock. Then the pro-rata portion of that $10.7 billion can be yours and the executives you so villainize will be on your payroll, doing all the bad things you claim just to put extra money in YOUR pocket.
SO….all I’m hearing is “It’s not our fault, it’s the Democrats!” Being an independent thinker, I don’t care if you blame Republicans or Democrats…it’s all a bad argument. The fact is that the author of this article – and all of his compadres in the company – are indeed earning far more money than the rest of us who are paying. And we are paying for a limited natural resource. Sure, we can frack the ground to death for cheap gas, but that too will run out. And in the meantime we ARE putting salt into the ground. What did ancient armies do to destroy their enemies completely? They salted the ground b/c it causes death to the ecosystem…killing the earth itself. Are we Americans so blind? The man who practically invented the ability for us to consume energy in our modern world today, Nikola Tesla, knew that the sun was constantly giving energy to us – and wanted us all to have the ability to draw that free energy all the time. But this is not profitable. In fact, this article talks about the futileness of renewable energies but fails to address the fact that lobbyists have successfully… read more »
…blocked much of the development for those renewable energies. This article exudes vomit and asks us to eat it up. Sorry. I refuse to eat your bile.
Trickle down econonics is a bit like a fat man sitting at a banquet telling the starving child under the table to just keep waiting for a few crumbs…while over 75% of the feast goes untouched.
Waa Waa…it’s so tough to be us. Waa Waa…we have to pay taxes. Waa Waa….people are starting to notice that what we do is bad for the world we live in. Waa Waa…..big babies.
Are there really people so small minded that they believe this sorry excuse for propaganda?! I don’t wish people were smarter…we think we’re smart enough. I just wish people were WISER.
OIL/GAS TAX: 1st off you have to ask if the amount of the tax is correct? Should the Govt be able to take over twice the amount of anyone or companies Proff? Ok you make $36,000 it would be the same as the Govt. saying you keep $10,000 and we keep the $26,000. Now before we all agree that those numbers seem stupid we then ask ok so the Govt gets $26 billion in taxes from one oil company where does that mony go….This year it all went to bombs that we sent exploding into libya. That $26 billion does not even cover all of our senate,congress, and politician salraies and pensions. Think of it as a extremly hungry big person, they gobble and gobble and get bigger and bigger. Who and when do we put them on a diet? Because if this Big person is married then the wife or husband will at some point say I can’t afford to feed you. Your to big to work and on my income aloan we can’t make it. So the fat person raids the neighbors fridge and friends and family members as it makes promises to change… read more »
…to the wife. Just hold on one more year I will turn it around! My friends the US govt has got to big, you all have now become the CO-dependant allowing the Govt to rob fridges of our neighbors and our own fridges. They manipulate the media and make you all look at the oil companies like monsters. The oil companies all started as a group of people wanting to get big and make proffit. We all then bought the stocks and made proffit to, now in Ca there is almost a .50 cent tax per gallon of gas. If the gov’t wanted to help why not keep the sorry $500 check they call stimulous and drop the tax for a year and go after GE defense contract who made 4 trillion dollars last year and paid zero tax! Oh wait Pentagon we should call them moneygon!
Lowering corporate taxes will NOT result in more jobs, period. They will simply pocket the money, and still put their businesses overseas.
Exactly. Take the example of Ireland that enticed foreign manufacturing businesses with 10% tax rate. That lasted only as long as it took them to realize they can locate to an island and pay ZERO tax. Google has sold ALL its patents to an owned subsidiary existing only “e-imaginary” place. That’s where the royalties and revenue goes. BTW Ireland is back to square one. The 2007/2008 total economic collapse is proof that greed has no boundaries and the only way to contain it transparent regulation like in the 50s and 60s.
Consider Ken’s premise that ExxonMobil is paying (more than) its fair-share of federal corporate income tax. That’s the tax paid on corporate profits after all expenses and allowed deductions have been subtracted from all revenue sources in the period. ExxonMobile is a US based corporation with a presence in over 100 countries.
Ken said that in 2010 ExxonMobil paid $1.6 billion in federal corporate taxes — he doesn’t say what the 2010 adjusted gross income was however, so I looked it up — it was almost $31 billion. So, the federal corporate taxes paid were 1.6/31 or 5% of corporate profit.
In 2009 ExxonMobil paid no federal taxes while reporting profits over $40 billion. That year ExxonMobil chose to associate most of its profits with over-seas operations and did not move the proceeds into the US; so they legally showed no US federal taxable income (in fact they were allowed a > $1 billion tax credit that was applied to 2010 earnings). You begin to see how this works; US based global corporations can pretty much control any given year’s federal taxes by the way they do the accounting for their oversees subsidiary’s.
But what… read more »
…about that $9.8 billion Ken said ExxonMobil paid in “taxes and duties” — well those are some apples and some oranges. They include excise / sales taxes passed directly to customers while being collected at point of sale by ExxonMobil. We’re supposed to be talking about corporate taxes, not sales taxes that get passed directly to the product consumer! So forget $9.8 billion, and just look at the corporate taxes (0 in 2009 and $1.6 billion in 2010 — the two years discussed in Ken’s Prospectives article).
Consider Ken’s other tag line: ‘Over the past five years, we incurred a total U.S. tax expense of almost $59 billion, which is $18 billion more than we earned in the United States.’ It tries to convince the reader that ExxonMobil took a bath on corporate taxes, but more than 90% of that $59 billion was paid by consumers to county, state, and federal agencies. Those were not taxes paid by ExxonMobil from profits!
To be clear (ref link to http://en.wikipedia.org/wiki/Corporate_tax_in_the_United_States ) the Wiki Entry for Federal Corporate Tax Law says Corporations, like other businesses, may be eligible for various tax credits which reduce Federal, state or local income tax. The largest of these by dollar volume is the Federal foreign tax credit. This credit is allowed to all taxpayers for income taxes paid to foreign countries. The credit is limited to that part of Federal income tax before other credits generated by foreign source taxable income. The credit is intended to mitigate taxation of the same income to the same taxpayer by two or more countries, and has been a feature of the U.S. system since 1918.
Additionally (ref link to http://www.irsfraud.net/2010/12/08/deferral-of-foreign-source-income-by-u-s-multinational-corporations-time-for-a-change/), a fundamental principle of U.S. international tax law is that income earned abroad by U.S. corporations is not taxed in the U.S. unless or until the income is repatriated, such as by payment of dividends to a parent corporation. Thus, taxation of foreign income is deferred if the corporation eventually repatriates the profits. The IRS cannot reach the offshore profits, however, if they remain abroad. Because a subsidiary of a U.S. corporation can do business in any number of countries with lower corporate tax rates than ours, it is economically more advantageous to invest or use profits abroad rather than to repatriate them. Even if the offshore profits are not reinvested, U.S. corporations may have foreign subsidiaries stockpile then to avoid the 35% U.S. corporate tax.
This tax deferral clause is the the real meat of the issue: If a US corporation continually reinvests in foreign subsidiaries in countries with low or no corporate taxes, then it has effectively increased its bottom line by avoiding the current federal corporate tax rate. This is precisely what is going on in major US corporations with foreign subsidiaries. It is only when accountants direct untaxed monies back into the US that the IRS gets a taste.
Bill Clinton (regardless of what you think of him personally he is an astute businessman and statesman) has said that what Congress needs to do is reduce the corporate federal tax rate significantly, and simultaneously limit the period of deferral of untaxed foreign profits to one year. These two changes would probably bring significantly more revenues back into the US by diminishing the incentive for large US multinational corporations to keep monies in foreign subsidiaries.
My belief is that if congress were to eliminates the deferral of foreign-source income clause the stocks of US multinationals would fall dramatically, and their net profits would fall significantly (most currently pay around 5% of global profits in federal taxes). They would focus more on offshoring their profits permanently as a result. This is probably an overall bad thing for our economy. It makes sense to look at increasing revenues by setting the corporate rate at 10% and simultaneously eliminating or reducing the conditions under which untaxed foreign profits of US companies go untaxed by the IRS.
If you think the US is overtaxing large corporations (don’t argue rates, look at revenues collected), maybe you should read this article from Forbes (ref link http://www.msnbc.msn.com/id/6080561/ns/business-forbes_com/t/us-corporations-paying-less-taxes/) linked here which seems to indicate that large US multinationals have gamed the system very well and are paying less and less each year in federal taxes, even as their bottom lines increase.
So you think that just because your profits are worldwide, you should get even more tax breaks? LMAO! If you create the green energy jobs like corporations are supposed too. Maybe you wouldn’t worry about having a fatter pocket, thats full of more greed. Despite what congress spends or collects from Exxon, they still have to pay their fair share on every dollar they make, especially since I have to. Exxon needs to realize that their are other sources of oil, that will eventually be cheaper to produce and provide an unlimited source. Exxon’s overall operational costs are a couple billion more then they pay in taxes, so if they learn how to bring their cost down, more profits will be made. And to get back on the point of alternative fuel, you have to ask, if you or your bosses ever heard of fuel produced from algae?
If I were you (ExxonMobile), and the cost of doing business in the US cost more than my profit, I would not do business in the US. It’s just that simple.
If this were to happen, then we would be forced to convert to renewable energy faster which is a win-win situation for the consumer and ExxonMobile. ExxonMobile could enjoy more profit doing business in another country and we could enjoy lower energy costs due to renewable energy in our country.
So what is all the fuss about?
I find that the author of this article talks out of both sides of his mouth. He’s for the $4-billion in subsidies that Exxon receives while against the subsidies of alternative energy. I don’t see why any company should get ANY subsidy when the government can’t afford to provide basic services to its people. Cut social security? No, sorry big business, not buying what you’re selling, cut subsidies. Businesses work for profit, but the government should work for the people. According to Reaganomics, the government should work for business, and people will benefit from the businesses’ prosperity. The problem is that the people benefitting in a trickle-down economics system are corporate executives, whose job it is to maximize profit, not payroll. The jobs remaining in the U.S. are the ones that were too critical to export, so I’m not buying the premise that Exxon needs subsidies. Exxon needs the American consumer. I do agree that energy gets a bad name, when it’s the government that’s broken. As for the gulf coast, as a resident of Florida, I am glad Obama put a moratorium on offshore drilling until the… read more »
…safety of these operations can verified. I’d rather pay ten cents more at the pump than not eat a fresh gulf grouper or pay state income tax because the oil industry destroyed Florida’s beaches. When the article talks of mining natural gas it states, ” political overreaction to a small number of isolated environmental issues”, when what I hear is, “we’re going to make a profit off of those resources no matter how many tree-hugging liberals we have to push over.” I suppose in the next article Exxon will write that there needs to be less regulation because it’s driving up gas prices and costing jobs. Maybe we should fire the EPA and let companies do whatever they want at the public’s expense. The most relevant point that the author makes is that the government wastes money on subsidies. If solar costs 24 cents per kW and gas costs 8 cents, then gas wins. The money spent to hold industries like solar and Ethanol afloat should be spent on education to create the future generation of engineers. American ingenuity has always been what makes this country great and that is where the government needs to put its money.
I was wondering with the high cost of gasoline and crude oil why do US companies export domestic crude and distillate products?
Not sure what sentiment the writer is expecting from the readers of this article. I will say it appears some of us Americans are forgetting our history as other countries remind us. Anyway, back in the 70′s we were warned we would be in this situation during the Carter Administration. Furthermore, I remember looking at solar panels in the 70′s. What is my point? The oil companies and car companies have been monopolizing and working hand in hand to diminish our progression to alternative fuels (until they can monopolize them). Even back in the ’50s there was an attempt to make a nationwide transportation system that these 2 aforementioned groups caused to dissipate. When I travel to Europe and see all of the solar panels and wind mills I ask myself “Why is America becoming a 2nd class (possibly 3rd class) country?” The answer is: greed and corruption. Here we are today, global but not truly a melting pot. I see daily racism and discrimination among all races (including reverse discrimination as minorities step into power) – all on the rise. We are being sold out for the highest bidder with no respect… read more »
…for the American people and this country. Wall Street blames the government and the government blames Wall Street, when both are working hand-in-hand. How much profit do the wealthy need at the expense of America and her people? God bless America – we hope this too shall pass and we will survive it!!! BTW – I am not depressed but rather my eyes are WIDE open! Wake up America and make sure you vote for the right things – it’s the only small control we really have. For big business by big business…..
Oil companies are enjoying relative safety and stability due to the US military presence around the world. The oil companies are getting a free ride. If they had to pay for security on the scale of which they are benefiting now, they would never be a viable industry. Oil companies never add this fact into their bloviating.
Thank you for raising that issue. It is rarely addressed. There are those who would argue that US “multinational” Corporations can actually create the need for U.S. military presence where it would otherwise be unnecessary.
It ramains a mystery to me why gasoline at the pump in my city in Palm Beach County, South Florida varies so much with the price at the pump in cities elsewhere in Florida – or with cities in states as we travel across America. Right now there is a difference of more than 20 cents per gallon between Boca Raton and Ft. Meyers. This difference is not an anomaly. It has existed for nearly 2 decades I have lived here. And, the difference has been as much as 50 cents a gallon between east coast Florida and western North Carolina. This is manipulation.
Great article. Here’s the wiggle room
“
There are thousands of feet of rock between the natural gas deposit where the fracking takes place and the water table.”
“NOT AFTER YOU DRILL A HOLE CONNECTING NATURAL GAS DEPOSITS DIRECTLY THROUGH THE WATER TABLE”
“Risk to water supplies and air quality can be and are being mitigated by using proper well design, operating with care and following industry best practices and procedures that are all subject to regulation and government oversight.”
HYDROFRACKING IS EXEMPT FROM THE CLEAN AIR AND WATER ACT…..Makes you feel safer doesn’t it?
Wrong yet again!!!!
There are no less then THREE layers of tempered steel between the drill bit and the surrounding soil/rock.
Best to stay away from your MSNBC talking points
Technology wears out, mother nature moves the ground beneath us and then what do you have? Right, a connection of stored natural gas and the water table. Aka, polluted water.
Still not explained: Why should Exxon Mobil get Government subsidies at a time many in the Government are considering cutting Social Security benefits for those now on Social Security?
How much money does Exxon Mobil spend yearly on all lobbying efforts on the federal, state & local level?
If the US is an unprofitable market why don’t you just go away?
How much profit did Exxon Mobile make last year just on US operations?
What is the exact dollar amount Exxon Mobil paid in taxes & was it more or less than subsidies received?
Not shown…massive subsidies awarded due to the efforts of Liberals?
Not on your life! Pushed through by bought & paid for Tea Party Republicans. Of course Big Oil & Exxon Mobile is the definition of Big Oil never (I’m being honest here) pays money directly to any Congressman or woman directly for obvious reasons. They pour money into campaigns. Of course the congressperson appreciates the help. But does it really influence their vote? Consider how many congress people are Millionaires. They didn’t start out that way. They got that way. Nothing illegal need go on. A tip here a suggestion there. I’m not talking about insider trading or quid pro quo. I’m just saying every single one of them get rich simply by hanging out with the rich. General ordinary conversation pushed Nancy Pelosi up to 63 million met worth. She by far & away isn’t he richest.
Aside from money is the benefits. A Congress person elected 3 times receives only
$35,000 (far more than anybody i know gets. Plus the very popular free (That’s right free) a lot like many Americans would like. Interesting they don’t seem to be hurting with govt bureaucrats interference causing trouble, This program must… read more »
…be kept secret from the people or the Tea Party will have a hard time committed making massive cha$h. A reasonable person could with a little thought see why congress is the place to to make money. Dishonest is usually benefits the dishonest. get them gone. They only prey on the weak and marginal. Not congress
When will you on the Left ever understand that Corp pay NO TAXES!!
Whatever tax liability they incur is factored into their product or service as a cost factor and is included in the final price charged to the consumer, that’s YOU, my Lefty friend.
A CUT in corporate taxes would mean LOWER prices for the consumer since it would mean less would have to be added into the final cost of the product or service produced.
Educate yourself and quit getting your information in the formf talking points from the DNC whose only interest is in stirring up class warfare.
What you have said is true BUT you fail to mention the effect on the price of gasoline that speculators in oil and gas futures have had. Your own chairman said that approx $20 – $30 per barrel is due to oil futures speculation.
Poor Exxon, thank you for your charity.
I’d feel terrible if you were making record profits while the rest of the planet is struggling to get by.
I’d feel terrible about you if you were making these record profits from the backs of the working class poor all over planet earth.
Thankfully you have enlightened me with this informative article what trials and tribulations you endure, and how difficult times are for you, and that record profits are just a side effect of your generosity with the rest of the planet.
I can not tell you how much I appreciate all you do, as I poor what little I have into my gas tank to make my trek to work. It sure does my heart good to know that in my own little $75.00 per fill up way, that I am helping a struggling company achieve record profits.
so 6 % of your profits are made here in the US, ,and overall according to your pie chart , you made a 10% profit overall , sounds like your doing pretty well to me. if my maths right , thats 600 million exxon made in the US
in 2007 ,according to online docs , exxon employed approximately 90,000 people total doubt its that many today ,cant find how many of those jobs are actually in the US , if you divided the profits evenly , each employee would get a bonus of 111,000.00 for the year , sounds like a very profitable venture to me
Although many of you make excellent points about taxation issues I think the main point of this article is being missed. The real point of this article is to argue that fracking is environmentally safe. The truth is it is not safe. Perhaps with all of the technology applied just right, and with “using proper well design, operating with care and following industry best practices and procedures that are all subject to regulation and government oversight”, as Ken points out, it could be safe; but in reality designs are flawed, operators rarely take care, best practices are not followed and government oversight is a unreliable and flawed. So, in theory, fracking could be safe. But the reality is very different.
Just look at the oil spill in the Gulf. Technology assured to be safe with excellent design (though they went cheap on the design and it created a fatal flaw) they followed best practices and they had government oversight. Still, we had a major oil spill that we were told couldn’t happen. It did happen. And how did the oil industry react? Well, out of sight out of mind. Right… so they used dispersants as the tool of choice and… read more »
…sent all of the oil into the water column. Essentially polluting the entire water column and sending the vast majority of the oil to the bottom of the ocean. Much like the water in your kitchen sink when you get done washing oily dishes. Do you want to eat seafood or swim in the water left after cleaning oily dishes in your kitchen sink? I think not. Fortunately, that oil would be safe compared to the than the crude oil that was deposited into the ocean contaminating the ecosystem and everything it it. So, not everything can be bought and sold. Sometimes we need to make a stand and say not here, not in our back yard. So if you want to pollute the environment on the other side of the world where you get most of your oil, I can’t stop you. But in my backyard… you are in for a fight. There are things more important than money in this world; namely, people (our children, our childrens children and their children, etc) and the environment.
p.s. if you burn up our 100 years of natural gas we won’t have any left…