7.29.11 - XOMContributions_Globalv2 - FEATURED

ExxonMobil’s earnings, and America’s bottom line

Yesterday, ExxonMobil announced its second-quarter results – recording earnings of $10.7 billion.

And while commentators talk about the contribution of this result to the company’s bottom line, it’s also important to note that it’s good for America’s bottom line, too. As I’ve talked about in previous posts, ExxonMobil contributes billions into the U.S. economy through  federal and state taxes, royalties, jobs and capital projects while helping ensure continued supply of energy for U.S. consumers and businesses.

These contributions add up. For example, in the first half of 2011, for every dollar that ExxonMobil earned, we contributed almost five dollars  to the U.S. economy. And that’s not even counting salaries, office expenses and other costs we incur in the United States.

When you take a look at the impact of our activities on the global economy, the results are even more significant. This chart shows the positive impact we’ve had on the economy in the first half of this year arising from the investments we make in running our business, developing new projects, paying taxes and generating returns for shareholders. Payments into the worldwide economy of $112 billion for the first half compares to our earnings of $21 billion for the same period.

I know this runs counter to the old stereotype – resurrected most recently during debt talks in Washington – that oil and gas companies don’t contribute enough to the economy. Or the myth that we enjoy “excessive” profits.

But these stereotypes ignore the truth. In fact, ExxonMobil is one of the largest taxpayers in the United States, and our profits are in line – or below – many other U.S. industries. Let me share some details:

  • In the first half of this year, ExxonMobil incurred $6.7 billion in tax expenses in the U.S. on $5.5 billion in operating earnings in the U.S. Over the past five years (2006-2010), our total U.S tax expense was almost $59 billion, which is $18 billion more than the company’s operating earnings in the U.S. during the same period.
  • ExxonMobil earned about 8.5 cents for every dollar of global revenue in the second quarter. That’s less than half the earnings-per-dollar-of-sales of many companies producing pharmaceuticals, beverages, tobacco and computers, just to name a few examples.
  • For every gallon of gasoline and other products ExxonMobil refined and sold in the U.S. in the second quarter, we earned about 8 cents, far less than the 40 to 60 cents per gallon collected by the federal and state governments in gasoline taxes. And, as I discussed last week, the price of gasoline is determined by crude oil, a globally traded commodity whose price is influenced by a multitude of factors.
  • Of course, ExxonMobil is not the only oil and gas company that is generating economic benefits for the nation.  As I mentioned earlier this week, the oil and gas industry delivered $476 billion in benefits to the U.S. economy in 2010 – more than three times the amount it earned – and is one of the few U.S. industries that have added a significant number of jobs in recent years.

Despite these facts, some in Washington perpetuate the myth that ExxonMobil and other U.S. oil and gas companies make undue profits, and don’t pay their fair share of taxes. President Obama himself, in his address to the nation Monday evening, suggested we can fix our fiscal challenges by having oil companies “give up tax breaks that other companies don’t get.”

This is simply not the case. These so-called “tax breaks” are legitimate tax provisions designed to keep U.S. companies internationally competitive – and to help keep American jobs from being exported to other countries.

Investing in the energy for economic recovery

To meet the world’s energy needs, ExxonMobil continues to invest heavily in new energy projects, both in the U.S. and around the world. Even during the recent global economic recession, these investments – which have a multiplier effect on job creation and tax revenue – have risen in order to keep pace with projected long-term increases in global energy demand:

  • In the second quarter, ExxonMobil’s investments to find and produce new supplies of oil and natural gas reached a record $10.3 billion, which includes $4.3 billion here in the United States.
  • Some of the major projects that ExxonMobil is working on include increasing natural gas production from shale formations in multiple U.S. states and developing Canada’s oil sands, which can provide decades of oil supplies for U.S. consumers. This quarter, we announced two major oil discoveries and a gas discovery in the Gulf of Mexico after drilling the company’s first post-moratorium deepwater exploration well.
  • Last year, our total capital spending of $32 billion exceeded our earnings by more than $1.7 billion; over the next five years, ExxonMobil plans to invest between $165 billion and $180 billion on new energy supplies.

ExxonMobil and other U.S. energy companies will need to continue to invest in new energy projects in order to keep pace with global energy demand.

We could be investing more in the United States, creating more jobs and paying more taxes, if the federal government would open up more of America’s oil and gas resources for exploration. Even today, with the need for U.S. jobs and revenue at the top of the policy agenda, large amounts of our nation’s energy resources remain off-limits, and energy companies have not been allowed to return fully to work in the Gulf of Mexico.


24 Comments

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  1. NORBERT FLYNN says:

    Thanks.. sometimes the “world’s toughest challanges” are just getting people to beleive / understand the facts!

  2. Michael Bigini says:

    This article on EM’s earnings needs to be printed in the Newspapers throughout this nation so that everyone can read the truth . I wish EM would print it in the NY times and the World Street Journal so it can get the attention of the US citizen….

    • No Thankyou says:

      “The truth”? Are you really that simple minded? I can’t say myself if this is the truth or not, but I know enough to realize this piece comes directly from the company whose best interest it is in if you believe the article printed on their own website. I’d do a little fact checking before declaring this “the truth”

  3. John Lingberg says:

    Exxon pays alot of Taxes. No doubt.I feel like the Problem is we are letting Companies over seas import their Products without paying enough Taxes. Which isn’t Fair to US companies. We pay higher Wages and Taxes here. So how can we compete. Raise import Taxes so their products will be competitive with US Products. More US companies would stop moving overseas and stay put. Also they will hire more people which means more Taxes for Government to operate on. Stop so many imports. Just Part of the Problem.Another Problem is Fair Taxes for everyone.

  4. Lisa Autolitano says:

    I do not understand why the Government wants to put another tax on Oil. This is not going to help our econmy , this will only hinder it. I have never Blamed oil companies for the rise in price. But I have blamed many Polotisions. I do not think returning to the Gulf right now would be a great idea. Business I fully understand your postion. But another spill will hurt the envoirment even more. It will need time to heal. This is why I do not like the pipeline in Alaska. I know America needs jobs and I do understand the need for oil. I just do not know how to trust that Oil Companies will be careful. I know that, that was BP and not you People. In fact I have not heard of this company doing harm at all. What I am trying to say here is, I want to trust but do not know if I can. I know USA Poltics is making money with it and this company is to and my home buget is smaller and smaller. I do not have the power to borrow money from someone else or another country to borrow from. I am the last line in my budget. I take home less and all other prices go up. There is no more to give. I am down to just blood left. The wanting your Company to pay more tax will just fiddle down to the little guy (ME). And we are broke.

  5. Harrris Jannusch says:

    The author of this article has mixed apples and oranges with smoke to come up with a defense. Let’s talk about actual INCOME TAXES alone and not some “crafted” numbers:

    According to Exxon’s 2010 SEC Form 10-K (which you can download from the company’s web site by selecting the “Investors” option on its home page), it incurred a 21.5% tax rate on USA operations and a 44% tax rate on NON USA operations. Someone might infer that tax rates in the USA are a “BARGAIN” when compared with those in the outside world…

    USA:
    Income Tax is $1.659b
    Income Before Income Tax is $7.711b
    Effective USA tax rate = 21.5%

    NON USA:
    Income Tax is $19.902b
    Income Before Income Tax is $45.248b
    Effective “NON USA” tax rate = 44%

    • Linda Brown says:

      You also have not factored in future regulations, as in the GOM oil spill and the costs of delayed permits, EPA costs, etc. It is not just taxes. It is COMPLIANCE costs. Also consider LEGAL costs for future oil spills. Buy their stock. They are a great company. You should be taking up your issues with .gov.

      • No Thankyou says:

        COMPLIANCE costs would not be incurred if a company were responsible and didn’t need to be regulated, be it fiscally or environmentally. Every year those costs would be 0 if a company could simply put ethical operation before profits (I’m not just referring to Exxon). They don’t pay for it internally, so they pay for it externally (at a higher rate) via regulations. If they are already do it internally, then the regulation cost would still be 0.

  6. Michael Fermanich says:

    Ken; Nice snow job via your Public Relations Focus. How come you did not mention that 73% of the cost of a gallon of gasoline is crude oil expense. Yes and you buy your crude from Saudi Arabia which costs $5 a gallon via not changing production since the 70′s drilling in the sand. Please check Department of Energy Facts and Figures! You did not mention your partnerships with many Middle Eastern Countries on production facilities and Refining facilities! Also Exxon Mobil is referenced in old anti-trust litigation via Stardard Oil of New Jersey. Your partners with OPEC on many other ventures who “fix prices” on crude oil. Yes many countries have sued Saudi Arabia/OPEC for “price fixing”! Russia, China, Japan and others. Not the United States and I wonder why? Ken how much of the market do you control in the United States branding as Exxon Mobil who were alone seperate huge International Oil Companies. Also your unbranded products that you sell via less and less competition. Your dealers make pennies while your Corporation makes dollars and you reference them as “small people” just like your competition Shell Oil Corporation. There use to be “7 Sisters” a reference to the largest oil companies in the United States but megers with the help of the government spliced them into one Super Large Oil Corporation forcing out competition. I am a graduate Student of the Oil School of Western Michigan University who infact had work studies with Mobil and other large Oil Companies, so I am well aware of the behind the scenes activities(retired).I also was on your off-shore oil rigs in the Gulf of Mexico and many other large production and refining facilities of competition… read more »

    …in the United States. I still communicate with my Saudi Friends along with Iranians and other Middle Eastern folks. You have created many jobs outside the United States via cheap labor and the blame game on deflation of the dollar is getting old along with your tar sands public relations stunt. This PR was done in the mid 70′s after the Arab Embargo which I was very familar with via allocations of product around the country.I have been to many Oil Conventions via Mobil, Exxon, Citigo, BP, Shell, Ashland ect….

  7. Michael Fermanich says:

    Ken; I should like to bring up another point of interest to the article. When your getting crude oil so cheap why would you want to invest in mega expenses of off-shore rigs and platforms. In other words why break something that is not broken right Ken? I hope you will also share with us your itemized line of $165 billion and $180 billion on new energy supplies. Ken that is pretty vague? Wind?, Solar?, Sands?, Sea Water?, Waste?, other Natural Resources? Also why don’t you build your own pipelines so you don’t have to pay another Oil Company for use like Koch Industries who seem to add something to the cost at the terminals and refineries. Also your use of “billions” is so alarming to common people when they forget about the 100′s of billions of dollars your profit and loss statements produce, right Ken? By they way inform people that your Marketing Department pushes all the investments on the “little guys” building huge Marketing Outlets. You know they don’t make anything on your credit card programs not counting there very poor margins and have to rely on instore goods and services. Kind of like a loss leader(gasoline) right Ken?

    • Michael Fermanich says:

      No comments by the experts is not alarming to myself I hope some of your posters who are not savy to how the oil industry works might be open to my communications? You know the lay people who post on this blog you should tell the world. To bad the world already knows the truths! I have no problem with profits and Mobil as a company is very professional and I won’t speak about the other Brand Name for the sake of not making equal compliments!

  8. Michael Fermanich says:

    Ken; ExxonMobil incurred $6.7 billion in tax expenses in the U.S. on $5.5 billion in operating earnings in the U.S. Over the past five years (2006-2010), our total U.S tax expense was almost $59 billion, which is $18 billion more than the company’s operating earnings in the U.S. during the same period.
    Yes and what were your earning from 2006-2010 on a International Scale if I may ask? Not National!

  9. Michael Fermanich says:

    Ken; I am enjoying this “Perspective” Blog via resourcing some info. Please tell me your accountants are very good at “DEPRECIATION” on a national and international scale? I found this interesting; Exxon Mobil Corporation’s Quarterly Revenues

    Exxon Mobil Corporation had 2nd quarter 2011 revenues of $125.5B. This missed the $136.7B consensus estimate of the 2 analysts following the company. This was 10.1% above the prior year’s 2nd quarter results
    As compared to a retailer who buys your products and services via Marketing what would you say is your margin compared to the Dealer-Branded margin per gallon? Than I would like to know your comparison to your wholesalers who brand many Product Images? You know multiple branded Jobbers ie Citgo, BP, Conoco, Ashland-Marathon, Shell ect…….

  10. Martin Capages, Jr. says:

    Could someone email this to Donald Trump. Thanks, Martin.

  11. Douglas M says:

    What is the portion of the price per gallon in the US that is US government taxes & duties?

    • Michael Fermanich says:

      Federal Tax it is posted on the pump according to law. State Tax also but I never saw duties to be quite honest.

    • Michael Fermanich says:

      Douglas here is breakdown via state;State Gasoline
      (¢/g) Diesel
      (¢/g) Other Taxes Comment
      Alabama 16 19 4.9 “Other Taxes” column includes a 1 cpg UST/AST Trust Fund Environmental Transport Fee levied at the wholesale level to cover remediation costs. The volume-weighted average of the additional city and county taxes was approx. 2 cpg on both gasoline and diesel. An additional 2 cpg inspection fee applying gasoline only is also included.
      Alaska 8 8 0
      Arizon 18 18 1 “Other Taxes” columns include a 1 cpg UST tax.
      Arkansa 21.5 22.5 0.3 Plus .3-cpg environmental assurance fee assessed at the wholesale level for underground storage tank fund.
      California 35.3 18 15.2 “Other Taxes” columns include a 2.25% state sales tax for gasoline and at least a 1.25% local sales tax for various counties in the state for diesel. The tax rate applied is a weighted average based upon county populations. A 2 cpg state UST fee is also included
      Colorado 20.5 18 0
      Connecticut 25 39.6 26.9 “Other Taxes” column for gasoline includes gross receipts earnings tax collected at the wholesale level. The stated rate of the tax is 7% (though the effective rate is higher) on the gross earnings of first sale of specific petroleum products in the state. This rate is currently scheduled to increase on 7/1/13 to 8.1%. Diesel tax decreased on 7/1/10 by 5 cpg. Rate is adjusted annually.
      Delaware 23 22 0 An additional .9% gross receipts tax for the state hazardous substance cleanup fund is also assessed at the wholesale level after yearly exclusions are met. (Title 7: 9114)
      Washington DC 23.5 23.5 0
      Florida 4 4 30.4 “Other Taxes” column includes the state sales tax ($0.12) which is indexed to the CPI and decreased $0.001. The “Other Taxes” also include the average… read more »

      …of county option taxes: 9th-cent tax (up to $0.01), Local Option Tax (up to $0.06), Additional Local Option (up to $0.05), and the State Comprehensive Enhanced Transportation System tax (ranges from $0.055 to $0.066). The SCETS tax is indexed to the CPI and increased $0.001. Various state environmental import taxes total $0.022 cents per gallon.
      Georgia 7.5 7.5 21.7 “Other Taxes” include sales taxes of 4% applied to stated average prices published by the state every six months. The stated prices effective 3/31/2011 are $3.217 for gasoline and $3.584 for diesel. Other taxes also includes a local sales tax applied that is comprised of county and city cpg taxes weighted by population.
      Hawaii 17 17 32.4 “Other Taxes” additional county taxes and 0.1-cpg environmental response tax and also sales tax amounts based upon local and state rates.
      Idaho 25 25 0
      Illinois 19 21.5 31.6 “Other Taxes” columns include 6.25% sales tax calculated off the retail price less federal and state excise taxes. The columns also include a $0.003 per gallon tax for underground storage tank fund, and other local sales and gasoline taxes.
      Indiana 18 16 25.6 “Other Taxes” columns include 7% sales tax (which is included on the retail price less federal and state excise taxes as a 6.54% multiplier) and $0.01 per gallon inspection fee. For diesel, there is an additional 11-cpg surcharge paid on a quarterly self-reporting basis.
      Iowa 21 22.5 1 “Other Taxes” columns include 1 cpg UST fee. Iowa tax on gasoline is based on percentage of ethanol sales compared to total motor fuel [gasoline] sold. Tax on regular gasoline increased from 20.7 cpg to 21 cpg effective 7/1/08 through 6/30/09.
      Kansas 24 26 1 “Other Taxes” columns include 1 cpg environmental fee.
      Kentucky 21.1 18.1 1.4 Ten cents of the excise tax is indexed to the Average Wholesale Price not to exceed 10% of the tax in any year. Excise tax includes 5 cpg supplemental highway user tax. “Other Taxes” columns include 1.4 cpg fee collected for the underground storage tank fund. Supplemental highway user tax is 2 cpg for special fuels. Commercial carriers pay surtax via a quarterly report of 3.6 cpg on gasoline and 8.4 cpg on special fuels
      Louisiana 20 20 0
      Maine 29.5 30.7 1.5 “Other Taxes” columns include for gasoline: .07 cpg for Coastal and Inland Water fund, 1.38 cpg for Groundwater Fund and 40 cpg/10,000 gallons for Petroleum Market Share Act. “Other Taxes” columns include for diesel: .07 cpg for Coastal and Inland Water Fund and .6 cpg for Groundwater Fund
      Maryland 23.5 24.3 0
      Massachusetts 21 21 2.5 “Other Taxes” columns include 2.5 cpg UST fund tax
      Michigan 19 15 24.7 “Other Taxes” columns include 6% sales tax and 0.875 cpg for environmental regulation fee for refined petroleum fund
      Minnesota 27.1 27.5 0.1 The excise tax increased effective 7/1/10 to 27.5 cpg (up .4 cpg). That rate is in effect until 6/30/11 after which it will increase .5 cpg. “Other Taxes” column includes an inspection fee and will (at times) include a clean up fee of 2 cpg depending upon the level of environmental fund. The cleanup fee is in effect beginning 4/1/10 through 7/31/10
      Mississippi 18 18 0.8 “Other Taxes” columns include 0.4 cpg Environmental Protection Fee. In Hancock, Harrison and Jackson counties there is an additional 3 cpg Seawall tax.
      Missouri 17 17 0.3 Missouri also collects two additional fees on all sales of fuel – an agriculture inspection fee in the amount of 2.5 cents per 50 gallons (.0005 per gallon) and the transport load fee in the amount of $20.00 per 8,000 gallons (.0025 per gallon) – of around .3 cpg
      Montana 27 27.8 0.8 “Other Taxes” columns include 0.75-cpg fee assessed at the pump to go toward the state cleanup fund.
      Nebraska 26.4 26.4 0.9 The variable state motor fuel tax will be 5.4 cpg for the time period 1/1/11 – 6/30/11. “Other Taxes” columns include 0.9-cpg release prevention fee for gasoline and 0.3-cpg release prevention fee for diesel and other fuels.
      Nevada 23 27 10.1 “Other Taxes” columns include individual county taxes on gasoline, 0.75-cpg-cleanup fee, and .055 cpg inspection fee
      New Hampshire 18 18 1.6 “Other Taxes” columns include 0.125 cpg for oil pollution control fund, and 1.5 cpg for UST cleanup fund.
      New Jersey 10.5 13.5 4 “Other Taxes” columns include 4 cpg Petroleum Products Gross Receipts Tax.
      New Mexico 17 21 1.8 “Other Taxes” columns include 1 cpg loading fee.
      North Carolina 32.5 32.5 0.3 “Other Taxes” columns include 0.25-cpg inspection tax. Excise tax consists of a 17.5 cpg flat rate plus a variable wholesale price component or 7% of the average wholesale price of motor fuel during the preceeding 6-month base period. The variable wholesale component is 25 cents per gallon.
      New York 8.1 8 42.7 The state imposes a 8 cpg motor and diesel fuel excise motor fuel tax, with an additional .05 cents per gallon petroleum testing fee on gasoline only. Other taxes include a state sales tax adjusted based on population to reflect the MCTD region (8.34 cpg) and general region (8 cpg) tax. The local county sales tax can be a cpg or a % basis tax. Most counties impose a % based tax and “Other Taxes” reflects the blended rate applied to the state average retail prices. The “Other Taxes” amount for gasoline was 42.66 cpg and chart values reflect rounding.
      North Dakota 23 23 0
      Ohio 28 28 0
      Oklahoma 16 13 1 “Other Taxes” columns include 1 cpg per gallon UST fee.
      Oregon 30 30 1 “Other Taxes” columns include additional optional county gasoline (ranging from 1 to 3 cpg) and city gasoline and diesel taxes (ranging from 1 to 5 cpg). Effective 1/1/11, tax increased 6 cents per gallon.
      Pennsylvania 12 12 20.3 “Other Taxes” columns include 19.2 cent per gallon oil company franchise tax on liquid fuels (primarily gasoline) and 26.1 cpg oil company franchise tax on fuels (primarily diesel). Also includes 1.1 cpg UST fee paid by retailers on gasoline and diesel. Franchise tax based on the average wholesale price of gasoline during a 1-year period and revised on 1/1 annually. Oil franchise tax increased 1.2 cpg for gasoline and 1.7 cpg for diesel on 01/01/06.
      Rhode Island 32 32 1 “Other Taxes” columns include 1 cent per gallon environmental protection regulatory fee of which 0.5 cpg goes to the UST program and 0.5 cpg goes to the public transportation authority.
      South Carolina 16 16 0.8 “Other Taxes” columns include a 0.25 cpg inspection fee for inspection program and 0.50-cpg environmental fee for UST cleanup. Assessed on all petroleum products at the wholesale level.
      South Dakota 22 22 2 “Other Taxes” columns include 2 cpg Tank Inspection Fee. E10 and anything less than E85 is taxed at 20 cpg; E85 is taxed at 10 cpg.
      Tennessee 20 18 1.4 “Other Taxes” columns include 1-cent special petroleum tax for gasoline and .4 cpg environmental assurance fee.
      Texas 20 20 0
      Utah 24.5 24.5 0
      Vermont 19 25 3.7 “Other Taxes” columns include 1 cpg license fee for UST fund for both gasoline and diesel and a motor fuel transportation infrastructure fee valued at 2% of the average ppg of gasoline, less taxes, in the immediately prior quarter (currently 5.72 cpg). A similar tax will be imposed is applied to diesel at a flat rate of 3 cpg.
      Virginia 17.5 17.5 2.7 “Other Taxes” columns include 0.6-cpg petroleum storage tank fee and 2.1% sales tax on motor fuels in localities that are part of the Northern Virginia Transportation District or localities in a transportation district contiguous to that district.
      Washington 37.5 37.5 0
      West Virginia 20.5 20.4 11.7 On 11/20/09, SB 4004 was enacted and changed the average wholesale tax floor of $0.97 to $2.34. This change will keep the current wholesale tax rate of 11.7 cpg for 2010. After that the wholesale tax rate cannot fluctuate more than 10% from the previous year.
      Wisconsin 30.9 30.9 2 “Other Taxes” columns include 2-cpg UST fee on gasoline and diesel.
      Wyoming 13 13 1 “Other Taxes” columns include 1 cpg for UST cleanup fund.
      Please note the above rates are meant as only guidelines of pump taxes and may not represent the full tax amount at the pump. Source: Compiled by GasBuddy Organization from various sources.

      • Michael Fermanich says:

        Doug; More stuff for ya;
        By BYRON TAU & BEN SMITH | 8/1/11 11:40 PM EDT
        In normal times, renewing the federal excise tax on gasoline would be another routine vote in Congress.

        But as the past month of rancorous and intensely partisan debate about raising the debt ceiling has shown, the times are anything but normal.

        And with most of the 18.4-cent tax per gallon of gasoline set to expire Sept. 30, renewing the tax could be the next political controversy to spark a brawl in an ever more deeply divided Capitol Hill.

        Read more: http://www.politico.com/news/stories/0811/60450.html#ixzz1VRMqqq82

        • Michael Fermanich says:

          Douglas; Remember the private dealer pays federal and state taxes because it is collected at the pump site not the major supplier.

        • Michael Fermanich says:

          5.How is the motor vehicle fuel tax paid?
          The motor vehicle fuel tax must be paid by electronic funds transfer (EFT) to the Department’s depository bank [sec. 78.12(5)(b), Wis. Stats.]. The fuel tax and petroleum inspection fee owing should be combined and only one payment made by EFT. Information about EFT is sent to all persons who apply for a motor vehicle fuel license, or it can be obtained from the Electronic Funds Transfer page or by calling (608) 264-9918.

          Administrative Allowance – Licensed motor vehicle fuel suppliers may deduct an allowance of 1.35% when remitting the fuel tax on gasoline to the Department [sec. 78.12(4)(a), Wis. Stats.]. Of the 1.35% allowance, 1.25% must be passed on by a supplier to a wholesale distributor when the distributor pays the gasoline tax to the supplier. A wholesale distributor is a person who acquires motor vehicle fuel from a licensed supplier or from another wholesale distributor for subsequent sale at wholesale in Wisconsin. The allowance does not pertain to diesel fuel or the petroleum inspection fee.

          Tax payment delay from wholesale distributor to licensee – A wholesale distributor has the option to delay paying the motor vehicle fuel tax to a licensed supplier until the date the fuel tax is due the Department by the supplier (the 15th day after the close of the month in which the wholesale distributor receives the fuel). The delayed tax payments must be made by electronic funds transfer. Licensed suppliers can terminate the right of a wholesale distributor to make delayed payments when such payments are not timely made. Licensed suppliers must notify the Department of wholesale distributors who elect to make delayed fuel tax payments. The payment delay also pertains to the petroleum inspection fee.

  12. Donald Anderson says:

    I have read many of the posts and may respond to a few directly, but overall business is to make money for its shareholders and that is their direction. Complaints of taxation and regulation however are also unfounded, and one of the large misunderstandings of the political dialogue. Business doesn’t want regulation as it incurs cost; but the cost to the planet when government doesn’t regulate is hidden and permanent. Natural Gas Fracking has environmental costs to it that we must take into account–our regulations and court system has the ability to create that cost through lawsuits while the rest of the world does not–we don’t want any more “love canals” where we live.

    Regulation comes about in the US because ordinary American citizens stand up to the inherent corporate power of Money in politics–it takes an awful lot of damage to create regulation against large business entities. BP, while finally taking a loss for it’s mismanagement of the gulf oil spill, still has many serious safety flaws that continue on.

    As for taxes none of us like them, but they never cause a large company to have a loss, because it is on income, not on investment! A loss this year can even reduce the taxation you pay the following year. Large corporations again have an advantage of large legal and tax groups to optimize their knowledge to make the best of things. The stated reason that high taxes reduce jobs is totally erroneous, as investment in people is not taxed, but only the income that would result. Make Capital Gains taxes Zero for investments of 20 years and work your way back to the present day with increases that fight the short term quarterly thinking of today’s… read more »

    …corporations and you have a better tax system that induces long term investment, something we simply do not see in this country. No one builds things for the long term except government.

    The problem isn’t corporations, our system of government, taxes or regulation; although we like to place simple blame. It is the underlying disinformation within the corporate news cycle and a political culture where the pursuit of money creates continual pandering to “liberal” or “conservative” labels that don’t truly represent the needs of the majority of people, or address the very real long term infrastructure needs of the country. The reasonable man standard of informed consent is missing, causing our society to think in sound bites and top ten lists. This, already too long of an example of issues at stake, is unlikely to be read thoroughly due to this societal change taking place, although I applaud those that do so .

  13. carl echols says:

    Drill Baby Drill should be Drain America First

  14. carl echols says:

    Boo Hoo ..Poor Big Oil Companies. It is time to Nationalize the industry

  15. NORBERT FLYNN says:

    Thanks.. sometimes the “world’s toughest challanges” are just getting people to beleive / understand the facts!

  16. Michael Bigini says:

    This article on EM’s earnings needs to be printed in the Newspapers throughout this nation so that everyone can read the truth . I wish EM would print it in the NY times and the World Street Journal so it can get the attention of the US citizen….

    • No Thankyou says:

      “The truth”? Are you really that simple minded? I can’t say myself if this is the truth or not, but I know enough to realize this piece comes directly from the company whose best interest it is in if you believe the article printed on their own website. I’d do a little fact checking before declaring this “the truth”

  17. John Lingberg says:

    Exxon pays alot of Taxes. No doubt.I feel like the Problem is we are letting Companies over seas import their Products without paying enough Taxes. Which isn’t Fair to US companies. We pay higher Wages and Taxes here. So how can we compete. Raise import Taxes so their products will be competitive with US Products. More US companies would stop moving overseas and stay put. Also they will hire more people which means more Taxes for Government to operate on. Stop so many imports. Just Part of the Problem.Another Problem is Fair Taxes for everyone.