Energy and the Economy
A $72 billion contribution to the U.S. economy in 2011
Some in Washington would have you believe that because companies like ExxonMobil are profitable, we are “taking from” the U.S. economy, rather than contributing to it. But the facts prove otherwise. Last year, while ExxonMobil’s operating earnings in the U.S. were $9.6 billion, our total contribution to the U.S. economy was $72 billion. That is how much ExxonMobil spent in the United States on things like taxes, salaries, returns to our investors and money paid to other businesses and industries to keep our U.S. operations running.
Let’s not export the facts from discussion about gasoline prices
The recent rise in gasoline prices has resulted in a rise of misplaced explanations about the reasons behind it. The latest of these came this week from Bill O’Reilly, who argued that oil companies are to blame because they’re purposefully taking gasoline and diesel out of the U.S. market and exporting them overseas to “make bigger profits.” While his rationale may make for an entertaining conspiracy theory, the facts just don’t support it. The U.S. actually has a surplus of gasoline, diesel and other petroleum products.
Another year, another energy tax hike proposal
“This country needs an all-out, all-of-the-above strategy that develops every available source of American energy.” This statement came from President Obama’s State of the Union address just a few weeks ago, where he promoted the growth of oil and natural gas production as part of pursuing “American-made energy” for the United States. Despite the rhetoric, the administration’s 2013 budget proposal seems to suggest that oil and natural gas aren’t really part of this “all of the above” strategy.
The facts behind ExxonMobil’s earnings
ExxonMobil’s fourth-quarter and full-year 2011 estimated results came out today. Our fourth-quarter 2011 earnings were $9.4 billion, and our global earnings total for the year was $41 billion. As I said yesterday, some in Washington will try to make political capital out of oil industry earnings, and will use this opportunity to call for new energy taxes. So I thought I would mention some interesting facts …
What’s the truth about ExxonMobil’s earnings?
ExxonMobil will release financial results for the fourth quarter and full year 2011 tomorrow. Although many Americans understand that the energy the oil and natural gas industry produces is vital to U.S. economic recovery and job growth, some in Washington will no doubt use the occasion to call for increased taxes or other punitive measures against the industry. These critics will likely refer to aggregate industry earnings and try to convey a misleading impression about our industry’s earnings and economic contributions. So what’s the truth?
What am I paying for in the price of a gallon of gasoline?
I’m asked this question a lot. And I know a lot of drivers ask themselves this question when they pull up to the pump. The answer is based on the economics of supply and demand and how products are manufactured and sold – along with what the government takes in taxes. Let’s take a look, based on the U.S. Energy Information Administration’s breakdown of the estimated average price of a gallon of gas in December 2011, which was $3.27.
