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Big Oil’s Big Lies About Alternative Energy


Since the Gulf oil disaster in 2010, BP has spent hundreds of millions of ad dollars to cleanse its image as a dirty-energy giant. In the company’s latest TV ad, wind turbines whirl in the sun as a voiceover touts the number of American jobs created by BP and promises, “We’re working to fuel America for generations to come.” There’s just one problem: BP’s commitment to wind energy is virtually nonexistent.

In April, BP announced that it is selling off its entire $3.1 billion U.S. wind energy business – including 16 farms spread across nine states – as “part of a continuing effort to become a more focused oil and gas company,” according to a company spokesperson. Indeed, though it famously rebranded itself “Beyond Petroleum” in 2000, BP also exited the solar energy business back in 2011. Today, its alternative energy investments are limited to biofuels and a lone wind farm in the Netherlands.

And BP is far from alone. You wouldn’t know it from their advertising, but the world’s major oil companies have either entirely divested from alternative energy or significantly reduced their investments in favor of doubling down on ever-more risky and destructive sources of oil and natural gas.

Not that those commitments to alternatives were ever particularly grand. Using very generous estimates, BP holds the oil industry record for the highest percentage of expenditures committed to alternatives, with just 6 percent of its overall expenditures in 2011, right before it started selling off its solar operations. Chevron and Shell run a distant second with highs of 2.5 percent; none of the others have ever even cracked 1 percent.

“The bottom line is that oil companies only invested a drop in the bucket [in alternatives] even in the ‘heyday’ of the early 1980s,” says Douglas Cogan, vice president of investment firm MSCI ESG Research. “Most of the largest [oil company] investors have dropped out in recent years, following the precedent that Exxon set 30 years ago.”

Take ConocoPhillips, which highlights its “emerging technologies and alternative energy sources” activities on its website – but fails to mention that in April 2012 it divested all of these activities to focus exclusively on its “core business” of exploring for and producing oil and natural gas, and specifically to take advantage of the North American “shale revolution” and tar sands production in Canada. “ConocoPhillips is an independent oil and gas company,” says a spokesperson. “We do not have an active renewable energy segment within our portfolio.”

The newly created Phillips 66 (already the third-largest U.S. oil company) took over ConocoPhillips’ “downstream” activities – meaning everything after exploration and production. Other than limited investment in second-generation biofuel research, Phillips 66, too, has abandoned alternatives.

How about Shell ­– the world’s largest corporation, according to Fortune? In 2010, the company launched an ad campaign called “Let’s Go,” hyping its efforts to “broaden the world’s energy mix.” The ads are still running today. But the numbers tell a different story. Shell reports spending about $400 million a year on alternatives, out of the $23 billion it spent on all expenditures in 2012. At its peak in 2007, Shell was spending just 2.5 percent of its total capital expenditures on alternatives. Today it’s down to 1.5 percent.

Shell abandoned solar in 2006 and maintains only minor investments in wind and some hydrogen research today. The bulk of Shell’s alternative investments today are in biofuels. Meanwhile, it presses ahead with the world’s deepest offshore oil well in the Gulf of Mexico and refuses to do more than “pause” plans for drilling in the U.S. Arctic – even after one of its drilling rigs ran aground in Kodiak, Alaska in January.

As with all these companies, the expenditures that Shell reports publicly on alternatives are difficult to pin down or verify. Shell includes the money it spends on carbon capture initiatives and “other CO2 related work”; both are commendable, but neither one is an alternative energy source. BP, similarly, uses the mysterious phrase “lower-carbon businesses.” In fact, no major oil company has ever spent enough on alternatives for it to amount to even 10 percent of its revenues or assets – the Security and Exchange Commission‘s threshold for public reporting requirements on financial expenditures.

In 2010, Chevron launched its “We Agree” public relations campaign, with ads announcing “It’s time oil companies get behind the development of renewable energy,” that still run today. Yet Chevron’s alternative investments have been falling as a proportion of its total expenditures, not rising, for years: From 2.5 percent of overall expenditures in 2008, alternative energy dropped to 2.3 percent in 2010 and 1.5 percent in 2012.

In 2011, Chevron’s Corporate Responsibility report – which for years had been an alternatives showcase – announced that the company would take “a pragmatic approach” to these investments, focusing on geothermal energy, next-generation biofuels and efficiency solutions. Yet wind and biofuels are conspicuously absent from the 2012 report; the words “alternative energy” and “renewable energy” do not appear anywhere in its pages. “Chevron spent $5.4 billion from 2002 to 2012 on alternative energy,” says company spokesperson Morgan Crinklaw. That’s about $500 million a year, out of $34 billion total expenditures in 2012 alone. (This figure includes the work of its private subsidiary, Chevron Energy Solutions, which does work on solar, but does not have to provide public disclosure of its finances.) Meanwhile, Chevron remains one of the world’s oiliest oil companies, with one of the highest percentages of oil assets among the majors.

Like ConocoPhillips, Marathon, the nation’s fifth largest oil company, divested all its downstream activities in 2011, for similar reasons – in order to expand its U.S. shale and Canadian tar sand operations. Today, it maintains partial ownership of a methanol plant that converts natural gas into motor fuel, while the newly spun-off MPC includes ethanol in its portfolio.

Of course, some companies were never into alternatives. Since 2002, Exxon Mobil, which took in $45 billion in profit last year alone, put a grand total of $188 million into its alternative investments, compared to the $250 million it dedicated to U.S. advertising in the last two years alone. (This figure and previously cited advertising data were provided by Kantar Media.)

It’s worth mentioning one slight exception to the trend: France’s Total, the world’s 9th-largest oil company, which greatly increased its solar operations in the last year. But Total, too, had a long way to improve. The latest available figures from MSCI ESG Research put its alternative investments at just about $84 million a year from 2005 through 2010, or, at best, less than 0.6 percent of total expenditures. Moreover, the company’s fairly extensive coal operations stand in contrast to the good it’s doing in alternatives.

There are clear reasons why some biofuel investments remain while wind and solar have all but disappeared. Since 2009, both the U.S. and the European Union have had policies in place requiring biofuels in motor fuel, compared to on-again, off-again tax credits for wind and solar energy. And why bother putting real investments in alternatives at all, when polished ad campaigns have already convinced the public that the companies are still “green”?

In reality, all of the companies are putting more and more resources toward dirty energy sources that were never before accessible – or never before considered acceptable. With limited regulation and oversight, and with plenty of subsidies and tax breaks, all of the companies discussed here are upping their oil and natural gas antes by drilling deeper than ever into the oceans (including Exxon in the Russian Arctic), increasing operations in the Canadian tar sands, dramatically expanding hydraulic fracking in ever-more parts of the U.S. and the world, and drilling for oil in Iraq and Kurdistan. It all makes perfect sense, if you go by what Exxon vice president J.S. Simon told Congress in 2008: “[T]he pursuit of alternative fuels must not detract from the development of oil and gas.”

via Big Oil’s Big Lies About Alternative Energy | Politics News | Rolling Stone.

Terracide: Destroying the planet for profit


It’s the biggest crime in history. Big Oil is deliberately making Earth uninhabitable, and getting rich doing it.

We have a word for the conscious slaughter of a racial or ethnic group: genocide. And one for the conscious destruction of aspects of the environment: ecocide. But we don’t have a word for the conscious act of destroying the planet we live on, the world as humanity had known it until, historically speaking, late last night. A possibility might be “terracide” from the Latin word for earth. It has the right ring, given its similarity to the commonplace danger word of our era: terrorist.

The truth is, whatever we call them, it’s time to talk bluntly about the terrarists of our world. Yes, I know, 9/11 was horrific. Almost 3,000 dead, massive towers down, apocalyptic scenes. And yes, when it comes to terror attacks, the Boston Marathon bombings weren’t pretty either. But in both cases, those who committed the acts paid for or will pay for their crimes.

In the case of the terrarists — and here I’m referring in particular to the men who run what may be the most profitable corporations on the planet, giant energy companies like ExxonMobil, Chevron, ConocoPhillips, BP, and Shell — you’re the one who’s going to pay, especially your children and grandchildren. You can take one thing for granted: not a single terrarist will ever go to jail, and yet they certainly knew what they were doing.

It wasn’t that complicated. In recent years, the companies they run have been extracting fossil fuels from the Earth in ever more frenetic and ingenious ways. The burning of those fossil fuels, in turn, has put record amounts of carbon dioxide (CO2) into the atmosphere. Only this month, the CO2 level reached 400 parts per million for the first time in human history. A consensus of scientists has long concluded that the process was warming the world and that, if the average planetary temperature rose more than two degrees Celsius, all sorts of dangers could ensue, including seas rising high enough to inundate coastal cities, increasingly intense heat waves, droughts, floods, ever more extreme storm systems, and so on.

How to make staggering amounts of money and do in the planet

None of this was exactly a mystery. It’s in the scientific literature. NASA scientist James Hansen first publicized the reality of global warming to Congress in 1988. It took a while — thanks in part to the terrarists — but the news of what was happening increasingly made it into the mainstream. Anybody could learn about it.

Those who run the giant energy corporations knew perfectly well what was going on and could, of course, have read about it in the papers like the rest of us. And what did they do? They put their money into funding think tanks, politicians, foundations, and activists intent on emphasizing “doubts” about the science (since it couldn’t actually be refuted); they and their allies energetically promoted what came to be known as climate denialism. Then they sent their agents and lobbyists and money into the political system to ensure that their plundering ways would not be interfered with. And in the meantime, they redoubled their efforts to get ever tougher and sometimes “dirtier” energy out of the ground in ever tougher and dirtier ways.

The peak oil people hadn’t been wrong when they suggested years ago that we would soon hit a limit in oil production from which decline would follow. The problem was that they were focused on traditional or “conventional” liquid oil reserves obtained from large reservoirs in easy-to-reach locations on land or near to shore. Since then, the big energy companies have invested a remarkable amount of time, money, and (if I can use that word) energy in the development of techniques that would allow them to recover previously unrecoverable reserves (sometimes by processes that themselves burn striking amounts of fossil fuels): fracking, deep-water drilling, and tar-sands production, among others.

They also began to go after huge deposits of what energy expert Michael Klare calls “extreme” or “tough” energy — oil and natural gas that can only be acquired through the application of extreme force or that requires extensive chemical treatment to be usable as a fuel. In many cases, moreover, the supplies being acquired like heavy oil and tar sands are more carbon-rich than other fuels and emit more greenhouse gases when consumed. These companies have even begun using climate change itself — in the form of a melting Arctic — to exploit enormous and previously unreachable energy supplies. With the imprimatur of the Obama administration, Royal Dutch Shell, for example, has been preparing to test out possible drilling techniques in the treacherous waters off Alaska.

Call it irony, if you will, or call it a nightmare, but Big Oil evidently has no qualms about making its next set of profits directly off melting the planet. Its top executives continue to plan their futures (and so ours), knowing that their extremely profitable acts are destroying the very habitat, the very temperature range that for so long made life comfortable for humanity.

Their prior knowledge of the damage they are doing is what should make this a criminal activity. And there are corporate precedents for this, even if on a smaller scale. The lead industry, the asbestos industry, and the tobacco companies all knew the dangers of their products, made efforts to suppress the information or instill doubt about it even as they promoted the glories of what they made, and went right on producing and selling while others suffered and died.

And here’s another similarity: with all three industries, the negative results conveniently arrived years, sometimes decades, after exposure and so were hard to connect to it. Each of these industries knew that the relationship existed. Each used that time-disconnect as protection. One difference: if you were a tobacco, lead, or asbestos exec, you might be able to ensure that your children and grandchildren weren’t exposed to your product. In the long run, that’s not a choice when it comes to fossil fuels and CO2, as we all live on the same planet (though it’s also true that the well-off in the temperate zones are unlikely to be the first to suffer).

If Osama bin Laden’s 9/11 plane hijackings or the Tsarnaev brothers’ homemade bombs constitute terror attacks, why shouldn’t what the energy companies are doing fall into a similar category (even if on a scale that leaves those events in the dust)? And if so, then where is the national security state when we really need it? Shouldn’t its job be to safeguard us from terrarists and terracide as well as terrorists and their destructive plots?

The alternatives that weren’t

It didn’t have to be this way.

On July 15, 1979, at a time when gas lines, sometimes blocks long, were a disturbing fixture of American life, President Jimmy Carter spoke directly to the American people on television for 32 minutes, calling for a concerted effort to end the country’s oil dependence on the Middle East. “To give us energy security,” he announced,

“I am asking for the most massive peacetime commitment of funds and resources in our nation’s history to develop America’s own alternative sources of fuel — from coal, from oil shale, from plant products for gasohol, from unconventional gas, from the sun… Just as a similar synthetic rubber corporation helped us win World War II, so will we mobilize American determination and ability to win the energy war. Moreover, I will soon submit legislation to Congress calling for the creation of this nation’s first solar bank, which will help us achieve the crucial goal of 20% of our energy coming from solar power by the year 2000.”

It’s true that, at a time when the science of climate change was in its infancy, Carter wouldn’t have known about the possibility of an overheating world, and his vision of “alternative energy” wasn’t exactly a fossil-fuel-free one. Even then, shades of today or possibly tomorrow, he was talking about having “more oil in our shale alone than several Saudi Arabias.” Still, it was a remarkably forward-looking speech.

Had we invested massively in alternative energy R&D back then, who knows where we might be today? Instead, the media dubbed it the “malaise speech,” though the president never actually used that word, speaking instead of an American “crisis of confidence.” While the initial public reaction seemed positive, it didn’t last long. In the end, the president’s energy proposals were essentially laughed out of the room and ignored for decades.

As a symbolic gesture, Carter had 32 solar panels installed on the White House. (“A generation from now, this solar heater can either be a curiosity, a museum piece, an example of a road not taken, or it can be a small part of one of the greatest and most exciting adventures ever undertaken by the American people: harnessing the power of the sun to enrich our lives as we move away from our crippling dependence on foreign oil.”) As it turned out, “a road not taken” was the accurate description. On entering the Oval Office in 1981, Ronald Reagan caught the mood of the era perfectly. One of his first acts was to order the removal of those panels and none were reinstalled for three decades, until Barack Obama was president.

Carter would, in fact, make his mark on U.S. energy policy, just not quite in the way he had imagined. Six months later, on January 23, 1980, in his last State of the Union Address, he would proclaim what came to be known as the Carter Doctrine: “Let our position be absolutely clear,” he said. “An attempt by any outside force to gain control of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force.”

No one would laugh him out of the room for that. Instead, the Pentagon would fatefully begin organizing itself to protect U.S. (and oil) interests in the Persian Gulf on a new scale and America’s oil wars would follow soon enough. Not long after that address, it would start building up a Rapid Deployment Force in the Gulf that would in the end become U.S. Central Command. More than three decades later, ironies abound: thanks in part to those oil wars, whole swaths of the energy-rich Middle East are in crisis, if not chaos, while the big energy companies have put time and money into a staggeringly fossil-fuel version of Carter’s “alternative” North America. They’ve focused on shale oil, and on shale gas as well, and with new production methods, they are reputedly on the brink of turning the United States into a “new Saudi Arabia.”

If true, this would be the worst, not the best, of news. In a world where what used to pass for good news increasingly guarantees a nightmarish future, energy “independence” of this sort means the extraction of ever more extreme energy, ever more carbon dioxide heading skyward, and ever more planetary damage in our collective future. This was not the only path available to us, or even to Big Oil.

With their staggering profits, they could have decided anywhere along the line that the future they were ensuring was beyond dangerous. They could themselves have led the way with massive investments in genuine alternative energies (solar, wind, tidal, geothermal, algal, and who knows what else), instead of the exceedingly small-scale ones they made, often for publicity purposes. They could have backed a widespread effort to search for other ways that might, in the decades to come, have offered something close to the energy levels fossil fuels now give us. They could have worked to keep the extreme-energy reserves that turn out to be surprisingly commonplace deep in the Earth.

And we might have had a different world (from which, by the way, they would undoubtedly have profited handsomely). Instead, what we’ve got is the equivalent of a tobacco company situation, but on a planetary scale. To complete the analogy, imagine for a moment that they were planning to produce even more prodigious quantities not of fossil fuels but of cigarettes, knowing what damage they would do to our health. Then imagine that, without exception, everyone on Earth was forced to smoke several packs of them a day.

If that isn’t a terrorist — or terrarist — attack of an almost unimaginable sort, what is? If the oil execs aren’t terrarists, then who is? And if that doesn’t make the big energy companies criminal enterprises, then how would you define that term?

To destroy our planet with malice aforethought, with only the most immediate profits on the brain, with only your own comfort and wellbeing (and those of your shareholders) in mind: Isn’t that the ultimate crime? Isn’t that terracide?

[Note: Thanks go to my colleague and friend Nick Turse for coming up with the word “terracide.”]

via Terracide: Destroying the planet for profit.

Is Oil One Reason For Genocide of Rohingya in Burma?


Human rights campaigners are warning that further ethnic cleansing in Burma, which is being exacerbated by land clearances due to economic developments surrounding the Shwe Oil/Gas pipeline, could be imminent.

The Shwe pipeline, which ironically means Golden in Burmese, is due to open later this year. It will allow oil from the Gulf states and Africa to be pumped to China, bypassing a slower shipping route through the Strait of Malacca. It will also ship gas from off shore western Burma’s Arakan State, to southwest China.

Last year there were two massacres against the Rohingya, an ethnic Muslim-minority population who inhabit Arakan state, including the strategic port of Sittwe, which is the start of the pipeline on the Burmese coast.  There are credible reports that the Burmese military is involved in the ethnic cleansing.

Banktrack has repeatedly called on international banks such as Barclays and Royal Bank of Scotland to stop financing the pipeline or the companies involved in it, until the protection of community rights along the route could be guaranteed, but this has not happened.

Described by the UN as being amongst the most persecuted people in the world, the Rohingya have been described as the “world’s most forgotten people“. The massacres against them occurred in June and then again in October, with over 120000 now living as displaced people in camps in the state of Arakan, and many more having left for Bangladesh and further afield.

After the first massacre in June, Human Rights Watch argued that “Burmese security forces committed killings, rape, and mass arrests against Rohingya Muslims after failing to protect both them and Arakan Buddhists”. At the time, they estimated that “many of the over 100,000 people displaced and in dire need of food, shelter, and medical care.”

Brad Adams, Asia director at Human Rights Watch said last year that “recent events in Arakan State demonstrate that state-sponsored persecution and discrimination persist.”

Events worsened last October when another massacre took place. Again Human Rights Watch argued that “attacks and arson” in late October “against Rohingya Muslims in Burma’s Arakan State “were at times carried out with the support of state security forces and local government officials.”

Last week the London-based Islamic Human Rights Commission warned that “We are extremely concerned about the increase in propaganda against the minority Rohingya in Burma.  It suggests that there is a high possibility of a third massacre against the Muslim minority”.

The Chair of IHRC, Massoud Shadjareh said, “There is a hidden genocide taking place in Burma, and we must speak out before even more of the Rohingya are murdered.  The international community need to come together and stop a third wave of violence taking place.”

Speaking to Oil Change International this morning, leading human rights campaigner Jamila Hanan, who is based in the UK and is founder of Save the Rohingya, said: “We are anticipating a third massacre of the Rohingya on the same scale which took place in Rwanda. We have been informed that this will take place sometime between now and mid-April.”

Hanan continued: ““There is a definite link between the oil development and the elimination of the Rohingya. The Rohingya are being cleared out of Sittwe which is being developed as a deep sea port to take oil tankers from the Middle East. There is huge number of economic developments around the port of Sittwe as a result of the new pipeline.”

The strategic port of Sittwe, where many Rohingya are based, and where the pipeline starts, is just one factor. Another are lucrative oil blocks which have previously been off limits due to sanctions. Next month, Burma plans to launch a much anticipated bidding for 30 offshore oil and gas blocks April, which is likely to receive bids from oil majors such as Chevron, Total and ConocoPhillips, amongst others.

“Our politicians must put their own economic interests aside and act urgently to prevent this imminent human disaster, “says Hanan. “Never before has the public been so informed through social media that a massacre was about to happen – our governments must not be allowed to sit back and do nothing.”

via Is Oil One Reason For Genocide of Rohingya in Burma? – The Price of Oil.

via Is Oil One Reason For Genocide of Rohingya in Burma? – The Price of Oil.

With Hugo Chavez gone, US oil industry eyes Venezuela – CSMonitor.com


Venezuelan President Hugo Chavez‘s death is not likely to result in near-term changes to the Venezuelan oil industry or global energy landscape, but it could ultimately result in political change that would reopen the country’s energy industry to foreign investment.

As news of Chavez’s death swept through IHS CERAWeek, the world’s largest conference for energy executives, in Houston on Tuesday afternoon, participants flocked to televisions, looking for news on the political future of a country that has the second largest oil reserves in the world.

“It’s too soon to say what Hugo Chavez’s death means for oil prices,” said IHS Vice Chair Daniel Yergin. “But it is certainly true that oil prices are what made Hugo Chavez possible,” as the collapse of oil prices in the late 1990s “gave him the opening to become president” and rising oil prices since 2000 “gave him the financial resources to consolidate power.”

Analysts and attendees at the Houston energy conference said it was unclear what would happen after the country holds an election for a new president. For now, Venezuela’s Vice President Nicolas Maduro is in charge and the country’s army chiefs are reported to be supporting him.

“Without (Chavez’s) charisma and force of character, it is not all clear how his successors will maintain the system he created,” Yergin said

Among the major integrated oil companies, ConocoPhillips and ExxonMobil could stand to benefit greatly from regime change in Venezuela, if the new leadership allows overseas oil companies to return, analysts said.

The nationalization of Venezuela’s oil industry in 2007 resulted in the exit of those two companies who were unable to reach a new agreement with the state-owned oil company PDVSA.

Too Early to Tell

“It’s too early to tell how the new leader will handle it, but ConocoPhillips could benefit the most,” said Fadel Gheit, senior oil analyst at Oppenheimer & Co.

ConocoPhillips was the biggest foreign stakeholder in Venezuela at the time of nationalization and could benefit greatly from regaining its former assets, Gheit said, adding: “The book value of assets that were confiscated was $4.5 billion (at the time.) The market value is now $20 to $30 billion… ConocoPhillips could eventually see a net gain of $10 billion.”

But that assumes ConocoPhillips would want to return to the country. Venezuela’s economic problems extend beyond the oil business. “It really much depends on what kind of government will follow Chavez,” said Enrique Sira, IHS senior research director for Latin America.

“The only thing for sure is the fact that the industry is in very poor condition — upstream, downstream, power, and distribution. Electricity has to be rationed. It has a gas deficit that’s been running for years and the country doesn’t produce anywhere near what it could produce,” Sira said. (Read More: Venezuela Vote, Post-Chavez, Next Risk for Oil)

ConocoPhillips CEO Ryan Lance, who spoke Tuesday morning at the Houston energy conference prior to news of Chavez’s death, noted how the global energy landscape has changed dramatically.

“The new landscape is like someone picked up the energy world and tilted it,” he said, as countries with great demand for energy and those with ample supplies has changed. The U.S. is now exporting more of its natural resources than ever before, he said. Those exports include shipping record supplies of US gasoline to Venezuela. Meanwhile Venezuela oil exports to the U.S. are on the decline.

Sira said Venezuela could produce as much as 6 to 9 million barrels of oil a day but now it’s probably less than 2.5 million barrels. He said oil production peaked in the early year at 3.3 million barrels. (Read More: Why Venezuela’s World-Beating Oil Reserves Are ‘Irrelevant’)

Venezuela ranked fourth in oil imports to the U.S. last year at 906,000 barrels per day, according to the U.S. Energy Information Administration (EIA). But crude oil imports from Venezuela have been declining steadily since 2004, when they peaked at 1.3 million barrels per day.

Venezuela’s refineries are also in such poor shape that it has to import gasoline and diesel from the U.S. In December, Venezuela imported a record 197,000 barrels per day of petroleum products from the U.S., according to EIA data.

In the short-run, oil prices may not be greatly impacted by regime change in Venezuela since for now the flow of oil from Venezuela to the U.S. and domestic fuel imports to the South American country are likely to continue current trends, said Houston-based energy analyst Andy Lipow. “We both need each other.”

via With Hugo Chavez gone, US oil industry eyes Venezuela – CSMonitor.com.

via With Hugo Chavez gone, US oil industry eyes Venezuela – CSMonitor.com.

Exxon, Chevron Made $71 Billion Profit In 2012 As Consumers Paid Record Gas Prices | ThinkProgress


While 2012 might not be a banner year for Big Oil profits, it wasn’t a bad one either. With just BP left to announce 2012 earnings, Big Oil earned well over $100 billion in profits last year, while the companies benefit from continued taxpayer subsidies. Average gas prices also hit a record high last year, showing how a drilling boom may help oil companies’ profit margins, but not consumers’ wallets.

ExxonMobil — now the most valuable company in the world, passing Apple — earned $45 billion profit in 2012, a 9 percent jump over 2011. Meanwhile, Chevron earned $26.2 billion for the year. In the final three months of the year, the companies earned $9.95 billion and $7.2 billion respectively.

Here are the highlights of how Exxon and Chevron spend their earnings:

ExxonMobil

Exxon received $600 million annual tax breaks. In 2011, Exxon paid just 13 percent in taxes. The company paid no taxes to the U.S. federal government in 2009, despite 45.2 billion record profits. It paid $15 billion in taxes, but none in federal income tax.

Exxon’s oil production was down 6 percent from 2011.

In fourth quarter, Exxon bought back $5.3 billion of its stock, which enriches the largest shareholders and executives of the company.

Exxon’s federal campaign contributions totaled $2.77 million for the 2012 cycle, sending 89 percent to Republicans.

The company spent $12.97 million lobbying in 2012 to protect low tax rates and block pollution controls and safeguards for public health.

Exxon CEO Rex Tillerson received $24.7 million total compensation.

Exxon is moving ahead with a project to develop the tar sands in Canada.

Chevron:

In October, Chevron made the single-largest corporate donation in history. Chevron dropped $2.5 million with the Congressional Leadership Fund super PAC to elect House Republicans.

The bulk of Chevron’s federal contributions came from the super PAC donation, for a total of $3.87 million for the 2012 cycle. 85 percent went to Republicans.

Chevron spent $9.55 million lobbying Congress in 2012, according to the Center for Responsive Politics.

Chevron paid 19 percent U.S. taxes last year (half of the top corporate tax rate of 35 percent), and received an estimated $700 million in annual tax breaks last year.

Chevron was fined $1 million for a refinery fire that sent 15,000 Richmond, California residents to the hospital. Though the company faces $10 million in medical expenses, Chevron earns it back in a couple of hours.

With Royal Dutch Shell and ConocoPhillips reporting $35 billion in combined profit in 2012, BP is the last company left to announce its profits for the year.

via Exxon, Chevron Made $71 Billion Profit In 2012 As Consumers Paid Record Gas Prices | ThinkProgress.

via Exxon, Chevron Made $71 Billion Profit In 2012 As Consumers Paid Record Gas Prices | ThinkProgress.

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Lurking among the corpses are the body snatchers....plotting their next venture into the graveyard....the blood in your veins will run cold, your spine tingle, as you look into the terror of death in tonight's feature....come along with me into the chamber of horrors, for an excursion through.... Horror Incorporated!

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