So what IS Big Oil/Gas doing with all those profits?

[Dover]

Well, we can start by having Congress empty their pockets...

Big Oil Powers Up in D.C.

Exxon Mobil likes to brag in its PR materials that it is "Taking on the world's toughest energy challenges." The message is that, yes, Exxon is a huge, rich conglomerate, but, hey, it invests its multibillion-dollar profits all over the globe to drill and produce more energy for you and me.

Lately, however, Exxon and the other barons of big oil have been investing more and more of their gas-pump profits in the deep well of Washington politics, drilling for legislative favors. In just the first three months of this year, Exxon sank $9.3 million into lobbying firms – three times what it invested a year ago. Overall, the oil companies spent $44.5 million on influence-peddlers in the first quarter, a spending rate that is increasing faster than that of any other industry.

The oil giants don't want to publicize it, but their "toughest energy challenges" really are in our capital city, where a serious push is finally being made to rein in corporate greed, end billions of dollars in ridiculous oil subsidies, and shift America's energy future to clean, renewable sources. An Exxon spokesman says the company is powering up in D.C. merely "to ensure lawmakers understand our positions." ..cont'd

http://www.austinchronicle.com/gyrobase/Issue/column?oid=oid%3A821482

[create.peace]

1. and the speculators, too, don't forget them....nt

[Yupster]

2. BP is paying out a dividend of 6.5 %

not bad when cd's are paying 1 %.

[vincna]

6. That is a very nice yield - nt

[ParkieDem]

3. Seriously, that does not strike me as all that much.

$9.3 million by Exxon in one quarter? $44.5 million by the industry as a whole in one quarter?

Exxon made $45.2 BILLION in profits in 2008, or about $11.3 billion per quarter. Their lobbying expenses are therefore are about 0.08% of their net profits. Either (a) this figure is grossly wrong, (b) our lobbyists and congressmen are bribed on the cheap, or (c) XOM is getting one hell of a return on its investment.

[Jkid]

4. Obvious answer

Most of the profits go straight into the pocket books of CEOs and shareholders. If they did reinvest most of the profits into green energy, people will go for green energy, making petroleum less profitable.

[vincna]

5. What is your point?

Exxon is an oil company and the shareholders invested with the expectation of making money in oil. That's how corporations work. If management wanted to invest most of their profits into renewable energy, then I believe a shareholder vote would and should be required.

[ParkieDem]

8. No, this isn't the case

No, a shareholder vote would not be required. Shareholder votes are only required for extreme corporate decisions (e.g. mergers, significant disposition of assets, etc), and others that are set forth in the company's bylaws (of course, nowadays bylaws are liberally written to allow the corporation to do pretty much whatever it wants).

The basic rule for publicly-traded companies is that if you don't like the company's policies, then don't buy their stock (or sell the stock you have). No one forces those shareholders to own Exxon stock.

As far as "where do the profits go," yes, Exxon pays a pretty good dividend, but the profits do NOT go directly to the pockets of management (except for the extent to which they own shares). Their profits ARE reinvested, but they are definitely not being invested in green energy. In other words, those profits are just going into Exxon's bank account to fund more and more drilling projects, etc.

As far as the shareholders are concerned, the sad truth is that most of Exxon's shares are held by large pension funds -- many of which are owned/operated by so-called "progressive" organizations (e.g. unions, etc.). I don't know why there hasn't been a big divestment campaign by these folks.

[TransitJohn]

7. Not hiring me for contracts, that's for sure.

I've only worked 7 weeks all year long!