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Just how profitable the industry is and, consequently, how little it needs subsidies.

Razoo

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That is how taxes work – the more you make, the more you pay in taxes. According to data from the Energy Information Administration, between 2005 and 2009, the five most recent years for which data are available, major oil and gas companies made over half a trillion dollars in profit.8

The Big Five alone – BP, ConocoPhillips, Chevron, Exxon Mobil, and Shell – made $78 billion and $137 billion in profits in 2010 and 2011, respectively.9

Furthermore, how much the oil and gas companies pay in taxes in no way justifies the continued existence of unnecessary subsidies.

Actually, the very fact that companies pay so much in taxes shows just how profitable the industry is and, consequently, how little it needs subsidies.

And, as discussed below, actual domestic income tax rates paid by U.S. oil and gas corporations are far lower than commonly stated.

 

Razoo

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Q.
What tax incentives encourage energy production from fossil fuels?
A.
Provisions of the federal income tax that subsidize domestic production of fossil fuels include the expensing of exploration, development, and intangible drilling costs; the use of percentage depletion instead of cost depletion to recover drilling and development costs of oil and gas wells and coal mines; and numerous smaller incentives for production and distribution of oil, coal, and natural gas.


 

Razoo

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How much does the oil industry get in subsidies?

Coal, oil, and natural gas received $5.9 trillion in subsidies in 2020 — or roughly $11 million every minute — according to a new analysis from the International Monetary Fund. Explicit subsidies accounted for only 8 percent of the total.Oct 6, 2021

Fossil Fuels Received $5.9 Trillion In Subsidies in 2020, Report Finds​

 

Gateman_Wen

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That is how taxes work – the more you make, the more you pay in taxes. According to data from the Energy Information Administration, between 2005 and 2009, the five most recent years for which data are available, major oil and gas companies made over half a trillion dollars in profit.8

The Big Five alone – BP, ConocoPhillips, Chevron, Exxon Mobil, and Shell – made $78 billion and $137 billion in profits in 2010 and 2011, respectively.9

Furthermore, how much the oil and gas companies pay in taxes in no way justifies the continued existence of unnecessary subsidies.

Actually, the very fact that companies pay so much in taxes shows just how profitable the industry is and, consequently, how little it needs subsidies.

And, as discussed below, actual domestic income tax rates paid by U.S. oil and gas corporations are far lower than commonly stated.

And we only had to subsidize them to the tune of $5.9 trillion to get that.

 

EdwinWillers

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I know a business that made $3.863 trillion last year alone.
The average net worth of its leadership is well over $8 million.
The average net worth of new leaders joining its ranks is well over $1 million.
The business pays zero taxes.
It also produces nothing.
....and - it is fully subsidized by the federal government.
 
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