The price of a barrel of crude oil has just about doubled in the past two years, but statistics compiled by The American Progress Action Fund last week in a report entitled “Pain at the Pump, Profits in the Boardroom” reveals that gasoline prices over that same span have increased by 174%. The report documents in excruciating detail that the petroleum industry is not feeling the pain being experienced by consumers at the gas pump.
The report first takes aim at the annual profits of the oil companies:
- ExxonMobil annual profits are up from $11.46 billion in 2002 to $25.33 billion in 2004 (+ 121%).
- ChevronTexaco annual profits are up from $1.13 billion in 2002 to $13.33 billion in 2004 (+ 1080%)
- ConocoPhillips annual profits are up from $1.51 billion in 2002 to $8.13 billion in 2004 (+ 438%)
- BP annual profits are up from $6.92 billion in 2002 to $17.075 billion in 2004 (+ 147%)
- Royal Dutch Shell annual profits are up from $9.58 billion in 2002 to $18.56 billion in 2004 (+ 94%)
But while consumers have suffered, these have been happy times for Oil company CEO’s:
- Lee R. Raymond of ExxonMobil is projected to earn $25.77 million in 2005 including salary, bonus, and stock gains. That’s a modest 9.1% increase over 2003.
- David O’Reilly of ChevronTexaco will make an estimated $8.2 million in 2005, up 74% from 2003.
- James Mulva of Conoco Phillips will earn an estimated $16.79 million in 2005, a painful pay cut of 7% versus 2003, but a welcome 104% increase versus2004.
The report informs us that “oil and gas CEO’s had the largest percentage increases in their compensations compared with CEO’s from other sectors in 2004.”
The report notes that there has been “little action on the part of the administration or Congress to increase conservation or energy efficiency, or to take bold steps toward alternative sources of energy.” It notes that oil and gas companies have poured nearly $450 million into the coffers of political parties, politicians and lobbyists in order to protect their interests. It seems to be working:
Comparing the last three cycles to the previous three:
- oil & gas industry political contributions over-all have increased by 29%.
- oil & gas industry political contributions to Republicans have increased by 41%.
- oil & gas industry political contributions to Democrats have decreased by 3%.
Little wonder that the Republican leadership in the House bent the rules and twisted arms to narrowly push through yet another industry-friendly energy bill this past Friday to Democrat shouts of “shame, shame.”
That makes sense.. we’re so highly car centered in the US that we would have to use it if it were 10 dollars a gallon.. just not everyone would be making it.
Is that what it will take before we get serious? will middle class America have to go down before somethign will be done?
– in flames. You just haven’t caught on yet. The rifs (Reduction in Force) that hit a lot of people took them down from a nice tidy middle class to under poverty level. That started in the year 2000 and continued through 2003. Now we have a bunch from the south – Mississippi and Louisiana who have lost homes and jobs. How are they in the middle class now?
Then we have the companies going bankrupt and those bankrupcies will affect pensions. A lot of folks who would be getting great pensions will now be getting so so pensions.
I don’t suppose you noticed that the percent of poverty is over 12% AND climbing? AND it affects more children every day.
But I am glad you are okay.
that was a little harsh, don’t you think? Are we both on the same side here or what?
and yes, i do agree that people everywhere have been hit hard. I’m one of them.. and no actually I am not as ok as I could be. I’m sitting at home with a condition that requires me to hold onto a part time job that pays barely enough to slip me just a little steeper in debt every month.
I appreciate your anger at the way things are now and I share your concerns. We share the same goals, so I would appreciate it if you didn’t knock me just because I don’t get my posts 100 percent accurate.
I thank you in advance
I apologize. I am one who had a great salary and then was kicked out of the labor force at the age of 60. I had resources yes, and I have taken advantage of every one. But I am looking at a retirement that is at least half of what I might have had, I am looking at so many cuts in lifestyle – dining out, clothes, etc, I am looking at less dental care, less health care and less choices in both. My dental insurance was so bad my dentist sent me packing!
Bush was threatening the social security safety net and that threat is still hanging over us. Pension guarantees are a farce and I fear what little I am getting will go. Health insurance will cease here pretty quick and I am sure that medicare will not suffice for a quality of health care.
Gas and heating prices are going up so my choices to travel and when to travel will be cut here pretty quick.
True, I am not everyone, but I represent a lot of us former middle class folks.
Where we had something to look forward to, now we have increasing weather concerns and, of course, the avian flu. And the only remedy Bush can think of is the ARMY. Which he has pretty much hollowed out at this point.
No kidding.. and I do appreciate your pointing out to me that the middle class has been gutted. I totally agreed with you on that point. Whenever I make assumptions (usually by forgetting because i’m onto another point)I just want to cringe..
public transit use is up here in the Silly Con Valley, with credit partially to the high prices at the fuel pump (some pretty messy construction projects also get the nod).
Wonder if that’s a nationwide trend, at least in areas fortunate enough to have public transit…
that was a little harsh, don’t you think? Are we both on the same side here or what?
and yes, i do agree that people everywhere have been hit hard. I’m one of them.. and no actually I am not as ok as I could be. I’m sitting at home with a condition that requires me to hold onto a part time job that pays barely enough to slip me just a little steeper in debt every month.
I appreciate your anger at the way things are now and I share your concerns. We share the same goals, so I would appreciate it if you didn’t knock me just because I don’t get my posts 100 percent accurate.
I thank you in advance
My comment was for “Grandma Jo” I must have hit the post button instead of the reply