Guest “Slapping down another Biden lie” by David Middleton
OIL Published June 11
Biden points blame for record oil prices: ‘Exxon made more money than God this year’
President Biden blamed oil companies but took credit for the fastest-growing economy’By Lawrence Richard
During a speech in Los Angeles Friday, President Joe Biden blamed record gas prices on the oil industry and said that U.S. oil companies like Exxon Mobil Corp were raking in massive profits this past year.
“Exxon made more money than God this year,” the Catholic president told union representatives at the Port of Los Angeles as the national average price of gas is $4.99 per gallon.
[…]
Biden also accused the largest U.S. oil company of spending their profits on stock purchases, rather than using it to drill and produce more oil.
“Why aren’t they drilling? Because they make more money not producing more oil,” the president said. “Exxon, start investing and start paying your taxes.”
[…]
“Exxon made more money than God this year”
“Exxon, start investing and start paying your taxes”
JULY 22, 2022
Public U.S. oil producers saw higher revenues and higher operational costs during Q1 2022
In the first quarter of 2022, 53 U.S. exploration and production companies reported both higher revenues and higher material and labor costs compared with the first quarter of 2021.
We base our analysis on the published financial reports of 53 publicly traded oil companies that produce a majority of their crude oil in the United States. As a result, our observations do not represent the sector as a whole because the analysis does not include private companies that do not publish financial reports. In the first quarter of 2022, these 53 publicly traded companies collectively produced 3.9 million barrels per day (b/d) of crude oil in the United States, or about 34% of all U.S. crude oil produced in the quarter.
The West Texas Intermediate (WTI) crude oil price averaged $95.18 per barrel (b) during the first quarter of 2022, up 64% from the first quarter of 2021 and up 23% from the fourth quarter of 2021. Cash from operations for these companies totaled $25.7 billion during the first quarter of 2022, which was 86% more than in the first quarter of 2021 and 9% less than in the fourth quarter of 2021. Despite higher revenues (an unusually high $8.8 billion increase in accounts receivable), the balance due for delivered goods not yet paid for by customers contributed to the quarterly decrease in cash from operations.
Capital expenditures by these companies nearly doubled year over year to reach $14.6 billion during the first quarter of 2022. These companies reported a 5% decline in capital expenditures in second-quarter 2022 compared with the first quarter. Production of crude oil remained flat compared with the fourth quarter of 2021, although it was 10% higher than in the first quarter of last year. Compared with pre-pandemic levels, production in the first quarter of 2022 was 10% less than in the first quarter of 2020.
Although rising crude oil prices increased revenues during the first quarter of 2022, supply chain issues and financial losses from hedging contributed to increased costs. Production expenses, such as the cost of goods sold, operating expenses, and production taxes, totaled $28.06 per barrel of oil equivalent in the first quarter of this year, 59% more than the pre-pandemic average and the highest for any quarter during the past five years. Cost of goods sold, which includes the cost of materials and labor directly used in production, have more than doubled from the pre-pandemic average.
A recent survey of oil and natural gas firms by the Federal Reserve Bank of Dallas found 94% believe supply-chain issues are having a negative impact on their firm, and 66% expect that it will take more than a year to resolve these issues.
Principal contributor: Alex DeKeyserling
Tags: costs, crude oil, WTI (West Texas Intermediate), revenue
If doubling capital expenditures, year-over-year, isn’t investing… Then what is?
Note how the cost of drilling and producing oil goes up and down as cash from operations goes up and down. This is because the cost of drilling and producing oil goes up and down with oil prices.
“Exxon made more money than God this year”
“Exxon, start investing and start paying your taxes”
I have no idea how much money God makes… I suppose He probably makes all of it. Since Biden babbled this in June, neither he nor anyone else know how much money ExxonMobil will make this year. It was June 11 when he flapped his gums, before the end of the second quarter. We won’t know how much money ExxonMobil will make this year until next year. They haven’t even reported their second quarter numbers yet… Most companies haven’t. But we can look at what they made last year and compare that to a company Biden never seems to lie about.
Based on the fact that ExxonMobil only generated an 8.2% profit margin, had a 24.5% effective income tax rate and invested 52% of their net income back into the business… I’d say they made a lot less money than God, were aggressively investing and paid their taxes. As a matter of fact, ExxonMobil’s effective tax rate was essentially the same as Biden’s.
Maybe it’s time for Apple to start investing and paying their taxes.
