Oil sector’s ‘staggering’ $3bn-a-day profits for last 50 years

[sglowrider]

Revealed: oil sector’s ‘staggering’ $3bn-a-day profits for last 50 years​

Vast sums provide power to ‘buy every politician’ and delay action on climate crisis, says expert

The oil and gas industry has delivered $2.8bn (£2.3bn) a day in pure profit for the last 50 years, a new analysis has revealed.

The vast total captured by petrostates and fossil fuel companies since 1970 is $52tn, providing the power to “buy every politician, every system” and delay action on the climate crisis, says Prof Aviel Verbruggen, the author of the analysis. The huge profits were inflated by cartels of countries artificially restricting supply.

 

[VanPastorMan]

Revealed: oil sector’s ‘staggering’ $3bn-a-day profits for last 50 years​

Vast sums provide power to ‘buy every politician’ and delay action on climate crisis, says expert

The oil and gas industry has delivered $2.8bn (£2.3bn) a day in pure profit for the last 50 years, a new analysis has revealed.

The vast total captured by petrostates and fossil fuel companies since 1970 is $52tn, providing the power to “buy every politician, every system” and delay action on the climate crisis, says Prof Aviel Verbruggen, the author of the analysis. The huge profits were inflated by cartels of countries artificially restricting supply.

How much money does the government both state and federal get from Gas Taxes? With how big the Oil Industry is I am not surprised it is this much. I would think it was higher.

 

[sglowrider]

How much money does the government both state and federal get from Gas Taxes? With how big the Oil Industry is I am not surprised it is this much. I would think it was higher.

How Oil Companies Pay Such Low Taxes​

 

[VanPastorMan]

How Oil Companies Pay Such Low Taxes​

My question was about how much money does the states and Federal government get. The best sentence from this article is this,"however, others argue that tax breaks to oil companies are warranted because oil is a vital commodity used by a considerable percentage of Americans" We have a vested interest in oil companies having resources to find oil and thus provide energy for the economy.

 

[Victorbmyboy]

It’s a political nightmare. The oil cartel still has us by the nutsack. Our feder, state, local governments bring in more revenue than the oil/gas companies do. Pretty sure it isn’t even close. Why ride yourself of revenue that everything is tied to?

 

[TheOriginalHappyGoat]

How much money does the government both state and federal get from Gas Taxes? With how big the Oil Industry is I am not surprised it is this much. I would think it was higher.

On average, $142 million per day. Industry profits far outpace government revenues.

 

[Victorbmyboy]

On average, $142 million per day. Industry profits far outpace government revenues.

It depends on the year. Right now gas and oil is bringing big revenue in. The data is also all over the place. They like it that way.

 

[TheOriginalHappyGoat]

It depends on the year. Right now gas and oil is bringing big revenue in. The data is also all over the place. They like it that way.

No, it doesn't. We are talking averages. $3b is bigger than $142m every time. Simple math.

 

[Victorbmyboy]

No, it doesn't. We are talking averages. $3b is bigger than $142m every time. Simple math.

I misunderstood you. You are talking world? I’m thinking US only. Correct me if I’m wrong.

Gas and oil industry revenue U.S. 2022 | Statista

In 2022, the total revenue of the United States’ oil and gas industry came to 332.9 billion U.S.

www.statista.com

 

[ButHerEmails]

Revealed: oil sector’s ‘staggering’ $3bn-a-day profits for last 50 years​

Vast sums provide power to ‘buy every politician’ and delay action on climate crisis, says expert

The oil and gas industry has delivered $2.8bn (£2.3bn) a day in pure profit for the last 50 years, a new analysis has revealed.

The vast total captured by petrostates and fossil fuel companies since 1970 is $52tn, providing the power to “buy every politician, every system” and delay action on the climate crisis, says Prof Aviel Verbruggen, the author of the analysis. The huge profits were inflated by cartels of countries artificially restricting supply.

Looks like all this inflation isn’t bothering them.

 

[bailey777]

Looks like all this inflation isn’t bothering them.

Go get yourself an electric car and you can feel good about yourself!

 

[TheOriginalHappyGoat]

I misunderstood you. You are talking world? I’m thinking US only. Correct me if I’m wrong.

Gas and oil industry revenue U.S. 2022 | Statista

In 2022, the total revenue of the United States’ oil and gas industry came to 332.9 billion U.S.

www.statista.com

Good question. I was only responding to what was asked in this thread. Probably a dumb question to begin with. Hard to compare national taxes with a global industry, as you highlight.

 

[Victorbmyboy]

Good question. I was only responding to what was asked in this thread. Probably a dumb question to begin with. Hard to compare national taxes with a global industry, as you highlight.

It’s a very hard question to answer. Oil is so entrenched in our world it’s hard to argue most governments and officials are on the take. Right now there is plenty of oil money to go around.

 

[ribbont]

Revealed: oil sector’s ‘staggering’ $3bn-a-day profits for last 50 years​

Vast sums provide power to ‘buy every politician’ and delay action on climate crisis, says expert

The oil and gas industry has delivered $2.8bn (£2.3bn) a day in pure profit for the last 50 years, a new analysis has revealed.

The vast total captured by petrostates and fossil fuel companies since 1970 is $52tn, providing the power to “buy every politician, every system” and delay action on the climate crisis, says Prof Aviel Verbruggen, the author of the analysis. The huge profits were inflated by cartels of countries artificially restricting supply.

What were their margins? Pure profits are irrelevant but make a great headline.

 

[i'vegotwinners]

My question was about how much money does the states and Federal government get. The best sentence from this article is this,"however, others argue that tax breaks to oil companies are warranted because oil is a vital commodity used by a considerable percentage of Americans" We have a vested interest in oil companies having resources to find oil and thus provide energy for the economy.

finding oil isn't that expensive.

and we already know where it is.

that said, everyone has an even bigger "vested interest" in clean water.

yet the water companies collectively don't make $3 bil a day in profit, do they.

nor would that be a good thing, would it.

that said, as i type this, more than one "capitalist" has their eye on the water thing, knowing with the right political backing, they can "fix" water companies NOT making $3 bil a day, and be the ones pocketing the $3 bil.

healthcare, oil/gas, electric, water, internet/cable/satellite/telecom, are not "competitive" industries in the slightest, and never can or should be, and occupy a different place and serve a different need in a capitalist economy, and should not be, or allowed to be, fully capitalized to max profits..

they should all be regulated, including price regulated, to provide service at the lowest cost they can comfortably serve the citizenry's and businesses', including the biggest corporations', needs.

that is what frees up all other businesses to succeed as best they can, and the citizenry to have the basics delivered as cheaply as possible.

even the board's biggest CHRINO should be able to grasp this on your own.

 

[i'vegotwinners]

What were their margins? Pure profits are irrelevant but make a great headline.

no, they aren't irrelevant. not in the slightest.

DUH!!!!!!!

the need for bigger margins is inversely proportionate to scale/volume.

and as i just pointed out above, not everything should have maxing profits as it's primary goal.

and again, energy is one of those things.

it's unhealthy for the economy as a whole, and business as a whole, and quality of life as a whole.

even capitalism itself is harmed, when among other essentials, oil/gas is capitalized to the max.

 

[ribbont]

no, they aren't irrelevant. not in the slightest.

DUH!!!!!!!

the need for bigger margins is inversely proportionate to scale/volume.

and as i just pointed out above, not everything should have maxing profits as it's primary goal.

and again, energy is one of those things.

it's unhealthy for the economy as a whole, and business as a whole, and quality of life as a whole.

even capitalism itself is harmed, when among other essentials, oil/gas is capitalized to the max.

You don't understand business, do you?

What if the oil industry did 3T/day revenue, are you upset they have a 1% profit margin? What profit margin should a company be allowed to make? Do you want the government to dictate profit margins?

 

[Victorbmyboy]

You don't understand business, do you?

What if the oil industry did 3T/day revenue, are you upset they have a 1% profit margin? What profit margin should a company be allowed to make? Do you want the government to dictate profit margins?

Oil companies margins are pretty small. They might be the most efficient profit makers today. I know gas margins are very small. My uncle owned a gas station and they split the gas profits. It was Pennies on the dollar. Like 3-6 cents a gallon. The local/state/federal tax collection was more.

 

[VanPastorMan]

finding oil isn't that expensive.

and we already know where it is.

that said, everyone has an even bigger "vested interest" in clean water.

yet the water companies collectively don't make $3 bil a day in profit, do they.

nor would that be a good thing, would it.

that said, as i type this, more than one "capitalist" has their eye on the water thing, knowing with the right political backing, they can "fix" water companies NOT making $3 bil a day, and be the ones pocketing the $3 bil.

oil/gas, electric, water, internet/cable/satellite/telecom, should not be fully capitalized to max profits, they should all be regulated, including price regulated, to provide service at the lowest cost they can comfortably serve the citizenry's and businesses', including the biggest corporations', needs.

that is what frees up all other businesses to succeed as best they can, and the citizenry to have the basics delivered as cheaply as possible.

even the board's biggest CHRINO should be able to grasp this on your own.

Rather than having regulation which isn't always fair because one company gives more money to the regulators and their interests, how about we make it easier for multiple companies to rise up? I see government regulation as stifling the creation of jobs and businesses which almost always is good for the consumer. Your points which were well made point to a problem. Perhaps it is just the solution we disagree on.

 

[Victorbmyboy]

Rather than having regulation which isn't always fair because one company gives more money to the regulators and their interests, how about we make it easier for multiple companies to rise up? I see government regulation as stifling the creation of jobs and businesses which almost always is good for the consumer. Your points which were well made point to a problem. Perhaps it is just the solution we disagree on.

Well with oil you will have a bunch of start up companies when oil is expensive. They will profit big then either go bankrupt or sell out to the big boys. Lots of guys I know started service companies like for water transfer ..etc. then sell them. Take a vacation for a couple of years for the no compete clause then go work again or start another company.

 

[Cortez88]

Well with oil you will have a bunch of start up companies when oil is expensive. They will profit big then either go bankrupt or sell out to the big boys. Lots of guys I know started service companies like for water transfer ..etc. then sell them. Take a vacation for a couple of years for the no compete clause then go work again or start another company.

You are obviously knowledgeable in this area. I recently read a Goldman Sachs piece that said every $1 invested in fracking was a 30 cent loss. Seems like the wildcatters and some middle men made some money but investors lost their asses.

 

[JamieDimonsBalls]

Revealed: oil sector’s ‘staggering’ $3bn-a-day profits for last 50 years​

Vast sums provide power to ‘buy every politician’ and delay action on climate crisis, says expert

The oil and gas industry has delivered $2.8bn (£2.3bn) a day in pure profit for the last 50 years, a new analysis has revealed.

The vast total captured by petrostates and fossil fuel companies since 1970 is $52tn, providing the power to “buy every politician, every system” and delay action on the climate crisis, says Prof Aviel Verbruggen, the author of the analysis. The huge profits were inflated by cartels of countries artificially restricting supply.

There seems to be a causation flaw in this argument. Some of the assertions are true (cartel's, artificial supply changes), but it doesn't address the rapid growth and industrialization of large countries with enormous populations (China, India, Brazil, etc.) or the lack of non-fossil fuel alternatives, despite trillions of investment over the years.

 

[Victorbmyboy]

You are obviously knowledgeable in this area. I recently read a Goldman Sachs piece that said every $1 invested in fracking was a 30 cent loss. Seems like the wildcatters and some middle men made some money but investors lost their asses.

Wildcatters are gamblers. We sat on a bunch of wildcat francs in Montana for contental resources. I’d say they made 70 cents and said they lost “potential” 30 cents. Investors are not losing. No way.

 

[i'vegotwinners]

Rather than having regulation which isn't always fair because one company gives more money to the regulators and their interests, how about we make it easier for multiple companies to rise up? I see government regulation as stifling the creation of jobs and businesses which almost always is good for the consumer. Your points which were well made point to a problem. Perhaps it is just the solution we disagree on.

you're a lying imposter CHRINO moron, that if you actually are, has no business being a pastor.

and if you think the major oil players compete with each other, you're beyond ignorant.

you and the other idiots here have zero idea how big oil operates.

and btw, our govt doesn't regulate big oil. big oil regulates our govt.

 

[i'vegotwinners]

You don't understand business, do you?

What if the oil industry did 3T/day revenue, are you upset they have a 1% profit margin? What profit margin should a company be allowed to make? Do you want the government to dictate profit margins?

i just answered that question in my 2 posts above.

you didn't like the answer, because the best interests of the country are not what you're here to push.

and my business understanding is a universe above yours and 99% of this boards.

 

[VanPastorMan]

you're a lying imposter CHRINO moron, that if you actually are, has no business being a pastor.

and if you think the major oil players compete with each other, you're beyond ignorant.

you and the other idiots here have zero idea how big oil operates.

and btw, our govt doesn't regulate big oil. big oil regulates our govt.

If they are not competing they should. God bless you by the way.

 

[ribbont]

i just answered that question in my 2 posts above.

you didn't like the answer, because the best interests of the country are not what you're here to push.

and my business understanding is a universe above yours and 99% of this boards.

Ok. So tell me why you are focused on profits and not margins?

And if you say margins are inversely related to scale/volume, then define for me what volume of business deserves what level of margin? I just want to see that breakdown and who gets to determine it. You?

Should the government pass a law to limit MSFT profits (and reduce its 33% margin)? Oh yeah, XOM is 1/5 the size of MSFT and had a 6.23% profit margin last quarter.

 

[i'vegotwinners]

Ok. So tell me why you are focused on profits and not margins?

And if you say margins are inversely related to scale/volume, then define for me what volume of business deserves what level of margin? I just want to see that breakdown and who gets to determine it. You?

Should the government pass a law to limit MSFT profits (and reduce its 33% margin)? Oh yeah, XOM is 1/5 the size of MSFT and had a 6.23% profit margin last quarter.

are you a bot, or just a troll?

for the 2nd time, i've already already addressed that.

my answer hasn't changed.

nor should it.

try re-reading my posts above, specifically post #15 in this thread.

monopolistic big oil and gas, and energy as a whole, should not be treated the same as most other industries for reasons already set out.

how is it you can't figure that out on your own?

and if they can't get buy on 1 bil a day in profits, a third of what they make now, then they can take their talents to another industry that's actually competitive, and doesn't have the rest of the economy held hostage and dependent, and sell the oil rights to those who CAN gladly get by on that virtually guaranteed windfall.

 

[ribbont]

are you a bot, or just a troll?

for the 2nd time, i've already already addressed that.

my answer hasn't changed.

nor should it.

try re-reading my posts above, specifically post #15 in this thread.

monopolistic big oil and gas, and energy as a whole, should not be treated the same as most other industries for reasons already set out.

how is it you can't figure that out on your own?

and if they can't get buy on 1 bil a day in profits, a third of what they make now, then they can take their talents to another industry that's actually competitive, and doesn't have the rest of the economy held hostage and dependent, and sell the oil rights to those who CAN gladly get by on that virtually guaranteed windfall.

Ok. I re-read your post and now I understand you do not know the difference between profit and profit margin.

You asked why water companies don't make 3B/day. It's because it's a renewable resource and not finite, and easier to extract. Therefore the value of water is lower due to abundant supply.

Now if fresh water becomes scarce, and it is, costs of desalination will increase the price of water and water companies may have revenues high enough to have 3B/day in profits. But know that AWK, one of the largest water companies has a 30%+ profit margin, even in a regulated industry.

Now, if you look at the other industries you mentioned, you would see that they too have profit margins in the 30's and higher. Energy is typically in the lower tier.

Average Gross Profit Margin by Industry – 22 Years of Data [S&P 500]

Updated 4/21/2023 Gross profit margin is one of the three main margin formulas in a company’s income statement, which measures a company’s efficiency in creating profitability. Gross profit margin, or “Gross Margin”, is basically how profitable a product or service is before you account for the...

einvestingforbeginners.com

If you want to focus on profits per day, as the headline highlighted, there are other industries, like technology, that dwarf that 3B/day, that have much higher margins. And I would argue in 2022, technology is just as important to society as the other industries you mentioned.

 

[Aloha Hoosier]

are you a bot, or just a troll?

for the 2nd time, i've already already addressed that.

my answer hasn't changed.

nor should it.

try re-reading my posts above, specifically post #15 in this thread.

monopolistic big oil and gas, and energy as a whole, should not be treated the same as most other industries for reasons already set out.

how is it you can't figure that out on your own?

and if they can't get buy on 1 bil a day in profits, a third of what they make now, then they can take their talents to another industry that's actually competitive, and doesn't have the rest of the economy held hostage and dependent, and sell the oil rights to those who CAN gladly get by on that virtually guaranteed windfall.

It’s a great mystery why you post the way you do. You seem to have an incredibly high opinion of the value of your opinions yet you post in such an unserious manner no one takes you seriously. Ever notice that you get very few likes and few responses. I’m sure I’m not the only one that either scrolls past your posts or rarely read them because they’re posted in such an unserious way. Worst is that some actually read them and think, “this dude is an unserious clown.” Why do you persist?

 

[ButHerEmails]

Oil companies margins are pretty small. They might be the most efficient profit makers today. I know gas margins are very small. My uncle owned a gas station and they split the gas profits. It was Pennies on the dollar. Like 3-6 cents a gallon. The local/state/federal tax collection was more.

You don’t need giant profit margins when you’re pretty much guaranteed profits. It’s not hard to make a profit when you sell a product that damn near every single human being depends on.

 

[Victorbmyboy]

You don’t need giant profit margins when you’re pretty much guaranteed profits. It’s not hard to make a profit when you sell a product that damn near every single human being depends on.

No but the pressure of tight margins are real. When they change the sign outside lower they do take losses. They are very good at what they do. Covid did hurt. Sending oil to below zero hurt.

 

[ribbont]

No but the pressure of tight margins are real. When they change the sign outside lower they do take losses. They are very good at what they do. Covid did hurt. Sending oil to below zero hurt.

It's amazing how people forget several smaller oil explorers went bankrupt in 2020. Nobody gave 2 sh!ts about them.

Over 100 Oil and Gas Companies Went Bankrupt in 2020 | Submar

More than 100 oil and gas companies declared bankruptcy in 2020 after the coronavirus pandemic plunged the energy sector into the worst downturn in a genera ...

submar.com

 

[hoot1]

Oil companies margins are pretty small. They might be the most efficient profit makers today. I know gas margins are very small. My uncle owned a gas station and they split the gas profits. It was Pennies on the dollar. Like 3-6 cents a gallon. The local/state/federal tax collection was more.

My brother in law also owned a gas station. He had to survive on selling tires and other services as gasoline margins were so slim.

He chose his location because of heavy traffic. Sold lots of gasoline at low margins but flunked out on the higher margin items.

Bottom line, he was an oil company's dream come true.

He ended up a retired Postal worker. Great guy who also had a pension as a disabled Marine resulting from his serving in WW II.

 

[ButHerEmails]

No but the pressure of tight margins are real. When they change the sign outside lower they do take losses. They are very good at what they do. Covid did hurt. Sending oil to below zero hurt.

And Trump gets credit for low gas prices because of all that. At least among his ignorant supporters. Big oil will make up for anything they lost and then some. They will be just fine.

 

[ribbont]

And Trump gets credit for low gas prices because of all that. At least among his ignorant supporters. Big oil will make up for anything they lost and then some. They will be just fine.

No. Trump gets credit for low gas prices because pre-covid, the US production was at its highest level and oil prices were low and stable.

Covid lockdowns, mainly by dems, shut down the US economy and the oil industry to the brink that hundreds of companies went bankrupt, as I linked. I don’t remember dems (nor Pubs for that matter) offer to the oil companies.

And thus, here we are, along with Bidens stupid policies, with high gas prices and inflation. Let's go Brandon!

 

[DrHoops]

My question was about how much money does the states and Federal government get. The best sentence from this article is this,"however, others argue that tax breaks to oil companies are warranted because oil is a vital commodity used by a considerable percentage of Americans" We have a vested interest in oil companies having resources to find oil and thus provide energy for the economy.

We will never run out of oil. You are so poorly educated it's sad.

The chief economist of BP just said the world will never run out of oil

This assumption also means the relative price of oil will not necessarily increase over time

www.independent.co.uk

 

[DrHoops]

No. Trump gets credit for low gas prices because pre-covid, the US production was at its highest level and oil prices were low and stable.

Covid lockdowns, mainly by dems, shut down the US economy and the oil industry to the brink that hundreds of companies went bankrupt, as I linked. I don’t remember dems (nor Pubs for that matter) offer to the oil companies.

And thus, here we are, along with Bidens stupid policies, with high gas prices and inflation. Let's go Brandon!

The US imports 72% of it's oil.

The top five source countries of U.S. gross petroleum imports in 2021 were Canada, Mexico, Russia, Saudi Arabia, and Colombia. That's why US production TANKED in 2020 while Trump was in office. The pandemic made oil companies slow production because no one was traveling. That's why oil production has recently skyrocketed under Brandon.

U.S. Crude Oil Production - Historical Chart

Interactive historical chart showing the monthly level of U.S. crude oil production back to 1983 from the US Energy Information Adminstration (EIA). Values shown are in thousands of barrels produced per day.

www.macrotrends.net

You're probably on the "gas prices are going down TOO fast" train now. If they go up it's Brandon's fault, if they go down it's bad and it's Brandon's fault. LOL

So misinformed.

 

[Victorbmyboy]

No. Trump gets credit for low gas prices because pre-covid, the US production was at its highest level and oil prices were low and stable.

Covid lockdowns, mainly by dems, shut down the US economy and the oil industry to the brink that hundreds of companies went bankrupt, as I linked. I don’t remember dems (nor Pubs for that matter) offer to the oil companies.

And thus, here we are, along with Bidens stupid policies, with high gas prices and inflation. Let's go Brandon!

That’s not entirely true. OPEC was at war with the fracing industry. They controlled oil prices. Still do. They aren’t pumping at pre pandemic. We are near the pre pandemic levels. Trump took credit for Obama policy too. Presidents don’t have near the impact people think.

 

[Victorbmyboy]

The US imports 72% of it's oil.

The top five source countries of U.S. gross petroleum imports in 2021 were Canada, Mexico, Russia, Saudi Arabia, and Colombia. That's why US production TANKED in 2020 while Trump was in office. The pandemic made oil companies slow production because no one was traveling. That's why oil production has recently skyrocketed under Brandon.

U.S. Crude Oil Production - Historical Chart

Interactive historical chart showing the monthly level of U.S. crude oil production back to 1983 from the US Energy Information Adminstration (EIA). Values shown are in thousands of barrels produced per day.

www.macrotrends.net

You're probably on the "gas prices are going down TOO fast" train now. If they go up it's Brandon's fault, if they go down it's bad and it's Brandon's fault. LOL

So misinformed.

One big reason is crude grade and type. Basically trade one for the other. That’s why energy independence is the wrong term.