First off: a friend (who's been around business for a long time) repeated the 'oil companies had record profits' line to me yesterday, as though it meant that We Wuz Robbed by the bastards.
Umnnhhh....well.....it proved that my friend is gullible.
Oil companies report profits of about 10% of gross sales. That means that if their gross sales number goes up, their profit will usually go up. If sales last year were $1 million, then profits should have been ~10%, or $100,000. If sales THIS year were $2 million, then profits (at 10%) should be around $200,000. See? "Doubled Profits!!" is how the MSM would report that. Oil Companies are EEEEEEEEEEEEeeeeeeeeeevil!!
But the only reason that there were "record profits" is that gross sales rose. More petroleum was sold, and/or the price of petroleum went up. So did the profits from those sales. No surprise to anyone who doesn't swallow the MSM line whole.
Next: Obozo's "Subsidies" bullshit.
...Obama wants Congress to “take ‘immediate action’ to end tax subsidies for oil and gas companies”
The two subsidies Barack Obama specifically wants Congress to kill are the “percentage depletion” and “intangible drilling costs (IDCs)” tax incentives.In other words, they're not actually "subsidies;" they are deductible expenses.
(Sorta like "mortgage interest" and "property tax" deductions. Are those "subsidies"? That's what Obozo calls them.)
And the Propagandist-in-Chief will not disturb Exxon/Mobil, BP, or Shell with his bright idea, either.
...the Administration is seeking to repeal the “percentage depletion” and “intangible drilling costs (IDCs)” tax incentives. The removal of these provisions would negatively affect domestic independents who utilize them to attract the capital necessary to drill new oil and gas wells inside the United States. It is estimated that eliminating percentage depletion and IDCs for domestic independents would reduce U.S. drilling by 30-40 percent, thereby increasing the nation’s dependence energy from foreign sources. Furthermore, the major oil companies are barred by law from receiving percentage depletion altogether, as it only is given to domestic independent producers. The IDC preference is only available for domestic drilling activity, and as the major oil companies drill primarily outside the U.S., the domestic independent sector of the industry will yet again bear the brunt of losing this critical provision.
That commentary is from a Democrat Senator (Boren).
If Obozo does not know that only the little guys will be hurt by his proposal, he's the Ignoramus-in-Chief.
On the other hand, maybe Obozo DOES know that this will kill off the little guys and leave only the Big Guys around.
Ever think of that?
The Statist can control oligopolies much more easily, folks.