Chevron’s Quarterly Profit Is Up To $6.5 Billion, Production Is Down, Tax Rate Is Still Lower Than Yours

Richmond, California protest Chevron on Earth Day.

Chevron posted a modest 4.2 percent increase in first-quarter profits compared to 2011, increasing net gains from $6.2 billion to $6.5 billion. That still translates to more than $71 million per day in the first three months of 2012.

Despite a drop in production, a 12 percent increase in average oil prices boosted Chevron’s profits this quarter.

Meanwhile, Chevron has faced recent protests in California, home to Chevron CEO John Watson, for environmental damage and tax dodging.

Here’s the context for Chevron’s $6.5 billion profits:

Chevron paid a 19 percent effective federal tax rate in 2011, after making $26.9 billion profit.

Spent 19.2 percent of its Q1 profits buying back stocks ($1.25 billion), which enriches the largest shareholders.

Production dropped by nearly 5 percent, from 2.76 million barrels per day in Q1 FY 2011 to 2.63 million barrels in 2012.

Chevron CEO John Watson received $25 million compensation last year, a raise of 52 percent. Chevron’s Vice President received a 75 percent increase to $7.8 million.

Chevron is sitting on even more cash reserves, $18.9 billion, up from $15.9 billion in January.

Has spent more than $500,000 on federal political contributions in the 2012 election cycle. 87 percent of these contributions went to Republicans.

Has spent $3.24 million on lobbying in the first few months of 2012, after spending $9.51 million lobbying in 2011. Some of the Chevron PAC’s major recipients for 2012 include House Speaker John Boehner (R-OH) ($5,000), House Majority Leader Eric Cantor (R-VA) ($5,000), Sen. Scott Brown (R-MA) ($5,000), Rep. Fred Upton (R-MI) ($7,500), Rep. Darrell Issa (R-CA) ($5,000).

Chevron is in a legal battle over a $18 billion judgment for environmental damage to Ecuador’s rainforest communities. According to Amazon Defense Coalition, the company has tried to block the decision four different times.

In January, Chevron had a natural gas explosion off the coast of Nigeria, which killed two contractors and “caused a fire to burn for weeks,” according to Reuters.

With just BP left to report its profits on Tuesday, four of the five Big Oil companies have already made over $26 billion in the first 91 days of 2012.


8 Responses to Chevron’s Quarterly Profit Is Up To $6.5 Billion, Production Is Down, Tax Rate Is Still Lower Than Yours

  1. Nationalize the oil and the banks.

    I believe that oil and both consumer and investment banking will be nationalized in the near future. The tipping point will come when even the 1% discover that it’s not just a matter of ideology anymore. The rest of the world is nationalizing oil and finance. We can not compete on a global scale if we do not use the power of the federal government to counter the massive power of other governments. No matter how rich and powerful a few private individuals become, they can not compete with entire nations. The strategy of sending the military to take out foreign governments who dare to nationalize oil and other markets is not just immoral, it’s an unsustainable strategy that doesn’t work. It’s more humane AND more efficient to stop spending massive amounts of borrowed money on being the world market police and just nationalize US markets that have to compete with the nationalized markets of other nations.

    JD Phillips LCSW is the author of The Firewall Sedition, a novel in the tradition of the progressive writers of the 1930s.

  2. Zimzone says:

    Meanwhile, Republicans have cut $4 billion from the food stamp (SNAP) program to ‘offset’ increased spending.
    Conservatives fight tooth & nail to continue subsidizing an oil industry that pays lower tax rates than you and your neighbor, yet frequently state our poor & disabled get government handouts.

  3. Mugsy says:

    Is anybody tracking these “cuts in production” to create “artificial shortages” simply to drive prices/profits up?

  4. M.A.F. says:

    Hit ’em the only place it hurts: just cancelled our Chevron credit cards for all members of this family (3). Took a while & a lot of nonsense to cancel, too- they don’t give up easily!

  5. Zimzone says:

    ‘Chevron is in a legal battle over a $18 billion judgment for environmental damage to Ecuador’s rainforest communities.’
    (From the link)…
    In February 2011, after an eight-year trial that produced 220,000 pages of evidence, an Ecuador court found Chevron liable for deliberately dumping more than 16 billion gallons of toxic waste into Amazon waterways when it operated in Ecuador from 1964 to 1992 under the Texaco brand. The dumping decimated indigenous groups and caused an outbreak of cancer and other diseases

  6. les says:

    Explain to me again why these companies need subsidies??? Maybe these companies should fall under the PUCs jurisdiction.

  7. DallasNE says:

    When reading these profit reports keep in mind the very, very mild winter. Both home heating oil and natural gas usage were down sharply and reflect in the “drop in production” comment. Just think what these numbers would have been with a normal winter.

  8. pedro john says:

    James 5:1-6
    New International Version (NIV)
    Warning to Rich Oppressors
    5 Now listen, you rich people, weep and wail because of the misery that is coming on you. 2 Your wealth has rotted, and moths have eaten your clothes. 3 Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days. 4 Look! The wages you failed to pay the workers who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty. 5 You have lived on earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter.[a] 6 You have condemned and murdered the innocent one, who was not opposing you.