"Chevron’s Second Quarter Profits Top $7 Billion"
by Noreen Nielsen and Jackie Weidman
Chevron, the second largest oil company in the United States and eighth largest in the world, announced earning $7.2 billion in profits in the second-quarter of 2012, bring their total profits for the first six months of this year to $13.7 billion. The slight drop in profits is being attributed to “weakened oil prices from the year before, though fatter refining margins cushioned the blow.” Chevron’s production has decreased by nearly 5 percent (4.7%) compared to this time last year, from 1.88 billion barrels of oil (+ liquid natural gas) to a current rate of 1.78 billion barrels per day.
Below is a glimpse at where Chevron is spending its billions in profits:
- Chevron has already spent over $5 million on lobbying in 2012, coming in as the fourth highest spender of the oil and gas industry. Collectively, the oil and gas industry has already spent nearly $70 million on lobbying this year, with Exxon, Shell, Koch Industries, Chevron and BP topping the list.
- Chevron has already contributed nearly $700,000 to federal campaigns this year, with 89 percent of contributions going to Republicans.
- Chevron paid a 19 percent effective federal tax rate in 2011, well below the statutory corporate rate of 35 percent.
- Chevron spent 18 percent of its Q2 profits buying back stocks ($1.3 billion), which enriches the largest shareholders.
- Chevron CEO John Watson received over $17 million in compensation last year.
- Chevron is sitting on cash reserves totaling $21.2 billion, up from $15.8 billion in January.
With just BP left to report its profits on Tuesday, four of the five Big Oil companies have already made over $57 billion in the first half of 2012.