Chevron Earns $19 Billion Profit So Far This Year, Spending Millions To Elect House GOP

By Jackie Weidman and Rebecca Leber

Chevron, the second largest oil company in the United States and eighth largest in the world, earned $5.3 billion in profits in the third-quarter of 2012. This brings their total profits for the first nine months of this year to $19 billion.

Last month, Chevron made the single-largest corporate donation since Citizens United. The company dropped $2.5 million with the Congressional Leadership Fund, a super PAC for House Republicans, after congressional GOP voted at least twice to protect Chevron’s $700 million tax breaks.

Below is a glimpse at what Chevron is spending its billions in profits:

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

— Since 2011, Chevron has spent $16.6 million lobbying Congress to block pollution controls and safeguards for public health.

— Chevron spent $3.7 million on campaign contributions this election, with 85 percent of contributions going to Republicans.  Chevron gave more than any of the other Big Five Companies.

–Meanwhile, Chevron’s production has decreased by over 6 percent since this time last year, from 1.7 billion barrels of net liquids (oil + natural gas liquids) to a current rate of 1.68 billion barrels per day.

— Chevron is sitting on cash reserves totaling $21.3 billion, up from $15.8 billion in January.

— Chevron spent 24 percent of its Q3 profits buying back stocks ($1.25 billion), which enriches the largest shareholders.

— Chevron paid a 19 percent effective federal tax rate in 2011, well below the statutory corporate rate of 35 percent.

— Chevron CEO John Watson received over $17 million in compensation last year.

The Big Five companies are on track to make over $100 billion in profits this year, while they collect $2.4 billion in annual tax breaks. Meanwhile, they are producing 5 percent less oil than the third quarter last year. The Big Five has spent more than $100 million lobbying Congress since 2011, and millions on campaign contributions.

5 Responses to Chevron Earns $19 Billion Profit So Far This Year, Spending Millions To Elect House GOP

  1. Paul Magnus says:

    “The reason is the incredible power of the fossil fuel industry. Until we can diminish that power, I imagine nothing very large will be done to deal with climate.”

    The time has come to nationalize the FF industries so that we can move to speedily curtail GHG.

    THere is nothing undemocratic about this. Lots of large essential sectors are run by government within our democracies just fine.

    There is no reason why the FF ones cant be accommodated at this critical time. After all it is essential to our survival as a civil society that GHGs are reduced

    Read more:

  2. Greatgrandma Kat says:

    I read on MSN yesterday that Exxon has also lost prodution by 8% but is making up profits from refinning tar sands. Exxon is blaming it on Brazil. At least that is the excuse they are using to shareholders. They also did a share buy back and has had a drop in the share price.

  3. Barbara Mancovsky says:

    I don’t believe in nationalizing FF industry is the answer. The government almost never does things better than private sector. HOWEVER the private sector needs to operate and be regulated, bound by ethics rules and regulations because this is what happens when greed goes wild.

  4. Greg Beckstrom says:

    Paul Magnus – I have news for you. Nationalization of industries never works out. Especially in the oil & gas industry where access to capital (financial and intellectual) is essential. Look at examples Pemex and Venezuela where production has declined steadily, environmental conditions are dreadful and their infrastructure is a shambles. There is a deep conflict of interest when the owner (which you propose to be the government) is also the regulator. Industries where there is a profit motive with strong, independent oversight work best. Please share with all of us your ideas on where nationalization of the oil & gas industry has been a success.

  5. Perhaps more than outright long-term nationalization, which suffers from the just complaints above, a fear of legitimate shareholder revolt ala Enron might be the most effective weapon bending the FF industry to accept a significant, steadily rising carbon fee with full monthly rebate to adult resident citizens. An adjustment for raising children can be made in tax credit. Let’s try to achieve a representative congress and President who will get this done as quickly as possible!