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BP Rakes In $11.6 Billion In Profits For 2012

By Climate Guest Contributor

"BP Rakes In $11.6 Billion In Profits For 2012"

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By Jackie Weidman

Today, BP was the last of the Big Five Oil companies to announce its total 2012 earnings, raking in a net profit of $1.6 billion in the fourth quarter and bringing the company’s annual profits to $11.6 billion.

BP is one of the most profitable companies in the world, ranking fourth-highest on the Fortune 500 Global companies list. In November 2012, BP agreed to pay a $4.5 billion criminal fine -– the highest fine in U.S. history -– as a result of the Deepwater Horizon oil disaster. The majority of the fine ($2.4 billion) will be used for restoration in the Gulf of Mexico, where 5 million barrels of oil flowed into the Gulf over 87 days. An estimated 1 million barrels of oil remain in the Gulf.

Below is a glimpse at how BP spent its billions in profits last year:

  • BP received an estimated $200 million in tax breaks last year, according to an analysis by the Center for American Progress.
  • BP spent $8.9 million lobbying Congress in 2012, according to the Center for Responsive Politics.
  • BP spent nearly $450,000 on campaign contributions during the 2011-2012 election cycle.
  • Almost two-thirds of their contributions went to Republican candidates.
  • Meanwhile, BP’s oil production decreased by 8 percent, from 1.29 million barrels of net liquids (oil + natural gas) per day in 2011 to 1.18 million barrels per day in 2012.
  • BP is sitting on cash reserves totaling $19.5 billion.

High oil and gasoline prices contributed to another year of huge profits for the Big Five Oil Companies: BP plc, Chevron Corp, ConocoPhillips, ExxonMobil Corp, and the Royal Dutch Shell Group. These companies earned a combined $119 billion in profits in 2012, while collecting an estimated $2.4 billion in annual tax breaks. Average gas prices hit a record high last year, enriching the biggest oil companies while hurting consumers’ wallets.

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One Response to BP Rakes In $11.6 Billion In Profits For 2012

  1. Ozonator says:

    The following takes place during the reign of Evil Inhofe over every molecule of CO2 and when everybody but the NWS was getting money from BP for “spilling” oil and killing workers.

    “Bill Proenza said fighting to ensure forecasts are as accurate as possible and speaking his mind has gotten him into trouble again. … in July 2007, after he warned that a weather satellite’s demise would hurt tropical forecasts. … “When money is tight, we have to decide top priorities, and I can’t think of a higher priority than protection of life.” … The weather service … is bracing for potentially millions in spending cuts … violated governmental budgeting procedures … the weather service’s southern region is “the most active severe weather area” in the nation and includes nine states, stretching from Florida to New Mexico, as well as Puerto Rico and the U.S. Virgin Islands. … The weather service previously fired its director, Jack Hayes, and its chief financial officer, as they, too, were cited for making unauthorized money transfers to upgrade technology and equipment, as well as fund day-to-day operations, in the face of persistent deficits” (“Weather service fires former hurricane chief Bill Proenza”; By Ken Kaye, Sun Sentinel; sun-sentinel.com, 2/5/13).