Major oil company profits and subsidies
The major oil companies are the six largest privately-owned oil companies. They are referred to as oil-companies but they also deal with gas products. The six major companies are: Chevron Corporation (CVX) headquartered in the United States, British Petroleum(BP) headquartered in the UK, Royal Dutch Shell or Shell(RDS) headquartered both in UK and Netherlands, ExxonMobil Corporation(XOM) headquartered in the United States, Total S.A(T.O.T) headquartered in France and the American ConocoPhillips Company. In total, these six major oil companies run approximately 6% of world oil reserves.
This company comes in the third slot after ExxonMobil and Royal Dutch Shell. It has got its headquarters based in London and it conducts operations such as exploration of oil reserves, refinery of the crude oil, distribute out the oil and gas products and generation of other supplementary forms of energy like wind energy , solar power, biofuels and energy based on hydrogen. Nevertheless, the B.P Company also trades extensively in shares and it is listed both in the New York Stock Exchange and the London Stock Exchange. Even though the company has recently hogged in the limelight after the Deepwater Horizon accident, it has got priceless assets and lots of profits under its belt. To increase its coverage, the B.P Company has formed alliances with three other companies smaller than it namely Burmah, Amoco and Arco. The B.P Company produces approximately four million barrels of crude oil and therefore posts huge figures of income. 2010. The Company has been recording subsequent profits prior to the previous years. In the last three months of 2009, the net profit was $4.4 billion and it had been a more than 70% increase in profit that the previous year. In the annual figures of 2009, the net profit was $14 billion.
Prior to the Deepwater Horizon accident, the B.P received subsidies from the government. The subsidies include temporary governmental tax terminations and aid, and commercial benefits. Courtesy of Los Angeles Times, the B.P Company is said to tens of billions. The companies that produce oil in the U.S get tax breaks at nearly all of its stages of oil exploration and drawing out of the oil. According to figures it is presumed that the tax breakages amount to approximately $4 billion annually. Others include the elimination of almost three-quarters of the rent charged the platform and a subtraction of more than a quarter billion dollars daily from the moment of its hire.
Effect on the economy
The subsidies given out to the B.P oil company lead to a reduction of the gross U.S productivity by a mere 0.5%.
The Chevron Corporation is a descendant of Pacific Coast Oil Company that had been formed in 1870 in Los Angeles. With its headquarters based in U.S, California, the Chevron Corporation is a global oil company that trades in oil, gas and the production of other forms of energy. Like the other major oil companies, the Chevron Corporation is also involved in the exploration, production and the refinery of the crude oil. The company is also involved in the production of other supplementary forms of energies like wind energy production such as fuel cells, hydrogen energy, photovoltaic and other high-tech models of batteries. The Chevron Corporation has other subsidiary companies like Ovonics and Chevron Shipping Company. The company has fleets of oil tankers and three gas tankers. The Chevron Corporation merged with Texaco and came into the number two slot as the second largest company in the United States of America. Other subsequent merge followed after it bought Unocal Corporation for a whooping figure of $18.4 billion and then Atlas Energy Incorporation for a total sum of $4.3 billion. The Chevron Corporation has a working force of 67,000 in all its branches worldwide. The company produces about 2.2 million barrels of crude oil on a daily basis. The company also trades extensively in the New York Stock Exchange. The company has been claimed to have evaded paying taxes to the federal government of about $3.25 billion to a period spanning for thirty years, ever since from 1970.In total sales and other business returns, the Chevron Corporation realized $198,198 as by the last quarter of n2010, $167,402 as by the last quarter of 2009,$264,958 in 2009 and $214,091 in 2007.
The subsidies of Chevron Corporation
The Chevron Corporation has been allocated tax subsidies for items like the production credits and for oil production loyalties that are shelled out to overseas governments. The credits spell success to the other oil companies that don’t feature in the category of the major oil companies.
Effects of the subsidies on the economy
The common citizens of resource-rich countries cant be in positions to buy the commodities if the oil were sold overseas. This is because oil companies sell their commodities to the highest bidders. If the common citizens aren’t in a position to buy the fuel it can ultimately lead to civil unrest. It’s estimated that more than a third population of the world have not yet given up the use of biomass in their household activities. The methods that involve the extraction of biomass from the natural reserves, whether in wood form or charcoal, leads to deforestation. Therefore, if the subsidies were given out to the oil companies, the mere act to motivate more and more people to make use of the energy that is got from fossil fuels which in turn can minimize the amount of carbon dioxide emitted in the environment. That would lead to people rendering on better lives.
Total Oil Corporation
With its headquarters based at Courbevoie in France, the Total Company follows in the trend of the other six major oil companies. The company explores produces and does refine the crude oil. The company also deals on natural gas, the transportation of LPG and LNG and other chemicals. The Total oil company was formed on a deal gone sour:after the First World War, the then Raymond Poincare turned down an offe3r that was given to him of joining an alliance with the Shell Oil Company. The Total trades extensively in the Paris Stock Exchange. Earlier, the Total Oil Company has merged into alliances with companies such as Petrofina and Elf Aquantine.
In Euros, the has an income profit staggering to 159.62 billion Euros, returns worth billion Euros, material possessions worth 143.70 billion dollars and the trading profits worth 10.62.
The subsidies on the Total Company
The subsidies that were passed out to total company include: the minimized commercial returns from the oil company, unexposed impacts that are caused by the consumers of the3 commodity, mostly vehicles and below the standard sales tax charges on fuel.
Impact on the society
Some unexposed subsidies waste taxpayers money by the destabilization government ways to endorse energy competency, supplementary forms of energies, and ecological fortification.