Friday, February 13, 2015

Oil Companies Do Get it: From Us

    In my last post I described how big oil companies play dumb, ignore things, and get what they want.

    Today something else that big oil companies get...money. And they get money from us.

    Big oil companies get an enormous amount of money from governments and of course, that's our money governments are giving away to the oil companies. On top of giving money away there  are extremely sweet tax laws that allow big oil companies to pay very little or no tax at all.

    Here in Alberta , Canada, big oil companies receive $300.00 per meter drilled from the government!  The last time I checked oil companies were very, very profitable. Why are they subsidized $300.00 per each meter drilled?

    Provinces and states fall all over themselves to attract companies to set up business in their jurisdiction. Money sweetens the pot. Much infrastructure is built for companies so that they can operate.

  Tax regimes are another thing. Oil companies pay royalties to buy the oil taken from the ground. Sometimes royalties are very low so the oil company almost gets the oil for free. The oil belongs to the people and people should be paid fair value for the commodity.

   Business taxes can be extremely low. This is to encourage companies to come and develop the resource. Now don't forget, big oil companies are very,very profitable. There are many loopholes for right offs. Capital cost allowance allows companies to right off part of the investments they make. The capital cost allowance is subtracted directly from tax to be paid.

    The examples I've given, show how money is given to very, very profitable companies. 

    The big oil companies piously bray about how great  they are at being efficient. Go on an oil facility site and you will find waste and careless practices. They never turn off a machine if they can help it. Trucks run all the time. My daughter worked for an oil company for five years in their human resources department. She was appalled at the was. One thing she did was to go on the rigs and give safety training.

   These companies further sneer about individuals who want things from the government for nothing. They are the biggest Corporate welfare bums in the country.

27 comments:

  1. And now we have the Republicans wanting Keystone. Sigh...

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    1. The pipeline will be built. It would be nice if they built it to much higher specifications so that it's much safer.

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  2. They are much the same here.

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  3. Well said Red. It's the same the world.

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    1. Someday we're going to have to get much more aggressive with our politicians....like boot some of the bums out.

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  4. I cannot add anything here - excellent post Red and SO VERY TRUE. Worst part is, they will continue to operate in this way for a long time yet. It's all about the MONEY - GREED WILL TAKE YOU TO THE TOP.

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    1. We will have to act. Climate change is real. I've been to the arctic. Much of the ice I saw is gone.

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  5. OOOPS, Happy Birthday to your brother tomorrow :)

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  6. Never heard about all the subsidies, but they all come out ahead anymore.

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    1. Subsidies are very well hidden by both the govt. and the industry.

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  7. it is a racket, isn't it? they get away with so much, yet when a spill occurs, waters, land, people are poisoned, they are rarely held accountable.

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    1. You've got it right that they are not held accountable. There have to be lawsuits that go on for years before a small amount is done.

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  8. You bet they get it from us! And I totally agree that they are the biggest welfare bums!

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    1. Not enough is known about industry getting government money.

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  9. Corporate tax abuse is a problem in most places. They pay to elect the politicians that turn democracies into oligarchies. Eventually, the people will rise up and do something about this.

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  10. They are the worst of the worst in corporate offenders.

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    1. It's unbelievable how bad they can get.

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  11. I agree with everything you have said, Red. And I wonder why more of us don't make a big stink about it!

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    Replies
    1. Many people are deluded into thinking that it's a way for them to survive.

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  12. Gas is going back up here, and my sister told me she heard that the oil workers were on strike..I don't believe for one second that the oil companies are hurting from lower gas prices.

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    1. Refineries are shut down for annual maintenance so there's less gas but not less oil.

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  13. This is an interesting post! You're pretty much "right on" with what you said.

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    1. Much more needs to be done to keep track of the tricks these guys play.

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  14. Sorry but reports indicate the Koch brothers will have only 800 million plus to buy the next American election...:(

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