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 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.