There are just things the old media just won’t tell you, now that class warfare is Obama’s campaign slogan for 2012. Things like what Obama’s no drill policy is doing to our oil supply, what the fed is doing to devalue our dollar, yes oil is traded in dollars, and other pertinent data that fuels the Obama demagoguery.
So here is Exxon-Mobil’s earnings in one easy to understand chart:
From Ken Cohen, Exxon-Mobil:
Big numbers make headlines – like our announcement of $10.7 billion in earnings for the first quarter of 2011. What may not make the headlines is the context surrounding that number, so I thought I would share with you what I told reporters following the announcement:
Let me start by putting our earnings into context for U.S. motorists.
ExxonMobil’s earnings are from operations in more than 100 countries around the world. During the first quarter, more than three-quarters of our operating earnings came from outside of the United States.
The part of ExxonMobil’s business that refines and sells gasoline, diesel and other products in the United States represents less than 6 percent – or 6 cents on the dollar – of our earnings.
Why so little? Because we actually buy more crude oil to refine into gasoline and diesel in the U.S. than we produce ourselves. And these purchases are made on the open market at the prevailing rates.
During the first three months of this year, for every gallon of gasoline and other products we refined and sold in the United States, we earned about 7 cents. Compare that to the 40 to 60 cents per gallon that went from gasoline consumers to the government (state and federal) in gasoline taxes.
The underlying question people are asking is: Why are oil prices so high at the present time? The answer to this question is important because the price of crude oil accounts for most of the price of gasoline.
There are several factors involved in the rise in oil prices.
First, as a result of the global economy strengthening – particularly in countries like China, India and Brazil – demand for crude oil is on the rise.
Second, political instability in some oil-producing regions is contributing to uncertainty about future oil supplies. Oil markets are well-supplied today, but the issue is this: What will it cost to replace this supply if it is lost in the future? This uncertainty about tomorrow is reflected in prices today.
Finally, another factor behind higher oil prices is unique to the United States. And that’s the weak U.S. dollar. Oil and most other food and industrial commodities are invoiced in dollars. Accordingly, when the dollar goes “down” the price of primary commodities tend to go “up,” and vice versa.
The dollar is at a three-year low against other currencies and is approaching the record low which occurred in 2008, when oil prices were at historically high levels.
The dollar’s decline accelerated last week after a warning by Standard & Poor’s about the country’s $14.3 trillion debt and economic weakness compared to other countries.
So these factors all combine to drive oil prices up.
What is our government doing about it? Unfortunately, they’re reaching for the political playbook rather than seeking real solutions.
Among some of the many things the Obama regime is doing to limit our oil supply … Shell Cancels Arctic Oil Drilling Plans for 2011 … After having spent $4 billion so far to explore the tract. Why you ask, when they have a 27 billion barrel find about 50 miles from the Alaska pipeline terminus — Simple the ice breaker they planned to use emits CO2, and we can’t deny the global warming hoaxers at the EPA, now can we.