Oil Company Profits Shoot Up, Obama Calls for End to Subsidies
Oil companies are poised to record their biggest quarterly profits since 2008 amid sharply higher gasoline prices. According to analysts, ConocoPhillips, Exxon Mobil and Chevron are expected to report $18.2 billion in combined earnings for the first quarter of 2011.
These earnings are a 40 percent increase from this time last year, and just short of the record $20.2 billion they earned in the first quarter of 2008.
The oil companies are set to release their earnings figures at the same time President Obama has ratcheted up calls to eliminate tax subsidies for the oil companies. Initially, it looked like House Speaker Boehner was going to support Obama’s efforts to reduce the subsidies. However, the Speaker has recently backed off from that support and has opted for a more traditional Republican stance that tax subsidies are necessary to encourage domestic oil exploration.
Photo credit: fueleconomy.gov/feg/gasprices/