Oil and Gas Companies Continue Receiving Billions in Taxpayer Subsidies while Reaping Record Profits

As was the case for much of the last decade, profits for major oil and gas companies continue to skyrocket.  Exxon brought in over $14 billion in profits in the third quarter of 2008, increasing 58% over third quarter 2007 and setting a new record for quarterly earnings.  Similarly, Shell’s third quarter profits increased more than 70% over third quarter 2007 and Chevron's profits increased  to $7.89 billion, more than double the $3.72 billion reported a year ago.

Last year three of the top five largest oil companies saw annual profits continue on their record-setting trajectory.  Exxon lead the pack, posting $40.6 billion in profits — the largest annual profit number reported by any American company ever — breaking their previous record from 2006.  Chevron also had a record-setting year with net income rising 9 percent.

Overall, most companies are experiencing the highest profits in industry history, all while receiving billions in taxpayer subsidies.  The combined profits of 25 major oil and gas companies reached over $175 billion in 2007, an increase of nearly 19% from 2004. And that same year, the oil and gas industry received more than $2 billion dollars in government subsidies. Now more than ever it is clear these companies do not need taxpayer handouts. 

Recent annual profits in billions of dollars:

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