Record Prices, Record Profits

Big Oil-With The Help Of Bush & Co.
Are Bilking American Consumers
Even As They Experience Record Profits
And CEO Salaries Record Prices…

Since Bush's 2nd Inauguration, Gas Prices Have Risen 32 Cents-a 17 Percent Increase. According to the Energy Information Administration, the price of regular, unleaded, gasoline has risen by 32 cents, or 17.4 percent, since Bush's 2nd inauguration. On January 17, 2005, just before Bush's 2nd inauguration the average price of gasoline was $1.84 a gallon. As of May 16, 2005, the average price of gasoline is $2.16 per gallon. [Energy Information Administration,]

Since Bush's 1st Inauguration, Gas Prices Have Risen 70 Cents-a 48 Percent Increase. According the Energy Information Administration, the price of regular, unleaded, gasoline has risen by 70 cents, or 47.9 percent, since Bush's 1st inauguration. On January 15, 2001 just before Bush's first inauguration the average price of gasoline was $1.46 a gallon. As of May 16, 2005, the average price of gasoline is $2.16 per gallon. [Energy Information Administration,]

…And Record Profits

Oil Companies Experienced Record $100 Billion in Profits During 2004. According to the New York Times, "Even though the market values of target companies are near their record highs, that is matched by record profits and cash on hand at big oil companies. With crude oil averaging $41 a barrel in 2004, the world's top 10 oil companies made more than $100 billion in profit [in 2004]. The boom is expected to grow this year. Oil futures on the New York Mercantile Exchange set a new record [on April 4], rising above $58 a barrel for the first time." [NYT, 4/5/05]

Big Oil Companies Have Experienced Record Profits of Nearly $34 Billion Since Bush Took Office. The higher overall gasoline prices have cost the American consumer a net of over $25 billion during Bush's first term in office. This money has gone directly from consumers' pocketbooks into the hands of oil companies and oil producers, including OPEC. The big three oil companies in America have profited $33.6 billion over the past three years alone. [Based on EIA Monthly Energy Review; ExxonMobil, ChevronTexaco and ConocoPhillips Company Financial Reports]

2004 Profits for ExxonMobil, ChevronTexaco, and ConocoPhillips Broke Records Across All Industries-Not Just the Oil Industry. According to the Washington Post, "Oil companies reported record profits last year-and not just records for oil companies. Royal Dutch Shell earned $18.54 billion, while BP lagged behind with a net income of $15.73 billion, a company best. ExxonMobil broke the U.S. record by reporting a 2004 profit of $25.33 billion, taking the title away from Ford. ConocoPhillips's profit for the year rose 72 percent, while ChevronTexaco's grew 84 percent." Exxon's 2004 revenues were a company record: $298.03 billion. In February, Exxon surpassed General Electric Co. to become the largest U.S. corporation by stock market value. [Washington Post, 2/13/05; Associated Press, 4/13/05]

…And Record CEO Salaries

ExxonMobil CEO Received $38 Million in Bonuses, Despite Soaring Oil Prices. According to the Associated Press, "Buoyed by high oil prices, ExxonMobil Corp. had a record-breaking year in 2004 and chairman and chief executive Lee R. Raymond shared in the company's success with a $38 million compensation package… Exxon said that Raymond, 66, was paid $7.5 million in salary and bonus plus restricted stock worth $28 million and nearly $2.6 million more in other compensation and incentives, according to Exxon's proxy filed Wednesday with the Securities and Exchange Commission." [AP, 4/13/05]

ChevronTexaco CEO Received Nearly $10 Million in Bonuses and Stock Options. According to the Los Angeles Times, "ChevronTexaco Corp. Chief Executive David O'Reilly's compensation rose 2.2 percent last year to $9.98 million as soaring oil and fuel prices boosted profit at the second-biggest U.S. oil company." O'Reilly's salary rose 15 percent to $1.51 million; his bonus climbed 25 percent to $3.95 million; and he received options valued at $3.48 million. Other compensation, including payouts of vested performance shares and use of the company's aircraft, totaled $1.05 million. [Los Angeles Times, 3/22/05; Securities and Exchange Commission, ChevronTexaco Proxy Statement]

…And Record Stock Prices

ConocoPhillips Stock Has Increased by 75 Percent Since Bush Took Office. In addition to record profits during 2004, the stock price for ConocoPhillips increased by more than 75 percent since Bush took office. ConocoPhillips' stock rose to $96.78 per share on May 16, 2005 from $55.25 per share on January 19, 2001-and increase of more than 75 percent. This increase was in contrast of the fact that the Dow actually decreased during this same period by 335.3 points- more than 3 percent. ConocoPhillips' stock has increased by nearly 12 percent in the past five-and-a-half months alone. [Yahoo Finance]

Archie W. Dunham, Chairman of ConocoPhillips, is a Bush Pioneer. Archie W. Dunham, Chairman of ConocoPhillips, was a Bush Pioneer in 2000, pledging to raise $100,000 for the Bush-Cheney campaign. "I think we're going to have a super year," said Dunham. [Tulsa World, 4/29/04; Texans for Public Justice]

Republicans Are Pushing Special-Interest Energy Bill that Will Not Reduce Gas Prices…

Bush's Own Energy Information Administration Found the Bush Plan Wouldn't Impact Prices. A February 2004 analysis by the Energy Information Administration of the 2003 compromise energy bill-nearly identical to the current bill-found the price of oil and the level of imports would be "negligible" with or without that energy bill, all the way through 2025. According to the New York Times, Bush "advisers caution that the [Bush energy] plan would do little to address the escalating gasoline prices." [Investor's Business Daily, 3/23/05; EIA,; New York Times, 5/10/01]

Former Tom DeLay Aide Admits Energy Bill Will Not Solve Gas Price Problem; Only Gives Appearance of Doing Something. According to the Los Angeles Times, "Politically, it doesn't matter if such provisions deal with the long term, said [Stuart Roy, Republican strategist and former aide to House Majority Leader Tom DeLay. ‘The most important thing for policy makers in the current environment of relatively high gas prices and the approaching summer travel months is action.'" [LA Times, 4/16/05]

…Because Republicans Are in Oil Companies' Pockets

REPUBLICAN PARTY: Oil and Gas Industry Contributed Nearly $67 Million to Republicans Since 2000. The oil and gas industry has contributed over $66.7 million to the RNC, NRCC, NRSC, and Republican candidates since the 2000 election cycle. The oil and gas industry contributed more than $20 million to Republicans in the 2004 cycle alone-four times more than oil money donated to Democrats. In 2004, Exxon alone gave 831,941 to Republicans. [Center for Responsive Politics]

DELAY: Energy Industry PACs Are DeLay's Second Largest Contributors: DeLay has raised nearly $830,000 from energy industry PACs, the 2nd-largest contributing special interest group to DeLay's campaigns over the course of his career. []

BARTON: House Energy Chairman And Close DeLay Associate, Joe Barton, Received $1.8 Million in Contributions from Energy Industry. Rep. Joe Barton (R-TX) is chair of the Energy and Commerce Committee, which recently passed the energy bill. According to the Washington Post, "If Barton gets his way and succeeds in passing this year's energy bill, there is little doubt that the oil and gas, coal, and nuclear industries will have much to celebrate… Barton and President Bush… have dipped heavily into the same rich pool of campaign contributions from corporate and trade associations, according to a review of campaign finance and lobbying records. Since 1997, oil, gas, electricity, nuclear, coal and chemical companies have contributed $1.84 million to Barton, more than to any other House member." [WP, 4/14/05]

Barton Owes Chairmanship to Energy Industry Lobbyists. The Washington Post reported, "In his quest for the chairmanship… A network of former Barton staff members-turned-lobbyists-including Jeffery M. MacKinnon (clients: Reliant Energy, Philip Morris, MCI and at least 36 others), Stephen Sayle (American Chemical Council, AT&T and 19 others) and Stephen Waguespack (Duke Energy, Ford Motor Co. and eight others)-worked the crucial corporate and trade association community on Barton's behalf." [Washington Post, 4/14/05]

…And Bush Is In the Oil Companies' Pockets

Energy Bill Rewards Bush Fundraisers. According to the Washington Post, the 2004 Republican energy bill, nearly identical to the current one, provided billions of dollars in benefits to companies run by at least 22 executives and their spouses who were either "Pioneers" or "Rangers," as well as to the clients of at least 15 lobbyists and their spouses who have achieved similar status as fundraisers. The energy bill provides industry tax breaks worth $23.5 billion over 10 years aimed at increasing domestic oil and gas production, and $5.4 billion in subsidies and loan guarantees. [WP, 11/24/03]

In 2004, 13 Pioneers and Ranger Were From The Oil and Gas Industry. 13 members of the oil and gas industry were either Pioneers, who pledged to raise $100,000 for the Bush Campaign, or Rangers, who raised $200,000 for the Bush campaign in 2004. [; Washington Post, 4/14/05]

In 2000 Election Cycle, 66 of Bush's Pioneers Were Members of the Energy and Natural Resources Industry. According to Texans for Public Justice, 66 of Bush's Pioneers in 2000-who each raised at least $100,000 for Bush-were from the energy and natural resources industry. Five of those Pioneers, including Edison Electric Institute President Thomas Kuhn, were named to Bush's Energy Transition team. [; Texans for Public Justice]

The Oil and Gas Industry Is One of Bush's Largest Career Donors. The oil and gas industry ranked 12th among career contributions to George W. Bush. In 2000, the oil and gas industry ranked 8th in the top industry contributions. In 2004, the oil and gas industry ranked 15th in the top industry contributions. [Center for Responsive Politics]

…And the Bush Administration Is Filled with People from Big Oil

"Let us rid ourselves of the fiction that low oil prices are somehow good for the United States."

–Dick Cheney, October 1986.

Cheney Personally Profited from Rising Gas Prices in 2000. Vice President Cheney sold his stock in Halliburton in June 2000 for $5.1 million and his stock increased $1.4 million in value due to rising gas and oil prices that drove up the value of Halliburton stock. [Associated Press, 7/25/00 Boston Globe, 7/25/00]

Oil & Gas Industry Was Cheney's Biggest Donor in 1988. In 1988, Cheney's last congressional race, the oil and gas industry gave Cheney $27,500 in PAC money, Cheney's largest donor that year. [Center for Responsive Politics,]

Cheney Personally Profited from Rising Gas Prices in 2000. Vice President Cheney sold his stock in Halliburton in June 2000 for $5.1 million and his stock increased $1.4 million in value due to rising gas and oil prices that drove up the value of Halliburton stock. In August 2000, Cheney exercised stock options and sold 660,000 shares between Aug. 21 and 28, 2000 for $35 million; Halliburton shares were soaring because of high oil prices. Cheney made an $18.5 million profit selling his shares for more than $52 each in August 2000. [Washington Post, 7/16/02; Associated Press, 7/25/00; Boston Globe, 7/25/00]

Condoleezza Rice Served on Chevron's Board; Chevron Gave More Than $858,000 to GOP, Bush. Secretary of State Condoleezza Rice served on the board of directors for Chevron, a major U.S. oil company from 1991-2001. Chevron named an oil tanker in her honor. During 1999-2000 Chevron gave GOP candidates and committees $758,588 – $534,550 to GOP committees and $224,038 to Republican Congressional candidates. Chevron employees gave $100,000 to the Bush inaugural fund. [; Hart's Africa Oil and Gas, 1/29/01]

Interior Secretary Gale Norton Worked for Anti-Environment, Corporate Backed Legal Foundations, Raised Money From Oil, Gas Interests. Norton was a prominent member of the Mountain States Legal Foundation (MSLF) which pursued "aggressive litigation against environmental protections, an agenda to pay polluters to obey the law, an effort to dismantle the Endangered Species Act, and a campaign to deny the seriousness of air pollution and the existence of global warming," according to the Friends of the Earth. In 1977, its first year of operation, MSLF received donations from over 175 corporations including Exxon, Amoco, Phillips 66, Marathon Oil, Ford Motor Company and Chevron. [USA Today, 1/2/01; Friends of the Earth release, U.S. Newswire, 1/2/01; AP, 7/13/98; Environmental News Network, 1/9/01;]

Big Oil Was Norton's Second-Largest Campaign Contributor. In 1996 Norton ran for the U.S. Senate in Colorado and raised $28,570 from the oil and gas companies, the second largest total from any industry. []

Chief of Staff Andrew Card Earned $600,000 Lobbying for GM, Auto Trade Association. Before serving as White House Chief of Staff, Andrew Card had been GM's chief lobbyist for more than a year earning $600,000 a year in salary. Card was also CEO of the now-defunct trade group, the American Automobile Manufacturers Association. The AAMA spent more than $12 million on lobbying in 1997-1998 to fight Japan over trade issues and lobby against stricter fuel emissions standards. As a policy fellow for the U.S. Chamber of Commerce, Card testified before Congress against the "Passengers' Bill of Rights" for the airline industry. [; PR Newswire, 9/16/93; Roll Call, 1/22/01; National Journal, 5/8/99]


ExxonMobil Reports
Annual Profits Of $25 Billion

by Mark Tran, January 31, 2005

US oil giant ExxonMobil sealed its status today as a supreme money-spinner by reporting annual profits that exceeded the GDP of Syria.

Exxon, the company that environmental activists love to hate, said net income in the fourth quarter increased to $8.4bn from $6.6bn a year earlier. That brought its profits for 2004 to a record $25bn, bigger than the GDP of countries such as Syria.

Exxon's bumper profits for last year came on the back of surging demand from the fast-growing economies of India and China, coupled with fears of a disruption in supplies from countries such as Russia, Iraq and Nigeria. Oil prices stayed high for much of the past year, with crude prices exceeding $55 a barrel in late October.

"Strong operational performance in all areas of our business helped ExxonMobil capture the benefits of favourable market conditions in 2004," the company said in a statement.

Exxon, based in Irving, Texas, made more in both major aspects of its business, the exploration and production of oil and gas, and the refining and selling of finished products. The impact of high oil and gas prices could be seen in the increase in profits despite a 1% decline in oil production and a 2% drop in gas production.

The chairman and chief executive, Lee Raymond, said the company "continued its active investment program" in the fourth quarter, spending $4.2bn on capital and exploration projects. That, however, was a decline from $4.3bn a year earlier.

"This is a particularly impressive set of results given that every segment outperformed expectations," Credit Suisse First Boston analysts said in a research note.

Exxon, the world's largest publicly traded oil company, just missed $300bn in sales for the year.

2004 was a good year for oil companies in general. Royal Dutch Shell is also expected to report record profits for 2004 this week, despite being hit by a reserves scandal. Forecasts put Shell's pretax profit for last year at $18bn.


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