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Oil companies have been traditionally subsidized globally because politicians feel that they will help keep gas prices low and benefit the consumer . Banks and Finance Companies have been traditionally subsidized because politicians feel that keeping interest rates to near zero will ensure easy flow of credit to the business and the consumer in general and increase spending and growth. Unfortunately it does not work out this way. The oil companies who get subsidized ensured that they laughed all the way to the Bank while consumers had to bear the brunt of oil price hikes
The quarterly results of oil companies showed mind boggling profits last week. At the top of the table was Exxon Mobil whose production went up by a mere 10% but first quarter earnings of 2011 at $ 10.65 billion. was 69% higher than the first quarter of 2010. Earning Per Share was up by 61% at $2.14 per share. Royal Dutch and Shell quarterly profits were up by 40% at GBP 4.1 despite production dropping by 3%
President Obama did not loose the chance to make a plea to the Congress to cut the $40 billion subsidies given to the oil companies. as Gasoline Prices in the states hit an all time high of $4 per gallon.Predictably the Republicans opposed the move and the issue will be raised again and again as the US President moves closer to the re-election year of 2012. However oil companies all over the world will enjoy subsidies as politicians are normally divided on the issue of removing subsidies fearing further price rise for the consumer.
Oil companies have been traditionally subsidized globally because politicians feel that they will help keep gas prices low and benefit the consumer . Banks and Finance Companies have been traditionally subsidized because politicians feel that keeping interest rates to near zero will ensure easy flow of credit to the business and the consumer in general and increase spending and growth. Unfortunately it does not work out this way. The oil companies who get subsidized ensured that they laughed all the way to the Bank while consumers had to bear the brunt of oil price hikes
The quarterly results of oil companies showed mind boggling profits last week. At the top of the table was Exxon Mobil whose production went up by a mere 10% but first quarter earnings of 2011 at $ 10.65 billion. was 69% higher than the first quarter of 2010. Earning Per Share was up by 61% at $2.14 per share. Royal Dutch and Shell quarterly profits were up by 40% at GBP 4.1 despite production dropping by 3%
President Obama did not loose the chance to make a plea to the Congress to cut the $40 billion subsidies given to the oil companies. as Gasoline Prices in the states hit an all time high of $4 per gallon.Predictably the Republicans opposed the move and the issue will be raised again and again as the US President moves closer to the re-election year of 2012. However oil companies all over the world will enjoy subsidies as politicians are normally divided on the issue of removing subsidies fearing further price rise for the consumer.
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