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Entries in Shell (3)

Tuesday
May102011

Senate Finance Committee to Hear from Big Oil Execs at Hearing Thursday

Comstock Images/Thinksto(WASHINGTON) -- The Senate Finance Committee, chaired by Montana's Sen. Max Baucus, will hold a hearing Thursday morning with the executives of the five oil companies targeted by the Democrats’ new bill, called the Close Big Oil Tax Loopholes Act.

The new measure is intended to scrap $2 billion in tax subsidies each year for the five largest and most profitable oil companies and, in turn, apply the savings to paying down the federal deficit.  

The committee will ask John Watson, Chairman of the Board and CEO of Chevron Corporation; Marvin Odum, U.S. President of Shell Oil; H. Lamar McKay, Chairman and Presidnt of BP America Inc.; James Mulva, Chairman and CEO of ConocoPhillips; and Rex Tillerson, Chairman and CEO of Exxon Mobil, to defend the subsidies, especially in the wake of recent high oil company profits.
 
Senate Majority Leader Harry Reid on Tuesday said he plans to kick off debate on the new bill on Wednesday, with a vote scheduled “in the next week.”
 
“Every year oil companies get billions of dollars of subsidies from the American taxpayers,” Reid said. “Common sense tells us these oil companies do not need these huge subsidies. We've had executives of these oil companies who have said so in the past. Recently the former CEO of Shell has said that. And economists recognize that these subsidies, if we took them away, would not affect gas prices at all."

Reid continued, "The only purpose these subsidies serve is to line the pockets of these oil companies. The most effective way to bring down the deficit is to start now and make good, smart choices. Putting seniors ahead of oil companies should be a no-brainer.”

But the Democrats face an uphill battle in passing their measure. It will need 60 votes to advance, a long shot in a chamber where there are only 53 Democrats and even some of them -- like Louisiana’s Mary Landrieu -- don’t support the measure. Republicans have vociferously opposed the bill.

Copyright 2011 ABC News Radio

Thursday
Apr282011

Gas Earnings: Exxon Profits Up 69%, Shell Up 30%

KAREN BLEIER/AFP/Getty Images(WASHINGTON) -- Exxon Mobil and Royal Dutch Shell reported first quarter profit increases Thursday of 69 percent and 30 percent, respectively, from the same period last year. With rising gas and oil prices, analysts expected the five biggest oil companies -- with Exxon as the largest -- to report that they are swimming in revenue.

Exxon earned $10.7 billion in the first quarter, up from $6.3 billion. Shell announced profit of $6.3 billion in the first quarter this year, up from $4.8 billion.

BP and ConocoPhillips announced their first quarter earnings Wednesday, in a week when the biggest oil companies have begun to release their 2011 profits. The "Big Five" oil companies include BP, Chevron, Conoco Phillips, Exxon Mobil and Shell.

ConocoPhillips said its first quarter earnings increased 43 percent to $3 billion from $2.1 billion in the same period last year. BP's first quarter earnings dipped this year -- $5.48 billion compared with $5.60 billion during the first quarter a year ago -- including a charge of $384 million related to the oil spill in the Gulf of Mexico.

Valero Energy, based in San Antonio, Texas, and the largest independent U.S. refiner, announced Tuesday a first quarter profit of $98 million "primarily due to higher margins for diesel and jet fuel," compared to a first quarter loss last year of $113 million.

Chevron, based in San Ramon, Calif., is slated to announce its earnings on Friday while Marathon Oil, based in Houston Texas, will announce its earnings Tuesday.

The national average for regular gas is $3.88 a gallon, the highest since August 2008, according to the Department of Energy this week.

Copyright 2011 ABC News Radio

Thursday
Dec302010

Former Shell Executive Predicts High Gas Prices in Coming Years

Photo Courtesy - Getty Images(NEW YORK) -- A former Shell executive is predicting that gas prices could reach the $5 mark by the late 2012, just as Americans are seeing a preview of rising prices throughout the nation.

John Hofmeister, the former president of Shell and now chief executive of a non-profit group called Citizens for Affordable Energy, said he expects the hike by November 2012 mostly because of higher demand for gasoline worldwide -- especially in Asia.

"There is more demand because the economy is recovering," he said. "There is much more demand in Asia because the economy is growing rapidly."

While demand is rising steadily, the world is struggling to increase production. Demand is approaching 90 million barrels per day, while only 85 million barrels are being produced.

Today, gas prices are averaging at $3.07 a gallon, while a year ago they were at $2.62 -- 45 cents cheaper. Drivers experienced the highest gas prices in October 2008, when many paid $4.11 for every gallon, according to AAA. While everyday commuters certainly will be suffering, it will be those who consistently travel across the country who will be paying the most at the pump. Americans drove 16 billion more miles this year than they did last year.

Copyright 2010 ABC News Radio







ABC News Radio