Marketplace is community-funded public service journalism. Give in any amount that works for you – what matters is that you give today.
TEXT OF STORY
SCOTT JAGOW: It’s been a big week for big oil. Oil companies have been turning in their profits from last quarter. Exxon: $ 10 billion. Shell and BP: $7 billion. Conoco Phillips: $5 billion. We’ll get the numbers from Chevron. Kinda makes you wonder what happened to all the talk about a windfall tax? Here’s Marketplace’s Amy Scott.
TYSON SLOCUM: “It made it into conference committee. And Senator Bill Frist removed it at the last minute, under pressure from the White House and the oil industry.”
That’s Tyson Slocum. He directs Public Citizen’s energy program and supports a windfall tax. He says given this week’s eye-popping earnings, the political winds may turn favorable again.
SLOCUM:“You’re looking at a big election this November and I think that there are a number of lawmakers who are vulnerable on this issue.”
The oil industry says higher taxes would discourage domestic production and drive up prices.
And the windfall may be short-lived. Some analysts warn that inflation, hostile governments, and inadequate reserves will soon start to erode oil company profits.
In New York, I’m Amy Scott for Marketplace.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.