Will there be any calls for “windfall losses tax breaks”? Probably not.

by Mark J. Perry

bigoil

2. Chart of the Day II (above). The chart above displays the annual profits of the Big Five oil companies (ExxonMobil, Chevron, BP, Conoco and Shell) from 2009 to 2016 (first two quarters), along with the average annual oil price during those same years. A strong pattern is visible: oil company profits rise and fall with oil prices. Back when oil prices and oil profits were high, there was a lot of hysteria with politicians and progressives calling for “windfall profits taxes” on Big Oil. Now that oil prices have crashed and oil profits have evaporated (Chevron and Conoco have both lost more than $2 billion during the first half of this year) will there be any calls for “windfall losses tax breaks”? Probably not. Will oil companies get any credit for providing Americans with the most affordable energy in US history (as a share of consumption spending)? Probably not.

Via Mark J. Perry, Ph. D. and Scholar at The American Enterprise Institute
Professor of Finance and Business Economics
School of Management, University of Michigan-Flint
2111 Riverfront Center, Flint, MI 48502-1950
Michigan Office Phone: 810-424-5413
Washington, D.C. Phone: 202-419-5207
Personal Website: www.umflint.edu/~mjperry
Carpe Diem Blog: www.aei.org/publication/blog/carpe-diem
Twitter: twitter.com/Mark_J_Perry

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