Chevron owes more to Richmond

Published on SFGate, by Antonia Juhasz, July 17, 2009.

This week, Fortune magazine released its list of the 500 largest corporations in the world. With a nearly 25 percent increase in its revenues from 2007, Chevron Corp. moved from the sixth to the fifth largest corporation in the world. Only 36 countries on the planet had GDPs larger than Chevron’s $263 billion in 2008 revenues.

By revenue, Chevron is the largest corporation in California, the second-largest U.S. oil corporation and the third-largest corporation in the nation. Chevron’s nearly $24 billion in profits for 2008 were its largest on record and the fourth-highest profits of any corporation in the world. Chevron’s profits have increased every year since 2002, increasing by an astounding 2,100 percent. 

Those who have not benefited are the Richmond community, the site of Chevron’s oldest refinery, and the state of California.

In November, Richmond voters passed Measure T. At the current price of oil, it would provide the city with an additional $16 million annually from Chevron (adding 11 percent to the city’s tax revenues). Chevron sued, challenging the new tax.

Chevron has also repeatedly blocked state initiatives to impose a severance tax on oil extracted in the state. California is the only major oil producing state in the nation without such a tax. It is estimated that imposition of a severance tax could bring in over $1 billion a year to the California state budget.

Moreover, the Los Angeles Times reports Chevron’s role in lobbying to keep initiatives to increase corporate taxation more broadly off the table in the state’s budget negotiations … (full text).

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