The Big Oil Company Scam
We are all feeling the prices at the pump and the ramifications of increased oil prices throughout our economy, so why are the big oil companies still making record profits? Not only are these big oil companies reaping in record amounts of money while consumers suffer, they are also still receiving federal subsidies. What’s up with that?
Personally, I don’t understand how the oil companies can justify passing the entire burden off on the American people of the rising cost of gasoline considering our current economic recession. Exxon Mobil Corp., BP America Inc., Shell Oil Co., Chevron Corp., and ConocoPhillip know high fuel prices are hurting consumers, but on Tuesday they defended their profits of $123 billion last year as in line with other industries. “Our earnings, though high in absolute terms, need to be viewed in the context of the scale and cyclical, long-term nature of our industry as well as the huge investment requirements,” said J.S. Simon, Exxon Mobil’s senior vice president.
“On April Fool’s Day, the biggest joke of all is being played on American families by Big Oil,” said Rep. Edward Markey, D-Mass. Markey wants oil companies to invest 10 percent of their profits to develop renewable energy, as well as relinquish up to $18 billion in tax breaks over 10 years. This money would then be used to support renewable energy and conservation. The oil companies’ response to this proposal is that they have already spent $3.5 billion over the last five years on renewable fuels, and they reject any tax increases. That may be, but it hasn’t been enough, or all of our cars would be getting at least 50 mpg. Without government intervention, the oil companies will continue to gouge the American consumer while making record profits. “These companies are defending billions of federal subsidies … while reaping over a hundred billion dollars in profits in just the last year alone,” stated Markey, chairman of the Select Committee on Energy Independence and Global Warming. The House of Representatives has already approved legislation that will end tax breaks for big oil, while using this revenue to support wind, solar and other renewable fuels. The Senate has yet to pass this legislation.
According to AP writer H. Josef Herbert, “Recently oil prices reached a peak of $111 a barrel. While declining a bit in recent days, the price remains above $100 and there’s talk of $4 a gallon gasoline in the coming months.” Oh yes, the threat of $4 a gallon; I paid $3.99 a gallon today. I have always felt that American gas prices were too low prior to the Bush administration — that these prices did not adequately reflect the value of this limited resource. Now that we are experiencing high gas prices, I can’t help but wonder what I am paying for when oil companies are making record profits and the “supplies of both gasoline and oil seemed to be adequate.” I wouldn’t mind paying the current price for gasoline if the oil companies’ profits were slashed in order to bring about new developments and change in American energy use.
Agus Nizami
Think about fact checking before you post something so erroneous. OPEC keeps crude oil prices up by limiting production as the worldwide demand increases which is reflected in the price of crude futures.
The U.S. Oil cartel you imagine is a pipe dream. I think the companies you mentioned, if combined, may not be as large as Royal Dutch Shell, the largest oil company in the world.
Do you really think Iraq and Afghanistan are the two largest oil exporting nations? If so you are horribly wrong. I’m not aware of Afghanistan having any meaningful oil reserves.
The crude oil that is pumped in Iraq isn’t under the control of American oil companies. It is under the control of the nation of Iraq.
Your claim that a one hundred million dollar investment became forty billion dollars in profit is non-sense. Oil companies often spend far more than an hundred million dollars in drilling wells before they find crude.
If you are sincere in wanting the cost of crude oil to come down, and to reduce American’s dependence on foreign oil, lobby for less restrictions on domestic drilling for crude oil.
I can’t understand all of these people who are defending oil companies. You people must be heavily invested in their stock. Oil consumption pollutes our air, destroys the environment when it is drilled and when it is processed. The tax breaks they get are ludicrous. . . and you people are defending this. You people are o.k. with a dirty world left over for your children.
How about putting this much effort into renewables. How about pulling out your investments and getting rid of oil companies once and for all. Invest in solar, wind and hydro. You’ll smell better!
You don’t understand because you lack historical perspective. Our environment is far cleaner than it was thirty five years ago and has become cleaner with each passing year. Oil companies have made tremendous strides in reducing the pollution that oil exploration and transportation once produced.
If solar, wind and hydro are ever able to replace crude oil, it will be far in the future. Nuclear energy such as employed by France can certainly go far in reducing our dependence on foreign oil.
I’ve posted a related news article you may find of interest.
35 Firms OK’d to Bid on Iraq Oil Deals
Sunday April 13, 1:30 pm ET
Iraq Qualifies 35 International Oil Companies to Bid for Future Oil and Gas Contracts
AMMAN(Yahoo)Thirty-five international oil companies have qualified to bid for future oil and gas contracts to develop one of the world’s largest oil fields, an Iraqi oil ministry statement said Sunday.
“The total number of the companies and consortia that participated in the prequalification process was 120 from various nationalities,” said the ministry’s petroleum contracts and licensing office.
The office listed 35 companies that it said were qualified. They include, among others, BP PLC, Chevron Corp., Exxon Mobil Corp., Royal Dutch Shell PLC, Lukoil Holdings, China National Petroleum Corp., Edison International SpA and Eni SpA.
The contracts office, however, said it would continue updating the process of qualifying companies “especially those that didn’t pass (the qualification process) by updating their information with the view to allowing as many as possible of the IOCs to participate in the next licensing round.”
Oil is the reason the US is in a recession and some people don’t understand that we are talking Profit here and not Revenue. If it was just revenue going up because the Oil Companies were selling more fuel then it would make sense, but this is profit! Billions in record profit why? Simple the less they produce the more GAS cost and the more profit they make! We all need to support efforts for alternative fuels to make this a competion so that some day Gas will be like soda…..50 to 75 cent. Also the Government makes so much money on taxing Gas it really doesn’t want it to go down. Americans are so tired of hearing BS excuses like well a Camel triped and fell on the oil pipline so Gas is expected to go up! I really hope Gas Companies become like Cigarette Companies!
I UNDERSTAND THE OIL COMPANIES ARE KEEPING THE LID
ON ACTUAL OIL RESERVE QUANTITIES IN ALASKA. IS THIS
ACCURATE AND ARE NATURAL GAS AND OIL PRICES BEING
KEPT INFLATED FOR SOME CRUEL REASON?
We need to boycott all oil products for one day a month. The effects of supply and demand are a big part of what effects oil prices. Lets say the 15th of every month we refuse to buy gas and the entire nation does this. The oil companies would be haveing a bitch fit. Please America fill up on the 14th of every month and then just drive by all those money hungry gas stations on the 15th!!!!
I learned last night that the U.S. gets a bigger slice of the oil pie from Canada than the middle east and at a bargin 50-78 dollars per barrel so why is it that the price per gallon is reflected by the price of oil from the mid east? Hummm I’m pretty sure a 5th grader could figure that out.
[...] commentary: The Big Oil Company Scam 75% of Greens OK with Nuclear Power Can Hillary Clinton Take On Big Oil? Tags: atomic history, [...]
Everyone complains about the high price of gas, etal. 2 comments:
1. The percentage of net profit of oil companies is lower than the average of almost all other major companies.
2. The REAL problem is that the environmentalists will not allow additional drilling, regardless of the newer technologies that virtually eliminate ecological damage, and, the same goes for neuclear energy, and “clean” coal-burning energy plants.
The result is that within two years we could be selling energy to othe nations — if the kooks would let us!!
Rex Talmage
What or who do the big oil companies give/support?
I heard recently that they give to teacher retirements.
And how much oil do we buy from Canada? And how much is it a barrel? I feel that we ( US ) are being held hostage by the greedy oil companies.
SK