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.
The facts seem to state that the gouging at the pump is primarily caused by two things.
1. Increase in demand from competing emerging countries such as China and India.
2. Taxes at the pump. Here in NYS, diesel taxes are over 65 cents per gallon.
Compare with supposed big oil profits of about 10 cents per gallon. Remove all ‘big oil’ costs (24 cents), and you’re still well above $3 dollars a gallon.
Oil is typically a long-run commodity, nand only supply/demand for the short-term. Increasing vehichle fuel economy will definitely help in the short term, but may result in long-term production and refining cut backs, thus only leading to a steady increase for longer term. This is backed-up by comparing countries where usage is less. Prices are invariably higher.
Summarizing, increasing infrastructure (all forms of power) and removing obstacles imposed by well-meaning environmentalists will see far-reaching goals of increasing domestic production.
when are you f_ _ ken republikins going to stop trying to blaim clinton for all the bullshit bush has done to the Unites States, and our standing in the world. bush is nothing more than a CON-MAN. The one difference I see is that the people I watch are in prision, bush is running free. he should get his money and all the money his family has made off his chosen war taken away and given to all the military who have suffered under His war. he needs to go to prision, put on an open yard and told to suck it up…..
[...] The Big Oil Company Scam [...]
[...] The Big Oil Company Scam [...]
“Exxon Mobil 2Q 2008 profit sets US record”
For one, I do NOT like seeing things like this when our country is in a recession and on the verge of a depression and “Big Oil” isn’t at least partly to blame? Fuel costs directly affect every aspect of your life if you’re middle or lower class.
zevgoldman, you must be entrenched in oil investments to be so defensive of the oil companies and do NOT dictate to people about asking for government to step in and take those profits and put them into the economy. Yes, politicians can be corrupt and so can government, but I’m watching corruption right now in the headlines and you’re applauding it? Go invest some more in “Big Oil”. You know it’s not gonna last much longer if we can get “Big Oil George” out of the whitehouse.
[...] to the dire economic outlook is an “Emergency Economic Plan” that would take from rich oil companies experiencing record profits and give back to the American people in the form of stimulus checks, as well as invest $50 billion [...]
Regarding oil profits, price fixing, tariffs etc., During the 80’s while working for the world;s largest cereal manufacturer, the Federal Trade Commission filed suit that we were a monopoly..along came Reagan and he prevailed in “deregulating” most industries….it has taken 20 years to feel the impact; it is big business along with their PACs and lobbists, the trucking, airlines, The Recipracle Trade Agreements, Nafta…the S&L scandels….and Tort reforms, America needs public servants that oversee and police the greed the Insurance lobby the AMA lobby……make your representatives be servant
Be wise enough to know if you are being represented by your senator, congressman….if not get active and let them feel your pain…..imagine. If this continues we all will be broke, but the Industrialists will continue to make profit in this “Global Economy” what about OUR AMERICAN ECONOMY ?
[...] along with eight other Ogoni activists, for protesting against the devastation the Niger Delta by oil companies, particularly Royal Dutch Shell. On May 27, 2009, Shell will stand trial for colloboration and [...]