Energy Part 2

[JOEBIALEK]

In response to the article appearing in most major newspapers across the country concerning the $8.4 billion profit reported by Exxon. Concern over profits bythis oil company has brought about accusations of gouging the American consumer. According to the article, "CEOs from Exxon and its industry peers have already appeared twice at Senate hearings and were asked to justify their profits shortly after reporting them to shareholders." This has to be an American first. I have never heard of a company being called to justify it's profits. One wonders if an extension of this idea could be made to other companies in other industries as well.[/align][/align]Per the article, "Lawmakers believe the profits are made on the backs of consumers who are paying a national average of $2.91 a gallon - 68 cents more than last year. Exxon says a strong commodities market combined with fortuitous planning and prudent management are producing record numbers." This should make Americans ask the fundamental question: what is the difference between what a public non-profit utility company provides and what a private for-profit oil company provides? Afterall, they both sell energy to all United States citizens.The difference is that natural gas and electricity are sold in the form of a public good whereas oil is sold in the form of a private good. Accordingly, on the grounds of promoting national security, the United States Congress shouldconvert all oil companies to utility companies. This would eliminate the windfall profits and force the oil industry to earn just enough income to cover operating expenses just as natural gas and electric utility companies are required to do. The resulting drop in gasoline prices would further stimulate the economy and lighten the energy stranglehold upon the United States by the Middle East. It would also eliminate the influence of the oil lobby. In this case, desperate times call for deliberate measures.[/align][/align]

[elgallo114]

Governmental control of all commodities has been tried before. It was called communism. It hasn't worked out that well for those countries.

Driving a car is not considered a basic human right. And I agree. Capitalism has worked so well because of less government control. People only complain because we've become so dependent on automobiles that we think of it as a basic right. It's not.

Questioning whether a company should have good profits or not is rediculous. Regulations to prevent corruption are fine. Keeping track of these companies to make sure they are complying with our regulations is prudent. Taking private business and making it an extension of government is called communism. It does not work.

[tangozulu]

Exon is a world wide multinational that makes its profits from all corners of the globe. Iti is also an American based company which means most of those profits from around the world mostly end up in US shareholder accounts. Thus good for the American economy. Another way to import dollars.

[JOEBIALEK]

good points

[Briman]

If everyone in the country understood that the US government made more money off every gallon of gasoline sold than does Exxon, I think there would be a lot of heads hung on pikes in Washington.

Its much easier to blame a big, 'evil', multinational corporation that does all of the work of getting the oil out of the ground, shipped, refined, and distributed than it is to blame our parasitic government.

People are just stupid.

[stealthycatapithicus]

Briman - how many hundreds of millions do oil companies spend on politicians budgets, campanigns, special intrest groups, payoffs and kickbacks ?

[CalHunter]

Part of this problem is the U.S. NIMBY (Not In My Backyard) thinking about drilling for oil in the U.S. We reduce the supply of oil and wonder why it costs more in a commodities market.

[DougMD]

$10 billion in profits is not much when you consider Exxon has 5.5 BILLION shares outstanding! Leftists intentionally try to mislead the public into thinking there are excessive returns being earned, when in fact it is single digit returns on equity and less than $2 per share. Is the left out asking for handouts to Exxon when it LOSES money?