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 by this 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.

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 should convert 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.

[PETA]

Originally Posted by 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 by this 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.

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 should convert 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.

Indeed because socialism in the form of nationalizing energy producers has worked so well in the rest of the world.

Ask yourself - who makes the most profit per gallon of gasoline sold.... tax revenues exceed profit per gallon sold... who's making out like a bandit?

Regulation has been deregulated which permits the consumer to buy from whom ever they wish a a seller - even if seller must pay transit costs for the carriing of that energy from source to consumer to third party.

this article is wallowing in a sea of retardaed infancy and incompetant familiarity with how the real world works... decreasing profits to producers decreases the effort to produce... meaning - drop prices artificially and you get a drop in production which means you end up with less gas in greater demand with less reason to find more... bravor author idiot

[Nyteshade]

Not only that, but once again I point out that even though the profit in dollars may be setting new records, the overall net profit margin is just 10%. That's on the low end of average of most companies. They may be making more dollars, but their costs have risen along with it.

[thumpcbd]

Originally Posted by Nyteshade

Not only that, but once again I point out that even though the profit in dollars may be setting new records, the overall net profit margin is just 10%. That's on the low end of average of most companies. They may be making more dollars, but their costs have risen along with it.

Hush with you logic, and analysis, that taking 10% of sales for your profit == more money when the raw products, and their derivitives, which you sale on the open market both cost more $$$.

Casey
(No room for login in A&P, rhetoric ONLY pleease)

[zerojunkie]

Not only all that...this same pattern has taken place, what, five times now in the past 100 years? The increased money going into infrastructure will create another glut in supply and the prices will once again go down. Yeah, or maybe we could tax them for 'windfall profits' and never see that money go into the infrastructure and we could keep paying this price. Sounds like a John Kerry "for a better america" idea.

[e-brake]

Originally Posted by xian

Indeed because socialism in the form of nationalizing energy producers has worked so well in the rest of the world.

$0.14 a gallon in South American countries sure does sound like it was a bad idea for them oh the pain of having the oil industry run as a utility!

[Nyteshade]

Take into account what $.14 equals in their money and the cost of living in a South American country and you may be closer. Anyways, the oil industry pays more in taxes right off the top then they make in net profits. Then they have to pay income tax on top of that.

[PETA]

Originally Posted by Nyteshade

Take into account what $.14 equals in their money and the cost of living in a South American country and you may be closer. Anyways, the oil industry pays more in taxes right off the top then they make in net profits. Then they have to pay income tax on top of that.

indeed

the simple fact is that if oil companies can't make a profit from selling their product they're not going to sell it

or - perhard we could import a bumch of really cheap Brazilian gasoline

[Krash]

You'd like a Brazilian barrels?

[JOEBIALEK]

good points