Energy Part 2 - Asylum Forums

Asylum Forums : Powered by vBulletin version 2.2.8

Asylum Forums > Políticás der Monde > Energy Part 2

Pages (2): [1] 2 »

Last Thread Next Thread

Author

Thread

JOEBIALEK
Adorable Pussycat

Registered: Feb 2004
Location:
Posts: 41

Energy Part 2

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.

Report this post to a moderator | IP: Logged

06-16-2006 01:28 AM

Click here to Send JOEBIALEK a Private Message

[P]

SimpleSimon
?

Registered: Dec 2002
Location:
Posts: 15990

Well, Joe, I've got to wonder how old you are?

Ever hear of the oil crisis of 1973? How about round two, in 1980? Ever heard of the Crude Oil Windfall Profit Tax Act, which was levied upon all oil produced and sold after 2/20/1980? Such taxes do not lower prices, they merely give the government more money to waste.

Converting oil companies from for profit privately held corporations to public utility trusts is 1) theft, pure and simple; 2) a guarantee of graft and corruption on an unprecedented scale; and 3) not going to lower prices one thin dime (look at the Post Office, or the Bonneville Power Administration, or the Tennesse Valley Authority for examples of gov't run "utilities").

__________________