Gas prices continue to soar & we have ourselves to blame
Thursday 27th of April 2006 09:32:28 PMNo, I haven’t decided to make this a political site. Or one that vents on every issue. There are plenty of those. However, the news that came out today (see below) is downright sickening. For all of us. We are all being taken to the cleaners by the oil companies and we only have ourselves to blame. That’s right. You and me.
When was the last time you complained to your elected officials? Are you happy that the oil companies are making obscene profits at your expense? Your elected officials are doing nothing about it either. And they won’t. The oil companies have so much money, elected officals would risk going broke at election time if they couldn’t depend on money from big oil. So do you really think they will try to do something about the curent sky-high gas prices? Do you think they will allocate loads of money for mass transit development? Do you think they will put a major effort into alternative fuels?
The answer, of course, is no. They won’t. It isn’t in the oil companies best interests. And if your elected officials want that money at election time, they’ll just pay these issues lip service, but do nothing.
Case in point. From Bloomberg.com:
Corzine, Citing Gas Prices, Wants New Jersey to Try Self-Serve
April 27 (Bloomberg) — New Jersey Governor Jon Corzine, citing a need to bring down gasoline prices, said he wants the Legislature to approve a pilot program allowing self-service stations in the state for the first time since 1949.
All or some of the stations along the 148-mile New Jersey Turnpike, the busiest U.S. highway, would be converted to self- service under a plan that will have to be approved by lawmakers, Corzine said.
“The main issue here is whether price savings from self- service actually get passed through to consumers,'’ Corzine said at a news conference held to detail his response to surging gasoline prices. “Most people say we can expect savings of 5 to 6 cents a gallon.'’
New Jersey and Oregon are the only states that ban self- service gas. State Senator Gerald Cardinale, a Republican who has been trying to end the self-service ban since the 1980s, said the safety concerns that prompted passage of the law more than 50 years ago are no longer a factor with modern equipment, and that allowing self-service would reduce gas prices.
“Self-serve is not the whole answer, but it can be a small step at helping families make ends meet,'’ Cardinale said.
Average pump prices in New Jersey for regular gasoline are now $2.87 a gallon — up “dramatically'’ from $2.25 two months ago — and more than $3 for premium, “said Corzine, a Democrat.
So 5 to 6 cents a gallon is gonna turn the situation around? Did self-serve help the situation in those states that have had it for years?
From Reuters news service:
Exxon posts another huge quarterly profit
NEW YORK (Reuters) - Exxon Mobil Corp., the world’s largest publicly traded oil company, posted its biggest first-quarter profit ever on Thursday, but higher taxes dragged the results below Wall Street forecasts.
The Texas behemoth reported a profit of $8.4 billion, on the heels of record earnings of $10.7 billion in the previous quarter.
The news immediately triggered a now familiar wave of outrage in Washington over Big Oil’s long-running profit bonanza. Stung by soaring gasoline prices, U.S. lawmakers and consumer advocates have stepped up calls for windfall taxes on oil profits and the repeal of tax breaks enjoyed by Big Oil.
“It is a travesty that oil companies should be making such staggering profits on the backs of Americans trying to fill their gas tanks,” said Senate Minority Leader Harry Reid.
Other politicians also joined in the chorus, while Senate Republicans on Thursday unveiled a proposal to soften the blow of rising gasoline prices by giving taxpayers a $100 check and suspending a retail fuel tax.
A $100 check. Yeah that’ll help. Meanwhile the oil companies don’t sacrifice one red cent.
Here’s an interesting tidbit from Steve Quinn, an AP Business Writer :
Placed in perspective, Exxon‘s revenue for the three-month period was still greater than the annual gross domestic product of some major oil producing nations, including the United Arab Emirates ($74.67 billion) and Kuwait ($55.31 billion), according to statistics maintained by the Central Intelligence Agency.
Or maybe you’ll find this of interest from Tom Doggett of Reuters news service :
WASHINGTON - Amid record oil prices and soaring gasoline costs, Exxon Mobil’s $400 million retirement package to its former CEO is a “shameful display of greed” that should be reviewed by Congress and investigated by federal regulators, Democratic Sen. Byron Dorgan said on Tuesday.
Dorgan said he wants Exxon Mobil officials to appear at a Senate Commerce Committee hearing to explain how the corporation “justifies” giving its former boss, Lee Raymond, such a huge retirement package.
He also said the Securities and Exchange Commission should investigate the deal that “appears to shortchange” shareholders.
“There can be no more compelling evidence that the price gouging and market manipulation which has produced record oil prices is out of control, and is working to serve the forces of individual greed and corporate gluttony at the painful expense of millions of American consumers,” Dorgan said.
Dorgan’s criticism of Raymond’s financial package came on the same day that U.S. crude oil prices hit a record high of more than $71 a barrel at the New York Mercantile Exchange.
Higher crude oil prices are helping to push of up gasoline costs. The Energy Department reported prices jumped 10 cents over the last week to a national average of $2.78 a gallon, up 55 cents from a year ago.
President George W. Bush said on Tuesday he was “concerned” about the impact high gasoline prices were having on families and businesses.
Exxon earned the wrath of many lawmakers when it reported more than $36 billion in profits last year as energy prices paid by consumers soared.
Dorgan said he will push to win passage of his legislation that would impose a windfall profits tax on big oil companies and rebate that money to consumers, unless the companies used their earnings to explore for and produce more energy.
“I think a sensible public policy would insist that the big oil companies either invest those windfall profits in things that will increase our own domestic energy supplies, or we should return some of that money to consumers,” Dorgan said.
“Using them to drop $400 million dollars in the pocket of a big oil executive is simply unacceptable,” he added.
Exxon Mobil has defended Raymond’s retirement package, saying it was pegged to the rise in the company’s profit and market capitalization that occurred during his tenure.
Or this, from Lisa Myers, NBC’s Senior Investigative Correspondent :
What about CEO pay?
Chevron’s CEO received $37 million in total compensation last year. Conoco Phillips’ CEO got $17 million. Those are big numbers, but experts say they are in line with Wall Street’s inflated standards.
Then there’s Exxon’s CEO and his stunning $400 million pay and retirement package — which an industry spokesman still defends.
“One has to compare any executive’s compensation with the performance of the companies that they manage,” says John Felmy, the chief economist at the American Petroleum Institute.
Oil industry officials also argue that some profits are passed on to average Americans, who invest in the companies. But critics say, in most cases, those dividends won’t begin to offset the high cost of gas — and the outrage.
Latest attempts to stem rising gas prices are not enough
The sky-high gas prices are hitting Americans hard in their pocketbooks — and it hurts.
Everyone is feeling the sting, but those at the lower rungs of the income ladder are suffering the most. That’s especially true for gardeners, handymen, cab drivers or other workers who must drive long distances, often in a truck, for work. In short, at more than $3 a gallon and rising, gasoline prices are like a giant regressive tax on the American economy.
So it’s not surprising that President Bush, as well as Republicans and Democrats in Congress, are all busying themselves by drawing plans they hope will save Americans from having to transfer more of their hard-earned cash to fabulously rich oil companies. While there are some differences, most of the plans share a few things in common. They’re mere Band-Aids that may or may not provide some short-term relief at the pump. They’ll do nothing to solve America’s long-term energy problems. And they’re mostly a political exercise aimed at deflecting public anger.
The angry public should keep in mind that Bush and the Republican-controlled Congress have had five years to craft a more sensible energy policy that might have averted — or at least lessened — a crisis that has been brewing for months, if not years.
Bush hopes to bring prices down by diverting some oil from going into the Strategic Petroleum Reserve. Problem is, the additional supply won’t be enough to significantly depress market prices. Bush also has rolled back some environmental safeguards on fuels and on refinery approvals. That too will have only a marginal effect on prices but will bring us more pollution.
Then there’s the the outcry for investigating alleged price-gouging by some oil companies and taxing windfall profits at others — ideas that some Democrats have embraced. And why not? Shining a brighter light on any industry is always a good idea. And there is something obscene about the record profits being raked in by the Exxons and Chevrons of the world at motorists’ expense — not to mention the $144,573 that Exxon’s Lee Raymond earned for each day served as CEO.
But perhaps those profits and executive paydays wouldn’t be so obscene if Congress hadn’t given oil companies billions in tax breaks in recent years and if the nation’s energy policy hadn’t been cooked up behind closed doors by Vice President Dick Cheney, a former oilman.
Bush did propose a few sound ideas such as more tax breaks for hybrid cars and greater incentives to promote alternative energy technologies. The phrase “too little too late'’ comes to mind.
And even after declaring in the State of the Union that Americans need to combat their addiction to oil, Bush has failed to do the obvious: order a meaningful raise in automobile fuel-efficiency standards. That’s the most effective way to reduce the growing demand for fuel over the long term, which is the main reason oil prices are so high in the first place.
The fact is politicians have little power to affect the short-term price of oil. But there’s plenty they can do — and should have done earlier — to deal with America’s addiction to oil.
You can’t complain if you don’t make yourself heard. And it won’t do any good if only a few of us do it. We ALL need to make sure our elected officials know we have had enough. And it is easier than you think. Go to Congress.org and enter your zip code or your state. You’ll get a list of your elected officials. You can even see how they voted on the latest issues. And you can email them. This isn’t a Republican vs. Democrats thing. It’s time we all stood up and got counted, regardless of our political affiliations.
Now back to tech stuff


