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.

Nationalizing the oil companies, (let's not kid ourselves, that's what you're advocating) would resemble the Carter failure in the 70's. Controlling prices to drive them down would result in a run on the current supply. After that was dried up, the oil companies would be in no rush to refine more at breakneck pace, since it didn't matter how hard they worked... they'd get a fraction of what they could in a FREE MARKET.

Next, while stimulating the economy is great and all... it's not exactly dragging along now. It's chugging away and breaking 25 year records as is.

That's just disguising your real intent...

COMMUNISM!

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"The heart of the wise inclines to the right, but the heart of the fool to the left."
Ecclesiastes 10:2 (NIV)

It's "regulation" we should be talking about.

Let's face it, oil is a consumer resource along the same lines as telephones, electricity, and railroads.

Depending on the time of day, we "regulate" those resources - we put caps on profit margins, and we require public utilities to justify rate increases.

So, why doesn't the same concept apply to Big Oil?

Hmm.... (looking for the "thinking" smiley)....


Okay, and on that cheery note, I'm going to temporary leave y'all to go help my mom with her small business. Nicky's back and the baby's in bed and all is well for the time being. But beware, I'll be lurking around here sometime in the wee hours of the early morning....

OPEC is using its huge supply power to jack up prices. We are the number one consumer of oil in the world. Why aren't we using our huge buying power to fight back?

good points

th3hegem0n sucks!

Maybe Democrats should concentrate on pie in the sky alternative energy, oh, forgot, they are also communists.