But, the big question is “who” is to blame for the fact that gas prices are more than 3 times what they were in 2003.
The oil companies (we’ll stick to BP, Exxon-Mobil, Chevron, and ConocoPhillips for the sake of argument) would have you believe that the increased cost of crude oil is responsible for them being “forced” to drive up the price at the pump. To this point, it is true that (as of 2008/03/11) the price per barrel is, in fact, at an all time record of about $108. But, let just look a bit closer into how much they have been “forced” into this unfortunate situation of “having” to raise prices at the pump.
First off, there is the fact that, in the fourth quarter of 2007, the oil companies were reporting earnings of “nearly $10 million an hour.” Let’s work with that figure, shall we?
That statistic would mean that the gas companies are earning the better part of:
$240 million each day
or
$1.68 BILLION each week
or
$7.2 BILLION each month (30 days)
So, can someone PLEASE explain to me how ANY company can be losing money with these numbers? If the “pump price” of gas was to be cut in half, that would still leave the oil companies with well over 3 billion dollars each month. I would hope (read as “assume”) that these oil companies, which are some of the largest corporations in the world, could find SOME way to adjust their business plans and stay afloat (read as “your CEO can make 3 million instead of 7 million a year and still feed his family”).
Pissed off yet?
No? Fine, I will continue.
Try this one on for size…in 2007, ALL of the oil companies listed above posted RECORD profits!
R-E-C-O-R-D P-R-O-F-I-T-S!!!
In other words, while you are straining to keep your tank filled, the oil companies are making more money than ever!
It doesn’t take a Bloomberg News talking head to understand that, unless there are actions “forcing” the oil companies to lower prices, they won’t. It is capitalism in its purest sense: If someone will pay $3.50 for something, why only charge them $2? The only way to get gas prices back down is to DEMAND that your ELECTED representatives take strong actions against the oil companies.
Being realistic, the current MENSA member in the Oval Office isn’t going to do much about the issue. First off, he’s on his way out. Secondly, it’s no secret that he has MANY ties to the big energy companies…nobody wants to hurt their friends’ bottom line.
Insofar as the 3 remaining Presidential candidates, they have all been quite clear in how (if at all), they would curtail the rise in gas prices. (NOTE: I have NO bias on the candidates…I still do not know who I will vote for in November). Both Clinton and Obama claim to be proponents of legislation that would tax the oil companies and use those funds to invest in renewable energy sources. Senator McCain has skipped the last 2 votes on bills that would direct tax money to solar/wind energy projects. Remember though, the President has little power to make such changes when compared to the power that is held by those in Congress.
In closing, there are a few options to deal with the never-ending increase in gas prices:
1. Drive less
2. Contact your elected officials and express your discontent…regularly…like, weekly…
3. Find alternative transportation (bikes, skateboards, shoes)
4. Public transportation/carpools
5. Get a better job
6. Move
1 comment:
I understand your frustration with the price of gas, as we all are. However, you need to understand that the reason why this country is so great and the envy of most people around the world is that we can choose if we want to drive, ride a bike, walk, take public transportation, or just leave our "fat asses" on the couch. We are free to do these things because we are in a free market society where prices are based upon supply and demand. Demand hasn't decreased, so why should the big bad oil companies lower their prices? Companies are in business to make a profit and if they are a public company their sole commitment is to provide shareholders with increasing profits and shareholder return. You expessed as an option to have people write their congressman and demand action. What action to you want to take place? Government price caps? Laws on how much is too much profit? Laws on how much a CEO can make? You're right in one sense. If you want that, MOVE!! Move to China or Russia or some other communist country and you won't have to worry about what gas costs because you probably won't have a car, a job, or most important a choice! I'm sick and tired of people bitching about how much money people make or that people think this country owes them something. This country has provided everyone with the only opporunity they need, CHOICE! There is opportunity for everyone out there, most people are just too lazy to take advantage of it. Finally, you want the government to help you on the price of a gallon of gas? Check out how much of a gallon of gas is taxes put on by our compasionate government. In 2002, 40.4 cents of every gallon was taxes. You would think since prices have risen so much since then they would stop increasing your taxes? Ya right. In 2007, 46.4 cents of every gallon was for taxes. On a $3 gallon that is 13.5% of the cost and an increase of 14.8% from 2002. You may have to go somewhere else for your entitlements.
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