Friday, March 4, 2011

Connect the Dots - Why Is No One Discussing This?

The price of gasoline is shooting up again, threatening the economic recovery and the quality of life of the average middle-class American, who loves to drive everywhere, most of the time alone. Conservation efforts aside (but not for long, trust me on this), what I want to know is why no one is protesting these prices as more oil-company gouging. Sure, there's the rolling crisis in the Middle East, with Libya's (Libya? Really?) oil production - 7% of the world's oil - now in jeopardy. But what is more telling is the bottom line of companies like Exxon/Mobile.

From CNN Money on July 29: "The world's largest public energy company reported net income of $7.56 billion, or $1.60 a share, in the second quarter, up 91% from $3.95 billion, or 81 cents a share, in the same period in 2009."

Wait! WHAT?? Net income (that's PROFIT) of 7.56 BILLION dollars? UP 91% !!!??? Okay, okay. Take a breath. Holy crap, there's more - it's for ONE quarter! Three months!! Now hold up here. I need to think on this a bit. If Exxon's profit margin is that great, why do they have to raise prices so quickly and so far based on this 'crisis'? And why is no one noticing that these dots DO connect? Exxon/Mobile, and by implication, the other oil giants, are making an obscene amount of money on the backs of the American driver and taxpayer. And let's not forget that Exxon was one of those big corporations who DID NOT PAY ANY TAX last year! None. That would be Zero. So they are not contributing to the economic recovery in any way, shape or form. No, they are actually hurting it every time they raise the price of gas to protect their profit margin. Except for their stockholders. They drive to the bank in their Hummers, laughing at the rest of us idiots. While the government and politicians say nothing? While the news media says nothing?

When will the rest of us say something?


1 comment:

Brian said...

Just another thought on price gouging and profit margins, diesel prices. Diesel is roughly 20 cents per gallon more expensive than unleaded. Seriously? Diesel require less refining than unleaded, which means cheaper to produce. The price hikes on diesel are putting small trucking companies out of business. The larger trucking companies have to raise the freight rates, costing consumers more at the point of sale for every product. The American consumer is once again paying the price for the oil companies profit margins.