Thursday, August 25, 2005

Thieves at the Pump

Every day we hear about the increasing price of a barrel of oil. Most Americans figure that the price of oil dictates the price of gasoline, right? It only makes sense that if oil companies pay more per barrel of oil, then they're going to charge more per gallon of gas, right?

Then why is it that the biggest oil companies are reporting RECORD PROFITS?

We're not talking small potatoes here! Exxon Mobil showed a 32% increase ($7.6 billion), BP showed a 38% increase ($6.8 billion), and Conoco Phillips showed a whopping 56% increase (over $3 billion) as compared to last year. They heartily thank you for not making a big stink about it.

"'The huge profits are enormous because the public is drastically overpaying what it costs to produce,' said Joan Claybrook, president of the consumer advocacy group Public Citizen.
Even more eye-opening is the profit in Saudi Arabia. Saudis are making an average of $208 million more each day since the increase in crude oil prices first began in December 2003."
-ABC News Report-

I'm no economic genius, but doesn't it seem like the consumer price is grossly outdistancing cost, and hence the record profits for oil companies? It's all a game to see how high consumer price can go before there is a public outcry. When are we going to get up off our super-sized behinds and demand change? When are we going to do something about the situation instead of waiting for vacationing politicians?

I would like some suggestions of what you think we can do to tell the oil companies that we're not going to take it anymore! Perhaps gas boycotts... weekly 'no drive' days... or maybe even targeting certain companies. Your input is welcome! Let's get something organized!


At 8:05 PM, Blogger Maine Man said...

Personally, I've cut way back on how much I drive. I think twice before goign anywhere and ask myself, do I really want to pay $XX.XX to go there? I've also stopped driving my nicer car because it takes premium and gets 5 mpg less than the ugly car.

The price of oil will continue to go up until Americans stop buying more of it. It's common supply and demand. If the demand stays the same when the price increases (or for some unknown reason in America's case, the demand increases)then the price will continue to climb until it finds the equilibrium point.

I suggest we all drive less, buy from companies that sell biofuels (check online for a gas station near you- ethanol), and follow Nates example of driving motorcycles instead of cars. I'm looking for a moped.

At 9:03 AM, Blogger Tyler said...

How about getting our fellow citizens to allow oil companies to build a couple of new refineries in the United States?

Not a single new refinery has been built in the United States in thirty years.

At 11:24 AM, Blogger Nathan said...

Amen. The oil companies should be encouraged to invest their recent windfall into more oil refineries (and the rest of us should do the best we can to keep the environmentalist wackos off their backs).

At 11:26 AM, Blogger Tyler Farrer said...

Some great things have been done with Turkey offal. The price of oil has just jumped past $70.00 per barrel.

We need to do something on a grassroots level to send a firm message to OPEC.


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