Energy Part 2

[JOEBIALEK]

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.

[Qfwfq]

All that in two paragraphs! Whew! It takes a bit of patience to get what your opinion is or what you're getting at...

Anyway I think a better gov't measure is specific taxation. You can't just up'n' slap restrictions on privately owned companies unless you call yourself a Bolshev or something, but you certainly can investigate into faulty management and that isn't a new thing.

Take the example over here, of taxation on automotive fuel but not on diesel, LPG or methane. In the early '70, as diesel cars became more common, an extra was slapped over the road tax for them, causing a yearly break-even mileage and leaving them convenient especially for use by some professionals such as agents and reps, while LPG and especially methane have become ever more incentivated. In the past decade or so, even methane-run town fleet vehicles have appeared.

It ain't necessary to encourage the use of SUVs for going shopping or to work, your economy could get along plenty fine enough without that. Buy a horse and cart, and take the train if you work in another town.

[JOEBIALEK]

good points