Bigger Profits for the Oil Rich
It's time I said a few things that I feel about the rising price of fuel. (I know my public is waiting for this.) It's not the absolute price of fuel that bothers me (at least not intellectually), but the fact that the best I can understand, a few people and companies are getting scandalously wealthy from the latest few years of fuel price increases.
A year ago (Feb 2007) headlines read: "Oil giant Exxon Mobil Corp. on Thursday posted the largest annual profit by a U.S. company—$39.5 billion—even as earnings for the last quarter of 2006 declined 4 percent." And now (Feb 2008): The company [Exxon] reported Friday that it beat its own record for the highest profits ever recorded by any company, with net income rising 3 percent to $40.6 billion, thanks to surging oil prices. The company’s sales, more than $404 billion, exceeded the gross domestic product of 120 countries." It made me sick to my stomach to even type those words...
OK. Now, I'm a democrat by philosophy, and I still believe that some amount of capitalism is good for this country. People just won't work hard without an incentive. But that's not an excuse for essentially exerting a gigantic stronghold on the fuel market and milking it for all you can, regardless of how it hurts your fellow countrymen. I think of the oil profits as legalized robbery by the oil companies, but worse. No robber could steal as much from me as the oil companies can. It's like stealing on a time payment plan. No robber would force you to pay $400 to $800 a month for the rest of your life, and get away with it.
I've said for many years that the price of fuel must go up to force some action on reducing natural resources and pollution. I have felt that the automobile industry has been as guilty as the oil companies in perpetuating the energy crisis in this country (and the world). Not only have oil companies pumped the precious and dwindling oil resources out of the ground and arbitrarily raised the prices but automobile companies have shown little regard for the fuel efficiency of their products or the pollution created by their products.
We all share a bit in the blame. I could have chosen to buy a car with much less fuel consumption. Unfortunately, most of those cars have a price premium attached to them. A hybrid is way out of my league for instance. People just won't sacrifice a little comfort or status for the sake of the future good of the country. It's called the "tragedy of the commons". If you are offered a bit more of "what you want", you'll take it if you can, independent of what it does to the supply or quality of "what you want". With everyone buying large SUV's, why should you sacrifice your lifestyle, just to save the earth, or to force the auto companies to build a more efficient car, or to protest the high cost of fuel. You get the idea.
The purpose of a government is to take measures to protect ALL of the people even if it requires sacrificing the extravagant needs of the rich. (Unless of course, the leaders are all from the rich class. It's sure good that it only costs $60 million to run for President in this country, or no one would be able to do it.) So, with oil being a resource created more than several million years ago by decaying forests, plankton, and dinosaurs (before any of the corporate oil executives were born), it makes sense to me that it should be a resource belonging to the world community and not a few people living in Texas or Saudi Arabia. Give them a good fee for pumping it out of the ground and for refining it, but don't let them own it. The government has the right and the duty to provide for transportation of people and goods. By letting the price of fuel go so high so quickly without having good alternatives for either fuel efficiency, fuel sources, or transportation modes, they have failed us.... really good.
So, nothing I've said is new. You've probably thought something similar to this. So where do we go now. Well, there are a bunch of options, but none will be done without a cry from the electorate. Make your votes count for something... cry with them.
First, each of us can do something to help. Buy more efficient cars, reduce trips (esp. unnecessary ones that could be combined with others), don't idle your cars, turn off the engine when not going forward, take public transportation (if you are lucky enough to be near it), drive without a heavy foot, slow down, keep it at 60 mph, etc. etc. etc. Do I believe that enough people will do this? No.. not until they are struggling hard to pay for the fuel bill. By then all the poor people will be out of jobs because they can't afford to get to them. Watch out for the next revolution of the people. It's not a far cry to say it will be initiated by this crisis.
Government should tax the hell out of Oil companies and automobile companies. It's their job. Get the multi-billions of dollars in profits that go to gas company executives and share holders and put it into researching and implementing real alternatives to fossil fuels. Put premium taxes on gas-hog vehicles and give them to people buying fuel-efficient vehicles. Take charge of the crisis... damn it, now!!!!!
Whew, ok, I've settled down a bit, and will finally say my life style has been altered by this crisis. I am a landscape photographer that can't afford to drive anywhere to photograph. I live in a motorhome and will barely be able to afford to move it when I have to. I certainly can't afford to tour the country any more. But, it's not about me. It's about this country and this world. What is going to happen when the economy crashes because no one can afford to drive to work, or to the hospital, or to the store? I don't think people will be calm, collected and non-violent. I think the 60's sense of moral indignation will come about again in spades, but this time because of the greed of so few affecting so many. I'd maybe not worry about the terrorists from overseas as much as the people in the lower classes of the USA (yes, we have classes) who will be out of work because it costs them $50 to $100 per day to drive to work and they get paid $100 per day or less. You do the math. (At $5 per gallon, and 15 miles to the gallon, the average commute of 50 to 100 miles per day in Southern California will cost from $25 to $40 per day. Minimum wage in this country ranges from $5.60 to $8 an hour, 8 hours gives $64 at the most, or $45 at the least. Fuel costs (not counting cost of vehicle maintenance) takes up 80% or more of that.)
Health care is important in this country too. I'll say my piece on that later, but until we solve the short and long range problems of energy consumption (vehicles are not the only culprit), we are headed for political upheaval and maybe even violence of a proportion we've not seen for a 100 years or more. Not a threat, just an educated assessment of the facts.
If you think voting for a Republican this year will solve this problem, think again. I don't say there is ANYBODY running for President that will do what is really necessary, but I can't believe that a representative of the party that elected the current President could make anything but a negative impact on the problem.
and that's the truth! (according to me, at least)
Enjoy your day. Stay home and save some fuel. Play with the dog, or the kids or just stare at the sky or listen to that expensive iPhone you bought.
A year ago (Feb 2007) headlines read: "Oil giant Exxon Mobil Corp. on Thursday posted the largest annual profit by a U.S. company—$39.5 billion—even as earnings for the last quarter of 2006 declined 4 percent." And now (Feb 2008): The company [Exxon] reported Friday that it beat its own record for the highest profits ever recorded by any company, with net income rising 3 percent to $40.6 billion, thanks to surging oil prices. The company’s sales, more than $404 billion, exceeded the gross domestic product of 120 countries." It made me sick to my stomach to even type those words...
OK. Now, I'm a democrat by philosophy, and I still believe that some amount of capitalism is good for this country. People just won't work hard without an incentive. But that's not an excuse for essentially exerting a gigantic stronghold on the fuel market and milking it for all you can, regardless of how it hurts your fellow countrymen. I think of the oil profits as legalized robbery by the oil companies, but worse. No robber could steal as much from me as the oil companies can. It's like stealing on a time payment plan. No robber would force you to pay $400 to $800 a month for the rest of your life, and get away with it.
I've said for many years that the price of fuel must go up to force some action on reducing natural resources and pollution. I have felt that the automobile industry has been as guilty as the oil companies in perpetuating the energy crisis in this country (and the world). Not only have oil companies pumped the precious and dwindling oil resources out of the ground and arbitrarily raised the prices but automobile companies have shown little regard for the fuel efficiency of their products or the pollution created by their products.
We all share a bit in the blame. I could have chosen to buy a car with much less fuel consumption. Unfortunately, most of those cars have a price premium attached to them. A hybrid is way out of my league for instance. People just won't sacrifice a little comfort or status for the sake of the future good of the country. It's called the "tragedy of the commons". If you are offered a bit more of "what you want", you'll take it if you can, independent of what it does to the supply or quality of "what you want". With everyone buying large SUV's, why should you sacrifice your lifestyle, just to save the earth, or to force the auto companies to build a more efficient car, or to protest the high cost of fuel. You get the idea.
The purpose of a government is to take measures to protect ALL of the people even if it requires sacrificing the extravagant needs of the rich. (Unless of course, the leaders are all from the rich class. It's sure good that it only costs $60 million to run for President in this country, or no one would be able to do it.) So, with oil being a resource created more than several million years ago by decaying forests, plankton, and dinosaurs (before any of the corporate oil executives were born), it makes sense to me that it should be a resource belonging to the world community and not a few people living in Texas or Saudi Arabia. Give them a good fee for pumping it out of the ground and for refining it, but don't let them own it. The government has the right and the duty to provide for transportation of people and goods. By letting the price of fuel go so high so quickly without having good alternatives for either fuel efficiency, fuel sources, or transportation modes, they have failed us.... really good.
So, nothing I've said is new. You've probably thought something similar to this. So where do we go now. Well, there are a bunch of options, but none will be done without a cry from the electorate. Make your votes count for something... cry with them.
First, each of us can do something to help. Buy more efficient cars, reduce trips (esp. unnecessary ones that could be combined with others), don't idle your cars, turn off the engine when not going forward, take public transportation (if you are lucky enough to be near it), drive without a heavy foot, slow down, keep it at 60 mph, etc. etc. etc. Do I believe that enough people will do this? No.. not until they are struggling hard to pay for the fuel bill. By then all the poor people will be out of jobs because they can't afford to get to them. Watch out for the next revolution of the people. It's not a far cry to say it will be initiated by this crisis.
Government should tax the hell out of Oil companies and automobile companies. It's their job. Get the multi-billions of dollars in profits that go to gas company executives and share holders and put it into researching and implementing real alternatives to fossil fuels. Put premium taxes on gas-hog vehicles and give them to people buying fuel-efficient vehicles. Take charge of the crisis... damn it, now!!!!!
Whew, ok, I've settled down a bit, and will finally say my life style has been altered by this crisis. I am a landscape photographer that can't afford to drive anywhere to photograph. I live in a motorhome and will barely be able to afford to move it when I have to. I certainly can't afford to tour the country any more. But, it's not about me. It's about this country and this world. What is going to happen when the economy crashes because no one can afford to drive to work, or to the hospital, or to the store? I don't think people will be calm, collected and non-violent. I think the 60's sense of moral indignation will come about again in spades, but this time because of the greed of so few affecting so many. I'd maybe not worry about the terrorists from overseas as much as the people in the lower classes of the USA (yes, we have classes) who will be out of work because it costs them $50 to $100 per day to drive to work and they get paid $100 per day or less. You do the math. (At $5 per gallon, and 15 miles to the gallon, the average commute of 50 to 100 miles per day in Southern California will cost from $25 to $40 per day. Minimum wage in this country ranges from $5.60 to $8 an hour, 8 hours gives $64 at the most, or $45 at the least. Fuel costs (not counting cost of vehicle maintenance) takes up 80% or more of that.)
Health care is important in this country too. I'll say my piece on that later, but until we solve the short and long range problems of energy consumption (vehicles are not the only culprit), we are headed for political upheaval and maybe even violence of a proportion we've not seen for a 100 years or more. Not a threat, just an educated assessment of the facts.
If you think voting for a Republican this year will solve this problem, think again. I don't say there is ANYBODY running for President that will do what is really necessary, but I can't believe that a representative of the party that elected the current President could make anything but a negative impact on the problem.
and that's the truth! (according to me, at least)
Enjoy your day. Stay home and save some fuel. Play with the dog, or the kids or just stare at the sky or listen to that expensive iPhone you bought.
posted by RVGuys, Newt Perdue at 4:00 PM
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