Excerp: Energy Part 2

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.

yes, but I have also noted marked changes in driving habits, higher consumer price => slower average speed (Interstate) vs lower price => higher speeds . . . amazing how the lead footed seem to respond to price rather than conservation considerations ?
But we are a nation of excessivism (coined?), mass production didn't really make access to more goods rather made for more consumption of more goods. The tend of keeping up with the Jones's became the competative driving force of being the first with the newest => best on the market. this is reflected in promotion of products as New & (therefore) Improved . . . the Family vehicle transforms => home with the two car garage into multiple vehicles parked in the yard because the garage is a storage bin for (little used) power tools (products) consumed.
Given this perspective I considered 'what would our world be like' as I looked at the regional utility bill; water, waste, gas (natural gas) & electric? What would happen if they suddenly did like the phone company . . . each family having to provide it's own water & electric? What everyone going back to septic tanks and having to deal with their own trash?

There is another source of profits not discussed. Iraq used to make profit from oil coming out of Iraq. If you stop that oil from flowing, then U.S. owned wells will have to fuel the pumps, and because there is less oil, they can charge more for that fuel. So they sell MORE for MORE money, and plus, what does get out of Iraq, they now collect dividends having signed contracts under a puppet government.

Making Saddam such a bad guy to justify war has been very profitable.

I have to agree, I don't see much slow down, maybe fewer trucks, but pretty much same, same.

ya, but then we would have to have a source of oil to profit?

good points