The Gentlemen Revolutionaries

Dedicated to the Preservation of the First Amendment

Location: Philadelphia, Pennsylvania, United States

Sunday, November 06, 2005

Foiled Oil

Recently there has been a lot of talk about the record profits that the oil companies have been raking in and how evil they are.

Do I wish that gas was cheaper? Of course (though I also have plenty of free gas to give away. BAZING! ok enough fart jokes.)

However we must consider the true facts of the situation.

1) The record profits that the oil companies are making are peanuts in comparison to profits that other companies are reporting. For example for every dollar in sales, ExxonMobil makes 9.8 cents. McDonald'’s and Coca-Cola make 13.8 cents and 21.2 cents, respectively. Google makes 24.2 cents, and Merck, Bank of America, Microsoft and Citigroup all make more than that.

2) One also has to remember that the record ExxonMobil sales are heavily influenced by the sale of MidAtlantic assets to LukOil.

Lastly there is one party that is profiting more than anyone due to high oil prices. That party: the government which has collected $1.34 trillion in revenue from local and federal gas taxes since 1977, more than double the domestic profits of major oil companies during that time, according to the Tax Foundation.

Do any of my readers care to recall why the revolution was fought? If I recall it was due to unfair taxation.

The oil companies have a responsibility to themselves to maintain a profit which enables them to maintain the business, this guarantees us the oil we need. The government, however, holds no responsibility that can be justified by them making DOUBLE the profits of the companies that are in this business.

On a side note, peak oil theory has been pretty much been debunked. Oil reserves are significantly higher than proven before. Deep-earth oil theory is gaining support from some very smart people.

Thanks to Rich Lowry for the stats in this article


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