Energy Part 2

JOEBIALEK · 06-15-2006, 07:58 PM

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.

Bomby · 07-29-2006, 10:47 PM

Too bad our cars can't just learn Qigong.

StealthKnight · 07-31-2006, 10:29 PM

I have not read about that article in the newspaper. I guess the companies do have a right to make a profit but only to a certain point when it will hurt the people. Where would that point be I do not know. By the way, Could these companies get nailed with something like a monopoly or some law about not forcing people to pay ridicules Price's.

StealthKnight

**Dr. Horrible** · 07-31-2006, 10:54 PM

It's not really a monopoly. I don't know if there are any laws that prevent a group of companies from coming to an agreement to gouge the customer about equally, though.

***Ace Mercury*** · 07-31-2006, 11:05 PM

I don't think the American government is going to convert oil to a utility. The reason? Lobbiests who support the politicians, not to mention that the politicians own stock in the oil companies themselves. This is the reason entire cities are planned so that commutes must be taken by car.

[edit: And, yes, I believe price fixing is illegal, Mr. Trii.]

StealthKnight · 07-31-2006, 11:20 PM

We will have to see what happens to the companies and if something like that is brought up. Thanks ace

StealthKnight

Bomby · 08-01-2006, 12:16 AM

Four letters: OPEC.

**Dr. Horrible** · 08-01-2006, 01:35 AM

Ahh, well that's good then.

06-15-2006, 07:58 PM	#1
JOEBIALEK Junior Member Join Date: Feb 2004 Location: CLEVELAND Posts: 37 Thanks: 0 Thanked 0 Times in 0 Posts Points: 6,294.46 Bank: 500.00 Total Points: 6,794.46 Donate	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.

07-31-2006, 10:29 PM	#3
StealthKnight Junior Member Join Date: Jul 2006 Location: Maine Gender: Posts: 166 Thanks: 15 Thanked 4 Times in 3 Posts Points: 1,507.70 Bank: 455.76 Total Points: 1,963.46 Donate	interesting I have not read about that article in the newspaper. I guess the companies do have a right to make a profit but only to a certain point when it will hurt the people. Where would that point be I do not know. By the way, Could these companies get nailed with something like a monopoly or some law about not forcing people to pay ridicules Price's. StealthKnight

07-31-2006, 11:05 PM	#5
*Ace Mercury* Marshmallow Knight ☆ Supermod Join Date: Jun 2000 Location: Southern Ontario Gender: Posts: 18,967 Thanks: 363 Thanked 1,521 Times in 790 Posts Blog Entries: 1 Points: 100,648.43 Bank: 13,472,049.95 Total Points: 13,572,698.38 Donate	Rant I don't think the American government is going to convert oil to a utility. The reason? Lobbiests who support the politicians, not to mention that the politicians own stock in the oil companies themselves. This is the reason entire cities are planned so that commutes must be taken by car. [edit: And, yes, I believe price fixing is illegal, Mr. Trii.]

07-29-2006, 10:47 PM	#2
Bomby I saved Latin! What did you ever do? Join Date: Jun 2000 Location: The People's Republic of Madison, WI Gender: Posts: 15,022 Thanks: 203 Thanked 527 Times in 349 Posts Blog Entries: 4 Points: 8,834.75 Bank: 2,225,874.99 Total Points: 2,234,709.74 Donate	Too bad our cars can't just learn Qigong.

07-31-2006, 10:54 PM	#4
Dr. Horrible PP&R Mod Current Events Mod Join Date: Jun 2000 Location: More important than where is when.... Gender: Posts: 6,435 Thanks: 107 Thanked 313 Times in 185 Posts Points: 515.30 Bank: 2,105,762.84 Total Points: 2,106,278.14 Donate	It's not really a monopoly. I don't know if there are any laws that prevent a group of companies from coming to an agreement to gouge the customer about equally, though.

07-31-2006, 11:20 PM	#6
StealthKnight Junior Member Join Date: Jul 2006 Location: Maine Gender: Posts: 166 Thanks: 15 Thanked 4 Times in 3 Posts Points: 1,507.70 Bank: 455.76 Total Points: 1,963.46 Donate	We will have to see what happens to the companies and if something like that is brought up. Thanks ace StealthKnight

08-01-2006, 12:16 AM	#7
Bomby I saved Latin! What did you ever do? Join Date: Jun 2000 Location: The People's Republic of Madison, WI Gender: Posts: 15,022 Thanks: 203 Thanked 527 Times in 349 Posts Blog Entries: 4 Points: 8,834.75 Bank: 2,225,874.99 Total Points: 2,234,709.74 Donate	Four letters: OPEC.

08-01-2006, 01:35 AM	#8
Dr. Horrible PP&R Mod Current Events Mod Join Date: Jun 2000 Location: More important than where is when.... Gender: Posts: 6,435 Thanks: 107 Thanked 313 Times in 185 Posts Points: 515.30 Bank: 2,105,762.84 Total Points: 2,106,278.14 Donate	Ahh, well that's good then.