Oil company breaks record for quarterly corporate profits
Oh, you really have to laugh at articles with titles like this.
http://www.startribune.com/535/story/213692.html (S&T archives disappear after a week or so)
Politicians have to "seem" tough on those greedy oil companies for their record profits, but I just can't tell how much they believe their claims of price gouging.
Back in the 1970's the government controlled the oil shortage by limiting the price gasoline could be sold for. This was possible back then since still a good fraction of our oil came from the U.S.
What if we tried this again? What if we said gasoline can't be sold for more then $2.00/gallon? Well, I'm not an economist or anything, but I imagine companies that ONLY had a domestic market would dutifully respond as they could, while companies which could sell internationally would sell there, and domestic companies would soon find themselves with insufficient supplies to meet demands, but they would get what they could, and we'd be back to the gas lines of the 1970's and empty service stations.
The U.S. consumes 25% of the world's oil, with less than 10% of the world's production and less than 2% of the world's reserves. What makes us think we're so special?
SURE, oil companies are making a killing. Maybe they've earned it, those who survived the "lean years" from 1985-2000.
Okay, I'm not really a free-marketer. I believe in government actions that moderate markets. Perhaps $35B profits ARE obscene. Who am I to say?
What should the government do? We have choices, not advocating any, I consider:
(1) Nationalize our remaining domestic supply - taking both public profits and costs along the way. (Maybe silly if we really only do have 2% of the world reserves)
(2) Accept high profits as-is, given they create REAL internal tax revenue in corportate profits and dividends of stockholders. (Possibly making dividend tax rate progressive?)
(3) Apply "record tax income" from oil companies towards expanded conservation programs.
Overall I just can't advocate anything that reduces energy costs KNOWING that costs will increase further and higher costs are the signals needed to conserve and diversify our economy away from fossil fuels.
It would be GREAT if some policitians had the GUTS to say the way it is on oil profits. (1) Better domestic profits than OPEC (2) Higher prices are good (3) Conservation is the real untapped agenda item we must face if we want a future we can believe in.
Ah, well, at least I don't have a car! :)
http://www.startribune.com/535/story/213692.html (S&T archives disappear after a week or so)
Politicians have to "seem" tough on those greedy oil companies for their record profits, but I just can't tell how much they believe their claims of price gouging.
Back in the 1970's the government controlled the oil shortage by limiting the price gasoline could be sold for. This was possible back then since still a good fraction of our oil came from the U.S.
What if we tried this again? What if we said gasoline can't be sold for more then $2.00/gallon? Well, I'm not an economist or anything, but I imagine companies that ONLY had a domestic market would dutifully respond as they could, while companies which could sell internationally would sell there, and domestic companies would soon find themselves with insufficient supplies to meet demands, but they would get what they could, and we'd be back to the gas lines of the 1970's and empty service stations.
The U.S. consumes 25% of the world's oil, with less than 10% of the world's production and less than 2% of the world's reserves. What makes us think we're so special?
SURE, oil companies are making a killing. Maybe they've earned it, those who survived the "lean years" from 1985-2000.
Okay, I'm not really a free-marketer. I believe in government actions that moderate markets. Perhaps $35B profits ARE obscene. Who am I to say?
What should the government do? We have choices, not advocating any, I consider:
(1) Nationalize our remaining domestic supply - taking both public profits and costs along the way. (Maybe silly if we really only do have 2% of the world reserves)
(2) Accept high profits as-is, given they create REAL internal tax revenue in corportate profits and dividends of stockholders. (Possibly making dividend tax rate progressive?)
(3) Apply "record tax income" from oil companies towards expanded conservation programs.
Overall I just can't advocate anything that reduces energy costs KNOWING that costs will increase further and higher costs are the signals needed to conserve and diversify our economy away from fossil fuels.
It would be GREAT if some policitians had the GUTS to say the way it is on oil profits. (1) Better domestic profits than OPEC (2) Higher prices are good (3) Conservation is the real untapped agenda item we must face if we want a future we can believe in.
Ah, well, at least I don't have a car! :)
posted by Ares Olympus at 2:10 PM
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