What’s wrong with taxing big oil’s profit
Analysts are split over whether a windfall profits tax on Big Oil would reduce prices or spur new technologies. Should oil profits be taxed at a higher rate? Who should pay for new energy technologies? What can be done to help motorists deal with high gas prices? Tell us what you think.
Can a true Windfall “Profits” Tax pass constitutional and International Trade Agreements scrutiny? Can the profits of non-US headquartered energy companies be taxed arbitrarily? Will such a tax encourage Exxon-Mobil to relocate its HQ outside the US? Will the threat to all corporate businesses cause a shareholder backlash that makes the proposal politically unpalatable?
taxing companies profits and redistribution of weatlth is inherently unAmerican…if you want the money from these companies going to the governement to do what they see best, we’re in for a world of trouble.
Regardless, we should be investing in creating plants to convert coal to synthetic oil since we’re the Saudi Arabia of coal…we started building plants in the 60’s or 70’s (i believe) but abandoned the idea when OPEC slashed prices in half at the thought of losing our business. We actually completed 1/20 planned plants, this would save us from the whim of these countries, put money back into the pockets of americans, allow more money to be used for exploration of renewable energy. Why isn’t this being explored more??????
Why is a “windfall” tax even being considered? If you look at the more than $2 a gallon that is profit that the big oil companies are enjoying, why don’t you regulate their profit to $1 dollar a gallon! Instead of a net profit of $17 billion, they can enjoy a net profit of $8.5 billion. I think that they would survive!!!
Taxing big oil’s profits is wrong. if you do some research.. the windfall tax was enacted in the 1980’s once. What did this produce? the domestic production went down and imported oil went up. In addition, the hunt for oil also went down. Any tax increase could also possibly translate into “passing the buck” onto consumers. (i.e. if you were running a business and i added a tax to your business or removed an exemption you’re gonna lose money….how do you make up for that lost money? by raising prices.) Yes the big oil companies are making money, but back in the late 1990’s when gas was like 99 cents, some oil companies actually lost money and closed some refineries. Google oil and taxes and there are several economists who feel that this windfall tax wouldn’t be in our best interest.
Tax Holidays don’t work…it was tried once before and people would buy gas and hoard it at the lower price, causing a shortage, thus raising the demand and price later.
We have oil the U.S. but we also have environmentalists which make it much harder to do drilling in areas we’d like to drill i think. Someone below mentioned a National Refinery which would be an interesting idea (How much money do you want to spend to set this up? research development fighting environmentalists again). Even then one National refinery couldn’t supply the nation as we already import a greater portion of our oil.
Someone below mentions requiring 95% capacity at refineries which i’m sure refineries at this point are doing. Even if they weren’t at 95%. Sure I’d run it at 95% capacity, doesn’t mean i’ll keep running it out there to the consumers to make the price lower or i could just close a plant to lower overall production(thus decreasing jobs).
Tax breaks were and are still being given for hybrid cars. I think that’s where the nation is headed. we need to promote these cars and really phase out straight gasoline engines.
this world is f’k up if it were for the consumers they would not have a profit you know this world is coming to an end and part of the reason big companies have just gone haywire i will not even get a a stimulus check and i work every day get out bus get out we do not want you
Regulate the SOBs. Then when it comes time to take a little bit of that huge profit, they can’t decide to steal more from the consumer!
The proper way top analyze results from virtually any business is return on equity – not the profit margin related to sales. As a matter of fact, the oil industry has in the past told Wall street analysts to look at our ROE as a barometer of success. Interestingly, when these same gentlemen appear before congress they state they should be looked at based on sales. At any rate Exxon has a return on equity of 33%. This is much greater than virtually any other business. That should be reason enough to have a windfall profits tax.
Keep Government out of Prive Industry Profits! What would keep the government from saying that my business or your business is making to much money, therefore “we” the government must step in and take that money! In a Free country! I don’t think so! This socialist thinking has never worked and will never work. Freedomalert.org keeps an eye on this kind of socialist thinking and is fighting back against socialist Senators like Carl Levin. The only thing he has ever done for the people of Michigan is reach in there pockets.
The Oil industry is buying back it’s own stocks as a survival mechanism. No matter all the jargon reasons and stats, that the “experts” will throw at you, this is the basic reason any entity living or imagined, hordes. I also noticed that the article mentioned that in the near future state owned companies would be calling back private industry to help solve their problems of production! Hmm… What kind of production problems would one ask could they be having that there is a need to call back private industry? Well, lets see.. when oil fields have been depleted the oil way to scrape the proverbial barrel is by injecting steam. That seams like a good reason to call in private industry. So what does this all mean. Well it looks like the fight for scraps is closer at hand than some would like to admit. My advice, buy as much oil stock as possible before thaey stop selling, it’s going to sky rocket!
Gas is too cheap, plain and simple, cheaper than bottled water, cheaper than a gallon of milk. A windfall profit tax is not only wrong, it’s unjust and unfair, and punishes exactly what we should be encouraging, good business. What right does the government have to determine how much profit is too much profit. After all many of these companies are publicly traded and anyone can have a piece of their success. Do we really want to be punish and take from those who’ve invested their savings wisely and deny them their rightful returns.
1 word, REGULATION
This is akin to gouging during a disaster. The government should be stepping in to regulate the pricing, not giving “tax holidays” or taxing profits. Speaking of the proposed tax holiday on gas, that’s a load of bupkis. Wow, a whole 18 cents break! GET REAL! it only makes it look like the government is in on the price increase!
It would be very simple to reduce the cost of oil. Drill, build new refineries, improve gas milage, develop coal gas liquidification, and build nuclear plants. It is necessary to have a coordinated energy program. We are at the mercy of the environmentalists not the oil companies. Their profit is not even close to the profit margin of most companies it is just that they are so large that the amount seems immense. To replace oil is in the distant future, will not help, and unless we use oil we will not have an economy that can produce the necessary technology to replace oil. Are we stupid enough to repeat Carter’s windfall profits tax and sit in gas lines and destroy the economy–yes, the Democratic party and environmentalists probably are.
I don’t like giving people money for oil to blow up our sons and daughters.
It used to be illegal to sell domestic oil overseas while still importing oil into our country. It is called price fixing to regulate 10-15% of oil from Alaska and sell it to China/ Japan. Clinton let Exxon/Mobil merge along with a few other big oil companies to regulate the industry for maximum profits. As your study showed the fall off in exploration with these large conglomerates. Fixes: (1) Stop exportation of domestic oil from Alaska. (2) Break up the oil monopolies
of Exxon/Mobil, BP Amoco, etc. to stimulate true competition for oil exploration instead of market manipulation. (3) Don’t allow oil exploration companies to own refineries. (4) Create a National refinery which can be used to regulate price gouging by increasing production
of the national refinery to limit the damage to our economy. (5) Allow oil exploration on east and west coast oceans. Use sugar cane to use for ethanol instead of corn. (6) with global warming and rising oceans this is the perfect time to use desalinization plants on the coast powered by wave generators in the ocean 24/7 and bring water inland to the desert and grow ethanol based crops to be energy dependent.
Corporations do not pay taxes. They may collect the taxes for the government, but the source of the tax is either the consumer (a higher price at the pump), the shareholders(lower dividends, lower stock price), or the employees (layoffs, smaller raises, no bonuses). Little old widow ladies who own Exxon and count on the dividend will pay the tax by way of smaller dividends. Hard working contributors to 401K’s whose mutual funds invest in oil companies will pay the tax by way of reduced stock value. It is so easy for a politician to say “tax big oil”, but the reality is, it hurts individuals, not the oil companies.
Remember after Katrina, and the Oil companies were making record profits?. When the Oil company’s spokesman was ask about making record profits, while people were having difficulty paying oil bills. He responded that the people’s problems were the government’s concern not the oil companies. So I guess the Govt has to make it their concern.
Tax oil and employ Americans (who pay into Social Security and Medicare) to build wind farms and solar arrays throughout the country. Develop an electric grid that accomodates fluctuations in electric supply and demand (much like the internet accomodates fluctuations adaptively). Encourage plug-in hybrid buses, automobiles and yes – big trucks powered with electric big electric motors using power lines strung along the main interstates. US-generated electricity is the only solution to the jobs problem, importing oil and global warming. Solar and wind can supply all of Americans’ electric power needs if we use sophisticated technologiucally advanced power management and tranform the economy away from a pretroleum-based economy. The notion that we can fight foreign wars and win oil rights is an outdated mode of thinking. Bring the troops home, build local energy generation and local economies. Lower individual taxes by developing local tax bases with growing local economies. Importing oil does not offer hope to grow the American economy. The average American has no ability to adapt to or react to what happens in the commodity markets. Solar and wind energy are disconnected from commodity markets. Renewable energy turns an economic problem into an engineering challenge that will renew local economies and has the potential to rebuild the American manufacturing base and employ many people who are in the construction industry (who are now presently out of work and not contributing to the tax base).
Tax big oil and use the proceeds to move the American economy away from importation of energy to developing our own electric cars, electricity generation and management.
I’m against a windfall profits tax. But the industry wants to have it both ways: tax cuts (Corporate Welfare) and no Windfall profits tax.
They are inviting a tax by refusing to give up on their tax breaks.
The Auto Industry blocked even modest CAFE raises for years; only to lose their supportes in Congress resulting in a bil that many believe can’t be met.
Make as much money as you want… as long as you don’t get government tax breaks and subsidies. Take away all tax advantages, or require 95% capacity at refineries, and follow through on refinery expansion as the “big 5 promised” at congressionbal hearings. Tax support should be connected to the country’s advantage.
If it will take a tax on oil to help level the playing field for renewable energy, then I’m all for it. Yes, it will cost us all more, but it’s going to cost us all more anyway, we might as well pay more for the right reasons. People just don’t seem to get that we don’t need more cheap oil, we need to stop burning oil and coal at the rate we do and start cleaning up the planet we live on. It doesn’t really matter if global warming is real, or if humans are a factor, what matters we we have been making a mess of our home planet for almost 2000 years and it’s time to realize that we can’t go on doing this. Pulling carbon out of the ground and putting it back in the atmosphere isn’t doing any of us any good. But people are such whimps that they won’t do the right thing on their own, so we need some leadership to move us in the right direction. Problem is, I don’t see anyone that can handle the job that is in the running.
As long as you have a Republican President and or a majority Republican Congress, big oil will be allowed to stick it to the american consumer.
I agree with others about google we do not need it to live but oil we do! I think that oil should be regulated like our power companies it is a need not a $350.00 purse or a $1000.00 set of golf clubs we need this everyday to live GET REAL PEOPLE..
No one likes it when you change the rules in the middle of the game.
We, as consumers, had our chance to reduce consumption or invest in alternative energy, yet we chose to avail ourselves of abnormally cheap oil for decades and do other things with the savings.
Hands off the Big Oil Profits.
The problem is two fold: It is 100% of all the politicans who are ALL corupt and so deep in the pockets of Big OIL that you’d have to drill to reach them. It is also corporate GREED, an excellent example of who a total free market economy DOES NOT WORK.
Big oil and these politicians like Big oil Bush and Cheney have wrecked this country. This is the fall of the second Roman Empire. These oil companies have gouged, manipulated prices and offered every BullSh*t excuse on the books and the American people and this corrupt government buys into them.
There is NO reason a barrel of oil should be over $50 a barrel! It is all speculation, which the government needs to regulate and force this price back down. It is Big Oil holding the level of gas down, so they can use the excuse that our levels are low and jack prices up, It is the absolute destruction of our economy and the dollar by the worst administration in American history. And it is the utter GREED of Big Oil. What is wrong with make a MEERE 5-6 billion in freaking 3 months instead for 11 billinon and keeping prices at $1.50-1.75? It is GREED that has and is wrecking a once greatest nation on the planet.
Ok, this is all I’m going to say on this subject…
Congress wants to create a “reasonable profits board” to decide what oil company profits are “unreasonable” and therefore should be taken by the government. Would you like the government to tell you that your profits are unreasonable and therefore you are not entitled to them? No, I don’t think you would. Yes, oil is hurting right now, but it’s not the oil companies that set the price. You can buy an oil contract and set the price yourself if you wish, just go buy a contract for the lowest price you can and there you go, you just paid $80 for crude oil (yes, there are contracts out there for that, Southwest Air is buying their oil for $40/barrel, or at least they did, I don’t know when this year their contract expired). Bottomline, anyone ranting about how oil companies are evil, GO BUY THEIR STOCK they are publicly traded companies, they have massive dividends and even more massive returns on equity.
Furthermore, SUV’s and Trucks are NOT the problem. Everyone in America can drive hybrids, but we would still have the same problem because if you drive a hybrid you tell yourself “wow I can go on vacation now!” and you use the fuel anyway because you have the perception of paying less, when in fact, you’re paying more because you perceive going further per gallon and therefore it’s not as much pain as it was before, and you drive more.
Stop ranting about taxing oil companies more, free markets determine what products survive and don’t survive. Look at the 80’s, after record oil prices, the price collapsed again because the US stopped using as much because we didn’t want to pay the price. (Of course this is also a time in history when a windfall profits tax got us addicted to foreign oil more than before and price controls caused massive shortages and lines at the pump… GREAT government solutions at work – just look to that time period to tell you why government is the most ridiculous entity created when it comes to their involvement in the economy)
A tax on oil is not the answer. The oil companies should instead be required to invest a large percentage of the “excess profits” back into the domestic oil and gas business rather than the foreign market. This would encourage our “energy independence.” In addition, a certain amount should be required to go back into research and development. Contrary to popular belief, R&D at the big oil companies has slowed significantly over the last 20 years. A large percentage of research is being done by larger independents. New technology in production and development is what will increase US reserves and daily production as evidenced by the current boom in gas exploration and development as a result of new frac technology developed over the last 5 – 10 years. As a final point, the oil companies to not set the price of oil. They are at the mercy of OPEC and the futures traders just like the American public. No one seems to complain when the price drops to record lows and oil companies drop like flies and hundreds of thousands of people in the oil industry lose their jobs. The US would be better served by our government figuring out how to achieve a stable price in oil and gas instead of how to generate and spend a new tax. How about doing away with “futures trading” for a start? Signed — a geophysicist in the oil & gas industry.
I may be the only person in America that likes high fuel prices while not working in the oil industry. I hope it continues to climb. We’re finally starting to see Americans change their habits. Smaller cars are gradually becoming fashionable after the insanity of the SUV craze. I’d like them to stay high long enough where the only place I would see a hummer is at museum of “America’s Wasteful Past”.
My first thought on “windfall” taxes is that there has to be an opposite also. When oil company profits go below a certain number(determined by the government of course), then money will be returned to oil companies.
Secondly, in the same vein, when my IRA and/or 401K begins to suffer, the government needs to reimburse me for the losses caused be their interference, right?
Thirdly, what industry should be targeted next?
Wake up America. We’ve backed your collective selves into a corner, through our own near-sightedness and, like it or not, your only friend at the present time is US-based “Big Oil”. Oil is an international commodity. If you had the chance to sell your production elsewhere in the world for a higher profit, what would you do? If you pass this tax, then U.S. supplies will eventually drop and we will be in worse shape, with even more of your dollars going overseas to people who don’t like us … but who love to take your money. Meanwhile, start investing in nuclear, wind, solar, biofuels, geothermal, all of the above. But DO SOMETHING. Putting a tax on the only people who can help you in the short term is tandamount to invading a country who was your enemy’s enemy. (Saddam, despot though he was, was no friend of Al Queda). Oh wait. We did that. And how did that turn out? Please people. Stow the rhetoric, put your thinking caps on and let’s come up with a long-term solution and role up our sleeves and get going. Time’s-a-wasting.
it’s a no brainer…corporations run the enconomy…not government…not the people…it’s a run away train…and no one can stop them…this country needs radical changes to its tax structure…the people who make the most money should pay the most tax…who doesn’t understand that? the average American is in trouble…big trouble! it won’t be the first time that greed has destroyed a country, a people, a way of life…the worst is yet to come…if smart people really think we can’t change the tax structure without paying more for everything if we do.
I am puzzled that we (USA) can only think how to tackle the energy problem from a single point of view. There is no mention of the $2.7 Trillion we are sending to the countries which own a great majority of the Oil. We are not mad at the Saudi’s who pump over 12M barrels a day at $122 and it costs them $5 to produce. We must have an energy plan for the future that is complete not just stabbing in the dark on a single issue. If you do the math and you took all of the profits away from the Oil Companies you might lower the price of gas $1.00 per gallon, but I doubt it.
Well now, let’s be realistic – It all depends on how much the oil companies, via their lobbyists, unknown billions in ‘07, pass along to our “elected: officials. in all kinds of goodies.
After all, they can’t let the pharmaceuticals 3 and 1/2 billions
beat them out.
They’re the lords and masters, we’re ever more the peasants.
Sad but so true.
How are the claims by “Socialists” and Anti-Capitalists in United States wanting to Tax Oil Company profits even further and give us citizens “Tax Rebates” any different than the Generals in Myramar confiscating aid packages and plastering their names on the boxes?
We need to open up drilling in Alaska and the Continental shelf-prices will drop in weeks.
I find the Heritage Foundation’s David Kreutzer’s comment about shareholders’ ability to do a better job of investing in the context of development of non-oil energy sources to be quite ludicrous. I’m sure at this stage of the game they (shareholders) can if the goal is even more profits, as compared to funding alternatives that can extricate us from the death grip of petroleum.
As this article says all the oil companies will do is to pass the cost to the consumers.
The problem is government regulation. We need to eliminate or suspend several EPA rules and allow drilling in ANWAR and off the coast. This will take about 10 years to produce oil.
Then at the same time we need to begin investment in green technologies like hydrogen fuel cells. The problem is even if the fuel cell was perfected tomorrow it would take 50 years to make it cheap enough and pervasive enough to be in every American Home.
There are no short term solutions, and the politicians and citizens need to just pony up to that.
..when it comes to new technologies, the market picks them best..
In fact one can argue that the MORE the government interferes with a free market LESS work goes in to alternative energy and leads to MORE PRICE INCREASES as those profits, which belong to shareholders, as recouped.
Open up the coastal areas of the US for drilling and exploration, drill in Alaska +challenge Russian hegemony in the search for arctic oil.
For most large multinational companies, about 75% of the outstanding stock is owned by mutual funds, retirement plans, and other investment vehicles used by the average Joe. Those “record profits” of about 8% margin (which is actually quite low) belong to the shareholders, which are mostly people like you and me. It’s ludicrous to think that confiscating peoples’ retirement investments is a good idea.
Any tax on oil company profits, and I think there should be one, must be structured in such a way as to encourage the oil companies to deliver gasoline and other energy products at the lowest possible cost to consumers. For example, the tax rate could be indexed by the average price of gasoline where an average gas price of $4.00 per gallon might result in a tax rate equal to 50% of profits and an $3.00 average might yield a 40% tax rate. The idea being that the oil companies could make more money after taxes if they deliver energy at lower cost. Without a built in incentive to lower retail costs, they will simply seek to raise retail costs to restore the loss of profits to taxes.
Let’s just temporarily nationalize all oil companies until such time that a competitive, sustainable fuel can be developed, either by them or by a national effort.
They put us here — let them now suffer a just a little bit.
Energy futures contracts should be taxed 100%.
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I don’t see any reason not to tax oil companies. We don’t want them invest in exploration, we don’t want them invest in infrastructure and refineries – we want them out of business as soon as possible. And especially we don’t want them to use this money to stop innovation in new energy sources. Government must tax it and subsidies new nuclear station and hydrogen infrastructure. And if price of oil going down, government must tax it even more, to insure new energy sources still profitable.
4 years ago when crude was $20 to 25 per barrel, gas cost $1.60 or so per gallon. Now crude is $125 per barrel or about 5 to 6 times that. And, gas price at $3.70 is about 2.30 times before.
Granted that oil companies are making more profits than before. But, bear in mind the fact that if price of retail gas were to go up in the same proportion as crude, then gas at the pump would be $8 plus!
Perhaps this is too idealistic of an idea to work, but what if the government imposed the “windfall tax” on big oil, however instead of the government taking the money, big oil had to invest it into renewable energy, or something along those lines. That way it forces them to increase R&D, which could potentially turn a profit. The benefit I see is two fold: The company is still rewarded if it’s successful in its investments, so it gets to keep what it earned in the first place while still helping us out over all. And secondly we don’t dirty up the whole process with ridiculous amounts of beaurocracy, which is what Washington is so good at.
I have sat here and read many of the comments posted about what is happening with the oil situation and how everyone feels. I am right there with everyone and I feel we are all being taken for a ride and I can sum it all up in one word. Greed! Greedy oil companies, greedy government, greedy CEO’s. Whatever the case, that money is lining pockets and those who are reaping the benefits are feeling real good about it because they know nothing is going to change that. Until we actually do step up as Americans and take our country back from all who own us(oil companies, China)then we have allowed ourselves to be set up for failure. I’m sure you have all heard that history repeats itself. Many empires have risen and fallen due to similar situations, obviously with advancements over time, but the concept is still the same. I see that same fate for us if things continue in the current direction. Maybe not in our lifetime, but perhaps our kids. At what point do we say enough is enough? What will it take? If anybody can answer that, then maybe we would have a solution to the problem.
It’s very odd that the politicians are so intent on discussing the windfall taxes, which is a convoluted solution. Why? Because Congress voted to give oil companies extra tax breaks and tax credits not long ago. Why not repeal those tax breaks and be done with it? The idea of taxing windfall profits is political misdirection, aimed at distracting voters during this critical election year.
It’s critical that the government devote that tax money toward more renewable/alternative energy research. It’s not enough just to tax oil, the tax money must be used to get us away from imported fuel.
Mike,Charlotte NC wrote: “Big oil already pays at least 2X as much in taxes as they make in profits”
Ok Mike, I’m guessing you flunked math a few times. If a company pays twice as much in taxes as it makes, it’d be out of business in a hurry. A sad testament to the thinking of many an American.
What the electorate needs to consider is whether government will actually use, and use efficiently, revenues from additional taxes on oil companies. Whom would you rather have investing in new and alternative fuel sources, industry with their expertise, or government with their political agendas?
If you tax them any more they will just pass it on to the comsumer.Take away their gov.grants& moneys . They will pass it on. The indivivdual must make changes to conserve energy,public transportation,etc.,so there be less of a need for Big oil,they have no loyality to the American people. They haven’t built a new refinery here in the states over 30 years.If they drill in the Artic it will be sent over sea refined then shipped back.
It should be really simple, on how to tax the Oil companies.
- “If our profits are taxed, that means we’ll have less capital to invest in new production” If the income is used for new production/investments, that income will not have the additional windfall tax.
- spending on share buybacks went from under $10 billion a year in 2003 to nearly $60 billion a year in 2006. If this income is used for buyback, tax the hell out of it.
- The oil companies have been criticized for being shortsighted and not investing enough in renewable resources. If this income is used for research in renewable resources, give them the tax break on what is spent.
With all these smart people, people with PhD’s I really don’t see why they cant come up with a simple solution. Or is it that these analysis are being paid with oil money? In the early 1940’s big U.S. plane manufacturers had the jet propulsion technology and yet did not start producing these types of planes until Germany and the European countries started coming out with them. Do our oil companies need foreign countries to kick there behinds before they start to act? Or are they making allot of money now and don’t see why they need to help there country?
Only one person here mentioned ‘Peak Oil’. Look into it: the daily production of oil (and semi-oil, like natural gas liquids and the stuff from the oil sands of Alberta, Canada) will soon peak, at an all time high. It doesn’t matter if there is ‘a trillion barrels oil equivalent’ in shale oil rock in the thousands of square miles of Colorado, or something similar: they will never convert it as quickly as pumping oil in Saudi Arabia or Iraq. Even the easier oil sands of Canada are a struggle to get a few million barrels/day. And the huge oil fields are being drained: they are ‘peaking’, after which more and more oil rigs yield less and less oil. It’s happening in Mexico and Russia. It already happened in the USA in 1970. Even drilling ANWR will be a minor blip on the downside of the production curve.
And no, more drilling in the USA will not yield 50 years of oil: even with no further growth in usage, that would be (at 20 million barrels/day used just in the U.S.) 365 billion barrels of oil. Dream on.
The Middle East has been exaggerating reserves for decades: welcome to the Peak Oil crash, worldwide. Gasoline at $4 will be dirt cheap in 5 years. And the Big Oil companies are powerless to stop it.
Windfall profits taxes are the least of your worries.
People need to understand that the big profits the oil companies are making are not due to charging high gas prices, but to the high price of oil. Chevron made $5.1 billion in the first quarter, but what’s not reported is that only $4 million (that’s right, 0.07% of the total earnings) were from downstream refined products in the U.S. (gasoline, jet fuel, etc.). For reference, they earned $350 million on downstream U.S. sales in 1Q ‘07, so a 98% decrease. Gasoline is not where the money is when oil prices are high, just look at any downstream-only company and see what their stocks have been doing (hint- bad). The profits are simply not “at the expense of the American consumer” as is so often reported.
It’s time to nationalize the oil industry and our government to take control of it. Big Oil has been raping the public for too long with their artificially high prices.
If something isn’t done, they will eventually bankrupt our economy and cause economic chaos of epic proportions. All I hear from Big Oil in response is “Let them eat cake…” History always repeats itself.
It is unacceptable that we, the consumer, are forced to purchase a commodity – oil – in order to live our lives. The lack of competitive alternatives makes me feel like a victim, where someone is stealing from me, while big oil gets richer and shoves record profits in my face.
To make matters worse, this administration has done nothing to control. The nation’s energy policy, paired with spending in Iraq, is a story you could read about in a Neslon Demille fictional novel.
Well let’s see. What’s wrong with this tax is it establishes a government agency to determine what an equitable profit should be. Do you really believe that will stop with the oil companies? Surely noone is that naive. Of course, if it were me, when government capped my profits at $10 B, I would stop producing for the rest of the year. Shut down for required maintenanceonce that mark is reached and start back up next year. Based on supply and demand, where would prices go then?
So we go on to take any ‘excess’ profits made by companies in the future. History will show that our goverment is not likely to stop once they get a cash cow going. What logically follows? How about a windfall earnings tax on anyone making ‘too much’?? Then we just lower the ceiling until Big Government is in the black while supporting every freeloader that will vote for the incumbent.
This is “From each according to their ability and to each according to their need.” Look that up and you will find it has nothing to do with Democracy or a Republic and should therefore be absolutely unconstitutional.
Actually, we cannot refine enough gasoline for our use. We purchase gasoline on the open merket to make up the difference. Much of it from Mexico. We cannot control anything as long as we cannot even refine enough to meet our use needs. No new refineries are being built so don’t look for this to changfe any time soon. Public transportation would be a good alternative – but we are too vain to ride the train or bus (which don’t exist in most areas).
This windfall tax is nothing but another large step down the slippery slope to Socialism. It appears that we are ready to vote in HRC or Obama as well. Either is certain to give us another good hard push down that slope. Goodbye Democracy and capitalism.
I’m sure the companies would easily pass this along to the consumer. My question is where are the profite going? I own a few shares of exxon-mobil. I’ve seen a whopping 35 cents a share. Someone explain this to me…..
Bottom line: We don’t need Google or Microsoft to go to work each day we need oil to operate our cars, trucks and buses to get to work so we can feed our families and PAY OUR TAXES!!!!!
I don’t care about a windfall profits tax. The real solution is to cut off every subsidy the oil companies get.
They’re holding the US hostage with their threats of less research into alternatiove products. Anyone dumb enough to believe oil companies are spending a dime to find a way to way to put themselves out of business, shouldn’t be allowed to walk the streets freely…. of course they’re not! And why should they?
If we had congressmen and women who were concerned with anything other than lining their own pockets and moving up the political ladder, the oil companies would have lost those subsifies as soon as the first one made its first billion in profits. But instead, we the people are represented by 535 of the most self-serving, egotistical, useless US citizens.
The syetem is broken, and there is no one — no, not even you, Obama — who has the ability, will or inclination to fix it. “Change”?! It’ll never happen. The lure of power is too intoxicating for even the staunchest believers in “making it better.”
Goverment should not get involved. If they charge a new tax to big oil, big oil will pass it on to us.
How about this… Bike to work! There’s a novel concept!
1. Stop using gas.
2. Get some exercise (imagine that)
Anyone who has a solution that the government solves the problem for them misses the point. You have to take control.
YOU are the reason we use so much gas.
YOU are the reason why you have the 25 lbs. around your gut.
YOU are the reason your kids feel pressured play Pee Wee League.
GET IT?
All the talk about windfall taxes is just that, talk. No politician will actually bite the hand that feeds him. Instead of creating new taxes, close the loopholes in existing taxes and end corporate welfare programs. If what I have heard is true, all of the Alaskan oil and over 60% of the domestic oil production is exported.
I have been told of oil wells here in the U.S. that can only pump 3 days a week because all of the tanks are full.
The real shortage is the lack of refining capacity due the fact that the environmental lobby, in part, blocks the construction of new refineries, therefore our dependance on forgein oil is forced upon us.
Come on people! I understand when the poor people of Myanmar have the wool pulled over their eyes. But seriously, a windfall tax? When Big Oil sells more oil, they pay more taxes. Pure and simple. That is how capitalism works. You poor democrats and the ideals that you support…well its just crazy. But then I guess that is what democrats have been for all along, as many handouts as they can get their hot little hands on. Remember the law of unintended consequences because Big Oil will figure out how to prosper with any additional legislation than what is already imposed. Maybe $10 oil is what we need to develop another way to power our cars. Nobody was saying anything about a windfall tax 5 years ago when gas was a buck, so shame on those who want to change the rules now…simply because we (America) are in an unenviable economic position right now.
Why not tax oil speculation? Hedge funds, commodity speculators and others that are unecessairly adding to the cost of goods and services we are paying for by speculating of the future value? I could care less how much big oil or Google make as long as they are paying their respective tax rates, what i have a problem with is the added tax I have to pay as a result of the windfall speculation of others…
The idea of taxing oil companies disproportionately because we need cheaper fuel is much displaced from the founding principles of our nation, and rightly so. Oil companies are not a handful of mustache-twisting villains. Instead, they are publicly traded companies, probably owned by your friends and family in the form of stocks or 401k investments.
The argument that the government should have the right to oil company profits, in the interest of the public good, is the excrement of a stale, ancient and failed ideology. It’s amazing how commonly accepted it still is.
Oil companies controlling new energy sources and technologies? A BAD IDEA
That is like the same pusher that has been selling crack to high schoolers switching to heroin. It’s still the same guy selling smack. If the oil companies have control of the new technologies they will just continue their same abusive practices. The government and/or other private non-oil related companies should lead the way with solar, wind and hydrogen production. I believe the same goes for any cars utilizing those technologies since it is obvious that Big oil and the big three U.S. car companies are sleeping in the same bed. Use look at GMs treatment of their first successful electric car in California. You don’t have to be a rocket scientist to guess why they had them all destroyed. Their relationship with big oil?
In contemplating what the government might invest in in the way of new energy sources, it might be worth remembering that nuclear energy and ethanol are concrete examples of results of government energy research and development funding or incentivizing. I say that as one who favors the former, but I also recognize that it’s a non-starter politically.
The government needs to build refineries and start producing fuel as a non-profit service for the nation. It would be funny to see how quickly gas prices would fall if this was mentioned by a Congressman.
I say tax them heavy. The people of this country should be prepared to do what they have to in order to bring about a major shift in our energy policies. If the price of oil continues to rise it will only put pressure on people to find alternative ways to get around and push car companies to make automobiles that run on alternative energy.
It is one thing when you can choose to utilize something. It is another when your survival depends on using a product.
Government should not tax profits that have already been taxed….hmmm come to think of it they do it all the time….I am for incentives for any company(s) that bring about new resources or systems that would reduce our huge dependence on oil…ours or any other nations for that matter.
Sugarcane
Corn
Whatever alternative we choose it will create jobs
The time value of money is seven fold daily
keep that in our own country instead of giving it to the ragheads and it will add up fast
If ethanol is any indication of how extra taxes on oil profits will be used, then there’s a pretty good argument to leave well enough alone. Ethanol only competes with gasoline because of government corn subsidy. So we pay the farmers and ethanol producers with our taxes, and then also pay higher grain and other food prices on the other end. In our capitalistic economy, alternative energy will only happen when it makes money for investors. Expensive oil (gasoline) is the only way to make this happen. The US public wants investment in alternative energy, they just don’t want to put their tax money or investments in it.
Why not make a Big Oil profit tax very perminant. So they cut back on drilling. So what? Our atmosphere is practically unbreatheable now, due to gasoline engine emissions. I think we need alternative, renewable energy now, not tomorrow. Big Oil makes the electric car look better every day.
First of all, we don’t need Google and Microsoft to get to work every day. Exxon made 1300 dollars a second in 2007. I am not against anybody making money and I certainly do not believe the government should take somebody’s legitimate profits, but it seems to me that the oil companies are exploiting the situation. When the price of a product that our country needs to survive is causing such an economic strain on all Americans, it is time for American oil companies to show some patriotism and cut their own prices for the betterment of all. I know this will never happen. To me what the oil companies are doing amounts to terrorism: people are in terror that oil prices will go so high to cause them even more severe economic distress.
Straight windfall profit taxing is too weak to make much difference and isn’t a healthy fix. However we could do something similar over the next several years that would extremely heavily tax any profits that were not plowed back into increasing capacity.
This would give the companies a chance to avoid windfall profits tax and at the same time accelerate increased capacity which results in permanent, substantially reduced prices (not just slightly reduced prices due to reduced profits).
The object isn’t to try to get revenge it’s to employ a stiff but temporary tax lever that will force reinvestment resulting in lower prices permanently.
Until America marches to Washington and holds those criminals (Republican and Democrat alike) accountable nothing will change. These people have no conscience.
The “Arabs” ( Shell, Exon, BP. etc) are taking every cent they can get from us as long as we allow them.
If the Bush administration had not invaded Iraq and instead tried to finish Afghanistan we would not be in this mess.
The 12+ billion spent a month could take care of all of our economic woes. But Dick, and co wouldn’t make a penny.
Exactly what is the penalty for treason these days?
Jesse from San Antonio, Thankfully you will never be president because you know nothing. First, the worst thing that could possibly happen would be for the government to own oil companies. If you think prices are high now just wait for the waste and mismanagement of the govt to set in. And if you are old enough to remember Jimmy Carter’s attempt at controlling gas prices back in the 70s you’ll also remember waiting sometimes up to 30 minutes to buy gas. If not ask someone who is old enough to remember. Secondly, if you want an immediate lowering of oil prices have the govt stop filling the national oil reserve. According to Sen Clinton herself the reserve is at 97%. I think we can hold off on filling the other 3% for a while, don’t you? Another way to lower costs would be to allow US oil companies to drill for the oil we have available in our own country ie, Alaska, the coast of California and in the Gulf of Mexico. And here’s a novel idea, how about building some new nuclear power plants!? The french derive 80% of their electricity from nuclear; and if they can do it we certainly can. And as an informed global citizen I’m sure you know that the US is not the only user of oil. China and India are gaining fast. So if you have a certain amount of oil on the market and more countries trying to purchase it guess what happens? The price goes up. We as a country must reduce our dependence on foreign oil if we want to see our prices head back toward normal.
It is a huge waste of time to consider taxing the huge profits big oil makes. The oil companies only have “their” interests at heart, and are not even remotely interested in alternative fuels. Any windfall profits tax would be passed on to the consumer, in one fashion or another. That is the way it has always happened, and it will not change. An idea like that coming from Washington will do nothing but put more money in the governments hands; something they are not able to manage today or tomorrow. It would come closest to financing Congress’ next self driven pay raise for their services “unrendered”. You would think that all these well educated leaders that we have could come up with something to begin a resolution, not merely to address it. They “address” these issues consistently, year after year after year after year. I recently read that this issue of supply versus demand, and the infrastructure shortcomings for alternative fuels etc, can’t be solved overnight! Really, well in the 70’s I was in my early 20’s when it started. I’ll be 55 on my next birthday. If I live another 50 years, it will STILL be addressed on a continuing basis. As long as profit is driving the boat, the rest of us can and will drown. What’s 30 or 40 years of idle thought when there is so much profit to be reaped. And Exxon’s earnings STILL disappointed Wall Street. Don’t bother to pull your heads out; it wouldn’t do any good anyway.
Normally, I am very much against government involvement, and for free market. But the problem with this is two-fold. A)It’s pretty clear that this mentality has accomplished absolutely nothing so far. And B)there is an obvious precedent for government regulation of necessary utilities anyway. And that is what oil is. It’s easy to say ‘live closer to where you work/work closer to where you live, walk/ride a bike/ride the bus, whatever excuse you want to come up with. But in reality, these things are not practical solutions. Gas prices continue to climb at a rate that is completely illogical, and oil companies continue to make not just record profits, but, their profit margin keeps increasing. Something has to be done. I’m not sure what, but something. We are in a recession, and gas prices are almost solely responsible for it.
Big oil already pays at least 2X as much in taxes as they make in profits,where does that money go? We should demand the greedy government pay us a wasted money tax.
Anyone with common sense can see that something isn’t right. Record profits! These oil companies are the elitists of the world. They run our economy! I personally believe that oil companies know that the next president will not be a republican! So, my theory is they need to make as much money as they can before the new democratic president will implement a tax or suspend the tax breaks they receive. This is why we are seeing the price hikes! Why doesn’t our government investigate? Oh, yeah Bush is in bed with the oil companies! Remember, we have a president with very close ties to the oil industry! If I was president, The oil industry would become government controlled! As for alternative fuels, it’s not going to happen anytime soon! Yeah, sure we have some being used right now and new hydrogen fueled cars making its way into the market. However, do you really think the oil industry is going let themselves be phased out of the transportation industry? Well, thats my opinion and sure beats some of these oil backers!
Taxing the oil company’s profits over a certain threshold and investing the revenue in alternative energy development makes all the sense in the world. The oil company’s increased profits have not been derived from creativity or innovation, but from speculation on the futures market (often by investors that have no interest in ever owning or using the oil). On the contrary, Google’s profits come from innovation and creative business decisions; taxing these profits may, arguably, act as a disincentive to continue such innovation. But the oil company’s have, in essence, been lucky. The record profits are not the result of business acumen or product development. Taxing the excessive profits, therefore, would not chill behavior that we want to encourage. It can be a reasonable source of revenue to support the development of sustainable energy sources.
It’s like any other corporate slophog in the US over the past 3 decades. The CEOs make it all. I blame the workers of these corporations for putting up with it. While they sit back shuddering in a corner cubicle worrying about loss of their jobs, they’re being robbed and set up for what’s already happened across America: job shift to other countries so the CEOs can garner even more profits. Makes me sick!
I don’t really care about gas profits at the pump because the same apathetic Americans just don’t care about the environment as they drive their “status symbol” SUVs and Hummers that they can’t afford. I do believe that something should be done to drastically cut home heating fuel. It affects mostly the poor who have no more corners to cut.
It’s the “windfall profits” of “Big Money” that should be taxed…..the speculators who are running up the price of oil for their immoral greed. But the politicians don’t talk about that because “big money” funds their campaigns. Oil speculators don’t find, produce, refine, or market one drop of oil….they just rip off the consumers.
I am absolutely disgusted by these calls for a windfall profit tax on oil companies. What we are really saying is that we want companies to make money, but not too much money. As one of the Shell executives said, if their revenue was $10B and they made profits of $1B, no one would complain. But because the revenue is $100B and profits are $10B, people want to tax their profits.
If you want to find a way to tax the oil the companies, remove the special tax credits they currently have for oil exploration and drilling. With profits at 10%, they can afford to live without government credits targeted at their industry.
Can anyone define who the ‘market’ is? Big Oil and the auto companies who colluded to kill the public transportation and rail systems?
During WWII the oil companies paid a windfall profits tax to prevent exactly what is occurring now. If our leaders had the courage to protect the American people from corporate greed in WWII why not now?
Why not expose how much big oil has donated to Obama’s candidacy? I have read the figures and they are triple of what was given to the other two running for President. Also, expose the fact that all the oil from Alaska has always gone to Japan because it is too high in sulfur to be made into gasoline. The big energy wasters are semi trucks that transport goods from China in the U.S.
Stop the lies to the public and tell the truth for a change.
I’m sorry but if the Oil Companies made $120 billion dollars in 2007, why are the prices at the pump so high? I think we should tax the companies or get the DoJ to look into some “Price Fixing” tactics because $120 billion profit in the industry is too much to swallow. Not to mention President Bush is tied to the Oil Companies so I’m sure he’ll veto the tax anyway if it’s passed while he’s in office. Instead of a Tax, I believe we should cap the profit for each company at $10 billion and the rest we give back to the tax payers. $50 billion can stay with the companies and the other $70 billion is given back to the tax payers just like the stimulus package. Can anyone do the math to figure out how much we would get from this?
In order to lower the cost to consumers of gasoline, we need to have add more competition for Shell, Exxon, etc.. The industry needs more capacity anyway.
The object is to lower prices not just lower profits. For example if you lower prices by 10% you save consumers $150 billion. If you just lower profits by 10% you just save consumers $15 billion.
Since the oil companies aren’t investing in more capacity, we should.
A very large government regulated not-for-profit corporation with should be funded and put into operation. This would accelerate exploration and bring much more capacity online – greatly increasing price competition. Long term, when prices settle down the corporation could be brought public and the taxpayers reimbursed as the government’s shares are sold off.
Just the threat of this happening alone could significantly depress prices.
The only way to deal with the energy crisis is to impose a new carbon tax that gets returned per capita to the people.
The tax should start at the equivalent of one cent per gallon, and then increase at the rate of one cent per week for ever. The slow lead in of this tax will keep it from being economically disruptive. The long view will cause everyone to start buying and building carbon-efficiency. The per capita rebate will, on balance, pay people who are the most efficient. The price increase will cut back on the demand for oil, taking money away from the oil companies and oil countries by means of straight market forces. Thus, oil companies will have to become more efficient to maintain decent profits. And on the whole it will cost the American population nothing while helping to save the planet from global warming. This is the real “market solution.”
We should absolutely stop encouraging the oil companies from exploring for new oil regardless of what the CEO of Shell says. It’s like giving money to a crack addict. Any profit not spent on R&D for non-fossil fuel research should be taxed at 100%. In other words, if Exxon won’t spend their blood money to end our addiction to middle eastern oil — then the American people should end the addiction — WITH EXXON’S MONEY!
hey when capitalism doesn’t work for the capitalist it is time for us to act like communist?
how about we go alternative and change the the demand
I’m tired of all of this. Just today alone I saw my price for gas go up 7 more cents. In one week – 38 cents a gallon! Hmm – What’s wrong with this picture! Whether we like it or not, it’s happening – and our own people and government are allowing it to happen. We’re are being financially raped! What’s the real reason – I see people all around me driving less – my family across the country are telling me the same thing yet when the “Government” puts out their notice of supplies / surplusses to the people we’re supposedly using more! Or, it sounds like we’re using more because the amount of supplies go down. Is it that we’re using more – or is it more likely that they refineries are intentially making less to boast the theory that it’s “Supply and Demand”?? I just have to question all of it as I see too often hit me the most! What ever happen to Americans getting it from within? We should be researching and getting off foreign oil and start producing our own. As well – we should be getting off of oil entirely. Once we do that then where will those profits come from. I don’t see why we should expect anything different – they won’t do that, and until we actually take action – we’ll continue to see the price sky-rocket! Stop complaining America – take your “God-Given-Right to Action”!!!!! Lets take action by getting off foreign oil, and moving to something a lot better for Americans!
Oh-yeah, follow the money trail folks – where’s that money actually going – It’ sure isn’t America!
Give them an option: pay a hefty tax or commit x number of dollars for reneable energy research. Carrot and stick approach. Do it now. Make it hurt if they don’t commit to it
They should not pay taxes greater than any other company, however the free-lunch tax breaks should have been gone long ago. Although threatening them with higher taxes if they do not expand their exploration and refining capacity isn’t such a bad idea….
Only when things get really bad do any changes get made to the “system”. Look at what hapened during the great depression..anti trust laws and anti-monopoly laws were written and enforced for the public good. Oil is an essential commodity. Our nation runs on it. Higher prices can slow the gears of progress. Because of this, oil companies should be treated differently than the “average” business. These are tough changing times and things need to change. Laws need to be written to protect our economy and not subsidize big oil.
Politicians are stupid to believe by taxing the oil companies for their profit, will some how reduce the price of crude oil a the pump is total INSANE! Seems like the politicians these politicians never graduated from High School. Honestly, as the price of crude OIL is climbing, stupid politicians (Congress) place blame on the oil companies, OPEC and speculators trading crude oil futures, but unfortunately, Congress never places the blame Upon themselves for NOT enacting important legislation that could have prevented this disaster. There is enormous amount of crude oil available for oil companies drill in Alaska, off the coast of California, off the coast of Florida, and plenty in the Gulf of Mexico, however during the past number of years, these stupid politicians pressed by Environmentalist against drilling in those areas which potential could risk environmental damage. Besides not allowing more refineries from being built.
Truthfully, the solutions presented by the Presidential Democratic Candidates and Congress will not doubt cause the price of crude oil to increase faster.
Solar Energy is truly the best alternative source and does not harm the environment in any way. Many States that have an abundances amount of sun light through the year should increase number of solar energy facilities. And Congress should provide funding help people install solar energy equipment, savings of crude oil over the long term would be enormous, and less strain on electrical plants .
How about posting those ‘windfall’ profits as a percentage of revenue instead of dollars. As an investment, there are many companies that make a greater profit (as a percentage of revenue)than do oil companies. Consider this: if my company makes zero profit in year one, and $0.01 in year two, my profits will have increased by an infinite amount. How’s that for ‘figures don’t lie, but liars figure’.
Big oil and several other industries are taking advantage of the very poor running of our country by the inept Bush administration, and his corrupt cronies which includes many U.S.Senators and Congressmen. I am sure they like the Clintons and Reagans will immediately after their terms are over go to their respective corrupt corporations and receive their payoffs (bribes) in the form of book royalties, appearances, speech fees, etc.etc.etc.
You say analysts are split over whether we should place a windfall profit tax on oil companies and then you quote a bunch of oil industry hacks. Are you brain dead? The oil companies should at the least be broken up with anti-trust legislation. We should consider nationalizing the entire industry to ensure the national security.
I have the solution to our countries high oil prices and future sustainable energy plan. Nationalize the oil and energy companies to control high prices brought on by comodities trading and price fixing. Develop much higher fuel mileage vehicles and alternative energy sources. Ration out fossil fuels thus preventing individuals who are rich from wasting them.
Just remember the private free market is not what its cracked up to be. It has never really been a free market due to variety of subsidies,tax credits,interest rate manipulation and currency manipulation. The private sector now controls the government so if you think government is incompetent, just remmember who their real boss is and you will see who the incompetent ones really are,(big business)
Energy and health care should be just like fire and police protection,government ran to fight against greed and corruption.
Four economic errors are made repeatedly throughout this thread: 1. Oil companiers are receiving a 40% after tax yield on their investment, not 9 or 10% (that’s the profit margin on a dollar of sales, which is not a measure of ROI); 2. a windfall profit tax does not take away money from the oil companies for employees salaries or exploration expenses because those are deductible expenses which a tax on profit does not reach; 3. the oil companies are using much more of their profits to buy back stock than expand refineries because expanding refineries would increase supply and drive down gas prices; 4. there are 10 billion barrels of oil in ANWR, max, not 135 billion barrels, which would drive down the price of gasoline about 5 cents a gallon in 5 years, and would be gone in about 10 years depending upon how much stayed in the US market; and 5. the oil companies base their prices on how much the market will bear far more than on their costs, and a windfall profit tax would not affect whatever price the oil companies were charging, the market would dictate that. I know that this analysis appears to be dishonest and stupid, but only by those whose minds have been slammed shut by ideology.
No offense people, but consumers are not very bright. The housing market is down, so the rich cover their bankrolls by turning to oil companies and making huge profits in stock at the expense of the poor. It truly is that simple. There’s no way oil prices go up this high in two years. The oil companies are price gouging everyone…and why? Because the government does nothing. The fact is, some of the politicians are bankrolling as well. Then the “experts” go on the media and tell us oil prices will go to four dollars and we believe it. This is a set up people. Some of these “experts” actually represent their investors. These are really people making millions in oil themselves. This is the REAL truth…and why doesn’t the media tell the true story??? They are all we have but where are they? The fact is, the media is fueling this thing and that’s not responsible press. Speak for the people boys and gals..that’s the only way to protect the rights of the people. We need the press to tell the truth. If the press did their jobs there might not be people rioting in the streets right now over food. (Yes, oil affects food prices). Yet again, the rich hurt the poor. The only Robin Hood left is the press.
I am a democrat and think the tax on oil companies is a bad idea. I think its great prices are going up and I want it to continue so all these wasteful people will start purchasing fuel efficient vehicles. Also auto companies will work harder on other options to fill this need and the sooner the better.
Stop the speculation in oil!!
You only have to put up 4 to 5 percent on commodities, you can walk on a 100 mil deal for only 5 mil. All other options must put up 50% not 4 or 5% raise commodities to 50 like all other options, eliminate the speculators. Big banks are speculating just to get dividends for their stockholders
MEXICO?? They are selling gasoline at $2.80 a gallon, Why? Regulation!! If anyone remembers, our Government stopped regulation back years ago and promised that deregulation would increase compitition and prices would go down. Electricity,Natural gas and oil. Did It? It is hard to believe that Mexico has a better government than us Americans.
I don’t like the high gas prices any more than any one else but its not about the amount of profit but the percentage of profit. I understand that the oil companies profits are about 7%, in line with normal averages for businesses. If you drive the profit margin down by taxing it, the oil companies will either try to recoup the tax at the pump or investment will dry up, driving supply down. In either case prices will rise. How may people who favor the “Windfall Profit Tax” would support such a tax on a Mom and Pop business that was making say 40 or 50%? That would be windfall profit.
I find it insulting that you have pundits comparing taxing the big oil companies with taxing Google or Microsoft the same. Google and Microsoft and not a necessities oil is …
i wish any of these comments made any difference but it seems like no one, not even the news agencies really care. taxing oil companies will raise prices? arn’t they already freaking raising? prices have doubled and the dumb record prices keep getting broken to the point no one cares. so what do we really have to lose. oil companies don’t really care as long as there’s oil left for them to sell. someone (goverment)has to step in. i mean eventually it’ll get so extreme something major has to happen. what? we’re just going to all drive electric cars? i’d like to see electric bills skyrocket, next thing we know we’re paying 3.50 per kwh? sweet. sure we got places we can drill at the expense of the environment, maybe it wont even be that big of a deal.. but are we seriously just thinking about temporary bandaids? it seems like progression in general happened 100 years ago and now everyone is just single minded and innovation is gone.. except better, nicer cellphones and thinner tv’s. what’s the point in drilling new places if when it dissappears we just end up in the same hole we’re in now? is this as far as we can progress? it all just frustrates me and seems there’s no people with capability and in power who want to come up with real solutions.
tax the oil traders not the oil companies. charge them a
10% or per gallon based on however they trade. it seems now every-time someone sneezes the price of gas goes up?
We should open ANWAR & the East & West coasts for drilling.That would help us to become free of OPEC and give us time to develop other sources of energy. The leaders in Congress are not listining to the people that have to go the the gas pump every day. I hope everyone remembers this when Congress comes up for election.
Look the reality is that we will be on oil for a while, the reason we are getting off oil is because its bad for the environment, comes from unstable places and is getting more expensive.
secondly a windfall profits tax should be on oil producing countries, not our domestic companies.
plus 10 billion dollars is not solving our energy crisis. we need to think bigger.
People can be so short sided. These plans will result in HIGHER PRICE OIL AND LESS ENERGY SECURITY! When you consider that oil is a world market it becomes obvious that just taxing American oil companies will make them LESS COMPETETIVE. Most of the foreign oil companies are owned by their government and already have advantages over the American companies. The more you tax the US companies the bigger the adavantage to foreign oil companies and then they will have even more control. Does anyone rember the OPEC oil embargo days?
The basic idea to give tax credits FOR EXPLORATION is correct. The pirice of the world oil market is set by supply and demand. It follows that to lower the price of oil that you would try to INCREASE SUPPLY which will lead to LOWER PRICES. Also it encourages oil production in AMERICA so less foreign power.
The real fact is that Americans have been spoiled by gasoline that was too cheap and now that we have squandered it we are trying to blame anyone but ourselves. If we had higher gas prices we would not be so pathetic at conservation. Conservation is a way to decrease demand and thus lower prices. Look around at who is complaining about high gasoline prices, it is not the people using public transport, it the folks with the great big SUVs. A smarter approach would be to fund mass transit and give tax rebateds for conservation efforts. Strangely enough that is what big oil has been saying for years but nobody listened.
The only way to end the drain on our wallets at the pump is to invest in alternative energy. Any windfall tax imposed on the oil companies will only be passed on to the consumer, and they will not willingly fund research into alternatives until they are made to. Rather than a tax, suppose they were mandated to spend a certain percentage of their profits on renewable or alternative energies? Eventually, the oil will be gone – now is the time to begin easing our dependency on it. Instead, Big Oil and Detroit are working together to keep us in gas guzzling polluters.
There are many in the world that live without the benefits of fuel. In North America citizens make choices on what car to drive, how far to live from work, and how far to fly for vacation. Likewise, with other comsumer products we may choose the cheap computer or the expensive one. People need to realize that no one in “the free world” makes our choices for us and when we make bad choices we can’t just go blaming companies that are doing there job as a business and making money.
Agree taxing big oil won’t help lower prices. Nor will the stupid gas tax holoday.
But – - wouldn’t it be nice if with all that money Exxon would actually pay off for the Valdez acccident instead of continuing to fight it in court?
What a bunch of Bull!
If this market only were free. The huge runup on gas prices along with ridiculous corporate profits show you how free market is a lie.
Fast food is free market. notice Quiznos now reducing the price on their riduclous 8-9 dollar subs to 5 bucks to match subways challenge.
Screw tax. I want the government to break up exxon/mobile and chevron into 10 pieces so they will compete.
stop futures trading in oil now… roll back prices to april 1, 2008 freeze trading till economy stablizes…lets join together and get this done to save America and the world as we know it…Timothy Marean
I am currently sick and tired of hearing how placing a windfall profits tax on Oil companies will do more harm than good. Fact; oil companies are NOT investing in bettering our position with alternatives to oil. Instead they are giving thier stockholders huge dividends and buying up more of their stock so those larger stockholders can enjoy even higher dividends, all of which is doing nothing but enriching an already wealthy and elitist group of what are referred to as oil barons. Fact Two, when we pass the law to set a windfalls profit tax there also has to be measures as any intelligent person should realize to insure the oil companies do not pass on these taxes in some loophole or other manner and actually take the totally embarassing amounts of pure cash wrung from the average American citizen each and every day, reminds you of Uncle Scrooge doesn’t it? Third, this constant going on of a recent cry that the oil companies have a lower rate of return than other average companies on Wall Street is just more posturing to try and cover up for what they know is a Goldmine they do not want to give up. Trust me, if their precious returns were actually so low, their money would be elsewhere and if you wanted to increase thier profit margin significantly, all you have to do is remove the slick bookkeeping ploy of paying out almost illicit dividends that instead of showing profit show expenses, oh yes, the oil companies are hurting so badly, as the rob and steal from the average citizen of this country. Heard enough garbage and propaganda from the oil company lobbyists? I have.
Don, Angry and NOT stupid in Iowa
It would probaby be more effective to ferret out the names and addresses of the oil futures traders, dig up their tax returns, who employs them and post this all on the internet, including maps to their homes. Maybe print it all on posters and place the posters at truck stops. Then… stand back and watch the fur fly.
Taxing Big Oil? Stupid idea. They tried that with the phone companies — guess who picked up the tab? That’s right, the consumer did. If you think Big Oil will just eat the profit difference, think again.
How about building more refineries? How about drilling in ANWR and NOT selling it overseas? How about buying less from OPEC? Those sounds like good ways of dealing with the problem.
Oh, and if you think the government can do a better job managing Big Oil’s money than they can, guess again. I’ve been in government contracting for years — there’s nothing too small or too simple for government to screw up and waste money on. They won’t give it back to the taxpayer, either; Fed’ll just squander it on some other useless and wasteful project that is none of its business.
Tax big oil, if they raise prices or cut production then tax them even more. Im sick of hearing excuses of why they need to keep raising the price of oil and gas. Oh, there might a hurricane or we dont have enough oil, or we have enough oil but cant refine it quick enough…Big oil and gas prices are ruining the economy.
I am curious know exactly much of the actual oil/gas profits are going for new research? Or!!!…is it going into the oil executives pockets!!! If Exxon has a 40 BILLION dollar profit per year, I (and many other Americans) would say: Why can you not lower prices at the pumps??? Why do you need sao much of a profit??? Why can you not survive on 10 billion?!!!
I’m sorry-their whining about new taxes or removal of subsidies does not hold water! The oil companies are not doing what they are supposed to in researching renewable energy. How about building refineries? I heard recently one oil executive crying about how expensive it would be to build a new refinery. Here is a note to the environmentalists! Do not hamper the building new refineries. Environmentalists tend to be democrats. Get yourselves together and weigh the consequences of your “purity” concerning the environment and consider the dire needs of the consumer already facing higher food prices, etc. Can’t the companies be forbidden to raise prices due to tax? Oil companies have had their way far too long.
What about the subsidies for the oil based economy?
Do you know it is costing over $8 BILLION Dollars per month to fight the war in Iraq, and keep the Middle East (OPEC) oil pumping into the World Economy.
Do you know that the hidden cost of polluting our air will cost our children and grandchildren much more than any current alternative energy subsidy we may pay today. Think back 25 to 30 years ago, who would have thought about spending money on bottled drinking water? How much will our children and grandchildren have to pay for a bottle of clean air to breath?
ELECT ONLY OFFICIALS THAT PLEDGE TO END OUR DEPENDENCE ON OIL AND END THE OIL BASED ECONOMY, BY INVESTING NOW IN GREEN TECHNOLOGY!
No we should not tax wind fall profits. However, we should tax each barrel of oil for a carbon pollution and an import tax. The carbon tax should be $20.00 per barrel and the import tax should be $20.00 per barrel.
All the revenue from these taxes should be used to end our dependence on all oil domestic and foreign. This is the only way our Nation will ever become Free and Independent again!
Our elected officials (notice I did not refer to them as leaders) must pass stronger and better legislation such as the following to lead us to a new MADE IN AMERICA clean renewable energy economy.
1. National Security/Energy Independence
The only way for our Country to have National Security is to end our Country’s dependence on oil, yes that includes domestic oil as well. The Federal Government must start a 10 year program that will be multi-fauceted and end in our ability to produce all the clean renewable energy our society needs within this time frame.
Do not say this is to expensive, when we have 140K troops in Iraq and are spending $8 Billion per month there, this manpower and money would pay for the National Security Energy Independence Act.
a. Clean Renewable Alternative Energy
You must get legislation passed that will provide land grants of Federal land to municipalities for the construction of solar, wind, and geothermal electric plants, according to national maps for these resources. Additionally, the Federal Government should provide a 2 for 1 match to any State funded dollars for the construction costs of these projects, up to 40% of the projects costs.
b. MagLev Trains
You must get legislation passed that will provide land grants of Federal land to public or private entities that wish to construct a network of MagLev trains (which run on electricity). Doing so would allow for the shipping of goods and services using electricity instead of diesel fuel, and eliminate the majority of oil use in this Country.
Think of the cut in pollution from vehicle emissions, think of the economic stimulus, think of the increase to our Country’s GDP by freeing up thousands of truckers to work in other industries.
Now think of how the World can end its dependence on oil, if we export these things to other Countries, after setting an example and proving it can be done.
The MagLev trains should be designed to enable the ferry of personal vehicles, so that Citizens may ferry their vehicles from place to place rather than drive them, thus eliminating even more oil usage.
The first phase should be started within 100 days of your taking office, and should include legislation exempting the need for environmental impact studies, making it possible to get to work on construction immediately.
This first phase should be a MagLev from Anaheim CA to Las Vegas NV then to St. George, UT. The second phase should connect both Phoenix, AZ and Salt Lake City, UT to St. George, UT, and St. George, UT via the Arizona border to Dallas, TX. The Third phase should connect Kansas City, MO and Houston, TX to Dallas, TX, and Dallas, TX to Atlanta, GA. The fourth phase should connect New York, NY (Via Washington DC) and Jacksonville, FL to Atlanta, GA.
From this point forward, the Federal Government should support the connection of more Cities and the expansion of other arterial segments, both East and West and North and South.
c. Electric and Hydrogen Vehicles
You must enact legislation to require a percentage (increasing each year, so 60% are alternative within 10 years) of vehicles sold in metropolitan areas in our Country are either run on electric or hydrogen power, and that all fleet vehicles (i.e Taxi Cabs) run on such by the end of the 10 years.
This legislation must include tax benefits for the ramping up of the necessary infrastructure to supply the electricity and or hydrogen.
d. According to the following Government website http://www.eia.doe.gov/neic/infosheets/petroleumproductsconsumption.html by cutting 60% of the vehicle usage and 50% of the diesel fuel usage by implementing the above strategies, we would lower the daily consumption by 7.556 Million Barrels Per Day (.60 x 9.16 MBD + .5 x 4.12 MBD), approximately 1/3 of the daily total usage of petroleum.
Additionally, 7.556 MBD is 5.4 times as much as the estimated daily output from ANWAR of only 1.4 MBD. By the way the 10.4 Billion Barrels of oil in ANWAR would only cover the 13.15 Million Barrels of Imported oil for 2.17 years. Why spend all those millions on finding, drilling, building a pipeline, shipping, etc, when those millions can be spent on ending our dependence on oil.
The whole point of this matter is that our Country has run out of oil as a sustainable source of transportation fuel. WE USE MORE THAN WE HAVE AND MUST IMPORT IT FROM PLACES THAT DO NOT LIKE AND THAT OPPOSE OUR COUNTRY.
Therefore, the PRUDENT and AMERICAN thing to do is develop a new source or sources of ENERGY and become self sufficient in our needs.
Bigger than any other Federal Government mandate, goal, duty, whatever you want to call it, our LEADERS HAVE A RESPONSIBILITY TO ENSURE THAT OUR COUNTRY PRODUCES ALL THE FOOD AND ENERGY OUR SOCIETY NEEDS, AND WE DO IT ON OUR OWN SHORES!!!!!
We do not need to live in the past and keep depending on a commodity (OIL) that our Country used up and now must import—- DAM THE RAMIFICATIONS TO BIG OIL AND BIG BUSINESS— IT IS TIME FOR THE SECOND AMERICAN REVOLUTION DECLARE OUR ENERGY INDEPENDENCE NOW.
If the government wants to expand research into alternative energy then there is nothing stopping it from doing so right now. Also, I hear Democrats contradic themselves all the time. First they complain the oil companies don’t spend enough to fin more reserves. Then when the oil companies want to drill in Alaska and the Gulf of Mexico they won’t let them. Can’t have it both ways. So what do they really want? More and more control over what car you drive, how you get to work, and the economy as a whole.
by levying extra taxes on oil companies, wouldn’t the government be simply redistributing wealth. would all the shareholders, which include mutual funds in 401k plans, pension plans, etc., be hurt by this? there are a lot of consequences to actions like this. if someone were going to take away a greater percentage of your profit, would you have a large incentive to take risk? last time i heard, oil exploration was not a risk free type of business.
Just wondering if anyone knows about how much a gas station owner makes in a month? A buddy of mine has a gas station. He stated that he nets $10,000.00 a month. YES that is correct that is his to take home. YES that is after paying bills and employees. So he makes $120,000.00 a year. Hey thats not bad for a gas station owner. But some are still complaining that they don’t make enough money. Give me a brake gas stations, local refinaries are gouging the US. If the Big Oil companies are not then they should SHOW the US all the improvements that have been made and all the research they have done to prove they are not gouging the US. I challenge the Oil companies to show the proof that they are not gouging the US.
Want to increase supplies and reduce costs? Open up the coasts of Florida and California to exploration, as well as Alaska and the Bakken oil field. Just opening up these areas to exploration will have an immediate impact on price, even though it will take several years to bring this supply to market. Stupid Congressional decisions ten years ago are why we have the problem now. Windfall taxes will reduce supply, increase costs and lead to great dependence on unstable foreign supplies.
End the subsides, have the government quit funding “BIG OIL” projects and send that back to the tax payer. Oh no don’t tax them, because that would get back to the consumer, just quit having Big Oil double dip the average tax payer. Better yet, you want their profits to go down. Stay home for your vacation, you maybe happier. They look toward the “Summer Driving season” like its Christmas. Let the consumers band together and be the grinch that stole Christmas from Big Oil! Stay near home and go to areas around you without spending that much on gas! The refineries are already cutting back due to lack of demand. Congress should be mandating their increased production. Bottom line…the American Consumer needs to make an impact on BIG OIL, outside of funding the insides of their wallets. Also any drilling in ANWR or off shore, should be regulated to United States consumption only! We checked the destinations of Iraqi oil for years, why not check domestic oil traffic, bet you would find alot of oil being sold overseas and not kept at home, being American is not so profitable these days. CNN should check into that, that would be a good story.
You can’t compare Google to the oil companies. Oil is a neccessity for running automobiles and heating homes. Google is something we can live without. Anything that is neccessary such as energy,oil,gas,railroads should be reegulated because even slight variances in prices affect the poor dramatically. I know people that had to stop going to work and had to apply for public assistance because the cost of commuting to work took just about their whole paycheck.By the time the taxes were taken out,they were bringing home less than the cost of gas and taxes combined.And why,oh why, when oil companies are raking in billions in profits, is Congress still allowing them to collect TAX CREDITS FOR EVERY BARREL OF OIL THEY PUMP? WAKE UP AMERICAN TAXPAYERS-WE ARE PAYING FOR THESE TAX CREDITS SO THE RICH OIL SHAREHOLDERS CAN COLLECT DIVIDENDS!
Like there is anyone in Congress or at the oil companies who really care what we think. All they want us to do is PAY !!!
Yes, taxes suck. We should not tax anything. But we should be aware of criminal activity and things are blatantly bad for the nation and its economy!
By the way…look and see where we get MOST of our oil. We get quite a bit of it from the good ol’ USA…and the leading importer is…CANADA. So, if you’d like to fall prey to the “rule them with fear” machine(please don’t. It’s only for the weak minded, and you’re smarter than that), feel free. But know that all of your gas money is NOT funding terrorists. PLEASE!! – Take a REAL CLOSE LOOK at how your being manipulated and the irrelevency of the information your being fed to keep you distracted from seeing what is really going on.
I couldn’t find anything in this piece about the expansion of refining capacity. I am disappointed there isn’t more action in accelerating construction of more refineries. You can’t burn oil in your car!
Increasing domestic production in conjunction with fundamental lifestyle changes WITHOUT government telling me what measures to take will in my opinion move consumers in the right direction.
The problem with our society in regards to this issue, is that we only care when it hits our wallets. Oil prices will continue to go up and rightly they should. We don’t take in consideration the indirect costs that the pollution of oil and coal burning cause. The strain that this pollution places on our environment, economy and healthcare systems is rediculous.
Gas profits should be taxed as well as a higher sales tax should be implemented to allocate funding of R&D in renewable energy.
Environmentally safe energy is the answer.
This is what I would ask. How many solar cells could you build and how many wind farms for the amount of profit they have in one year?
Posted By Mark, Plano, Texas
Would you prefer that the government take just the profit? (would that be Fascism?) …or do you plan to take their assets too? (would that be Communism? Or perhaps Anarchism?)
Would it be OK with you if I took your assets and bought a Hummer?
Whiile I am asking questions: How many wind farms does it take to power Texas?
Answer… More than can fit in Texas.
Take a look at “who” the top shareholders are of the oil companies, or any other public companies. You will find that most shares are owned by institutions such as pension plans and individual investors. Get out of your head the picture of the “fat cat” benefiting from the oil profits.
You’ve probably all heard this before (and not listened then either), corporations don’t pay taxes, PEOPLE DO!!!
I want to laugh out loud when I hear “seemingly” intelligent people scream “tax them to death!” They are literally saying “tax me, and my retirement, to death!” It would be truly laughable if it weren’t so idiotic!
The ENTIRE problem with oil right now, is a matter of 2 or 3 million barrels a day of production. OPEC can only influence prices when supplies are already tight because they have dictatorships to run, and dictatorships need money! That 2 or 3 million barrels per day would exist right now, except for the fact that we still can’t drill in ANWR, and we can’t drill on most of the outer-continental shelf. There are an estimated 135 BILLION barrels to be had there. At today’s prices, that’s $16.2 TRILLION dollars we wouldn’t be sending to the terror sponsors. Bill Clinton vetoed ANWR drilling in 1995. His wife, and Obama and most other dems have stood against domestic offshore production forever. It’s ironic that we can’t drill for oil 45 miles from Florida, but chinese companies are already signed up to drill 46 miles from Florida (Cuban waters). Whose environmental safeguards are going to be better, ours or the Communists???
They (Democrats) now all claim that ANWR and other sources “wouldn’t make much difference.” People who understand and respect the markets know differently.
Liberals and their environmental wacko friends have created this situation.
Anyone who says differently is either 1) dishonest, or 2) stupid.
Take your pick.
For the sake of further discussion, Please know that you CANNOT make an intelligent comparison to ANY other industry. The oil industry is the hub of our national/global economy…a natural resource…an environmental factor, a ton of other factors and variables. And when you take away any real system of checks and balances, you have the current situation.
ol·i·gop·o·ly –noun – the market condition that exists when there are few sellers, as a result of which they can greatly influence price and other market factors.
in·e·las·tic
1. Economics. relatively unresponsive to changes, as demand when it fails to increase in proportion to a decrease in price.
2. Of or relating to the demand for a good or service when quantity purchased varies little in response to price changes in the good or service. For example, the demand for medicines and medical services is generally inelastic because the quantity purchased by consumers is unresponsive to price changes. Producers of products and services facing inelastic demand curves have an easier time passing on price increases.
e·con·o·my
1. the management of the resources of a community, country, etc., esp. with a view to its productivity.
2. the prosperity or earnings of a place: Further inflation would endanger the national economy seriously.
3. the disposition or regulation of the parts or functions of any organic whole; an organized system or method.
If any of them really cared, they might at least make an effort (use their profits) to work with major metropolitan areas (Atlanta, Dallas, Chicago, Philadelphia) to install, own, and operate a light rail system that could elimate the need for a high percentage of driving/automobiles.
An open mind is a terrible thing to waste!
oil price is supply and demand. takeing off $.18 cents of federal tax like mccain and clinton have suggested will do no good because the price will just rise to balance the supply and demand. the oil company profits will be the will be the winner in the end.
instead of a windfall profit tax. tax fuel $1.00 a gallon with all procedes going to those people who buy cars that weigh less than 3000# and engines with no more than 2.5 liters. the people who drive the gas guzzlers would end up paying more of the cost of getting rid of our high cost transportation in this country. money saved can change what people drive. it has worked in europe it can work here.
The oil companies are somewhat to blame making 70% of price of the pump and holding back production since they are not ‘making’ as much. Consumers are also to blame, I have seen people running around just as much and as fast as ever. No to mention some folks have houses a good distance from home and drive large SUV/truck vehicles.
If a windfall tax big oil, you need to also hammer the hedge funders that are also driving up the price of oil as well. Congress needs to make buying commidities just like stocks needing 50% of the price up front. That will never happen so if you are going after Big Oil you need to also go after Big Hedge Funds.
Everytime a good solution is presented, the oil company buys it, and throws it in a drawer…so that their “interests” are protected. Make no mistake, MONEY will make people do some VERY UNETHICAL things!
Posted By R. U. kiddinme, Pittsburgh, PA
If big oil had a “good idea” that would replace oil as an energy source, it in itself would be worth trillions…
You say they have bought many. Name one.
If we can get lots of plug-in hybrid vehicles on the road, then we can convert from foreign oil to domestic coal. The U.S. has been called the “Saudi Arabia of coal”. The U.S. government needs to stimulate investment in electric hybrids, and the best source for this is the currently obscene oil profits, and other similarly lucrative companies.
Posted By Dave, Riverdale, NJ
Oil companies are owned by shareholders. Probably by Dave’s 401K, or maybe Dave’s Pension Plan. What gives Dave the right to steal the assets of his neighbors? Suppose that the someone named Pete wants to take the all assets of anyone who lived in New Jersey? If Dave wants to give up his assets, let him. It’s a free country, for now anyway.
Obscene oil profits! They are obscenely LOW! Do you have any idea how much risk an oil company takes to earn a 10% return? Do you know how long it takes to get through the government red tape put in place by Democrats? Any idea how many years it takes to see ANY PROFIT AT ALL from a dollar’s worth of expolration?
Too bad that the Democrats won’t let us drill for oil in the deep water of the gulf. Is anyone aware that the Chinese are drilling South of Florida? The Chinese government understands that their economy runs on oil. Too bad the Democrats don’t understand that too.
Too bad that the Democrats will not let the oil companies build needed refineries. We will be running out of refining capacity soon… then it will not matter if we have oil or not, gas prices will rise anyway.
Good idea on using coal. Too bad that the Democrats are planning to tax that resource out of existance. Go look at some of the proposed carbon taxes floating in Congress now. Your 75 dollar gasoline bill will look good next to your $600 electricity bill.
Any finally for anyone who holds out hope that the government can run anything. They just ran you food bill up because they think burning food for fuel is agood idea. They managed to drive the cost of a nuclear plant up to 10 Billion each from 600 million each. They are about to double the cost of coal plants whil cutting their effeciency.
Oh please…The windfall profits tax is a dumb idea. It has been tried before, has not worked, and is partially responsible for the situation we are in.
For those who think the government can do it better, give me a break. Besides spending money and being political, name one thing the government does better than private industry.
Finally, I have to laugh about the profits concern. Profits last year for oil companies averaged a tad less than 10% but we are supposed to mad about that because it is too high. Who determined that? CNN does a great job telling everyone that we are in a recession and that the oil companies make too much money. I ran a home building business for many years and I made more than that. Should we windfall tax the builders for all the profits they made before the housing crisis hit?
It’s really a shame to see how fooled most people are. They either have an axe to grind against democrats (ah, it’s your “oil man” in the whitehouse) …but this is more of an economic/policy issue…not much of a political one…or they own stock in big oil, so they’re fine with this scenario. Yes, Lobbyists should be outlawed. Yes, people are stupid for buying SUVs and getting caught up in this overspending/overconsuming society. Yes, taxes will just be passed on to the consumer. Yes, we have it better than the rest of the world. etc, etc. – These points are ancillary to the issue. There is too much evidence to suggest that they are NOT operating in the interest of our nation. And if you think they are all just “good ol’ boy” american businessmen, then you probably think OJ is innnocent too.
But understand a few things…you can call names (socialists, idiots, morons), but you are just spewing something you heard from someone else, or projecting your own shortcomings on others.
The government and ‘big oil’ have been telling us that an alternative energy solution is “about 10 years a way”…the problem is, they’ve been saying that for 50 years. Everytime a good solution is presented, the oil company buys it, and throws it in a drawer…so that their “interests” are protected. Make no mistake, MONEY will make people do some VERY UNETHICAL things!
And don’t forget that it was the car adn tire companies that “torpedoed” the public transportation business in the early 1900s because they wanted to sell cars and tires…and public transportation was simply ‘in the way’ of them getting filthy rich. So please spare me the “intelligence” and “research” crap. Money is a very addictive drug…and these people will do whatever they need to do, to get it.
As deepthroat suggested…FOLLOW THE MONEY!!
The windfall profits tax time has come. By 2020, there will be over 1 billion cars on the planet. There’s not enough oil to fuel these cars. Gas prices are only going to get worse. The U.S. desperately needs an alternative energy source to foreign oil. If we can get lots of plug-in hybrid vehicles on the road, then we can convert from foreign oil to domestic coal. The U.S. has been called the “Saudi Arabia of coal”. The U.S. government needs to stimulate investment in electric hybrids, and the best source for this is the currently obscene oil profits, and other similarly lucrative companies.
This is what I would ask. How many solar cells could you build and how many wind farms for the amount of profit they have in one year?
“If this government wasn’t such a mess, they might consider seizing the oil business under some “eminent domain” policy and running it as a non-profit branch of the government.”
Sure. No doubt the government can operate the uber complex refineries and gasoline supply chain far more efficiently than privately held companies can. Just look at what a good job they’re doing with, say, public education. Or highway maintenance. Yes, if our public servants are charged with producing and distributing gasoline, we can be supremely confident that the filling stations will always be well supplied with high quality gasoline.
Hey, did you know gas is more expensive in Mexico than in the U.S.? They have a state owned corporation running the entire operation, from wellhead to gas station. Yet, they can’t seem to keep their costs down. Weird, huh?
No point in being angry at the oil companies… they are just the messengers. And they make around 9% profit. THe main reason why gas prices are so high is because of demand. Demand consists of 2 components 1. International from india , china etc ; of which we have no control over. 2. Domestic demand from all these giant SUVs.
All you whiners out here, stop protesting against oil companies; and instead get off that Hummer on your 30k salary.
Here is a good and logical question I believe; Where is the Energy Secretary? I would love to here him or her give a speech about what they plan to do to control this abuse that OPEC countries, The Speculative Market and the Big Oil Companies have over the poor and middle class population in the United States, do they actually think that we (The average Joe)does’nt realize that because of their Greed to make UNGODLY PROFITS it does not affect us in every way from how we travel to work to the food we eat and everything in between; well it’s time to shake their foundation to it’s core. I say the Energy Secretary should ask OPEC (How much oil did we buy from you last year?) Well cut it by 3/4 we are going to release our reserves and start drilling at home. Oh by the way the Grain we are going to sell you just went up by 50% you know fuel costs so sorry!!! And now to the Speculative Market the Energy Department for now on is going to control the Oil Futures so that way you can’t mess with the prices of oil and make it impossible for the POOR and MIDDLE CLASS to get to work because the rich don’t need to go to work why? because they are RICH they can afford to stay home, we can’t. And last but not least Big Oil windfall tax on profits HUMM they will only add it to the gallon of gas so it zeros out; I say eliminate their subsidies until they bring the gallon of gas down back to normal levels. At least 1.25 Gal.
I believe the canidates should impose a windfall profit tax on the oil companies. That money should be used as part of and economic stimulus plan and mailed back out to the american people in the form of a gas rebate check. The checks should be mailed out every six months until oil prices fall to an acceptable level. The tax should be based on a percentage of their profits. These prices have little to do with supply and demmand, it has to do with the fact they know they can do it–at least until January of 09. Big Oil can try and stick it to the drivers, but every dime they increase gas prices means the rebate checks will grow. Let them increase the prices–just more money in my rebate check. To hell with these lame articles talking about “the poor oil compaines”. To hell with them. Nothing wrong with making a fair profit, but when the profit becomes obscene its time for government to act on behalf of its people. This greed is good mindset pushed by the rightwing, who claim to represent Americans, has got to be stopped. Greed is not good and never has been good. Its time for the people of this nation to demmand action be taken against these out of control oil companies.
Windfall taxes failed in the past and is destined to fail again if tried. It simply discourages production. We would never contemplate a windfall profits tax on “big entertainment” or sports. Or would we?? Where will it end? It’s quite simple why they don’t explore. Because Congress won’t let them drill in the Gulf, ANWAR, etc etc. Stock buybacks and dividends is their only protection from unwarranted and nearsighted interference from greedy government. Without Big Oil, we’d be living in a Mad Max world within days. They take the risk, they and the shareholders deserve to profit. Since when in America do politicians determine how much profit is acceptable? Americans have been spoiled by cheap and readily available fuel for far too long. Just check out all the gas guzzling SUV’s that we are “entitled” to.
no one has ever died from lack of oil so the argument that it is a neccesity of life is ludicrous. food on the other hand is and the profit margin on food is higher than 10% so maybe we should just let the goverment put a windfall tax on that.
Dump the 12 mpg SUVs, the owners complain about spending 60-75 bucks to fill one. That is where the surcharge should be. As for the oil companies, I respect some profit, but come on, when they are making money hand over fist and not investing the majority into new sources, but rather stock holders and their own back pockets, something is not quite right.
What the Democrats forget is that Corporations don’t really pay the economic burden of taxes — people do. Raising corporate taxes through a windfall profits tax or otherwise means either a) there is less money in the company to pay salary to employees, b) there is less money in the company to pay dividends to shareholders (who include both the rich who won’t notice and regular people, like retirees looking for the healthy dividend that big oil pays) or c) CHARGE more for their product to sustain growth.
The Democrats want to punish these corporations, but only real people get hurt by their policies.
I’d rather see a windfall profits tax on commodities traders. They are the ones driving up prices well past the true value of the commodity.
If you pass a tax on oil companies, they will simply raise the price at the pump and pass it directly on to consumers.
Taxing success is backward thinking. When a government taxes success, it encourages the successful to hide from that government (dodge taxes or move elsewhere).
Taxing temporary success is plain stupid. Government wasn’t much interested in subsidizing the oil companies when their profits were lower than the national average and taxing what is plainly a cyclical event [higher profits] simply sends the message to all firms that if you’re visible and profitable, we’ll tax you more.
The oil companies are now making about 10% profit on sales. Microsoft makes about 50%. Don’t you think that’s excessive? Why don’t we enact a punitive tax on all profits in excess of 10% of sales?
The obvious answer is that successful firms like Microsoft and Google would quickly move to Canada or somewhere else and then our tax revenues would fall instead of rise.
Good bye to highly paid jobs and hello to welfare.
***
Socialism didn’t work in Russia or eastern Europe and it isn’t working now in Cuba or North Korea. It isn’t going to work in Venezuela — in fact, upper middle class Venezuelan businessmen are moving their families to Miami and splitting their businesses into two parts — one in Venezuela (that might be expropriated by the government there) and one elsewhere that they’ll keep and run even if Sr. Chavez goes totally socialist.
Get a clue, people. You can not become successful by pulling someone else down. All that does is make everyone miserable — Zimbawbe is all the proof of this proposition you should need.
Instead of a windfall tax, we should remove the cap on corporate taxes for oil companies and use the additional revenue to jumpstart research into alternate renewable energy resources.
I see a lot of comparisons to microsoft profits but that is irrelavent because a person can choose what software to put into a computer. Oil companies have the public in a no win situation, because we have no choice and all transportation will cease. Again the ploy about comparing US prices to other prices ONLY WORKS when prices are normalized for exchange rates, taxes and other fees if you don’t, then you are just lying.
Big Oil? – get over it. Oil has or will peak soon and then we start to run out. Conservation, renewable, nuclear, cold fusion, efficiency.
P.S. I’ve owned oil stocks for years – and now its paying for my fuel bill and quite a bit more. Let the free market work. It did for me!
A couple of weeks back, a company exec made the analogy about the amount of profit they were making on so many billion dollars of revenue, and then said that no one would be complaining if that same percent was being made on the same figure on millions. What he didn’t say was, there would be a thousand times as much to spread amoung the stockholders and company execs when you are talking about billions. He was using the “percent” comment as a smoke screen to favor his argument.
Anyone who compares an oil company to a terrorist is a sensationalistic moron. If you really think that making 10 cents for every dollar you invest makes you a “terrorist”, then perhaps you should propose some legislation partnering homeland security and the SEC to find and protect America from the countless “terrorists” making 10% profit margins. Think of all the hidden cells we could uncover, making “excessive profits” and terrorizing our American futures! Thankfully, we still have lots of non-terrorist organizations that make absolutely no money. Good and honest companies that refuse to add value to our economy with necessary products and services, so that we don’t have to fear tomorrow! Yes, let’s tax the “terrorists”, and make them leave America so they will be forced to make their Terrorist-Like profits in another country and pay that Country’s unfairly low, “terrorist” friendly taxes.
And to the Socialists that actually think that billions of consumers, millions of highly educated business minds and trillions of bits of analysis performed by these aforementioned participants in the world economy are less efficient at setting and regulating markets than an elected panel of a few hundred people, you are also morons.
Exxon admitted that they set the price to maximize profits. They aren’t concerned about the price at the pump. They are not interested in spending money on exploration or building refineries. Don’t count on oil company executives being as responsible as mortgage lenders.
Any additional taxes on the oil companies should be contingent on three goals or minimum quotas: oil discovery, refining capacity, and production. Taking away the subsidy from the oil companies is like increasing their taxes. They don’t need a subsidy, and the taxpayer shouldn’t be paying it. The fact that the oil companies are making record profits and profits greater than any other company in history shows that their “slim margin” isn’t really so slim.
When the price of oil drops, those who have invested in oil will have to invest in something else. Maybe mortgage-backed securities.
Taxing big oil would not solve the overall energy crisis but only offer a quick fix to the American public tired of high gas pump prices. The big profits that are being reported come at a cost that far often are left out of media reports. The reality is that we as Americans are consumers and have come to “EXPECT” and feel “DUE” the luxuries of life. (Plasmas, SUVS, McMansions, etc) As the world grows around us, we don’t realize that a very large energy struggle ensues and that they too want our same lifestyle. Being a member of the oil industry I challenge America to not view the oil and gas industry as some nasty plague that is somehow covertly pulling the wool over your eyes. We put energy into your life. Why must I be chastised for that? Maybe we’ll stop doing our jobs since the general public feels that oil companies are just EVIL and no good. We bring no benefit to your life? Alternatives must be advanced to HELP OUT with the ensuing energy crisis but unfortunately can not bare the entire weight of the WORLD energy demand picture ANYTIME SOON. Hydrocarbons also provide the base for plastics and a variety of goods we need and use everyday. America needs to take a good hard look in the mirror and confess to their addiction of consumption and learn to own up to their own bad personal financial decisions (big car note, big house note, big credit card bills, and kids to early in life!). Avoid blaming the very industry that works hard daily to keep you moving through life. Get educated too. Stop blaming and start learning. Do some simple match. America has over 300 MM people and we consume 25% of world energy…..hmmm…so that means the rest of the world consumes the other 75%. Well if they want to be like us and China alone is over 5 times the size we are…wouldn’t that mean that they alone will need 125% of energy to consume in the manner that we do so that they live our GLAMOUROUS lifestyle? The sad thing is we have our own supply here, but we are not allowed to really tap into it. WAKE UP AMERICA.
Last time I checked, BIG OIL companies were PUBLIC corporations. Those so-called “windfall” profits belong to shareholders around the world – not just one CEO. Please educate your readers on this fact. The politicians would have you believe that only a select few individuals are making BILLIONS in profit.
Please point out that any “windfall” profit tax would hurt ordinary shareholders like myself.
BTW, the only way to decrease the price of crude oil is to raise interest rates which would strengthen the US dollar. Getting China, India, and other asian countries to “conserve” is the only way to decrease WORLDWIDE DEMAND!
I believe it was Calvin Coolidge who said that when tax rates exceeded what was a reasonable amount they just became a form a legalized robbery. That is what our government has been doing to us for years. If Congress is serious about doing something so consumers pay less at the pump, they should let the Enviromental lobbyists go soak and let Big Oil start drilling!
In the interest of “National Security” its time to “nationalize the oil industry. The choke point is the lack of refineries and the oil companies are in no hurry to build any. The lack of maximum refining capability creates a artificial shortage in refined product, which in turn keeps prices high.
Posted By Michael Hsu, San Jose, CA… “I say we nationalize the oil companies!!! That means seize the oil production equipment and assets of the oil company, and have the government provide cheap gasoline to the taxpayers.”
Good idea Michael,
I agree that only taxPAYERS should get the low price gas.
We can charge the people who don’t pay tax about $50 bucks per gal. The new totalitarian government could use some of the profits to fund the Social Security deficit of about $30,000 per year per person, free health care of about 12,000 per year per person, and the $10,000 per person per year that global warming reduction is going to cost.
If there isn’t enough money for this, maybe we can seize the assets of the citizens of California.
Why does our government continue to subsidize the oil industry? Why doesn’t our government stop the 30 year moratorium they placed on drilling in known oil fields in this country? Also the OPEC countries have nothing but sand and oil. Why don’t we triple the price of the wheat and foodstuffs we sell them?
A WIN-WIN situation. Higher oil prices represent a WIN for oil companies and a WIN for oil producing nations. I almost bought into the profit margin arguement from the oil companies. Look at the year over year dollar value of their profits for the past few years. They have skyrocketed. As any company will do, oil companies markup the cost of their raw materials, in this case oil. They are virtually guaranteed that everything they produce will be sold, so there is no incentive to keep costs down -added costs equal added markup. In fact higher material costs, i.e. oil, represents a larger base for the oil companies to use when they mark up the cost of their raw materials. Therefore higher oil costs allow them to increase their year over year profits without increasing profit margins and looking like they are taking their customers for a ride. It would even be to the advantage of oil companies to artificially bid up the cost of oil. This makes the oil producing countries very happy and, after applying their markup on the oil, makes the oil companies very happy. What a wonderful world they live in. Oil companies can only do this because it is legal, at least for the present time, and they know they will sell everything they make. Perhaps the oil companies should be allowed to markup the cost of pumping, transporting and refining the oil but not the cost of the oil itself. Perhaps the US needs a “Manhattan Project” to inexpensively place solar panels on every house that is located in an appropriate location and to develope better batteries for cars and trucks. This would drastically reduce US demand for oil and make this country even more mobile, more efficient, more productive, more green and eliminate the threat that trade deficits and the “donation” of financial resources to unfriendly foreign entities represent.
Oil demand was high therefore oil refineries could not produce enough gasoline causing the prices to increase. Now oil demand has fallen and we’re being told that now refineries have no incentive to produce gasoline again causing the price to increase. Forget all this, forget the ALLEDGED terrorist attacks on all the pipelines daily, just tell us the truth; your real response to the general public: “F#*& You Pay me”
Comparing search engines to oil is ridiculous.
Oil products like gasoline & heating oil are a part of ESSENTIAL services to individuals and the economy of our Nation.
That is why the Oil Industry should no longer be allowed free-for-all monopolistic price gouging and their enormously excessive profits. They have been given decades of chance and the continue to screw America and consumers, thereby demonstrating they feel no responsiblity towards the community in which their opportunity exists.
We regulate most other ESSENTIAL services such as utilities. They are allowed a reasonable profit, returns for shareholders, and rates adjust modestly if justified before an unbiased PUC.
We regulate banking, investment commissions, truth in lending laws, etc., to protect consumers and spur competition.
Heck we even regulate food for the purpose of price stability by paying farmers NOT to plant certain acreage to avoid oversupply and keep their profits stable. Or when market conditions support higher inventories farmers plant fence to fence and make their money on volume.
WHY NOT OIL?
Provide reasonable profits for shareholders, their huge capital expenditures, and exploration; employment, and yet reasonable rates for consumers.
Example: If OIL CO’s margin is 10% on $50/barrel oil = $5 profit. By keeping that margin at 10% even on $100 oil = $10 profit. They just DOUBLED their profits!!! And they didn’t do anything different. That is why consumers are FUMING at record profits!
That is GOUGING and against the interests for a stable and secure USA!
Time to bring oil and gas under PUC’s or enact windfall profits tax that specifically is applied back to reduce the consumer’s cost of fuel and heating oil.
NOTHING WILL EVER BE DONE UNTIL WE GET THE INCUMBENT CONGRESS AND SENATE OUT OF OFFICE
THEY ARE ALL BEHOLDING TO THE OIL COMPANIES AND OTHER’S
Tax them! Get rid of greed mongering wall street! The worse thing that ever happened to this country was getting everyone and their grand parents tied up in the stock market! Corruption at its finest, insane profits no matter how they’re achieved seems to be the golden rule now days. What competition is there for the oil companies? Use less gas? That’s great if you’re able to. There are quite a lot of people who bought those comfortable land yachts when gas prices were reasonable now they’re being killed by the instant overnight price rises and can’t afford to buy a new vehicle. Who in their right mind is going to buy the gas guzzlers from those people so they can down size? Big business, especially the oil companies are raping the hell out of the public and our pro business government that should be looking out for the little guy is doing everything it can to squash us. Then you have all these everyday idiots thinking they’re smarter than everyone else and are going to clean up investing in these crooks.
Democrats never cease to amaze me with their complete lack of understanding of basic math.
Measuring profits in dollars is next to useless when trying to compare year to year numbers. Sales, inflation, expenses, all play with the actual dollars earned. That’s why most serious analysts point to percentages instead. Overall oil companies have sustained an 8-10% profit margin, regardless of the price of oil, which in the corporate world is nice, but not all that impressive. Google has already been mentioned but companies like Coke routinely deal with 20%+ profit margins. Should they be taxed too?
Sure the dollar amounts go up but that has more to do with demand then price at the pump. If anything the fact their profit margin has been pretty stable throughout the entire phase of skyrocketing oil rices is the very proof that they aren’t profiteering (as another commenter accused).
People just have to accept the fact that some people just happen to make money. Trying to punish them for that is no way to build an economy.
Now if their margins had gone up considerably with the price of oil I could see the government jumping in. Since oil is effectively a closed market economy (it is next to impossible for you or me to open up our own independent oil company) there is some responsibility for the government to protect against monopolistic like abuse but no one seems to be able to point out any such abuse by big oil.
I really can’t believe people want to exact a punitive tax on these companies. Where were people when the cost of a barrel of oil went almost below 10 dollars a barrel back in the 80’s and many small oil companies had to close their doors. Come on people, water and milk cost more than gas. We have it good over here..Europe has had atronomical gas prices for how long now..Maybe they have the right idea..using alternative transportation and smaller cars instead of driving around massive vehicles that get 10 miles per gallon. Light rail cars get 510 MPG.(That is a calculation based on the fact these modes of transporation can carry more people..it’s not the actual MPG).The Bart Train in the Bay Area gets 244 MPG..The main reason bigger cars are safer is people are going up against bigger cars in accidents..if all cars were on the average smaller, then we would not need huge cars in order to be safe..it’s all about kinetic energy
ALL WE NEED TO DO IS GET RID OF THE GREED DRIVEN SPECULATORS. IF WE CAN DO THIS, WE WOULD NOT NEED TO TAX THE OIL COMPANIES!
The people that say the Big Oil should be taxed etc. obviously do not have stock in Big Oil. Additional taxes is Un-American, punish the successful? Where is the incentive to succeed, if you do too much you get punished, good in Cuba, not in the U.S. It sounds a lot like sour grapes. It sounds like a lot of people are jealous that they didn’t see the demand for oil increase and missed the opportunity to profit from it. Isn’t there a saying “necessity breeds innovation”. I think high gas is a good thing; prior to this alternative fuel R & D was going nowhere(too expensive, not cost effective) maybe with this it will spurn innovation.
Look in the mirror. YOU are in large part to blame for high oil prices, which are only marginally determined by the big private oil companies. The markets, government regulatory efforts, and the oil-producing nations (OPEC primarily) deserve a much larger share of the blame than ExxonMobil. Ultimately, though, we all share the blame…until just this year, demand for oil in the US has increased even as prices went sky-high.
Why don’t people – including reporters – understand that a tax on business is a tax on the public. Taxes are a “cost” of doing business, and costs get passed on to the consumer. It just doesn’t hurt as much. It’s like taking taxes out of paychecks instead of a bill for $14,000 at the end of the year, payable to U.S.A. Smoke and mirrors, smoke and mirrors.
Isn’t a 35% corporate tax rate on profts enough. Last time I checked we lived in a capitalist economy. This whole windfall tax thing is more left wing efforts to turn us into a socialist country; which is the opposite of our founding ideals. If you want more oil, let them drill where the oil exists; ANWR; off our coasts, etc. You cant have it both ways; tax companies to death and prevent them from getting at more natural resources. If this windfall tax scheme goes thru, who is to say that it will only be limited to oil companies. will other companies that make “too much money” be targeted. food is going up to; will we target them.
This is complete insanity. This is a oligopoly, with a completely inelastic product, that is the heart of our economy. If it was just the price of gas, it would be one thing. However it is affecting food, services, etc. and driving us (on a fast track) into a recession/depression. The government needs to put tighter restrictions around the profit-taking from natural resources that effect the entire economy. $40 billion in profits?…1/2 billion dollar bonuses to the CEO? – And they won’t even pay for the Valdez spill or build a new refinery? Meanwhile, we have 2 wars, a housing crisis, 1800 babyboomers retiring everyday, and a host of other “critical mass”-type problems. If this government wasn’t such a mess, they might consider seizing the oil business under some “eminent domain” policy and running it as a non-profit branch of the government. This industry is far to vital to the success of our economy/nation to allow this sort of “free market” racketeering. And if you don’t think they’ve gotten a few million barrels from Iraq for *free* (wink, wink, nudge, nudge), keep drinking the purple koolaid. Make some noise America!!
Suggestion: Make the Oil companies pay 30% of the profit in dividends, which filter dollars into the economy and increase taxes on the rich folks that own oil stocks.
Share buy backs just allow management to pay themselves more and retain more ownership as a percentage of the companies – so that should be outlawed….
Taxing excessive profit is ludicrous. If that is the case, then the government should have been going after Microsoft a long time ago.
Oil companies are allowed to use pay-”oila” to hide technology from consumers that can decrease dependency on their product. Honda advertised a Civic years ago with 60 mpg. The ad was quickly yanked and the cars re-tooled to a much leaner 22 mpg. Why? One or more of the big oil companies, saw it and got scared so, they paid Honda to change it. What happened to the water powered car? You know the one that actually used a form of Brown’s Gas, an electricity-water fuel, HOH.? Why are vehicles increasingly sold with larger tires and wheels which lower gas mileage?
Our government’s control has been so lax for the last 30 years with the automotive and oil industries, that we and our children will be paying the price for may years to come. We are at a 236% increase so far, in just 10 years. Where will we be in the next 10?
Oil is essential to the everyday lives of all Americans. It affects our jobs, food, recreation, etc. Google is a free service. That’s the difference. The beautiful thing is, if Google was charging $5 a search, people would turn to competitors. Unless they all decide to control the market on searches and fix the prices. Hmm…..
I am totally amazed at how ignorant the general public is when it comes to basic economics and business.
When has taxing something ever made that thing cheaper?
Oil companies are making a fair profit right now but they also pay more taxes than most other businesses.
Where were the legislators when the oil companies were losing money in the 80’s and 90’s. They didn’t propose a catastrophic losses subsidy.
Who do these democrats think they are that they get to decide who makes a profit and how much of one? If ExxonMobil made trillions of dollars in profits it’s none of the governments business.
Simple economics here, corporations don’t pay taxes, their customers do. Taxes are part of the cost of doing business and those costs will be built into the cost of their products.
Many people here said that the only way to lower prices is to reduce demand. Obviously they forgot the other half of that equation. You can also reduce prices by increasing supply. The government has stopped oil companies from increasing production and won’t let them build more refineries. If the left wing kooks would just get out of the way, the real Americans could fix this in no time.
Domestic oil production is America’s best friend. As an independent oil producer we use our “obscene profits” to hire employees, offer health insurance and retirement plans, and drill more wells at over 1M each. Where were the Democrats when the oil industry was laying off employees? How long are people who never held a private sector job, dealt with regulatory agencies or made a payroll going to make decisions for the rest of us. Stand up FOR big oil, not TO big oil!
Use less? Is that really the solution? I believe that was touted as the solution to California’s energy woes during the age of ENRON. There are some things Government should regulate. More exploration and diversified energy resources should be seen as a critical national issue. Where is our “Manhattan” project on energy?
Economics 101 – invest low, when prices go up then they make a profit. If you buy a house at $100K and 5 years later the markets says it is now worth $300 K – should the government say – no, you made too much – give some back? I didnt hear from anyone who made a BIG profit 2 years ago in the housing market say – no, it is unfair. Oil companies invested years ago when crude sold for less than $30 a barrel and they made very little profit. Now that crude is $120 a barrel and they are making money on their investment (along with the fact that the US drinks oil like it is a soft drink), who is to blame? We are, not oil companies, they are just making money on their investment – economics 101 in a capitalist system.
I don’t take issue with Oil companies make profits. I have a problem with the fact that we’re in a recession as a country, and these companies are turning the BIGGEST PROFITS in world history. That’s at OUR expense.
Posted By Mark, Exton, PA …”Also, any new technologies are bought out by our oil companies to protect their profits.”…
Hey Mark, I wasn’t aware of this. Can you name a technology purchased by big oil?
Price is up because supply is down… thanks to Democrats refusing to drill or allow new refineries for the last 30 years.
Price of food is up because supply is down… thanks to Democrats burning our food for fuel.
The market works.
Big Gov already taxes big oil to the tune of three times their profit.
The tree huggers and Dems have prevented drilling for new oil and the building of refineries for 30 years. Now they are suprised that the market works decreasing supply with increasing demand = higher prices.
Lets bump the tax to $5.00 per gallon, but only for Dems.
An ‘Oil’ company is misleading label. They are energy companies. The first company to develop a viable alternative to the energy produced from oil will reap profits making todays numbers look paltry. Taxing the profits realized from American excess will squander valuable research funds and ultimately harm the US consumer. But, isn’t that what Congress is really all about? Driving down innovation all in the name of fairness?
The candidates are trying to buy votes by giving us a tax break on gas that would save us very small dollar amounts, while they should be taxing gas and oil $2 to $3 dollars per gallon and use the money to find an acceptable alternative fuel that will rid us of the use of oil. Why don’t the politicians get it? If there was an additional tax on gas and oil, the companies that are pocketing huge profits would have to lower prices or invest in future energy sources. What makes more sense?
The question that needs to be asked isn’t the profits of the big oil, it’s the bonuses these “hard working” people are paying themselves based on the record profits.
It’s clear there are no easy answers and this subject is very sensitive; however, many people have posted excellent points that when mashed together could very well solve this problem. We need to close the tax loopholes for all businesses and the superwealthy. We need to fix gas prices in relation to oil prices. No more allowing gas prices to go up when oil goes down while using the nation’s gas supply as an excuse. We should require a percentage of profits be used for R&D and require higher gas mileage standards. This would get us off to a great start.
It’s not that nothing has been done to address the oil problems in the last 7 years it’s that nothing has been done in the last 50 years that is why we are where we are.
What do I think of big oil? My next vehicle will be a plug-in hybrid designed to run on E85. However, my goal will be to run it in EV mode to and from work. At least I know we have plenty of coal in the USA as well as nuclear power to make plenty of electricity!
If the goal is to grab some cash, a windfall profits tax is a politically convenient way to do this. If the goal is to manage energy use, it would be much more effective to raise tax rates at the pump (albeit political suicide). Raising the price at the pump will eat the windfall profits as efficiently as a windfall tax and be much more effecting at reducing demand by changing driver behavior.
There are many other politically boring tax policy changes that could be pursued, including: reducing existing tax breaks for the petroleum industry, raising the royalty rates charged for extracting petroleum resources from public land, increasing tax incentives to alternative energy businesses and energy conservation activities and technologies (e.g. telecommuting, energy efficient equipment replacement). The bottom line on this is that simple painless solutions to complex problems are a fool’s gold.
USE LESS. Like so many things, if we don’t like paying big oil’s high prices, BUY LESS OF THEIR PRODUCT. Recall about ten years ago when gas was $1.39 cheap and sales of gas guzzling vehicles went up? Now it’s time for the pendulum to swing the other way, so buy less/conserve. Meanwhile, yes we need leaders to facilitate solving the energy issues of today and tomorrow. But a big oil tax will not solve anything long term…in fact it would surely be passed on to consumers. Don’t like big oil? -Then stop buying what they’re selling, or at least start using less! Think about it…
The problem with the oil companies is that they are selling a public product which means they can play hardball with the government. My question is what are they doing to lessen our dependency on foreign oil or even oil itself? Nothing at all!!! Also, any new technologies are bought out by our oil companies to protect their profits. Maybe their federal returns should be closely checked for where their money is going to. In other words tax the living daylights out of the oil companies
Wouldn’t the it be easier and make more sense to take away the tax break that oil companies are granted rather than add a new tax? The price of oil is not at this time following any market fundamentals. Oil is being used only to hedge against other economic concerns. The oil companies are making extra money only because of the fear generated by lower dollar worth worldwide, inflation concerns … I do not believe the oil companies should be penalized for making money but they should not be granted a tax benefit from the government either when the rest of us have to pay taxes on energy
As pointed out in may articles,oil company profits, while good, are not great, and are not taking advantage of anyone. Oil companies do have their faults as pointed out, esp not having or building greater capacity. 10% is a good rate of return, but not excessive.
We should not tax the companies differently than any other industry, but we should not subsidize them either. America only has itslef to blame for high gas prices. The only way to combat prices is to decrease demand. Stop buying inefficient vehicles you don’t need and live closer to where you work. Why would you selectively pick which companies make too much money?
I say we nationalize the oil companies!!! That means seize the oil production equipment and assets of the oil company, and have the government provide cheap gasoline to the taxpayers.
Taxing big oil is not going to help solve the high gas prices. They will just pass the loss down to consumers. The government needs to stay out of our business. They got enough screw ups now. Get congress to allow drilling in Alaska so long as big oil is mindfull of the envirement. Place restrictions on them for that. There’s plenty of oil up there, just go get it. Any new oil will take years to get to us anyway so they best not dilly dally around.
If we can refine our own oil, that will drop gas prices so lets get going and quit fighting about it.
Don in KY.
It worked for abortion rights activists. “keep you laws off my body”
Well, “keep you laws off my profits”
All the government would do is screw this up if they got their hands on this.
The big oil companies have been taking us for a ride, with Washington’s blessings for the last two years. If it is not the cost of oil driving up the price of gasoline, it is the supply, the direct result of a refinery system which can never manage to operate at above 88% of capacity. Since they control both of these items for the most part, they are in effect contoling both supply and demand. I think we should tax the heck out of the oil companies, and use the revenue to build a new refinery in this country!
The government could be looking for ways to get their share of the massive profits by drilling for more oil in the US. Countries like Russia and Venezuela have it right and our government is more worried about the environment (too bad that a lot of our oil and gasoline comes from places where they are more worried about making money then the environment so in the end we are indirectly hurting the environment by refusing to build refineries and drill here where we have control of the environmental standards) then taking advantage of what they have. Instead they have continued the mentality that they need to find some way to punish the oil companies for making money even though our government makes much more money and they don’t have to do anything but sit back and audit the oil companies.
The oil companies already pay 34% tax on their profits. That tax gets added into the price the consumer pays for the product.
All that happens when a business pays a tax is that the customers have to pay a bit more.
Mean profiting oil companies make on average 8 cents per gallon. This for finding, drilling, refining etc… Do some research and find out what the tax is on that same gallon of gas compared to what the Evil oil companies are getting and I think most of you will be surprised. The answer is tapping into our own resources and nuclear energy. Demand for oil is increasing in many other countries, and now is the time to act to protect ourselves from $5 or $6 a gallon gas prices.
The oil companies already pay income tax on their profits, and stock holders pay taxes on their dividends.Bottom line: Businesses really don’t pay any taxes, as they pass the cost on to consumers. If you want lower prices cut taxes.
Those complaining about the “meager” funds spent on exploration for new oil fields should perhaps consider that Congress has put most potential US oil resources off limits, and oil tyrants such as Russia and Venezuela are pushing free market companies out. Were US oil resources made available, I think we’d see exploration skyrocket, with very predictable and beneficial results.
Our oil woes are to a great extent self-inflicted. The early 1970s should have taught us plenty about the efficacy of “windfall profits” taxation.
Tax them, tax them, and tax them some more!! I’ve had enough of BIG OIL, OPEC, and everybody else that’s profiting from $3.75-$4.00 a gallon gasoline prices here in the U.S. For years they’ve grown richer and richer by raising oil prices to record levels, so I will not feel sorry for them when they get taxed heavily. In addition, get the envoronmentalists to just “SHUT UP”, so we can drill for oil in Alaska. We need to totally eliminate our dependence on foreign oil. It’s idiotic for us to not drill where the oil is. It can be done without destroying the environment. Someone needs to step up and make a decison to do this NOW. Everything that needs to be done to help Americans (who are in dire need of relief) always seems to take way too damn long!!!!!
The oil companies has been getting more than their fair share of profits. They should be taxed on excess profits.
Any tax applied to the oil companies will be passed on, directly or indirectly, to the consumer. If I were leading a corporation, my shareholders would expect me to do that and I would advocate that position. There is no magic here. It is just the right business practice for furthering profit (which is what businesses do).
To reduce oil prices requires a longer term vision. I actually think high oil and gas prices are a good thing because it places pressure on everybody (not just oil companies) to pursue alternative energy sources, more efficient vehicles, and conservation.
As alternative energy technologies are pursued the technology will become more mature and their price will drop. As that happens, oil will have to drop its price to compete for our energy dollars.
This is a long term vision and takes a long term commitment. We will only stay focused on that vision if we continue to feel the daily burden of high oil prices.
When the Federal Govdernment is making about 24 cents per gallon and the oil company’s profit in a gallon is about 8 cents, Who is really getting a windfall?
If you are looking to point a finger look no further than yourself and your spending habits. It seems this country learned nothing from the 1970’s and 80’s when we had gas lines, shortages and exorbitantly high prices (adjusted for inflation we are just back to that point now). Everyone went and bought SUV’s in the 90’s thinking bigger was better, but we forgot about lessons from the past. Now we want to tax the oil companies for our own glutinous ways, shame on America. Nothing will make the price of oil go down faster than a lack of demand and a few people using their brains. We have heard the “drill domestically” thing before and the response from the environmentalists was “we won’t see production (from ANWR as an example) until 10 years from now, so why do it.” Now, 10 years later, we are facing the consequences. Also, the laws are such that we cannot build new refineries, lets relax the laws (not to the point of stupidity, just make them competitive/comparable with other counties) and loose that “not in my back yard” mentality. Hey here is a great idea, build new refineries in the Rust Belt, those people are hurting for jobs, have skills that match up pretty well, and I bet you can convince a city on the verge of collapse like Cleveland that a few new jobs is a good thing for the economy!!!!
I do think Al Gore (the biggest hypocrite on the face of the planet) makes a valid point, we need to think about alternatives to oil, start small and progress. America is like junky hooked on oil like a drug. One of two things will have to happen: quit cold turkey or try to reduce the dependence slowly. I think option 2 is the only one, the other would lead to depression. One more thing, the Fed can quit lowering the interest rate (which is hurting the dollar and raising the oil price), I believe that a company should be entitled to it’s profits, but I also believe that if they make a bad decision it’s their problem, not the taxpayers……
Stop giving the Big Oil Companies, 1) tax credits, 2) tax loop holes, 3)put a cap and stop the free give aways to those that are so greedy. Why have they not been investing in more production, more storeage, new ways of energy instead of coating their pockets with money that the ordinary citizen could use for medical supplies, food, housing, and education. When they take away $$$$$ that cause our own people to go without food, meds, etc. and then can’t wait to give it away to foreign countries.
The United States attained its status as the wealthiest and most powerful nation in history by ensuring economic freedom and protecting property rights. To a nation of free men who value productivity as a primary virtue, inordinately large profits are something to be admired in an industry, not punished.
I find completely disgusting the notion that we should “nationalize,” “strong arm,” or “tax to death” an entire sector of our own economy (as several of the comments here have suggested). Those who want to live in a country where the Federal Government the economy, move to Cuba or China, and let us know how that works out for you.
Gas is still too cheap. The highways are still too crowded. We haven’t parked our SUV’s though perhaps we are buying a few less than before. Too many normal Americans, including liberals, have their money invested in big oil and do not even know it. Yet liberals want to punish success! If you raise taxes on oil companies you will reduce tax receipts from oil companies. That is guaranteed. Let the oil companies drill wherever there is oil while abiding by the existing environmental regulations. Go after the oil shale. Raise the mileage requirements for automobiles to 40 MPG by 2015. Mandate that all vehicles have a hybrid or equivalent capability by 2015. Build more nuclear power plants and oil refineries. Stop subsidizing biofuels. Sheer madness!
Who and the hell do people like H. Clinton think own the Oil Companies? Surprise, surprise, it is the “hard working middle class” stockholders.
This has got to be the dumbest thing I have ever heard. You tax these guys and I get to pay more at the pump because they will raise their prices to take care of the government increasing taxes.
The Government then has the money to waste on all the things they waste money on.
I, the consumer, pay higher prices so the government can collect more money. Sounds like I lose.
Please don’t bother me with the government will use the money to look into alternative fuels. These are the same idiots who have headed down the path of growing corm for ethanol. Now food prices have skyrocketed.
So anytime the government has gotten involved in fuel it has cost me more money.
I really am at a loss as to how anyone thinks this is a good idea.
The government needs to quit taking so much of my money and get out of the way.
Regards,
Frank
Public oil companies do not set the world-wide price of a barrel of oil. Taxing the public companies will only reduce their ability to compete with the truely greedy National Oil Companies like PDVSA (Venezuela), Petrobras (Brazil), Gazprom (Russia), Saudi Aramco (Saudi Arabia), etc.
Besides….if the price of gasoline is high, won’t American learn to conserve? That is a huge win for the environment.
I heard on the news that from one year to the next 1st qtr Exxon profits went from 300 million to 3 billion. That is a 1,000% increase. I beleive that is called PROFITEERING which is against the law of the land. Why aren’t Oil Co’s CEO’s and Boards held accountable?
I have a 2500 Dodge diesel which I plan
to pull my house behind it when I retire in a couple of years. I served in Vietnam and got shot at, so now I want to see why I got shot at for.
Diesel was selling for about 20-25 cents below regular unleaded less than
a year ago. I have read reports that it
cost appox. 8-10 cents more per gallon
to produce low sulfur diesel, but yet
it is now costing 45-50 cents more than
super unleaded. Do the math, PROFITEERING. I just hope I can afford
to see this nation before I go home. My
wife has already gone home, three years
ago.
Let’s windfall tax the oil companies profits. Great Idea!!!!!!!!
So then…..
1. Government receives tax. Spends tax revenue on who knows what.
2. Oil companies raise the price to compensate for the tax. Same as every other tax that has ever been initiated.
3. We pay more at the pump.
4. Go back to 1.
The “big oil” companies already pay more in corporate taxes than they make in profit. Somehow the demagogues forget to mention that little fact in all their squawking.
The politicians are the one’s primarily to blame for high gas prices – they have prevented drilling in ANWAR and the outer continental shelf and uitiziling oil shale deposits in the western U.S. The oil shale contains an estimated 3 times the total oil reserves of Saudi Arabia. There’s no reason not to use it.
Also we can lower the gas tax rate by stopping the highway trust fund money from being siphoned off for mass transit boondogles. Also we can get rid of the Davis-Bacon Act – a political giveaway to labor unions that has been inflating the cost of federal construction projects for 70 years and counting.
Simple solution. Require by law that all new automobiles sold in the US be alternate energy within 3-5 production years. Gives the makers time to switch their production lines. Then require that the price of a new, alternate energy vehicle be within the reach of the average American within 3-5 years after that. Then sit back and watch the demand drop and see if that doesn’t take care of a lot of our current issues.
All of those that want to nationalize “big oil”, do you want the governemtn to nationalize YOUR company? Would having a national oil company make things better? How profitable is the US post office vs. FEDEX? How’s the Air Traffic Controlers doing? How about that Medicare Drug Benefit?
THE GOVERNMENT IS NOT THE SOLUTION!
Once you start punishing(taxing) sucess, you remove all incentive to improve, innovate and succeed. How did the Soviet Union turn out in the late 80’s?
News flash, companies don’t pay taxes, they just pass the cost of doing business on to the comsumers. Oil companies paid more in taxes already then they made in profits. All you “educated” liberals out there better go back and take an economics class and learn the difference between profits and profit margin. The “Big Oil” companies are making so much money because WE are buying so much gas.
Tax their profits and see all of our retirement investments take a hit and see the price of gas go UP to keep their profit margin the same. You will only punish the consumer, not the “Big Oil” companies.
Oil profits are already taxed just like every other business. How much profit is excessive or too much profit? Do we really want the government to decide when a company makes too much profit and then to take that profit and redistribute it where they see fit? Doesn’t that sound like socialism? How far would we take this concept? Large companies only, family businesses, personal income? Supply and demand determine the cost of gas. The reason gas is so expensive is that we as a nation will continue to buy SUVs and gas guzzling sports cars not matter what gas costs. And we would never resort to walking, biking, or using public transportation.
I spent 25 years in the oil industry. I lost my job due to merger activity so if anything I should be hostile about ‘big oil’.
I can tell you the ‘record profit’ headline is a joke. Believe it or not, ‘big oil’ is only making 10-15% profit at a time when oil prices are over $100/bbl. My wife’s employer, a major financial institution, makes 18% profit. Most companies must have at least 10% profit to survive long term.
The problem ‘big oil’ faces is huge cost inflation, natural production decline rates and loss of rights due to nationalization of assets. Additional taxes will only serve to increase the cost of fuel and not decrease it because some production activity will become uneconomic.
The problem with prices is real and long term. American’s must understand the reality of limited resources in the face of a growing population.
I’d bet not 1% of people reading this realize that the US produces alomst 50% LESS oil today than it did in 1970. During that same time span population has increased by 50% from 200 million to 300 million.
If you want to get mad at somebody, get mad at illegal aliens. The 20,000,0000 here now increase America’s demand on foreign oil by almost 1.5 million barrels per day. Hard to believe but it is true if you do the math using per capita consumption levels.
Give big oil a choice; Windfall Profit Tax or investments in alternate energy projects like syn fuels, solar cell efficiency, solar heating, clean burning coal, etc. as a tax benefit.
Big Oil will not find their replacement unless they are strong armed into it.
There really is no reason to give tax breaks to Big Oil. Stop that, and it would almost have the same effect as a special tax on Oil Company profits anyway. I’d say that we should not single out oil companies for protection from taxation or levy a special tax on their profits. Let them pay the normal corporate tax rate and the more they make, the more that goes into the treasury anyway. Provision of incentives in the form of tax credits would be appropriate if they encourage oil companies to develop harder to get to deposits, improved processes for handling poorer grades that are harder to refine, and the development of better fuels such as cleaner burning distillates. Going a step further, it would be helpful if developed reserves on public lands paid a reasonable royalty, and the oil companies could come up with a plan that would allow minimally invasive and harm-reduced development of proven deposits in wilderness areas.
Politicians could have encouraged us to carpool with financial incentives or through tax subsidies toward car insurance premiums. Carpoolers use thier cars less because of sharing cars with riders or vice versa. Insurance companies are eerily silent on potential discounts on premiums like they do to good drivers, etc. Insurance companies bombarded car owners with pamphlets and brochures, yet I see almost nothing on carpooling incentives. I decided to drive my cars less and I called my agent about my lower annual mileage. Guess what? I got a discount. I had to ask , so why cant you, too? Silence is not exactly golden anymore these days… Silence is not expected to thrive in a democracy, right? Sure we made a lot of noise over nothing … nothing substantial because we avoid them to save the linings in our wallets…
What we need is bold and visionary leadership. We built the atomic bomb and put a man on the moon in a matter of years. Where is the similar program in alternative energy?
If you want to solve the problem and pay for it as well, raise the gas taxes $1-2 per gallon and dedicate ALL the tax money to alternative energy research. Oil will drop to $40 per barrel in a matter of weeks and we’ll be back to the same prices we’re paying at the pump right now. Too bad the politicians would never go for such a risky and necessary plan. Shame on us!
The way to solve the problem is stop the reckless speculation in the oil futures market. We need REAL regulation in that market, not the Bush-Cheney version that lets Big Oil do whatever it wants…
I am disgusted. I just read the article about a young mother who is going without food so that her 4 month old baby can eat. That is pitiful and pathetic in this country…when big oil fatcats are taking food from babies! I am reading about people being concerned for their PORTFOLIO! What about those whose portfolio consists of the change in the couch cushions??? It’s getting harder to buy food and gas. Of course, they should be taxed!
Simple Economics 101:
1)When you tax something, you get less of it.
2) When supply goes down (because of #1 above), and demand continues to rise, prices will go up.
Place windfall taxes on Big Oil and watch the price of gasoline go up … way up. And, if the politicians really get crazy with punishing Big Oil, prepare for gas shortages and gas lines again.
We need more domestic production. Like it or not, we are a petroleum based economy. Because the price of oil is so elastic, just adding the relatively small ANWR reserves to the market (5-10 billion barrels) will cause a dramatic decrease in the price of oil and gas – and reduce our dependence on foreigh sources.
The difference between taxing Microsoft (Yahoo also) for a windfall and the Oil company is the payments made by those groups. If Microsoft were paying telecoms for special favors like faster internet speed for their customers I could possibly see it.
Now with Big Oil, the oil producing nations, and foreign policy experts they give out all sorts of money to get what they want. It goes to auto makers to keep production costs down in exchange for keeping close to Congress’ low MPG standards. Then Congress is paid through Big Oil’s PACS for keeping MPG standards so low to better match up with the auto makers. This is not the same thing. Throw in the USA’s foreign policy makers propping up Oil producing nations to allow them to have a place in the global economy when a desert region has nothing else to offer and it gets worse. Make those nations invest in Solar to reduce back some of that global warming they caused while also giving them a commodity to sell. Not like they don’t have a lot of sun there.
Also, either get the USA’s auto manufacturers out of the influence of Big Oil so it can get back to making dominant autos for the global market or put politics back on the forefront to cut our addiction to Oil.
No need to tax the oil companies more than other industries, but the government should take away their tax credits, as they clearly do not need them.
Drill at home Drill at home Drill at home… We have enough for 50+ years HERE!!! As for you Socialists, that want to do in all the oil companies, who “owns” Big Oil? Look into it and you’ll find the American people, by way of mutual funds and stock. Wanna do in all those 401K’s? Wipe out all those retirement accounts? Idiots.
I don’t care if we tax profits. I will be satisfied if we remove all the tax loopholes used by all oil companies, including the lunatic depreciation allowance. These loopholes were supposed to provide incentives when prices were low, but now are just windfalls for owning oil and gas fields.
“Big Oil” already pays taxes at the legal rate. Why do they need to pay extra when Microsoft and others such as Pharmaceuticals have higher profit margins?
Put someone who actually understands economics in charge; they’ll tell you the same thing.
Exactly Mike Buksa, Americans are spoiled and when you are allowed to have it all by borrowing for it, you get bothered easy when something like gas prices increase. America will turn out the better for this as everyone will reevaluate their spending choices from now on.
We need to be careful before we go wild about slashing oil companies’ profits. Those profits feed mutual funds, retirement funds, saving account that ‘comfort’ million of citizens. Tax those dividends, and you will punish retirement accounts.
Damascus
A bought-and-paid for political structure in the United States will never do what others have done – nationalize big oil and ‘all profits to the people’.
Big oil profits should be taxed just like anything else. On the opposite end breaks should be given for alternative fuel research and capital investments to refineries.
They are raping the American people. Tax the top 5 oil companies to death, and give the next 5 a chance to do it better. They deserve NO sympathy for preying on Americans. They remind me of terrorists, except instead of causing us to fear death, they are making us fear our future.
Makes no difference, American consumers still lose. It’s pointless to even try to find an alternative fuel, because, just like oil, someone will need to profit from it.
The problem isn’t oil companies and profits, its the American mentality that we deserve oil and gas at a cheap price. In the USA, we pay a far cheaper amount and gas is taxed far below other developed nations. While other nations have improved public transportation and alternative fuels, we continued to drive our SUV’s.
Before getting emotional about profits you need to understand some basic math.
The American Way of Life relys on 27 barrels of oil per person per year.
The US is producing 5 million barrels of oil per day now down from 10 million barrels per day back in 1970.
The US is using about 22 million barrels per day which is made up of 10 million barrels per day of imported crude oil and 7 million barrels per day of imported refined products.
Alaska through the Trans Alaska Pipeline is producing about 700,000 barrels per day down from 2 million barrels per day in 1989.
ONE LAST AMAZING FACT !!!!
The 20 million illegal aliens that broke into our country without a plan and without provision for resource needs consume nearly 1.5 million barrels per day of oil which is TWICE what Alaska is producing.
THE NUMBER ONE ISSUE FACING AMERICA IS POPULATION DEMAND ON LIMITED NATURAL RESOURCES.
The idea you can reduce demand on foreign energy imports is idiotic when you add 3 million foreigners per year to US population.
That’s what you should be getting emotional about, not oil company profits.