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JOEBIALEK
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Registered: 06/03/05
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Energy Part 2
#5820479 - 07/04/06 03:37 PM (17 years, 10 months ago) |
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In response to the article appearing in most major newspapers across the country concerning the $8.4 billion profit reported by Exxon. Concern over profits by this oil company has brought about accusations of gouging the American consumer. According to the article, "CEOs from Exxon and its industry peers have already appeared twice at Senate hearings and were asked to justify their profits shortly after reporting them to shareholders." This has to be an American first. I have never heard of a company being called to justify it's profits. One wonders if an extension of this idea could be made to other companies in other industries as well. Per the article, "Lawmakers believe the profits are made on the backs of consumers who are paying a national average of $2.91 a gallon - 68 cents more than last year. Exxon says a strong commodities market combined with fortuitous planning and prudent management are producing record numbers." This should make Americans ask the fundamental question: what is the difference between what a public non-profit utility company provides and what a private for-profit oil company provides? Afterall, they both sell energy to all United States citizens. The difference is that natural gas and electricity are sold in the form of a public good whereas oil is sold in the form of a private good. Accordingly, on the grounds of promoting national security, the United States Congress should convert all oil companies to utility companies. This would eliminate the windfall profits and force the oil industry to earn just enough income to cover operating expenses just as natural gas and electric utility companies are required to do. The resulting drop in gasoline prices would further stimulate the economy and lighten the energy stranglehold upon the United States by the Middle East. It would also eliminate the influence of the oil lobby. In this case, desperate times call for deliberate measures.
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Trepiodos
Disgustipated


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Re: Energy Part 2 [Re: JOEBIALEK]
#5821249 - 07/04/06 07:49 PM (17 years, 10 months ago) |
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Perhaps the consumers should cut their consumption. I fail to see how those who buy Hummers, drive their kids to school bus stops and have an aversion to walking to the corner store can ignore their own culpability. I NEVER buy fuel at Exxon unless my tank is sucking fumes and it's the only station around... and I have two semi-good legs and I'm not afraid to use them.
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And as things fell apart, Nobody paid much attention... - David Byrne, '(Nothing But) Flowers' from the Talking Heads' album, 'Naked'
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JOEBIALEK
Stranger
Registered: 06/03/05
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Re: Energy Part 2 [Re: JOEBIALEK]
#5922844 - 08/01/06 07:01 PM (17 years, 9 months ago) |
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good points
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relativexistance
"beads, bees!?!?beads ....BEADS!!!"


Registered: 01/08/04
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Re: Energy Part 2 [Re: JOEBIALEK]
#5923391 - 08/01/06 09:58 PM (17 years, 9 months ago) |
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oil should be a utility. back in the gas shortage time of the 70's, 80's or whenever the shit it was, people had to wait in long lines to get provisions of gasoline where they had a limit. why cant they do that now?
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zorbman
blarrr


Registered: 06/04/04
Posts: 5,952
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Re: Energy Part 2 [Re: JOEBIALEK]
#5924379 - 08/02/06 03:47 AM (17 years, 9 months ago) |
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The average American will do anything to deny his own culpability in this (soon-to-be) crisis.
Seems many have forgotten something called the Law of Supply and Demand. And of course the oil companies don't set the oil and gas prices, futures traders perform that function.
-------------------- “The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.” -- Rudiger Dornbusch
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zappaisgod
horrid asshole

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Quote:
relativexistance said: oil should be a utility. back in the gas shortage time of the 70's, 80's or whenever the shit it was, people had to wait in long lines to get provisions of gasoline where they had a limit. why cant they do that now?
That is your idea of the good old days?
"The public -- as it does today -- wanted low prices. But the artificially depressed pump prices imposed during the oil crisis of 1973 -- which stayed in place in various iterations through 1980 -- brought about lines at gas stations and an artificial shortage of gas, he said. The price controls resulted in a fuel-rationing system that made available about 5 percent less oil than was consumed before the controls. Consumers scrambled and sat in lines to ensure they weren't left without. Gas stations found they only had to stay open a few hours a day to empty out their tanks. Because they could not raise prices, they closed down after selling out their gas to hold down their labor and operating costs, Mr. Sowell said. The shutdown of stations that had been open at all hours before price controls further raised the public's panic level and resulted in more lines, anger and frustration in what many Americans still remember as one of the nation's worst economic nightmares."
http://www.washingtontimes.com/business/20060515-122820-6110r.htm
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