Sometimes I forget that the big oil companies are not really American companies. Sure, many of them are incorporated in the USA, but face it, these are multinational corporations, each bigger than many countries (economically, of course ... the 68 million acres they already have are only leased, not owned). So I really shouldn't be surprised that at a time when oil prices are so high and hard-working American families are trying to make ends meet, the big oil companies are sucking down some pretty obscene profits.
Sure, sure, I know, their profit margins are just middle of the road and they may only own 3% of the oil supply each, but as the punchline from that inverted old joke goes, "They make their profits with VOLUME!" These companies are so big that even middle of the road profits are record-setting.
But if they were really American companies, they would figure out ways to not only reduce our dependence on foreign oil, but also our dependence on OIL. Any oil.
Now I know we are a long way from being oil free, but it makes sense to me to put more emphasis into long-term non-oil energy than into long-term oil investments. If we continue to commit ourselves to burning as much oil (and fossil fuels, generally) as we can get out of the ground, we will commit global suicide.
It is really time for big oil and its conservative allies to become team players in America and fight for America's future. For example, at a time when their profits and the cost to consumers are so high, as a good American, they should voluntarily give up their government subsidies (without raising prices, of course). After all, proud Americans work together to overcome adversity.
But until the oil companies start acting like they are on the American team and help us reduce ALL oil consumption, stop committing us to long-term oil drilling in ever more places, and stop sucking at the government teat, I am glad we have lots of grassroots advocacy campaigns to keep the pressure on them, keep the message out there loud and clear. The more ways we apply pressure, the more effect we will have.
The newest campaign to pressure big oil and its conservative allies is ShameOnBigOil.org. By calling out politicians on the big oil dole, this campaign will help us get big oil off the government dole. It will help us focus our energy on reducing oil consumption with aggressive conservation (yes, including tune ups and inflating tires) and with the development of safe, clean, low-carbon, green energy.
ShameOnBigOil.org is a coalition founded by the Alaska Wilderness Society and Defenders of Wildlife, along with coalition partners Appalachian Voices, the Center for Biological Diversity, Clean Water Action, Clean Ocean Action, Gulf Coast Environmental Defense, Sierra Club, and The Wilderness Society.
The more ways we put pressure on this issue the better. In fact, the more we express our views about the issues that matter to us, the better. Especially when we are talking about such fundamental issues as energy and climate.
They're on the "Make as much profit as we can no matter who gets effed" team.
They're also VERY COMMITTED to making commercials about how they're "working on" alternative energy solutions but not actually working on them.
ExxonMobil - the largest investment in the federal employees' savings plan; my guess is a whole bunch of our government employees want the share price and profits of ExxonMobil and other companies where they have investments to be very healthy.
To me, it seems that the oil companies are simultaneously making a grab for the new energy market at the same time that they are trying to thwart it. Call me crazy....
The government did it with the highway system. They nationalized it, standardized and the states help pay for the upkeep through taxes. We need to do the same with energy. Some states have vast expanses that could be utilized to capture solar and wind energy. Others have waterways for to power turbines and then there's geothermal power. We haven't even begun to start looking at the possibilities.
And, imagine the economic and health benefits. What if all of a sudden your utility bills went from hundreds to tens of dollars every month? Plus, new energy means new jobs without losing a lot of old ones. And what if people no longer had to choose between eating or heating.
And because the energy would be clean, our environment would be cleaner. There would be fewer breathing problems, fewer people freezing to death in winter or dying from heat in the summer. It would save also school districts, government offices and other businesses beau coupe bucks that they could used to improve their services.
I think it would be a real win-win if the government took the lead in helping us to kick our addiction to the energy industry.
Looks like a case of "blinded by vengeance".
Am all for conservation and renewable growth . . . but when it comes to what would make Big Oil more money . . . the answer is obvious . . . capitulate to environmentalism . . . the core principle of the oil business is drilling . . . it also has been the curse . . . so, if we remove the ability for oil companies to drill . . . then the supply slowly declines and prices rise, with the oil companies benefitting.
One producer told me "Environmentalists are my best friends . . . and they don't even know it" . . . the best thing that could happen for big oil is for America to stop drilling.
Now, while the discontinuing of drilling helps big oil . . . it really hurts the US Independent driller, who drills 80%+ of the US wells.
So while we think we are taking vengeance on Big Oil . . . we become part of a paradox . . . we actually are helping big oil, while hurting the guy who really could do something.
Conservation, efficiency and continuity . . . that is where we should place our efforts and passion.
Oil as a main energy source will be obsolete within 50 years, maybe sooner if we take up Gore's 10 year plan. And that is what Big Oil really fears - an end to their obscene profits at the expense of the rest of the world.
Can't happen soon enough.
Big Oil has shown that the market will bear $4 gas. Any new production in the United States will be cheaper to produce and transport and, thus, will yield higher profit margins than foreign oil. That's Big Oil's real motivation. We need to see through this scam and make sure Congress does, too!
See you had a little trouble with that CPA exam . . . study a little, most pass it on the second round.
Let's assume we eliminate the refiner's profit entirely, cut the pipeline's profit in half and give the big bad Oil Company a maximum of a 5 % profit on each barrel produced (compare that to the profit we give Victoria Secret) . . . and for most oil companies their profit would rise!
These big oil companies are multinational . . . should we really be taxing the profit they make from producing oil in Nigeria and selling the oil to India?
Now, other than far offshore and Alaska, most of the domestic US drilling is done by independents (>80%) . . . not the "Big Oil" companies . . . for independents it is a "hit or miss" business . . . the oil industry has a habit . . . the drive for profits historically results in lower prices.
Talking about Big Oil is a diversion . . . focus on conservation, efficiency and continuity.
Do you remember the 20th century? America rose to its status as the world's foremost super power on the back of cheap energy. I challenge you to find an economist that will say that the economic growth we experienced through the 1990's, and throughtout the 20th century, had nothing to do with cheap oil.
It seems a little silly to me to sit back and talk about sacrifice for multi-national corporations that employ tens of thousands of Americans directly, millions indirectly through contract, pay $ Billions in US taxes and go after opportunities to invest capital overseas in order to bring profits and jobs back to the US that would otherwise not exist. Subsidies or no subsidies, we'd be a lot worse off without "American" oil companies.
Last I checked, America is hemorrhaging jobs and Big Oil is getting billions of dollars of our tax dollars in subsidies.
Also, last I checked, the locals in those foreign countries where American and multinational Big Oil is drilling are constantly protesting against those oil companies for human rights violations, environmental degradation and giving little back to the locals while raking in record profits for themselves.
Right now, companies are licensed by the state, most often Delaware, according to some vague phrase like "in accordance with public policy". Needing something a little clearer than that, the MBA schools have converted that to maximizing stock price, pretty much at all costs; but without breaking the law, or at least not getting caught breaking the law.
If we want companies to act differently, we'll need to change the corporate licensing structure, make it clear what we want, , and put some teeth into enforcing our new vision. This will involve making a couple of examples, which might or might not be oil companies. This is a touch process. It will take a while. But those of us on the left should probably start now. But it may be worth it, since it is not only on the left that people wonder whether multinational corporations are really good for the US.
First step, remove the designation of 'personhood' for corporations.