Energy Part 2

JOEBIALEK · 8th June 2006, 02:48 PM

In response to the article appearing in most major newspapers across the country concerning the $8.4 billion profit reported by Exxon. Concern over profits by this oil company has brought about accusations of gouging the American consumer. According to the article, "CEOs from Exxon and its industry peers have already appeared twice at Senate hearings and were asked to justify their profits shortly after reporting them to shareholders." This has to be an American first. I have never heard of a company being called to justify it's profits. One wonders if an extension of this idea could be made to other companies in other industries as well.

Per the article, "Lawmakers believe the profits are made on the backs of consumers who are paying a national average of $2.91 a gallon - 68 cents more than last year. Exxon says a strong commodities market combined with fortuitous planning and prudent management are producing record numbers." This should make Americans ask the fundamental question: what is the difference between what a public non-profit utility company provides and what a private for-profit oil company provides? Afterall, they both sell energy to all United States citizens. The difference is that natural gas and electricity are sold in the form of a public good whereas oil is sold in the form of a private good. Accordingly, on the grounds of promoting national security, the United States Congress should convert all oil companies to utility companies. This would eliminate the windfall profits and force the oil industry to earn just enough income to cover operating expenses just as natural gas and electric utility companies are required to do. The resulting drop in gasoline prices would further stimulate the economy and lighten the energy stranglehold upon the United States by the Middle East. It would also eliminate the influence of the oil lobby. In this case, desperate times call for deliberate measures.

Grammatron · 8th June 2006, 02:52 PM

Because, as we know, government does not mess up and is very efficient. Yup.

The Central Scrutinizer · 8th June 2006, 02:53 PM

What the idiot lawmakers can't seem to grasp is that ALL profits by ALL businesses in ALL markets are made on the backs of consumers.

Are these people really that [rule8]-ing stupid?

Grammatron · 8th June 2006, 02:58 PM

Originally Posted by The Central Scrutinizer

Are these people really that [rule8]-ing stupid?

Do you want the answer to that question?

The Central Scrutinizer · 8th June 2006, 03:03 PM

Originally Posted by Grammatron

Do you want the answer to that question?

I already know the answer.

Meadmaker · 8th June 2006, 03:04 PM

What really irks me is not the profit made on the backs of the consumers, because, as scrutinizer points out, they are all made that way.

What irks me is the huge salaries made at the expense of shareholders. An increasing number of shareholders are regular people in their retirement plans. As more and more people have become "investors", the average shareholder has become easier to dupe. Everyone knows that most of us don;t have much clue about the companies we own stock in. We just throw money at mutual funds, or maybe we fancy ourselves great stock pickers because our brokerage fund showed an increased balance last month,

This creates a climate where CEOs and board members can collude to throw money at each other, and they have taken advantage of that opportunity with zeal.

Does anyone really think a CEO is worth 100 million dollars? So how does he get paid that much? Obviously, the people who pay him are idiots? And who are they? They're the people throwing money at him. That isn't the consumers. They're just buying gas. It's the shareholders.

The Central Scrutinizer · 8th June 2006, 03:05 PM

Originally Posted by Meadmaker

What irks me is the huge salaries made at the expense of shareholders.

That is the relevant point in all this.

bob_kark · 8th June 2006, 08:21 PM

good points...

JOEBIALEK · 12th July 2006, 11:02 PM

good points

8th June 2006, 02:48 PM	#1
JOEBIALEK New Blood Join Date: Jun 2005 Posts: 18	Energy Part 2 In response to the article appearing in most major newspapers across the country concerning the $8.4 billion profit reported by Exxon. Concern over profits by this oil company has brought about accusations of gouging the American consumer. According to the article, "CEOs from Exxon and its industry peers have already appeared twice at Senate hearings and were asked to justify their profits shortly after reporting them to shareholders." This has to be an American first. I have never heard of a company being called to justify it's profits. One wonders if an extension of this idea could be made to other companies in other industries as well. Per the article, "Lawmakers believe the profits are made on the backs of consumers who are paying a national average of $2.91 a gallon - 68 cents more than last year. Exxon says a strong commodities market combined with fortuitous planning and prudent management are producing record numbers." This should make Americans ask the fundamental question: what is the difference between what a public non-profit utility company provides and what a private for-profit oil company provides? Afterall, they both sell energy to all United States citizens. The difference is that natural gas and electricity are sold in the form of a public good whereas oil is sold in the form of a private good. Accordingly, on the grounds of promoting national security, the United States Congress should convert all oil companies to utility companies. This would eliminate the windfall profits and force the oil industry to earn just enough income to cover operating expenses just as natural gas and electric utility companies are required to do. The resulting drop in gasoline prices would further stimulate the economy and lighten the energy stranglehold upon the United States by the Middle East. It would also eliminate the influence of the oil lobby. In this case, desperate times call for deliberate measures.
JOEBIALEK New Blood Join Date: Jun 2005 Posts: 18

8th June 2006, 02:52 PM	#2
Grammatron Philosopher Join Date: Jul 2003 Posts: 5,446	Because, as we know, government does not mess up and is very efficient. Yup.
Grammatron Philosopher Join Date: Jul 2003 Posts: 5,446	__________________ Private Information, Do not read this!

8th June 2006, 02:53 PM	#3
The Central Scrutinizer Penultimate Amazing Pither Join Date: Dec 2001 Location: The White Zone Posts: 42,267	What the idiot lawmakers can't seem to grasp is that *ALL* profits by *ALL* businesses in *ALL* markets are made on the backs of consumers. Are these people really that [rule8]-ing stupid?
	__________________ If I see somebody with a gun on a plane? I'll kill him.

8th June 2006, 02:58 PM	#4
Grammatron Philosopher Join Date: Jul 2003 Posts: 5,446	Originally Posted by The Central Scrutinizer Are these people really that [rule8]-ing stupid? Do you want the answer to that question?
Grammatron Philosopher Join Date: Jul 2003 Posts: 5,446	__________________ Private Information, Do not read this!

8th June 2006, 03:03 PM	#5
The Central Scrutinizer Penultimate Amazing Pither Join Date: Dec 2001 Location: The White Zone Posts: 42,267	Originally Posted by Grammatron Do you want the answer to that question? I already know the answer.
	__________________ If I see somebody with a gun on a plane? I'll kill him.

8th June 2006, 03:04 PM	#6
Meadmaker Penultimate Amazing Join Date: Apr 2004 Location: Detroit suburbs Posts: 11,440	What really irks me is not the profit made on the backs of the consumers, because, as scrutinizer points out, they are all made that way. What irks me is the huge salaries made at the expense of shareholders. An increasing number of shareholders are regular people in their retirement plans. As more and more people have become "investors", the average shareholder has become easier to dupe. Everyone knows that most of us don;t have much clue about the companies we own stock in. We just throw money at mutual funds, or maybe we fancy ourselves great stock pickers because our brokerage fund showed an increased balance last month, This creates a climate where CEOs and board members can collude to throw money at each other, and they have taken advantage of that opportunity with zeal. Does anyone really think a CEO is worth 100 million dollars? So how does he get paid that much? Obviously, the people who pay him are idiots? And who are they? They're the people throwing money at him. That isn't the consumers. They're just buying gas. It's the shareholders.
	__________________ Dave "War is Peace. Freedom is slavery. Particles are waves."

8th June 2006, 03:05 PM	#7
The Central Scrutinizer Penultimate Amazing Pither Join Date: Dec 2001 Location: The White Zone Posts: 42,267	Originally Posted by Meadmaker What irks me is the huge salaries made at the expense of shareholders. *That* is the relevant point in all this.
	__________________ If I see somebody with a gun on a plane? I'll kill him.

8th June 2006, 08:21 PM	#8
bob_kark Person of Hench Join Date: Oct 2005 Location: Globalist H.Q., 25th floor, 5th room on the right. Posts: 4,098	same good points...
	__________________ "You may balk at this, but bob_kark's argument that all major world powers are controlled by a covert group of "insiders" is hopelessly flawed and totally circuitous." - Shemp

12th July 2006, 11:02 PM	#9
JOEBIALEK New Blood Join Date: Jun 2005 Posts: 18	Same good points
JOEBIALEK New Blood Join Date: Jun 2005 Posts: 18