Gas Prices Got You Down? Oil and Gas Companies Want You to Back Them Up.
Oil and gas companies already have a pretty comfortable financial relationship with Congress, and now they're reportedly re-routing some of their money to an effort to lobby a different demographic--you, the disgruntled consumer. With gas prices sky-rocketing just in time for summer vacation, oil and gas producers are launching a multi-million-dollar campaign to appeal to voters, the Washington Post reported. As Congress debates whether to rescind billions of dollars of tax breaks for the industry and slap new taxes on it, oil producers hope voters will convince lawmakers that the pain at the pump isn't the industry's fault.
Spending a few million dollars on a public campaign is a drop in the oil barrel for an industry that has given $213.4 million to federal politicians and parties since the 1990 election cycle (75 percent of that went to Republicans) and spent $616.3 million lobbying since 1998 (making it the 8th highest spender among all industries). And as drivers are feeling increasingly pinched at the pump with no end in sight, Exxon Mobil alone reported a 1st Quarter profit of $10.89 billion.
Tawfiq,
Blaming Bush is your answer? You don't give any retort to the facts that I outlined and you just blame a guy who has no control over what the market does? Our congress has caused this problem. We started down this path when we decided to disallow more nuclear power facilities in the 70's because of a stupid movie (the china syndrome). Now, the idiot environmental extremeist policies regarding drilling and refining our own oil for the last 30 years are finally catching up with us and all you can do is point your finger at one guy? Our own policies force us to buy oil from people who don't like us and want to see us weakened. WAKE THE **** UP! Are you that much of a moron?
Those people who keep invoking the notion of demand and supply really tick me off, it's absurd it become hysteria, you fill up in the morning you drive by in the afternoon it went up 5 cents.
here is how it worked since Bush came to office in 2001, first he set the target for SDR (Strategic Petroleum Reserve) to 700 million barrel, that we already reach, then he signaled that he is not selling any from it(including during Katrina). that gives signals to the traders to keep betting it up.
over a month ago when the gas price was 2.80, there was a story that the demand was less than the supply and the price was supposed to go down 50 cents , what happened next, accident in refinery, then the price start flying up.
so all those geniuses who think they understand the demand and supply, go real little bit more about the role of the SPR.
Don't be so quick to cast judgement on oil companies. Oil companies are entitled to make a profit like everyone else. Exxon is owned mostly by small shareholders who are dependent on those stocks as part of a retirement/investment portfolio. On average they make less than a 10% profit margin on their product which is standard for any industry. They are demagogued as being "evil corporations" by the media and liberal politicians when in reality they are the heart and soul that makes America tick. Why bite the hand that feeds you?
There is no price gouging going on. High gas prices are simply a matter of supply and demand. We have not been allowed to build a new refinery in the US since the 70's. We are rarely allowed to explore for and drill for oil in the US. The prices are high because of radical environmentalist policies which limit our ability to use our own product and keep us dependent on foreign oil. Now that high gas prices are achieved by the radicals that do not want us to use oil at all they turn around and point the high gas price finger at the oil companies? The reality is that in US territories and off of our coasts we have another easy 500 years supply of oil and 1000 to 2500 years of natural gas. What we need right now is cheap American oil to keep our economy moving until alternative energy technology can meet and keep up with the demand. I am all for alternative energy, it just isn't there yet.
I hope the oil companies pursue a campaign to educate the public on what the real problem is...our own policies created by politicians who we keep putting in office.
I was reeling after reading this article. The oil companies, if they run the ads as stated, will tick me (and I would assume many many other Americans) off for absolutely and positively insulting my intelligence!!! I may have been born at night, but it wasn't last night!