So we stay dependant on oil until its gone.

Or until they make the alternatives more economical.

My only beef is based on envy. I happen to work in an industry which effectively has price controls - I can't increase what I charge to meet demand, let alone to offset the erosion of "profit" by rising fixed costs. I am untroubled by the oil companies making a profit. All I'd like is for our government to allow them to put that profit to work expanding supply. For Republicans to say we need to investigate their profits makes my skin crawl. If illegal collusion is suspected, let the Justice Department Anti-Trust Division go after them.

Just because Senators grandstand & try to make a little political hay with calls for a Senate investigation, doesn't mean there is any valid "reason" for one. Computer software is just as essential a commodity in our economy as oil, so if big profits at Big Oil are "taking advantage" of us simply because they are big, time for another bite out of MegaSoft, too. I don't mind or care that they make big profits, only how they make them.

Cheers,
Daiwa

I have a problem with the absurd amounts of money exxon made, but I have as big a problem with the suggestion that the government is somehow obliged to regulate the price.

See, the fact is, in the wake of Hurricane Katrina, the oil companies were stuck with a reduced supply (see Dr. Guy's comment in comment #3) that was unable to keep pace with the demand of the summer driving season. And the mere SUGGESTION of government mandated gas rationing would have induced SEVERE cardiac arrythmia in the liberals of this country (and that's a bad thing...HOW? ...but I digress). So, the demand needed to be curtailed somewhat. The only way to do that is to drive prices up until people stop buying.

The fact is, we in this country talk a good talk when it comes to conservation of our resources...but very few walk the walk.

Everyone can thank the BUSHCO also or did you high IQ types forget where that group makes $$$$$$ from oil. We are a nation of sheep and you what that means. Bend over and let them have their way!

Everyone can thank the BUSHCO also or did you high IQ types forget where that group makes $$$$$$ from oil. We are a nation of sheep and you what that means. Bend over and let them have their way!

I thought you hated this site?  I guess this makes you a liar as well as stupid?

I personally get the "Why doesn't Bush do anytihng about the Oil Prices?" Where in his presidental powers lies the ability to affect the market forces? Is he supposed to wave a magic wand and cause the prices to decrease? Call the President of Exxon Mobil and force them to lower their prices? What is the president supposed to do when it's Congress's job to pass laws?

Now poeple decry Congress pass a law to make the companies lower their prices. Price Caps, etc. First you have an issue of state taxes, now if you force prices to be lower, you have to also force the states to lower their taxes because you need to have a certain level of profit to be able to run a business. Having a 1.15 tax and then forcing the prices to be 1.20 will not work. The problem is now you have the government in effect acting upon market prices.

I hope gas prices hit 10.00 a gallon, you see I make big $$$$$ and this would help keep the trailer trash off the roads. Bush is my kind of guy!!!

1.) When oil was 10-15 dollars a barrel several years ago was anyone complaining that the oil companies were not making enough profit to meet demand in the future? Were they saying "we should help out the oil companies so we have oil in the future and pay an extra dime per gallon now instead of 1 dollar later"? This complaining about profits thing (which is straight out of Soviet-era economics) seems to work only one way with those who complain and revolves around envy.

2.) There is no such thing as "gouging". There is only a price an individual will pay or not pay. If an individual does not have enough funds to acquire a good/service at a certain price they label it gouging and tell their "muscle" (the Feds) to FORCE the vendor to lower the price - a Mafia style tactic. Somehow those individuals feel they have a RIGHT to determine what or how much they will trade for a certain good/service produced by someone else. COST OF PRODUCTION DOES NOT DETERMINE PRICE AND NEITHER DO PROFITS. If the Feds force someone or an entity sell something at a specific price which causes loss of capital or does not meet replacement cost, then you will have LESS participation in the market (which will cause even less supply and even higher pricing) not more. This is basically what the profit complainers are asking for and don't seem to have thought what they are asking for through all the way.

3.) How many fortune 500 companies have profit rates that exceed the 10% (approx.) rate of Ex-Mob? Over 20 (MS is a good example). Why aren't we all complaining about their profit rates and asking a 3rd party to step in and "do something about it" - maybe because the media used this issue as a distraction from other current issues and no body would really be complaining about any profits had the media not used this as a propaganda piece.

4.) Anyone complaining about "high" profits just shows complete ignorance of how a REAL business is run and has absolutley no uderstanding of what the figures being cited actually mean (9 billion profit DOES NOT EQUAL 9 billion cash to go and blow on anything the officers of the company have a fancy for). This lack of understanding/ignorance leads to completely incorrect speculation and assumptions based on fear and envy which suddenly morph into a lust for destroying or regulating to death a good employer producing a vital commodity. Lack of understanding has led to multitudes of incorrect labels and punishments over the course of history - Salem Witch Trials is a great example of labeling something people did not understand as "evil" and then coming up with punishments or corrective actions like killing the accused. Killing the accused did not benefit society and neither will "killing the accused" today by artificially limiting their profits (which have been labeled as evil for some reason).

5.) Anyone calling for ANY type of government intervention (regarding "profit" matters for private entities) is completely ignorant of what government is and how its' actions ALWAYS result (in the long run) in higher prices and less availability (Government produces absolutely nothing and consumes much - regulation of any kind creates more government that produces nothing and consumes a lot). The Feds already tried to screw with price in the '70's and ended up creating less supply and long wait times for consumers - maybe the younger people posting complaints about profits don't remember this and weren't taught about it in our Public Shcools. They certainly weren't taught Econ 101 if they are espousing government restrictions on profit at private corporations...

6.) I dont' hear very much talk about why oil and gas went up so much. Everyone seems to think that most of the increase came due to steady demand and restricted supply. While some price increase did come from that, most came from DOLLAR DEVALUATION in the world market - this tranlated directly into higher oil prices in dollars. Why is the dollar getting de-valued? The main reason is we consume more than we produce and make it up by borrowing and printing. A simple analogy would be the US as an individual has borrowed so much and written so many IOU's to neighbors, that the neighbors are now starting to figure a certain percent of ANY IOU issued in the future will not be paid back. So, the easiest thing for the neighbor to do (since you are a HUGE guy with lots of guns and asking nice) is increase the price - if the US told the neighbor they would give him 10 hours of yard-work for his chainsaw, the neighbor expects to only get half that and charges the US 20 hours of yard-work so he is sure to get what he needs. The neighbor discounted the trade-value of any US goods or services.

The same thing has taken place with oil, gas and natural gas (among other goods and services) in the real world and now, the very government that screwed and is screwing all of us by devaluation, is the one the complainers want to "fix things" so the oil companies don't have profits that are "too high".

Give me a break....

2.) There is no such thing as "gouging". There is only a price an individual will pay or not pay. If an individual does not have enough funds to acquire a good/service at a certain price they label it gouging and tell their "muscle" (the Feds) to FORCE the vendor to lower the price - a Mafia style tactic. Somehow those individuals feel they have a RIGHT to determine what or how much they will trade for a certain good/service produced by someone else. COST OF PRODUCTION DOES NOT DETERMINE PRICE AND NEITHER DO PROFITS. If the Feds force someone or an entity sell something at a specific price which causes loss of capital or does not meet replacement cost, then you will have LESS participation in the market (which will cause even less supply and even higher pricing) not more. This is basically what the profit complainers are asking for and don't seem to have thought what they are asking for through all the way.

Excellent response.  And to see the validity of this statement, look at the Supply of vacinations for children.  WHere do almost all of them come from?  Not the US.  After Hillary capped what the drug companies could charge, but not the litigation against the drug companies, all but one in the US just quit making them.  So now they are imported.

Perhaps cheap and easy gasoline is an illusion, and that these higher prices (along with all the hardships this brings to consumers) is a more accurate picture of reality?

It seems to me that Exxon is simply saying, "how badly do you want oil?" And we keep replying "really really badly!" And so Exxon keeps making a profit off of that.

And I'm perfectly happy to let them keep doing that until we decide that we either don't need oil that badly after all (which would be great), or that we need it so badly that the government should step in and take over Exxon's business (which would be not so great).

Like I said, it's our game and our rules. Exxon's just playing to win.

On another note, a lot of people seem to do a lot of complaining about how Americans are greedy, wasteful, pampered children who have no sense of responsibility and lack the maturity to manage their resources wisely.

Wouldn't a 70% increase in heating costs force these ugly Americans to grow up, learn to make hard choices, give up their wasteful and oppressive consumption of useless luxury items, and finally take the idea of resource conservation seriously?

You'd think this would be a win-win scenario for both factions: The mean, heartless conservatives are happy to let the evil free market do its evil exploitative thing. The kind, caring liberals regret that this "tough love" scenario is necessary, but thrilled that the fat, lazy, imperialists are finally getting a cold, hard dose of reality. Hopefully the shock will wake them up to their responsibilities in the world.

Honestly, I'm surprised more of you liberals aren't flocking to the Midwest right now, to take advantage of this winter's upcoming "teachable moment", to show all those red-state hicks how to survive and thrive in the grim dark future of The Day After Tomorrow.

I love this country - all you need is the Corp Media in your pocket and you can do anything and screw the people blind!!! On top of that make them believe you are doing them a favor. Fast foward 20 years and America will be a Third World country and you can take that to the BANK!!!!

BUSHCO RAPE AND RAPE SOME MORE - dabe, you crack me up.

JBoyd -

You should register & contribute more often. Well done.

Cheers,
Daiwa

I love this country - all you need is the Corp Media in your pocket and you can do anything and screw the people blind!!! On top of that make them believe you are doing them a favor. Fast foward 20 years and America will be a Third World country and you can take that to the BANK!!!!

I am not nice like Daiwa.  So I will just tell you - get a effing life!

People complain about the high profits posted by Exxon. Did the same people complain when Exxon and others were trying to convince investors to hang in there through $15 a barrel oil a few years ago? Or did people just celebrate the cheap gasoline at someone else's loss?

Ask yourself, if the government told you that you made too much money (based on how much it cost you to make a years' pay), would you be so quick to praise government intervention? ;~D

Gee, lets see, mmmmm OK when oil is $100 a barrel (next year) we should feel sorry for these poor souls at the Exxon because they hanged in there last year with a measly $60 a barrel. The government must immediately give whopping tax breaks - Wait - they already did - never mind.