The oil industry has found itself in a defensive position as prices have jumped nearly a quarter a gallon in two weeks with lawmakers now talking about taking some action. Senator Arlen Specter, Republican, said that some response has to be made to increasing anger on the part of the public. The Senate Finance Committee has announced an investigation into taxes paid by the major oil companies, calling for the Internal Revenue Service to provide the firms' tax returns. In addition, an attempt to end subsidies of energy companies that lease federal land failed.
It is claimed that oil prices remain considerably higher than a year ago because of supply disruptions, geographical and political uncertainty and restricted surplus production capacity available to the industry.
Individual gas stations, with their gas pump instability, have alienated the public, with one station selling fuel at $4.50 a gallon for Premium. An owner of a station has asserted that high rates are necessary because of the elevated cost of refueling the station's tiny gas tanks.
The driver has not escaped culpability, for his or her insistence on buying large gas-guzzling vehicles has contributed to an unprecedented consumption of fuel.
In the final analysis, while there maybe some mitigating circumstances, ExxonMobil, Chevron and ConocoPhillips, with their level of profits reaching into the billions, must assume primary responsibility for the present energy crisis. Couldn't these corporate giants be satisfied with a little less profit?
Howard Larson
Post a Comment