Big Oil Getting Bigger, Richer And America Getting Poorer

From Craig's Thought's Theories and Tantrums

The Boston Herald reports that Exxon will post a $10 billion profit this quarter.

Oil companies came under new fire yesterday when it emerged that ExxonMobil’s profits are likely to soar above $10 billion this quarter on the back of the fuel crisis.
That’s $110 million a day, and more net income than any company has ever made in a quarter. It’s also a stunning 69 percent increase over the same period a year ago and a 34 percent jump from the $7.6 billion Exxon made just last quarter.
“Do you realize President Bush has just given a tax break to ExxonMobil?'’ thundered Rep. Ed Markey (D-Malden). “Of all the companies in the history of the world that needed a tax break, this month, ExxonMobil should be at the bottom of the list.'’

That’s right, Exxon is posting earnings greater than any company in one quarter, ever. Yet prices keep going up and the President and Congress think they need “incentives” to increase production and refining capacity. They don’t need incentives they just need to do it. They have the damn money. How about investing in the future and not gouging the public?

They key is at the end of the article where Jacques Rousseau says what I have been saying for a while:

Jacques Rousseau, energy analyst at investment bank FBR, yesterday explained that most of the extra money that consumers are paying for gasoline is going straight through to the big companies’ bottom line.
The reason? Prices are soaring because of perceived shortages while the cost of producing the gasoline is little changed.

Percieved is the essential word here. People are paying more because they are afraid that there is a shortage. Instead of supply and demand laws, it is artificial idea of supply and demand. Maybe the media could help us out and do some more reporting, you know the old type with investigative journalism and all.