Oil has hit $68 a barrel. People are upset at high prices, and oil company profits.
I used to work for an oil company -- Imperial Oil, an ExxonMobil-owned company. It was one of the most wonderful times of my life. The people who worked there were the most intelligent, ethical people I have ever worked with. The company excelled at attracting the best and the brightest (I managed to slip in, somehow). Unlike governments, they used what might be called "extreme intelligence" to ensure the supply of oil, to process it efficiently, and bring it to market.
The point is this: oil companies work extremely hard and intelligently, take enormous risks, and do a whole series of things "right" in order to make gas conveniently and reliably available to the Canadian public. For this, they make a profit of a few cents a litre. The government, on the other hand, does next to nothing beyond setting some regulatory things in place, assumes no risk, yet skims off a huge percentage of the price we pay at the pump. I would rather my money went to the oil companies, who have earned it, than the government, which has not.
And that's the way the Ball bounces.
7 comments:
Ann Coulter in her usual cynical way targeted the Hollywood celebrities who are so critical of oil companies.
She wanted the entertainers to think about how they got fuel for their private airplanes and how the cocaine that they snorted got transported.
Every time the price of gasoline goes up all the politicians go into attack mode.
Even though the price of oil is subject to the laws of supply and demand, they call in the oil company executives to grill them about their evil ways.
In fact, the government sucks in more in taxes on every litre of gasoline than the oil companies make in profits. Maybe the wrong people are on the hot-seat.
Let's call our greedy politicians to account.
Good idea, call the politicians. For what? Read the articles below. Why are all of you defending high gas prices? I don't have the luxury of taking a stagecoach to work - maybe you folks do. If gas prices simply are to be regulated by supply and demand, how about other energy like electric utilities. That way the electric company can keep raising your prices and take the rest of your money. And I'm sure all of you would keep flapping your flippers together in applause - yay, we get to give more of our money away to rich people!
http://www.herald-coaster.com/articles/2006/04/14/news/news02.txt
http://abcnews.go.com/GMA/story?id=1841989&page=1
Jumpin' Jack: the taxes on gasoline are much, much higher here in Canada than in the US.
"we get to give more of our money away to rich people!"
I have met people -- real human beings -- in the oil industry from around the world -- Europe, Asia, Australia, North and South America. Most are intelligent, hard-working, professional people. They earn their pay. They are not "rich". I also know many ordinary people who have chosen to invest in "Big Oil". These investments help pay for their retirement, so they are not a burden on society; they put bread on their table. They are not "rich".
Oil companies routinely drop $20 million or more at a shot to drill for oil; most wells come up empty. Yet they keep doing it. And the results, for society, have been spectacular. With few exceptions, a steady, reliable stream of a quality product at an affordable price.
If I had to choose between Big Oil (which you seem to hate) or Big Government (which you also seem to hate), I would choose Big Oil.
Perhaps you would prefer to see a system more like the Soviet Union's; I'm sure that the state controlled prices; removed the profit motive; and, I'm sure the results must have been wonderful for all concerned.
And oil, unlike electrical utilities is not a monopoly or near-monopoly; there's plenty of competition.
In the US, I happen to like Chevron.
Hmmm,
What I like about what you say is that it is sincere - I respect that greatly.
The oil companies are not competing, there are not enough of them. I think a breakup - similar to the situation with 'Ma Bell' a few years back is in order. I think that would help a lot with competition, which really doesn't exist. There just aren't enough of them out there for capitalism to work. We are stuck with monopolies and price fixing. Stay tuned, their greed will do them in, just look at the big fat paycheck that grub Lee Raymond got from Exxon-Mobil. Did you hear that? Not Exxon AND Mobil, but Exxon-Mobil - that is the problem here.
I don't know the situation in Canada - forgive me, but for the supply-and-demand thing to work there has to be competition. I don't see much of that here in the states.
There is an email movement going on now to boycott exclusively Exxon-Mobil to pressure them to lower their prices. I wonder how you see that in terms of the market.
Don't forget to visit my website - your comments would be greatly appreciated - I'm not interested in being right, I'm interested in finding truth. Thank you for the opportunity to discuss these issues. And thanks for your support of the U.S. - I'm with you there. I hear these people in the Canada vs. U.S. discussions and I just don't get it.
"that grub Lee Raymond got from Exxon-Mobil. Did you hear that?"
1. I really can't defend a $400 million bonus payout enthusiastically, but let me give it a try.
Think of the hundreds or thousands of executives at Exxon-Mobil who are/will be motivated to rise as high as they can in the organization, in order to achieve a similar payout. It is a motivator for many -- similar to a jackpot payout that only one actually gets.
Contrast the $400 mil to a jackpot payout. There have been large jackpots; maybe not this large. But they have been large. What does a person do to "earn" a $100 mil jackpot. Absolutely nothing. In fact, what they do is put some money in, hoping they will be able to take the money of their fellow-contributors. It is one of the most selfish, anti-social acts available in legal society.
Now, let me ask you this. Do you feel equally strong about lottery payouts, or are they "OK"?
2. Regarding a boycott of Exxon-Mobil.
From my association with Exxon, I know that they use "extreme intelligence" to analyze world conditions, world threats, in order to secure security of supply at the best available price for Americans and others.
I would respect the boycotters of Exxon-Mobil one one condition. That is, if there is an oil shortage, and Exxon-Mobil has product, that they would continue to boycott the company; that they would deny themselves oil product, out of principles.
If they would "cave", and buy the product from Exxon-Mobil, then they are not principled; they are self-interested opportunists -- exactly what they accuse Exxon-Mobil of being.
Finally, since you are obviously a nice guy and a reasonable person, I apologize for referring to you "hating" Big Oil and Big Government. Perhaps "hate" was too strong a word. Maybe dislike or distrust woudl be better.
Greed is a sin isn't it? Read this about Lee Raymond - how much is enough?
Thanks for the civilized discussion - this is the only way we can learn from one another, reshape our thoughts, and find answers that work for everyone.
http://www.americasdemocrats.org/republican_outrage.cfm
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