Big profits show need for reform

By Eric Turner

To anyone who has driven a car in the past few months, it was not a surprise to find that oil companies posted large profits this quarter. What is surprising is how large these profits are.

Exxon Mobil became the first American company to make more than $100 billion in a single quarter, and with rumblings that prices could reach, and stay, around $3 a gallon for a long while.

Gas prices are expected to jump 61 percent in the Midwest alone this winter according to the Energy Information Administration and oil company profits figure to continue at their current profit rates.

As most Americans must make cutbacks in everyday activities and spend more on gasoline, gas companies’ CEOs get richer and richer, and despite attempts at cutting the amount of driving or switching to hybrid cars or bicycles, high gas prices continue to be a major burden on Americans.

While oil companies shouldn’t be criticized for making money – that is their intent – they do need to have some responsibility to make sure their profits to not hurt the overall global economy. High oil prices hurt oil-dependant sectors like airlines and transportation, and hurt any oil-dependent consumer – i.e., most working Americans.

Is there anything civilians can do to curb the outrageous profiteering of oil companies and drive down gas prices to acceptable levels?

Unfortunately, all the gas station boycotts in the world would do little to change the price of gas. Our only realistic hope to bring gas prices down is getting Congress to put pressure on these companies to have less emphasis on profits, and more emphasis on serving the needs of the mass public.

This may be easier said than done, however.

For the last several years, Congress and the White House have been very oil friendly. It was just last year Congress passed an energy bill that gave $14.9 billion in tax breaks and subsidies to oil companies, companies that hardly are in dire straits financially.

More pressure must be put on congress to end these tax breaks for big business, which would force companies to work harder in getting more oil on the market instead of being complacent with high gas prices.

It is believed by many that the lack of refineries is a main reason for high oil prices.

If any tax breaks are given, it should only be given to companies who build more refineries or help pay for research for newer, better energy opportunities, such as fuel cell research.

Other options include taxing expensive gas, therefore putting more money in government coffers, or forcing gas companies to help pay for subsidized gas for those who cannot afford it.

Any of these options would help give responsibility to an industry that seems to have lost many of its responsible attitudes. Yet this is only possible if congressional representatives are pressured to force change in the industry.

With Exxon Mobil’s CEO prepared to face a congressional board to explain his record profits at the expense of American financial strains, there is an opportunity to change the pro-oil attitude in Washington to an attitude supportive on consumers.

But until something changes, you might want to work on your biking skills. Gas prices could get, and remain, ugly.