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Friday, February 01, 2008


Corporate oil company profits

Bordering on perversion?


I don't think anyone should be surprised that Big Oil is reporting the largest ever profits for any company in U.S history. What should be disturbing though, is how much of that came at the expense of consumers.


Today, we have heard that the Canadian division of Exxon/Mobil has profited by almost 880 million dollars over the last quarter while, the parent company has captured nearly 40 billion dollars.


Great for the shareholders and, no doubt, the answer from Big Oil to the "wonderment" will be "If you want to see anything in your pocket, you should invest in your friendly, neighbourhood oil company".


Great response fellas!..


I have a problem, however...


Consumers in this country are paying an exhuberant amount of money for things like heating oil and gasoline which, I may add, is now in a "non-demand" season. The consumers in this country, particularly here in Newfoundland and Labrador, have faced the highest price for heating oil since I have been keeping records; for some ten years now, and the next heating season, barring a recession, promises more in store...


Big Oil doesn't have a problem with that...


The government of the province is left to deal with the problem and give relief to consumers who can't afford to heat themselves in what is being seen as a necessity of life. These corporate profits, in essence, have come off the backs of you and me twice, once in the form of taxation and secondly in the fact that our government has had to give something back to those in the east left to freeze in the cold-let alone the rest of the country.


Keeping in mind that the New York Mercantile Exchange deals with oil, gas, and heating oils on a day to day basis, we are yet to have the explanation as to why oil itself has tripled in prices since the heady days of 2004. Incomes have seen scant growth in the past few years and energy prices themselves have come to motor up any rate of inflation being themselves almost 300% up in costs to the consumer.


Keep in mind also that not all oil is bought at the West Texas Intermediate price that you see in the news. Most of that stuff you're burning right now comes in from places where their sell price is much lower than that we all see.


It's just that this "dark and dirty" stuff we need so badly is more representative of oil company profits than we deem...


At mine and your expense, those profits are bordering on perversion...


Regards,


George

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