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by RussSpencer from Atlanta

Last Post 12 hours Ago


I can understand the impulse of many Americans to grab some of the record profits the oil giants are enjoying -- some 44 billion dollars in the second quarter for the top 5 corporations; almost 12 billion for ExxonMobile alone.

But I'm not sure it's good economics.

Barack Obama has proposed a windfall profits tax to fund a $1000 emergency rebate check for families making up to 150 thousand dollars a year.

Ahh..  elect me and I'll give you money. 

Both parties love that game, and few people in that pay range would complain, I'm sure.

But here's some perspective.

ExxonMobile's profit margin is 8.5 percent, which is not excessive by the standards of other industries.

Microsoft's is almost 30 percent.

Exxon will invest 25 billion dollars this year in capital programs, and has 119 active projects to find and produce more oil and gas.

I'm no apologist for the oil companies, but OPEC and the Russians have more control over the supply.  Some suggest the US oil companies are just along for the ride as OPEC limits supplies to increase prices.

Others point out that global economic growth, especially in China and India, has fueled new demand that will not go away.

Do we deserve a share of Exxon's profits?  I'm not convinced we deserve anything, especially since most Americans did very little to conserve until $4 dollar a gallon gas made it an economic necessity.

Your thoughts?

 

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Member Comments Total Comments: 12
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drerunner read my blog
Aug 1, 2008 | 11:13 PM

Oil companies gives people the ability to get to work and fly to chicago .

Coca cola on the over hand , only makes one obese and addicted to caffeine!

Mcdonalds makes people obese and unhealthy,which then bog down our health care system.

Microsoft - I love what they've done,but over the years ,their profits have been absolutely stupid!!(high)

Google- has made so much doe,they can conveniently pay for the employee's lunches (every day) and set the place up like an amusement park! Are you kidding me?

But check it, None of those companies are under any obligations to give back to the american people - just their services.

Why are oil companies treated differently, especially when oil companies give us what WE NEED and seriously can not do without. We can ,however, do without Mcdonald's and even Microsoft to a certain degree.

I simple don't get it! That CEO, who left the stock exchange commission, got 119 million dollars and you didn't hear a peep our of congress. You don't hear them ever go after other business ,who's CEO's have a key to the -banks and pay nearly no taxes!!!!!!

There is something else going on here! DEMOCRATS WANT AMERICANS TO PAY FOR HIGHER FUEL -just that simple!!!

thatlisagirl read my blog view my photos
Aug 2, 2008 | 10:43 AM

well...I agree the gas prices have created a political platform for both sides. It is a viable problem still and has been brewing for quite some time. I agree with Russ that the fuel conservation saw real results once prices reached $4. There are several reasons for the REASON that the people kept on paying and screamed bloody murder at the 4 mark:

* many people have to commute to work long distances because the jobs that pay are not close to their own homes

* most employers will not allow telecommuting even 2 days a week because they fear control will be lost over the employee

* some people simply cannot afford to purchase a newer fuel efficient vehicle

thatlisagirl read my blog view my photos
Aug 2, 2008 | 11:04 AM

It is true that there were some people that didnt let the fuel prices affect their activities, and in fact increased the useage out of spite. And, some people still INSIST on buying brand new gas guzzling suv and trucks because they feel safer and comfortable in them.

If there is a suggestion that we created our own problem by using fuel for our needs, you must then ask why, besides amusement, we have to drive long distances to make a living. Why are companies laying off people left and right or closing shop and moving out of the country because of the heavy taxes imposed on these companies?

Its a huge, vicious and complicated circle that makes THE PEOPLE both the victim and the offender at the same time.

RussSpencer read my blog view my photos
Aug 2, 2008 | 5:10 PM

I have sympathy for people who make bad choices, because I make them all the time.

But anyone who's on a tight budget who bought a big, honking SUV to get to work should point the finger at themselves before blaming the government or the oil companies.

As for the solution, it seems to me we have to use all available sources of energy in the short term -- while the smart people among us figure out how to make wind and solar work on a large scale.

The high cost of gas may actually be a blessing in disguise in that it forces us to focus on alternatives that would have seemed prohibitively expensive not long ago.

Having said all that, I know some people are truly suffering with the high price of gas, which makes everything else more expensive as well. And, for what it's worth, I'm sorry for that.

thatlisagirl read my blog view my photos
Aug 2, 2008 | 6:03 PM

I agree. I have little sympathy for those who buy one of those gas guzzling suv and trucks.

I have a friend that a few months ago bought a dodge 1500 with a hemi and he commutes from college park to norcross every day. He complains about the gas it takes and gets mad when you ask him why he bought it when the gas prices were high....thats why I love my honda.
I bought my honda used when gas was getting up to $2.50 a gallon because I was afraid it was going to get out of hand...and it did. Lucky me. I just wish I had more foresight to get a motorcycle or scooter back when I had the money to do so.

But, the folks; like my friend- who MUST have a gas guzzling vehicle in spite of it all AND complains about the gas prices, are both the offenders and the victims. The others are ones who have a paid for vehicle and simply cannot afford a car payment and has to make-do with what they have.

drerunner read my blog
Aug 3, 2008 | 11:53 AM

It sounds to me some people (liberals enviromentalist) just dont like individuals who purchase large vehicles. What does it matter in the real sence of things? You are going to need gas either way.

It sounds every one wants to be like europeas with the funny little clown cars. We are americas ,we should be able to select diffrent things and not that of socialist countries.

What most have failed to mentioned is that the technogly is already out here for hybrids THAT BIG SUV'S can take advantage of. Many of those SUV's that you see are using that technology.

I am tired of all the lame takes on this issue to prove but nothings being done solar or wind mills -just a bunch of blah blah blah Besides ,solar isnt going to get anyone TO WORK people!!

Unless I see an electrical car in the car dealer lots in the next year or 2 , SAVE IT! This is all BOLONY about alternative cr4ap!!

This we can do this or that is geting old filled with BS! Untill you guys figure it out and get it done....

DRILL HERE AND DRILL NOW!!!!!

thatlisagirl read my blog view my photos
Aug 3, 2008 | 1:07 PM

I see your point. Did you see mine? The point is that while there are very fuel efficient cars out there, there are those who insist on buying the latest and greatest gas hog 6.0L engines that get about 15 miles to the gallon and Bitc$h incessantly about how much the fuel costs them....DUH! My friend spends $80 a week on fuel, and another spends $160 a week; both with payments to boot, and it never occured to them that they had another option when they bought those vehicles in the last year. If you just have to have an SUV, then get the hybrid...if you can afford it. You have to run the numbers with fuel and gas to see if it can be afforded. We all need to buy gas, but how much? I am all for drilling in the US, and have been for some time, but it is still imperative for consumers to be smart and work within the confines of our current economy and their own budget to make lemonade out of lemons. And, its the liberals that are blocking the topic from going to the floor now that the moratorium has been lifted from drilling on our shores, and its gonna be a fight. Almost every democrat with a position of power is against it, and they need to be voted out of office, and term limits should be put in place. But that is another subject....

trippydude read my blog
Aug 3, 2008 | 4:48 PM

Let's see Exxon-Mobil recorded the highest profit ever in recorded history that's a helluva pay raise If I'd got boosted to a higher pay grade ole unk Sam would've kicked me up a notch in the tax bracket racket, But hey that's life, then again I don't have a lobbyist that happens to be the PRESIDENT of THE UNITED STATES! or a STOCK HOLDER that happens to be the VICE PRESIDENT of the UNITED STATES! Windfall profit tax whats that gonna do umm?, give it back to the government so they can blow it on pork barrel spending or slush funds. Ye see theres no trickle down effect for this, a rebate? well guess where the three hundred bucks I got went to, my gas tank part of it anyway. Nope let the oil companies make there profits raise there prices
do there bidding, why? cause who's gonna stop 'um certainly not our do nuthin' Congress.
We're the addicts here and the're the dealers.
Like my Mom said to me about my Milk, "The faster you drink it the less you have, and pretty soon it'll be all gone, then you'll be sad." So goes the oil my friends...:(!)..trippy

drerunner read my blog
Aug 3, 2008 | 6:44 PM

I just cant get over how miserably and pessimistic many Americans have become. WHY??? We were the inventors of standard oil , mass modern transportation, Trans Atlantic Aviation,Computer technology, space exploration, defeating world fascism.

Today? Today,We have become the most pessimistic people on the planet. The BIGGEST whiners!!!! During world war one ,we increased oil production nearly 500% . We build machines that help defeated Hitler in less than 2 years!!. We changed the way the world thought, by sending a man to the moon and did it in less than 8 years!!!!!!

Many of you have completed lost it-Your will. Now we tell Americans they can't dirve a big vehicle ,because it uses more fuel (although China is buying them like they are going out of style). The reason why gas and SUVs are a problem in the good ole U.S.A. is because Democrats, eviromentalist and American pessimism has made it that way!

It's like me telling you,you cant live in a big house. It takes up too much energy, so I am going to increase your electrical energy bill by 400% to encourage you to get a two bedroom or a flat ,like that do in socialist Europe and communist china.

Here is a plan. Why don't congress start mandating a true alternative to BIG SUVS-if they dont like them !! . Investing in afordable public -fast - high tech -light rail, more sub way in cities that dont have them ,and fast speed train technology that goes in surburban areas!!.

We are the leaders of world technology ,it's a no brainier!!!!! Oh wait , that would solve the problem folks - Congress don

drerunner read my blog
Aug 3, 2008 | 6:45 PM

cont.

We are the leaders of world technology ,it's a no brainier!!!!! Oh wait , that would solve the problem folks - Congress dont want the problem solved.

I am disapointed in the seemly pessimistic and self deafeating views that has become America over the past decade after 911. 911 mentally took away the WINNING spirit and traditions from many Americans (which also have been encouraged by crazy liberals) and have made us sleep walkers and "the world is fallen " individuals. I just hope better minds will prevail and we start drilling tomorrow before it's too late......

goneforgood
Aug 4, 2008 | 2:23 PM

I agree w/u Russ. This is another Obama promise to further redistribute wealth/profits in another socialist shell game. It's a reminder of how J.Carter managed to cause a gas shortage ontop of high fuel prices and create one of the worse recessions in history. Meanwhile, people gripe about companies leaving the country and taking jobs w/them... we already have the *highest* corporate taxes in the world -higher taxes on them- will only mean higher prices for us ! The richfolk pay 40% of their income in taxes already - how much more can be called 'fair'?
The semi-rich people the democrats loathe, are the very ones who are small buisness owners- the *biggest employers* in the USA ! Wreck them and you wreck the country(create a depression out of a recession). Communist China is more capitalist then we are ! The democrats don't give a damn about high gas prices anymore than they care about fixing social security."Let the oil companies drill on the leases they already have"- the dems-H.Reid & N.Pelosi say! But hey! Why throw millions$$$ away on geological surveys, build roads to get expensive drillrigs&crews into a promising place and then if you do find what your looking for...??? Sorry, no energy production here...it's a threat to the environment! Companies are in buisness to make money not blow it on boondogle democratic catch22's ! (Now watch a blogger come on and say we can't drill our way out of this! NO- I'm not saying we don't forgo going green!).Congress won't even think about giving a solar utility company a 10yr tax break to setup a power generating plant. Democrats w

goneforgood
Aug 4, 2008 | 2:27 PM

democrats were always throwing lynch parties in the past...this oilprofits tax is just a new way of inciting a modernday lynchmob mentality.

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RussSpencer

I anchor the evening news on Fox 5 at 5, 6, and 10pm. My wife and I have 6 children, 5 girls and a boy. That sums up my life pretty neatly.

Member Since: 4/10/2007