How does Failed Energy Policies Lead to Record Profits For Oil Companies?

Question

On October 30, 2006 ExxonMobil announced that “its third-quarter earnings rose to $10.49 billion, the second-largest quarterly profit ever recorded by a publicly traded U.S. company.” Royal Dutch Shell also “beat all forecasts with a 21 percent rise in underlying third-quarter profit.”
During the 2000 presidential campaign, Bush criticized the Clinton Administration for allowing U.S. imports on foreign oil to reach 56% of U.S. oil consumption. Five years after President Bush announced his energy plan, U.S. imports of foreign oil have risen to 65% of U.S. consumption.
Record profits for oil companies while Americans still face sky-high gas prices. While oil companies have received tax breaks, the pocketbooks of America's working families have been squeezed by a combination of rising energy costs and declining incomes. Why does Bush let his friends in big oil write our nation’s energy policy?

Answer 1

If Sierra Club had been successful in their suit against Dick Cheney....we might know the answer!!!!! Remember his meeting with Ken Lay....JUST before Enron's collapse and in the midst of Cali's energy crisis!

Thanks to a little duck hunting trip with Scalia...who refused to recuse himself from the case( 2 weeks before it came before the SC).

The reason why.....it's falls under national security....this administrations catch all for burying documents! It's disgraceful....especially for a govt that's supposed to be transparent.

And while I agree there are certainly national security things that NEED to remain secret....this little incident occurred before 9/11.

Answer 2

So, what's wrong with ExxonMobil having nice profits? They have record sales, too, and their net profit isn't that outrageous, being around 10% margin. (Microsoft, banks, credit companies profit margins are typically over 20%)

So, other than economic ignorance, what's driving this irrational hatred of big oil? Is it part of the irrational hatred of all things Bush?

Answer 3

My vehicle still runs on gas - it's called "supply and demand."
If you were to discover or invent a cheaper alternative, I would highly recommend that you not approach Exxon/Mobile with the idea.

I will agree 500% with your comment about tax breaks - what the hell is that all about - you earn ten and a half billion dollars in a quarter and you get TAX BREAKS !!!! Hell, if I earn ten and a half dollars I pay dearly? Go figure.

Answer 4

Simple. Inadequate supply=higher prices. Econ 101.

Answer 5

Bush let his friends in big oil write our nation's energy policy? Stop smearing Bush! The secret policy-setting meetings in Colorado were between CHENEY and energy execs.

Answer 6

Blame the speculators who drive up the gas of oil.

Answer 7

Why haven't we built any nuclear power plants in the last 25 years? As long as the environmentalists and NIMBY groups protest nuke plants the country will always be reliant on foreign oil.

Answer 8

I think record profits are proof that their policy is effective. This is what they wanted to do. They just got caught.

Answer 9

got any sources so i can check up on this?

Answer 10

They doesn't. :)