RAK
04-25-2006, 10:59 PM
http://www.citizen.org/cmep/energy_enviro_nuclear/articles.cfm?ID=13912
Skyrocketing Gasoline Prices and
Record Oil Company Profits:
No Coincidence
Update! Tyson Slocum testifies before the Senate on gasoline prices. See his testimony here.
Since George Bush became President in 2001, the top five oil companies in the United States have recorded profits of $254 billion:
ExxonMobil: $89 billion
Shell: $60.7 billion
BP: $53 billion
ChevronTexaco: $31 billion
ConocoPhillips: $20 billion
for more information, see table: "Profits, Market Share & Federal Campaign Contributions of the Top 5 Oil Refining Companies"
Many industry analysts claim that rising demand in China and India are the big reasons why the price of oil is hovering around $65 a barrel. However, they neglect to mention the role U.S. demand plays in setting global crude oil prices. Americans consume 25% of the world's oil every day (see chart comparing global oil consumption). China, the next biggest consumer, uses less than 7% of the world's oil each day. America's huge appetite for oil combined with the fact that the United States is the world's third largest producer of it (only Saudi Arabia and Russia produce more than we do) creates a strong argument that the United States holds a lot of sway over world oil prices.
The energy bill that President Bush signed this month does nothing to address the U.S. factors that are driving oil and gas prices to record highs. Congress and the White House explicitly rejected efforts to improve fuel economy standards for our cars and trucks (which account for 70% of our oil consumption) or adequately fund fossil fuel alternatives.
The oil companies don't mind. Since Bush became President, the largest five oil companies operating in the US - ExxonMobil, ChevronTexaco, ConocoPhillips, BP and Shell - have enjoyed profits of $254 billion, with ExxonMobil leading the way with profits of $89 billion.
Meanwhile, gas prices continue to go up up up - no oil company seems to be turning their profits into consumer savings. So it would seem there is a direct correlation between record prices paid by consumers and record profits enjoyed by oil companies. As Americans shell out more dollars at the pump, the profit margin by U.S. oil refiners has shot up 79% from 1999 (the year Exxon and Mobil merged) to 2004. See a breakdown of ExxonMobil's Profits here.
Does the energy bill hold these price-gougers responsible? Simply put, no. Bush's signature on the bill this month gave $6 billion in tax breaks and subsidies to oil companies. So it would seem the $52 million in campaign contributions to federal politicians by the oil industry (80% of that total going to Republicans) since 2001 has not only won the oil industry immunity from scrutiny, but has won it taxpayer dollars. This misguided energy policy keeps America on a path of continued dependence on fossil fuels and guarantees that consumers will continue paying record prices while oil companies roll in profits.
Skyrocketing Gasoline Prices and
Record Oil Company Profits:
No Coincidence
Update! Tyson Slocum testifies before the Senate on gasoline prices. See his testimony here.
Since George Bush became President in 2001, the top five oil companies in the United States have recorded profits of $254 billion:
ExxonMobil: $89 billion
Shell: $60.7 billion
BP: $53 billion
ChevronTexaco: $31 billion
ConocoPhillips: $20 billion
for more information, see table: "Profits, Market Share & Federal Campaign Contributions of the Top 5 Oil Refining Companies"
Many industry analysts claim that rising demand in China and India are the big reasons why the price of oil is hovering around $65 a barrel. However, they neglect to mention the role U.S. demand plays in setting global crude oil prices. Americans consume 25% of the world's oil every day (see chart comparing global oil consumption). China, the next biggest consumer, uses less than 7% of the world's oil each day. America's huge appetite for oil combined with the fact that the United States is the world's third largest producer of it (only Saudi Arabia and Russia produce more than we do) creates a strong argument that the United States holds a lot of sway over world oil prices.
The energy bill that President Bush signed this month does nothing to address the U.S. factors that are driving oil and gas prices to record highs. Congress and the White House explicitly rejected efforts to improve fuel economy standards for our cars and trucks (which account for 70% of our oil consumption) or adequately fund fossil fuel alternatives.
The oil companies don't mind. Since Bush became President, the largest five oil companies operating in the US - ExxonMobil, ChevronTexaco, ConocoPhillips, BP and Shell - have enjoyed profits of $254 billion, with ExxonMobil leading the way with profits of $89 billion.
Meanwhile, gas prices continue to go up up up - no oil company seems to be turning their profits into consumer savings. So it would seem there is a direct correlation between record prices paid by consumers and record profits enjoyed by oil companies. As Americans shell out more dollars at the pump, the profit margin by U.S. oil refiners has shot up 79% from 1999 (the year Exxon and Mobil merged) to 2004. See a breakdown of ExxonMobil's Profits here.
Does the energy bill hold these price-gougers responsible? Simply put, no. Bush's signature on the bill this month gave $6 billion in tax breaks and subsidies to oil companies. So it would seem the $52 million in campaign contributions to federal politicians by the oil industry (80% of that total going to Republicans) since 2001 has not only won the oil industry immunity from scrutiny, but has won it taxpayer dollars. This misguided energy policy keeps America on a path of continued dependence on fossil fuels and guarantees that consumers will continue paying record prices while oil companies roll in profits.