Gas Prices: Investors Business Daily Weighs In

By May 3, 2006Energy

Great editorial in yesterday’s Investor’s Business Daily on oil prices and the rush to vilify the oil companies. Some excerpts:

“For all [the efforts of the oil companies], the government proposes punishing you with a windfall profits tax after already taking 35 cents of every dollar you earn.”

“…[W]hat’s obscene is the pundits and the politicians’ own financial illiteracy, not to mention their fundamental lack of understanding about how the energy industry operates.”

“Together, the Big Three — Exxon, ConocoPhillips and Chevron — last quarter earned 8 cents on every dollar of sales. In contrast, Google, Yahoo and eBay made 19 cents on every dollar.”

But their closing paragraph is the best, if only because it so totally comports with our view:

“But don’t expect….green lobbyists to stop squawking, even as they continue to contribute to the very profits they protest by limiting the supply of oil through bans on exploration and drilling in Alaska and the outer continental shelf.”

Amen. Here’s a link to the full editorial.

Join the discussion 3 Comments

  • The energy pricing pressures have a lot more to do with the global dissension among a handfull of key world leaders. The world has never been more technologically equipped and capable of producing oil and gas. We can find it, pump it, and refine it better than any other time in history. Why? Because today’s demand was actually forseen and no surprise, and that demand is indeed being met. There is no shortage of supplies, and in fact, the US has greater reserves on hand than there were several years ago when prices were substantially lower. That aspect of the nation’s energy policy has definitely pressured prices. Now, if we start reducing (consuming) the massive reserves, companies and people will be less anxious to drill in Alaska real fast. Assuming it would still be profitable business, though, I think that responsible oil/gas companies should be permitted to drill there. What is needed is for our leaders to do a better job of leading and less squabbling. And on that note, I better get back to work

  • badger says:

    Amen is right. I’m so tired of all of the political theater going on on both sides of the aisle. Let’s open up ANWR, the Outer Continental Shelf and the Rockies and let’s stop taxing oil cos to death and then we’ll see a real reduction in pump prices.

  • twoofhearts says:

    The environmentalists truly believe that the more pain higher gas prices cause the better it is for their agenda.

    They want $6-10/gallon gas because they think this will somehow spur mass transit projects and get Americans out of their SUVs.

    I’m sure it would but it would also collapse our economy and drag the rest of the world down with us causing massive unemployment and depression.

    The enviros would rather strangle supply (no ANWR or other drilling) in an effor to force “armageddon” in the US. That is, drive up the price of oil and gas so much that we have no choice but to give them up. Thus their support of a windfall profit tax as well.