More on Energy Exploration

By March 9, 2007Energy

Here’s a great editorial from yesterday’s Investor’s Business Daily (IBD) entitled, “Yes, Profits Matter.” It talks about what the various energy companies do with their various profits. These profits are dubbed “obscene” by the anti-capitalist crowd, but in fact, they led to enormous exploration and more energy for us all. As long as the law of supply and demand stays in effect (don’t think the Dems can repeal that one even though they’ve tried) more energy means lower — or more stable — prices for US consumers, and less dependence on foreign sources of energy.

We’ve noted in this space before that ExxonMobil, for example, paid over twice as much in taxes in the 3d quarter of ’06 than they made in profits. They — and others in the industry — are also plowing billions into more exploration and in technology that helps find oil in places once through too remote.

Says the IBD in conclusion:

“When politicians send the taxman or regulator after profits, they do more than take money away from workers, shareholders and customers. They also endanger America’s economy and security.”

This editorial is similar to the one from The Examiner yesterday. We happen to agree with both of them.