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A New look on oil companies. What are your thoughts?


LET OIL COMPANIES EARN AS MUCH AS THEY WANT

by Joe McLeod
Special to the Sentinel

As gasoline prices soar higher by the minute, it seems unconscionable that oil companies are earning "record" profits. For example, ExxonMobile pulled in a whopping $10 billion in profits just in the first quarter alone; yet the average price of gas now is creeping beyond $4 a gallon. Many politicians claim that, to solve this problem, we must go after the oil companies. After all, they are the ones making these ridiculous profits while we, the consumers, are incurring additional expenses to pay for it.

But what if we looked at this issue from an entirely different perspective?

Instead of suppressing and mitigating the ability for oil companies to make money, what if we enabled them to make even more? Sounds crazy, doesn't it?

But think about it: Profit margins and lofty executive salaries do not harm anyone. Granted, it seems unfair that these companies are making out like bandits, financially, while gas prices continue to skyrocket. But if Congress tries to make it "fair" by instituting a windfall-profits tax or imposing frivolous regulations that make it harder for these companies to produce and distribute the product, WE will ultimately pay for it.

For too long we've been consumed with the notion that we must attack the oil companies because they are making too much money off the back of hard-working Americans. And by doing so, this will make gas more affordable. But out economy doesn't work that way.

Some members of Congress are foolish to believe that they can wage war on private industry without harming the middle and lower classes, who live and work beneath the umbrella of free enterprise. It is good for oil companies to make money, and a lot of it. Strong profits contribute to a healthy economy which benefits ALL of us. No, it isn't always "fair." But what if we decide to be OK with that? We need to ask ourselves, what do we want most? Do we want to "stick it" to the oil companies, or do we want cheaper fuel?

We need to encourage Congress to quit being so preoccupied with attacking the oil companies and look for "realistic" solutions to the problem.

The first and major step is for Congress to get out of the way. It must stop impeding every endeavor these private companies make to produce and refine oil. Putting more oil in the market increases the supply, which naturally brings the cost of fuel down. It's a basic law of economics; supply and demand. If, during the process, oil companies get rich, who cares? We can ALL win here. But if we keep attacking the industry that brings us the product, we will all lose.

It's time to change our thinking about this issue. We certainly have the ability to acquire more oil, build more refineries, and make the cost of gas much cheaper, without harming the environment. But we must be willing to get "real" and stop worrying about private-sector profit margins.

Published Wednesday, June 11, 2008 in the Orlando Sentinel.