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Exxon Creates High Prices at the Pump.
By Mike Fak(18,246)
Posted Tuesday, March 25, 2008
View All Blog Posts submitted by Mike Fak
Energy giant Exxon has just given its annual state of the company and it should do nothing but make American consumers furious. Exxon, the most profitable company in the history of capitalism has come out with a statement that their production will not expand over the next several years. The reason for this lack of productivity increase shows just how corporate greed has overtaken the American monopolies and Exxon and the other big four oil companies are a monopoly in America.
Chairman Rex Tillerson, a ten million dollar a year executive says that increasing productivity doesn’t translate into “an acceptable investment return" and so the company doesn’t plan to increase production to help offset world shortages in oil.
Two decades ago when oil was hovering around $20 a barrel, major oil companies stated they couldn’t explore for new oil or build refineries because the price of a barrel of crude was too low. Now that it is over $100 a barrel, Exxon uses the same excuse and we let them get away with it.
The fact is Exxon converts profits into dividends and repurchases stock to make them and their major shareholders more money. Only a company that has America by the throat could get away with saying they won’t make more of what people want to buy and not have their stock plummet. Exxon by the nature of their position can simply do less and still make more money than ever because the demand will increase profit margins without them having to do any real exploration or refinery building. The future of our nation’s economy is at risk with this inaction but what do they care, they have their money.
There will be new fields developed by Exxon in the next decade. All of them will be in Russia, the Middle East and Africa with none of the oil and gas making its way back to us. None of these new ventures will help us here at home and no one in government is asking why an American corporation can make an obscene profit by allowing an oil shortage and not be required to use some of their money to alleviate that shortage. Perhaps the fact Exxon and the other huge energy companies are heavy donors to the politicians answers the question without delving any deeper.
Last year, Exxon returned a preposterous 32% on capital and that alone should bring government into examining the business practices of this corporation that cares not one iota for what they are doing to the American consumer.
The energy situation in this country has moved into the realm of thievery yet nothing is being done to find new oil reserves, refine more product or develop alternative energy supplies except ethanol which uses more energy to make than it returns.
That is the way the energy giants want it. They can control supply thus making more money than many entire countries gross domestic product and not spend a moment’s concern about what they are doing to their customers. It’s a great gig if you can get it and Exxon has a lock on getting it. All of it.
This Blog Post has been read 244 times.
Posted to ProBlogs.com on Tuesday, March 25, 2008
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