This week, as the first quarter financial reports have come in from America’s top oil companies such as Exxon Mobil and Chevron, presidential candidates, most notably Hillary Clinton, and other politicians, primarily Democratic, have shouted “Outrage” and clamored for as yet unspecified windfall profit taxes to be placed upon American oil companies.
In response to these cries of political posturing, the oil companies have meekly, and weakly, responded by pointing out that their profit margin is no greater than that of other U.S. industry segments. It’s frankly ironic when American industries have to apologize for making normal profits.
Windfall profit taxes on American oil companies would temporarily put billions of dollars into the coffers of the U.S. treasury but it would do nothing to recoup the billions of dollars that we are sending to Canada, Mexico, Nigeria, Venezuela or other oil producing countries. Hillary Clinton proposes spanking the hands of these countries and admonishing them for their greed.
Senator Clinton proposes using these windfall profit taxes to pay for “green industries” to reduce our dependence on oil. I think that’s great, but what is she going to do with Senator Ted Kennedy who won’t allow currently available renewable energy sources like the wind farm proposed to be constructed in Nantucket Sound to be built?
While Americans are being worked into a frenzy of outrage over the profits of oil companies, the true culprits contributing to the nearly $4 a gallon cost of gasoline like Senator Kennedy and other special interest groups are quietly sipping their mint juleps on their verandas enjoying their unspoiled scenic views.
I wholeheartedly agree with Senator Clinton for the need to increase our research and development of alternative sources of energy as well as the use of currently available technologies.
In typical lawyer fashion, Senator Clinton wants the United States to develope laws to allow the United States and it’s citizens to file suits against the offending entities such as other countries in the World Court as if, in some way, this might force OPEC to change it’s ways. How about allowing U.S. citizens to file suit against Senator Kennedy to force him to get his dead butt out of the way of the construction of the wind farm?
If anyone would take the time to look at the financials of American oil companies, they would see that the increase in net profits really aren’t that great when compared to the overall size and cost of operations of each of these companies.
American oil companies annually spend billions of dollars in foreign countries drilling for oil, refining oil products to be imported to the United States as well as for the transportation of crude oil and refined products to the U.S. while billions of gallons of crude oil and billions of metric yards of natural gas lie untouched off American shores and access to these resources are restricted from use … that is … use by us.
While we sit idly by China and Venezuela are renovating and expanding Cuba’s capacity to drill for oil and oil companies from Canada, Spain, Norway, Brazil, India and Malaysia are actively drilling for oil in Cuba both onshore and offshore in the Florida Straits. With horizontal drilling, oil rigs placed near the accepted boundaries between the United States and Cuba could actually allow the tapping of oil within U.S. territorial waters by foreign countries. Additionally, what is to stop foreign countries from drilling off the U.S. in nonterritorial waters?
So, what should be done with the windfall profits of American oil companies?
The nonsensical insanity should be stopped and these companies should be allowed to begin drilling off the continental United States and encouraged to build new refining capacity within the United States. Paradoxically, the price of crude oil would decrease, the price of gasoline would decrease and their profits would decrease … most likely in that order. And guess what, that might even create come good paying jobs for Americans … right here at home.
Unfortunately, simple solutions that make too much sense are just beyond the comprehension of American lawmakers who have too much to loose … specifically their demagoguery … by doing something sensible.
Frankly, I wouldn’t be suprised if that little pig of a Venezuelan dictator, Hugo Chavez, wasn’t throwing a few coins in the direction of some select U.S. lawmakers and environmental groups as he laughingly takes his loot to the bank … in Switzerland or the Caymans. Wasn’t there a Kennedy praising Chavez’ donations of fuel oil this past winter?
Filed under: News | Tagged: alternative energy sources, Brazil, China, Cuba, Florida Straits, green industries, Hillary Clinton, Hugo Chavez, India, Mexico, Nigeria, Oil, Senator Ted Kennedy, Venezuela, wind energy, wind farm, windfall profit taxes | 1 Comment »