It is my opinion that American oil companies are earning grouse profits. I was doing a simple search on the Internet on oil profits and I found reports of 30 percent in profit growth for oil companies since 2005. One stat was that one oil company made 89 percent profit.
Having stated the above do I believe that government at any level should start regulating oil company profits? The answer is an emphatic no. Government can only kill American economic growth by interfering with free market economy.
We may not like high gas prices. However, we do not have to purchase gas. We, the consumer can use our buying power to teach the oil companies a lesson.
The only problem is that we have become soft. Our simple lives are more important then the big picture. Sometimes we just have to take a stand. I no longer buy snickers, eat at McDonalds, or purchase anything at 7-11 convenience stores.
A harsh reality however, is that less consumption will lead to higher prices. Every business, including oil companies, practice economic forecasting. They see what they are making today, what the market may give, and decrease or increase production to meet en economic goal. Consumers not purchasing gas will interfering with their economic feasting, which means they will raise prices to in order to meet their goals.
An example of this forecasting was when the government forced auto companies to offer better mpg values. The consumer should of being saving money because they were using less gas. However, the gas companies saw that less consumption of gas meant less profit for them. Therefore, oil companies raised the price of gas.
It is my belief that we need to go gas free. The only way we can get away from oil companies grouse profiteering is to not need them at all. The oil companies can charge all they want for a gallon of gas and it won't matter if no one is buying their product.
In addition, there many alternative vehicles. One of the encouraging sings through out this gas price challenge is all the new vehicles that are "hybrid" or "hydrogen fuel cell". Yes hybrids use gas. I think hydrogen fuel cell is the way to go because it completely frees the consumer from oil campaniles.
That there is the tip of the spear. The consumer has to adapt and stop using gasoline driven engines. For one it will protect against oil company profiteering. Second, using other then gas vehicles will stop the pollution of the atmosphere.
Anyone telling you cars do not pollute is lying to you. There are many harmful toxins coming out of a gasoline vehicles tail pipe.
In closing congress was right to hold and investigation into gas prices. It is part of protecting the American citizens against being taken unfair advantage of by businesses. Second, I do believe American oil companies are taking advantage of the American consumer. Three, the consumer just has to divorce themselves from gas use. Fourth, oil companies say they need their profits for exploration and development. However, they are not doing it. The proof in that they are not exploring and developing is in the supply. If they were using their profits for development of more gas there would be more gas in the market and the price would go down. The fact that there is less gas in the market and prices are high is proof that oil company development does not work or does not exist.