The profits being made by Big Oil & Gas companies right now aren’t just big. They aren’t just eye-popping. They are historical. I mean, hello, momma, look at this:
In fact, in the past decade, the top five Big Oil & Gas companies have made almost $1 TRILLION in profits.
Pretty impressive, really, particularly in light of the fact that Americans are complaining so bitterly about the high price of gas right now. But, even more impressive in light of the fact that the U.S. government continues to give subsidies to this industry. With these immense profits rolling in, the American taxpayers are providing even more cash for the coffers of these companies.
Republicans, in the meantime, are doing all they can to push through legislation to make them even more profitable by greasing the skids to oil development in sensitive areas in the USA and by making it easier to get deepwater drilling permits in the Gulf of Mexico. Why not, right? It’s not like something terribly, terribly wrong could ever happen to a deepwater oil well in the Gulf.
This is a completely absurd approach to lowering gas prices. Oil is a commodity. Any additional oil that is produced, no matter WHERE it is produced, goes into the commodities market. Unless there is a HUGE increase in the amount on that market, it will have no discernible impact on oil prices at all. In fact, if we make it cheaper to produce by giving subsidies and loosening regulations, it simply increases oil company profits without having any noticeable impact on the price of gas whatsoever. Just because it was produced here doesn’t mean it will sell here or that it will be sold cheaper here. It won’t.
Look at this chart from a couple of years ago. It shows very clearly just how much of an impact domestic oil production will have just on domestic oil consumption. The impact on global consumption and, therefore, commodity pricing, is even more infinitesimal.
Well, lately, Democrats have been (pardon me while I faint) actually talking about killing these subsidies. Even the President himself is getting out in front of this issue. For some unknown reason, they think that giving giant subsidies to wildly profitable companies when we’re facing historic budget deficits is wrong. I know, I know, what has gotten into the these lawmakers?
Want to know what ConocoPhillips’ response was? It was to call people who support this notion “unAmerican”. Seriously, if you think giving taxpayer-funded subsidies to incredibly profitable oil companies is a bad idea, you are unAmerican according to ConocoPhillips. The title of their press release was “ConocoPhillips Highlights Solid Results and Raises Concerns Over Un-American Tax Proposals at Annual Meeting of Shareholders”.
Their audacity is truly breathtaking.
If you’d like to sign Senator Kirsten Gillibrand’s petition to end this corporate welfare to five pf the most wealthy and profitable companies on the planet, you can do so HERE.
Cross-posted from Eclectablog.com.