I don't often get into largely political issues too much, but allegations of oil companies gouging their customers get old really quickly.
Beginning with Katrina, the big oil companies were under Congressional scrutiny and the targets of possible “windfall profits taxes” for all of these “excess profits.”
Now, I hear this on NPR's Marketplace on Friday: Lisa Napoli speaks with a Pasadena, CA, Hummer dealer.
- LN: “Does it scare you when you hear that Beverly Hills has $4 a gallon gas?”
- HD: “No … It's more of an alarm that the oil companies are really taking advantage of the situation.”
Come on! This would be like jewelers crying out that mining companies are taking advantage of the situation because the price of gold is north of $600/ounce. As raw materials get more expensive (like $75 oil, $600 gold, $13 silver, whatever) the derived products get more expensive. Besides, the reason that we have these resources in the first place are due to years, if not decades, of exploration, development, and research and huge capital expenditure. This costs lots of money before you get the first drop of oil or the first glint of gold.
The oil companies took the risk. A big one. Shouldn't they get the reward?
As for gas prices hitting $4/gallon in California (they're almost $3/gallon around where I am), we richly deserve far higher prices as far as I'm concerned. European nations tax their gas heavily to induce conservation; we tax it very lightly (only a little more than 40 cents a gallon). Europeans drive small, fuel efficient cars; we drive SUVs and Hummers. Other countries use gas like there is a tomorrow; we don't.
I just don't get the appeal of gas guzzlers. I think hauling kids to the park in a vehicle that weighs more than 3 1/2 tons is ridiculous. In the June, 2004, issue of National Geographic, the cover story was “The End of Cheap Oil.” Within the artidle was a picture of an H1 in all of its 10 MPG glory. The reason for owning it? Here's what the owner said:
“I know it's not fuel efficient, but I love knowing that anything I bump into, I win.”
Except a brick wall. Or a train. Or the bottom of a ravine.
Oh yeah. We richly deserve expensive gas. We need expensive gas if we're ever to wean ourselves off of it. It will get expensive whether we like it or not sooner rather than later. Wouldn't it be much better if we were prepared than if we just taxed heavily the companies that brought it to us?
What do you think?
Right on! I think it's time that some of us Americans rediscovered the bicycle. That would kill two birds with one stone, the gas problem and the fat lazy people problem.
I'm all for expensive gas; I've little sympathy for those who complain about high gas prices while driving a few blocks to the grocery store, 2 miles to work, or driving their kids to school rather than having them ride a bike.
I'm also all for gas-guzzlers, for those who can afford the expensive gas. Everyone has different priorities and, so long as the price of gas truly reflects its cost to society, it doesn't bother me one bit if one person prioritizes its use higher than someone else.
Hey, you put an oil man in the white house, you shouldn't be shocked when the price of oil and consequently gasoline hits all time highs, right? Your thinking is right in line with mine – It's silly to blame the oil companies for wanting to make money, and the real problem (if there is a problem) lies in our excessive demand.
I have a huge problem with SUVs and Hummers, and firmly believe that people should be making better fuel-efficient choices. BUT there are plenty of people out there who drive regular cars who are the ultimate victims. Oil companies, like any companies should make profit, but I sometimes think that it can't possibly be that bad to make 1.3 billion* a month instead of 1.4 billion.
*not the actual profits of an oil company… i just made up a random big amount !:D
It's very simple. Gas/oil companies will charge whatever we're willing to pay. We have a choice.
it's far too draconian, but there's a crazy part of me that wishes people's vehicles choices (and therefore, their fuel consumption) was more of a byproduct of need, rather than want (or perceived need). For instance, a single male living in a condo or small apt (with relatively few possessions) would have the option of buying/driving a compact or, possibly (with evidence of consistent need), a small pickup (e.g., a ford ranger). In contrast, large families (and/or those with clear, consistent need to haul large amounts of furniture/etc.) would be permitted to buy/drive mini-vans or SUVs or whatever monstrosity they so desire. Granted, any SWM could "buy up" by paying some type of penalty tax for the extra consumption of a finite resource. . . . but, such is a utopian/top-down world of fantasy that would never fly in a country of such staunch individuals. Still, if things keep going the way they are going, we might find that the market corrects our own stupidity for us (and leaves almost everyone driving little compacts). Whenever I'm in Europe, I'm always deeply impressed with how they have invested in mass transit infrastructure instead of building road and more roads (and the taxes you mention keep most people driving very small vehicles, if they drive at all). I have several friends in various european locales, and almost all of them get by just fine without a vehicle (and most actually find vehicles a hassle, given how outrageously costly parking/gas/etc. is in most european cities). Oh. . . and if you think about it, the U.S. spends on this money investing in short term solutions to our long-term transportation problems. . . whereas europe, though by no means perfect, has invested in long-term solutions (instead of the cheaper, quick-fix of endless consumption of a limited resource). Don't even get me started about how stupid we are for using oil in such a wasteful way, especially so considering how many amazing products we will always need those petrochemicals to produce. It's like making soda cans out of gold. . . completely moronic, wasteful, and ignorant of how many other useful/productive/profitable endeavors such a precious resource could be put towards. . . .
That's really easy to say when you have the money to CHOOSE to buy an SUV and fill it up with gas. You've got to consider people who can barely afford a vehicle at all, but NEED one to get to work and feed their families. I read an article about transportation for the poor in a Virginia paper and it's an abyssmal system in a nation that just assumes EVERYONE has cars and can drive wherever they need to. The stranded residents of New Orleans couldn't afford vehicles. What makes you think they could have filled up whatever cars they did have with gas if it cost more than it did?
Thanks everyone for your comments! Lots of good opinions.
DH, my wife sometimes has called me a little insensitive on issues like the ones you bring up — mainly that everyone has the same options that I do or that everyone has the ability to improve their situations. I agree that, although high gas prices are a drain on everyone, they're a drain on poor people the most. I also find that the people who are casting the most blame for high gas prices are the ones who can afford it even more easily than I can, and those people are members of Congress.
There are probably no good solutions. Minimum-wage earners will really be hit hard. White-collar folks who commute 40-50 miles one way will be hurting, too. They're not in danger of having their families go hungry, probably, but can they move closer to work if it's in a big city? Probably not now.
The main point is that blame-casting about high gas prices does nothing. They're there for a reason, and it's no one person's or one group's fault. Better we do something about it.
not only will it most negatively affect low income people, but think of the effect that it could have on small business owners. transport of goods, service people who have to drive from house to house, taxi drivers, etc etc will all feel the pinch when it comes to higher gas prices. and when the cost of doing business goes up, the cost of everything will start to increase so not only are you paying more for gas but you're starting to pay more for food and services as well.
and at least in europe people are paying the extra cost in taxes that will ultimately come back to them as social services. i wouldn't have such a hard time paying extra for gas if i felt like it was going to benefit our educational system or universal health care instead of merely lining the pockets of rich oil executives.
Very true, lpkitten, everything will cost more. (Nice to hear from you, by the way!)
I didn't see Congress hollering about all of the money that banks and lending institutions were making over the past few years. No "windfall profits" on all of the huge mortgage spreads that they were able to get almost effortlessly. Why are huge profits by oil companies all of a sudden so abhorrent? Reason: No one complains when all of the borrowing sprees drive home prices up, but they sure do complain a lot when they're paying twice as much to fill up. "Soak Exxon and Chevron! They're driving our gas prices up!" You don't hear "Stop making money so easy to get! I can't stand any more appreciation in my home's value!"