Tuesday, April 1, 2008

Cooking With Gas: Congress Grills Oil Companies


Photo from source, My Way

OK, right up front, I'm going to admit that I don't understand high finance. No matter how many times the stock market is explained to me, I still don't get it. The same goes for oil and gasoline prices.

Why does the price of unrefined oil today make the price of the (already refined, already trucked) fuel at the gas station go up immediately? What the hell does "supply and demand" have to do with anything, unless we're (currently) running short of it? The price goes up during the summer, because "demand is up." What does the demand have to do with the price? Did somebody run out? Or is it as I suspect, because they can?

And if the price at the pump is necessary because of oil prices, refining, trucking, etc., why are the oil companies making record profits? And that's no exaggeration. They're making more profit than any company--ever--in all of human history! So, good for Congress for at least making them squirm a little.

[Excerpt]

Congress Presses Oil Execs on High Prices

Top executives of the five biggest U.S. oil companies were pressed Tuesday to explain the soaring fuel prices amid huge industry profits and why they weren't investing more to develop renewable energy source such as wind and solar.

The executives, peppered with questions from skeptical lawmakers, said they understood that high energy costs are hurting consumers, but deflected blame, arguing that their profits - $123 billion last year - were in line with other industries. . .

Read more at: My Way

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