GOP sniffs political trouble in smell of oil profits
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Another JoeUser already caught the news in the last day or so about the profits reported by Exxon-Mobil, article linked here. Just under $10 billion in the 3rd quarter of the year in profits. The profits taken in -- while U.S. citizens were being told that pipelines were damaged, supplies were severely cut, and other excuses that were tossed around that were related directly to the gulf hurricanes -- in the exact same quarter that we were being fed those excuses for why we were all paying $3 and more per gallon for gasoline.
But, apparently the GOP hasn't been asleep at the switch on this issue.
On Tuesday, 25 October, there was an article in the Washington Times on just that topic. A snippet is included below.
The big question, of course, is will Hastert and friends really follow-up on this issue and get some action by the companies, or will they simply jawbone the issue a bit and let the profits slide (or worse for the GOP, let mouthpieces like Charles Schumer jawbone the issue for political gain for himself and his party)??
GOP to target Big Oil profits
By Stephen Dinan
THE WASHINGTON TIMES
October 25, 2005
House Republicans, worried about political fallout from the high-profit figures that oil companies are expected to release later this week, will demand that companies pour those profits into refining more oil for the U.S. market in order to lower prices.
At a press conference today, Republicans led by House Speaker J. Dennis Hastert will tell the companies to explain why they are making so much money and what they will do to bring down the cost of gasoline.
"Big Oil needs to do its part. Increasing capacity and improving refineries will do much to boost supplies so that consumers do not feel such a big pinch," Mr. Hastert said in prepared remarks obtained last night by The Washington Times.
"These are extraordinary times that call for extraordinary measures. We expect oil companies to do their part to help ease the pain American families are feeling from high energy prices," he said.
Oil companies begin releasing figures on their third-quarter financial performances this week, and analysts expect the major corporations to show a nearly 50 percent increase in profits from the same period in 2004.
Mr. Hastert said the companies must tell consumers when new refineries will be built, when an Alaska pipeline deal will be signed and whether companies are "doing everything they can to make sure consumers get a fair deal on energy costs."
Hastert spokesman Ron Bonjean said Republicans are also considering holding hearings to get answers from oil company executives.
Michael McKenna, a Republican strategist who lobbies on energy issues, said oil companies should look at Republicans' new stance "with the maximum amount of nervousness."
"The next stop on this train is legislation," he said. "We could go back and forth over whether that legislation is going to be successful, whether it can pass or not, whether it's constitutional. But if you're an oil company, do you want to spend the next six months talking about a windfall profits tax?
"This would be a good moment and a nice opportunity for the oil companies to step forward and do something proactive," Mr. McKenna said.
Democrats already have gone further than Republicans. Sen. Byron L. Dorgan, North Dakota Democrat, has introduced a windfall profits tax that would take 50 percent of profits from every barrel of oil sold for more than $40.
For now, Republican leaders remain opposed to that.
... more at linked article
Yup, again we see the Democrats swarming around the idea of a windfall profits tax. Hmmm, that seems familar. Didn't they try that same crap (with no real effect) back in the days of one President Jimmy Carter? Uh, yeah. And it didn't do squat back then either.
Seriously though, the oil execs better be thinking very seriously about re-investment. If they can at least argue that they are putting the profits back into their industry, they might be able to keep a good portion of the money and be able to ramp up for the future. If they don't do that, they'll have no one but themselves to blame when the profits are all taxed away and we all eventually wind up driving alternative fuel or hybrid vehicles and no long rely so heavily on the products of those oil companies."
But, apparently the GOP hasn't been asleep at the switch on this issue.
On Tuesday, 25 October, there was an article in the Washington Times on just that topic. A snippet is included below.
The big question, of course, is will Hastert and friends really follow-up on this issue and get some action by the companies, or will they simply jawbone the issue a bit and let the profits slide (or worse for the GOP, let mouthpieces like Charles Schumer jawbone the issue for political gain for himself and his party)??
GOP to target Big Oil profits
By Stephen Dinan
THE WASHINGTON TIMES
October 25, 2005
House Republicans, worried about political fallout from the high-profit figures that oil companies are expected to release later this week, will demand that companies pour those profits into refining more oil for the U.S. market in order to lower prices.
At a press conference today, Republicans led by House Speaker J. Dennis Hastert will tell the companies to explain why they are making so much money and what they will do to bring down the cost of gasoline.
"Big Oil needs to do its part. Increasing capacity and improving refineries will do much to boost supplies so that consumers do not feel such a big pinch," Mr. Hastert said in prepared remarks obtained last night by The Washington Times.
"These are extraordinary times that call for extraordinary measures. We expect oil companies to do their part to help ease the pain American families are feeling from high energy prices," he said.
Oil companies begin releasing figures on their third-quarter financial performances this week, and analysts expect the major corporations to show a nearly 50 percent increase in profits from the same period in 2004.
Mr. Hastert said the companies must tell consumers when new refineries will be built, when an Alaska pipeline deal will be signed and whether companies are "doing everything they can to make sure consumers get a fair deal on energy costs."
Hastert spokesman Ron Bonjean said Republicans are also considering holding hearings to get answers from oil company executives.
Michael McKenna, a Republican strategist who lobbies on energy issues, said oil companies should look at Republicans' new stance "with the maximum amount of nervousness."
"The next stop on this train is legislation," he said. "We could go back and forth over whether that legislation is going to be successful, whether it can pass or not, whether it's constitutional. But if you're an oil company, do you want to spend the next six months talking about a windfall profits tax?
"This would be a good moment and a nice opportunity for the oil companies to step forward and do something proactive," Mr. McKenna said.
Democrats already have gone further than Republicans. Sen. Byron L. Dorgan, North Dakota Democrat, has introduced a windfall profits tax that would take 50 percent of profits from every barrel of oil sold for more than $40.
For now, Republican leaders remain opposed to that.
... more at linked article
Yup, again we see the Democrats swarming around the idea of a windfall profits tax. Hmmm, that seems familar. Didn't they try that same crap (with no real effect) back in the days of one President Jimmy Carter? Uh, yeah. And it didn't do squat back then either.
Seriously though, the oil execs better be thinking very seriously about re-investment. If they can at least argue that they are putting the profits back into their industry, they might be able to keep a good portion of the money and be able to ramp up for the future. If they don't do that, they'll have no one but themselves to blame when the profits are all taxed away and we all eventually wind up driving alternative fuel or hybrid vehicles and no long rely so heavily on the products of those oil companies."
