No Oil Company Left Behind

Even though oil company revenues are up 32 percent, to $7.64 billion, last quarter, and revenues expected to be even higher next quarter amid some of the highest gas prices we have ever seen, the oil companies are still lining up to use Hurricane Katrina and Rita to push even more tax cuts.

Earlier this week groups as diverse as the American Institute of Architects and the American Petroleum Institute were freshening their requests for tax breaks and other favors. The architects changed "Katrina" to "hurricane disaster" in their pitch. [1]

The claim by the oil companies that the price hike is due to reduced production and that they have no control over the soaring prices is complete bunk.

When the average price of a gallon of regular gasoline peaked at $3.07 recently, it was partly because the nation's refineries were receiving an estimated 99 cents on each gallon sold. That was more than three times the amount they earned a year ago when regular unleaded was selling for $1.87. [2]

And it is just not the refineries who are making out like bandits either.

Companies that pump oil from the ground swept in an additional 47 cents on each gallon, a 46 percent jump over the same period. [2]

Some experts don't buy the big oil companies arguments at all

"They obviously are experiencing windfall or excess profits," Dorgan said of the big oil companies. "They are ... profiting in an extraordinary way at the expense of the American consumer."

Some environmental and consumer advocates are urging the government to lower oil-company profits in another way. They want to reduce demand for gasoline, which has been growing in recent years, by requiring vehicles to get better mileage.[2]

But conservation is usually far from the current administrations mind. While Bush has asked Americans to "take less vacations" this year, little else have been done to push conservation.

I guess with people like Cheney helping to shape energy policy, some things are likely never to happen.

"Conservation may be a sign of personal virtue, but it is not a sufficient basis for a sound, comprehensive energy policy." - Dick Cheney [3]

And I guess giving huge tax breaks to oil companies who are already raking in money hand over fist is?

1 - Lobbies Line Up For Relief Riches

2 - Who profits the most when gas prices rise

3 - White House Offers Advice on Saving Gasoline