Gas Prices are going up. We all know it. They have been going up for some time now, so I don’t know where the surprise is coming in at here. In any case, Congress has recently put Big Oil under the microscope because they made a large amount of money last year. And indeed, they did! However, should we, the American Gas Buyer, be griping at them for making such large amounts of money?
My answer – no, and if you do, then you are severely uninformed. Here’s why.
Between 1977 and 2004, the oil industry’s domestic profits totaled $643 billion, after adjusting for inflation. For the same time period, [State and Federal] governments collected more than $1.34 trillion, after adjusting for inflation (link). Um, hello? If you don’t understand what I just wrote, then check out the graphic.
So who is causing the high gas prices? The government! Think about it… the oil companies actually have to work for getting that gas to you. They have to find it. Find out how to get it out of the Earth. Buy expensive equipment to drill. Have a way to obtain and hold all the oil they get. Refine it. Ship it.
And what does the government do? They see the gas truck pulling up to ExxonMobil and they slap a tax on it – a tax that is 2-3x higher than the profit that the oil company is making. BS. Pure and simple smoke screen. It is OK to cry about someone making “too much” money, but it is rude and inconsiderate to even speak about how the government is making twice as much. And for what? What is the government spending all that generated tax money on anyways? I surely don’t see it!
If you want to complain about how much the CEO and VPs are making a year, well that is a different story all together. This is about when we buy a gallon of gas, who is getting how much money. And what everyone doesn’t tell you is that the government is making more than the oil tycoons… Period.
Listen very carefully to parts 3:30-3:41.