We all have felt the pinch at the pump every time we fill up our tanks lately. Congress has been hammering home the idea that it’s all the fault of big oil companies making a profit at our expense. But the numbers don’t necessarily prove that out:
The 27 largest US energy companies forked over $48 billion in income taxes in 2004, $67 billion in 2005, and more than $90 billion in 2006 – an 87 percent increase. Since 1981, the Tax Foundation calculates, the oil industry has earned a cumulative $1.12 trillion in profits – but it paid a cumulative $1.65 trillion in taxes (add another half-trillion to account for taxes paid to foreign governments).
You can read the whole article here. It’s in The Boston Globe. I think few people (including me until now) realize just how much oil companies have to pay to do business with foreign countries that are actually allowed to drill for and sell oil. So I ask you…who’s the villain here? Is it the oil companies that raise prices just to stay in business, or is it the Congress that not only continually tries to increase already burdensome taxes, but also refuses to allow oil companies to improve and build new refineries or drill for new oil in waters and areas close to home? Something to think about at least….if you’re one who looks at all sides of an issue before making a snap decision.
For a case study in new drilling, I offer the example of Brazil:
By specializing in advanced ultra-deep offshore oil exploration, Brazil has moved from being a country dependent on Ethanol for its gasoline consumption to becoming a net exporter of oil within less than a decade.
You can read the whole article here. Less than a decade to be independent of the world market for oil needs. Can you imagine?
We’ve got naval submarines that have operated with nuclear power plants for decades with no incidents. Yet Congress refuses to allow any new plants for fear that “something” might happen. France now gets 80% of its electricity from nuclear power. Yet 60% of our power comes from coal, the evil-doer that creates so many greenhouse gasses. I am left wondering…..this democratic Congress which is SO worried about the environment insists upon continuing the use of coal vs. the building of clean, safe, greenhouse-neutral nuclear power plats…for what? Because they don’t want to be blamed for “what if”?
Nothing about any of this makes any sense. Here’s what we should do:
1. Drill offshore on the continental shelf. I get that Anwar is a political hot potato. But for God’s sake…the continental shelf…can’t they give a little to gain a lot since other countries are already there taking the oil so close to our shores? China has been drilling for oil 50 miles off Florida’s shores since 2006. Something is wrong with that whole scenario if you ask me.
2. Allow oil companies to build new refineries. If we can’t convert the oil to gas, nothing matters.
3. Build as many nuclear power plants as we can and move away from the use of coal…if you TRULY care about the environment and aren’t just saying you do for the sake of furthering your political careers.
4. STOP GOUGING THE OIL COMPANIES. Near as I can tell from all that I’ve read, currently the government makes more than three times the profit on a gallon of gas than the oil companies do (15 cents for the government vs. 4 cents for the “eveil” oil companies when you factor in foreign taxes and demestic taxes plus the cost of transporting and refining the oil). Maybe it’s just me, but I don’t think raising taxes further on big oil will solve the problem of prices at the pump. Jimmy Carter tried that and we all saw how that went.
For once…just once…I wish the Congress would get their heads out of their butts and do what’s right to save the country from crippling fuel and energy costs instead of doing what’s right for their own political careers.
At least, that’s what I think. After thinking about ALL sides and looking at the facts….what say you?