There are no red flags here. Other than the Red Flag of Communism that wants to attach private property.
Idiots. I guess they didn't bother to notice that the ROI for the oil companies was right around 8%, which is commensurate with the ROIs of most companies, regardless of industry.
But why ruin good old-fashioned oil company bashing, right?
Fricking government is absolutely clueless on energy. They sit there and rant about the "evil" oil companies but offer "solutions" that will only exacerbate the problem. Their grandstanding only appeals to the sheeple who have no idea how economics work.
Why are the oil companies getting the poopy end of the stick here? Prices are set by the market, demand drives everything. With China and India's demand skyrocketing the price will rise. This is basic High School Economics. Why should Shell, Chevron, ect. buy high and sell low? Why should they take a loss? The solution to this problem is to develop alternatives to oil that are viable.
But Specter, and everyone else in government fails to tell the rest of the story. That as with cigarettes, Government makes more money on oil and gas than do the companies that actually make and sell the products.
There is no such thing as excessive profits.
it is just a "third way" propaganda tool.
“Will you refrain from putting in your oar?”— The Mikado
Did Ex-Spectorate say anything about the Fed AND state governments making more money on a gallon of gas than the oil companies?
A company making a profit??? Well, by golly we'd better put a stop to that! Too much profit and Americans will be living better than Europeans, and we sure can't have that, can we???
The puzzle to be investigated is that when costs go up profits are expected to go down. But when the cost of a barrel of oil is around a record high and profits are at a record high inquiring minds would like to know the economics here so their firms can do likewise.
Hey Arlen, is part of your consideration the lowering/elimination of Federal gas taxes? Limiting the states tax rates?
Let's see, Exxon makes a 9.7% return and you deem this as excessive. What is the percentage of return for the government?
"Specter, a Pennsylvania Republican, said he was shocked by the size of oil company profits, adding, "It just may be time to legislate in this field."
NO WAY! Just keep your hands off the market, Specter. Let it do its work. Meddling politicians like you only make things worse.
Now its Spector channeling Wellstone.
Oh, and a P.S. here.
Specter is also the putz who defended Ira Einhorn after he murdered Holly Maddux and stuffed her body into a trunk which he kept in his apartment for over a year. I won't forgive him for that.
Higher taxes help no one but the government. And price controls help no one at all. Take down the barriers to refinery building, and break up the conglomerate through anti-trust action when solid evidence of collusion is discovered.
Specter is trying to save the republican party. All this talk about free market capitalism vs communism isn't going to mean much if the dems sweep everything in 06 and 08 because people are pissed at oil companies.
Hopefully Specter is just talking, to placate the idiots. Just as long as he doesn't do anything, fine.
The real problem, of course, is that if they cripple the American oil companies, we will be stuck with really corrupt foreign oil companies run from Europe or Russia. Without Exxon Mobil and the other American companies, we'd really be in trouble.
Well with just about every job in construction now being done by ILLEGAL ALIENS what is the size of profits builders are making off of LEGAL Americans.
Put all together it's probably more than our LEGAL OIL comps.