Wednesday, May 21, 2008

Oil Execs On Trial Again



This time, BIG OIL has been summoned before the Judiciary Committee (of all places) to account for the results of government regulation and endless log-jambing from environmentalists. As one of the executives on this video says, the oil companies make about $0.04 per gallon in net profit. Not included on this video were comments from John Hofmeister, president of Shell Oil Co (CNN Money):

"The fundamental laws of supply and demand are at work," said Hofmeister. The market is squeezed by exporting nations managing demand for their own interest and other nations subsidizing prices to encourage economic growth."

In addition, Hofmeister said access to resources in the United States has been limited for the past 30 years. "I agree, it's not a free market," he said.

He made the point that congress could help significantly by rolling back over 40 regulations and limitations to the production of oil and gas in the U.S. High gas prices are not the result of price gouging by "greedy" oil execs but by our own government's unwillingness to uncouple itself from a run-away train wreck of environmental pseudo-science.

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