Encourages oil companies to use their profits wisely

"Since Exxon and Shell have recorded the largest profit margins in America’s history,"

Absolutely, 100% false.

ExxonMobil, Shell, and the rest of "Big Oil" actually have comparatively small profit margins compared to other industries. Its about 9%.

The oil companies are in business to make a profit and I support this way of doing business for many reasons. As Frank has indicated, their profit margin is not as great as many of us think.
Lets look at this situation differently, what if the oil companies told us what to do with our profits - I don't think we would like it. Also, suppose what would happen if they were to pick and choose their customers?

For a little comparrison, Google's 1st quarter profit margin was 25%. Microsoft, 28.3%.

Apple, 32.9%

IBM, 41.5%!!!

Apple is experiencing record profits. Maybe they should be slapped with a windfall profits tax.

Economics education in this country is abysmal. I would wager that if you stopped 10 people on the street and asked them to explain the difference between profit and profit margin, maybe 2 could do it. Clearly our letter writer can not.

Here is some interesting numbers...

"When Bush first ran for president in 2000, he criticized the Clinton administration for high fuel prices and said the president must "jawbone" oil producing nations and persuade them to increase production. At that time, oil was nearing $28 a barrel."

Today's close…

"Oil prices surged more than $3 Friday, shattering a previous record in a spike near $128 a barrel, as prices at the pump pushed to new highs of their own."

The LTE was obviously a kneejerk reaction to left wing talking points. If the LTE writer had done any research before writing an inflamatory letter to agitate the less informed masses.

Is gas too, yes it is.

Did President Bush or his administration do anything to bring high prices about, probably not.

Is the liberal eco friendly congress blocking oil exploration in ANWAR or off the coast of Florida, yes they are.

We can not control the amount of oil the ME countries pull out of the ground. We can't make them sale the oil to us in greater quantities, or for less money. At this point we get more oil from Canada than from the ME, and we do have a cap on the amount we pay the oil.

When Barack and Hillary made their posturing anti Nafta speeches. Canada was excited and said fine then they would be able to break the agreement and sale their oil on the open market. It was amazing how fast the liberal Democrats backpeddaled from that mistake.

Without the price control, due to a treaty, we now enjoy. Our gas would have probably crested $6 a gallon by now.

Nafta was originally proposed under Bush 41, but was enacted by Clinton. So to be fair, although NAFTA has raped our workforce, and sent millions of jobs overseas. At least it has held the price of gas down a little. Thanks Bill

Bush 41 signed the NAFTA Agreement in Dec 92, then sent it to Congress for ratification before Clinton took office. Congress ratified it and sent it to Clinton for his signature! It is a follow-up to Reagan's American Free Trade Agreement.

Ghost,

Sorry, NAFTA is not a treaty, and thus was not subject to ratification. It was a trade agreement, passed by a democrat congress and signed into law by a democrat President.

Also, how about taking a look at the letter on Thursday, " A way to fix energy crisis can be found" and posting a coherent response to the massive smack down that was put upon you.

Why, keeps you wasting energy and getting your panties in a knot! Heh, heh, heh! The Agreement was ratified by Congress and sent to Congress by Bush 41 after he and daddy Reagan made all the deals and concessions, starting with Reagan's American Free Trade Agreement right through Bush 41's NAFTA Agreement!

Ghost Dog wrote:

Bush 41 signed the NAFTA Agreement in Dec 92, then sent it to Congress for ratification before Clinton took office. Congress ratified it and sent it to Clinton for his signature! It is a follow-up to Reagan's American Free Trade Agreement.

And again Clinton is guilty as charged, good job Ghost Dog.

Ghost Dog wrote:

Why, keeps you wasting energy and getting your panties in a knot! Heh, heh, heh! The Agreement was ratified by Congress and sent to Congress by Bush 41 after he and daddy Reagan made all the deals and concessions, starting with Reagan's American Free Trade Agreement right through Bush 41's NAFTA Agreement!

All Clinton had to do was just say no,(veto).

The vote in Congress that ratified the agreement was way over the number necessary to override a veto.

Ghost Dog wrote:

The vote in Congress that ratified the agreement was way over the number necessary to override a veto.

Irrelevant