Record Year for Oil Companies

Tuesday, January 31, 2006

If you live here in the Northeast, then I don't have to tell you about rising home heating costs and gasoline prices. You may find it comforting that not everyone is feeling the squeeze however. On Monday Exxon Mobil set new United States records for annual and quarterly profits. The company reported a net income for the fourth quarter of $10.7 billion and a yearly net income of $36.1 billion. Nice to know that when Americans families are struggling across the country Exxon and the other top oil companies are recording record years.

Of course some of this is simple supply and demand. There is less and less oil in the ground so the price of the available oil is going to go up. That much does make sense. One would be a fool however not to see that the Bush administration has also played a huge role in the record profits of oil companies. Tax breaks and lax energy laws have allowed these companies to wield unlimited power.

The situation will get much worse. Within the next 5-10 years we will be on the downslide. This is to say that there will no longer be as much oil in underground reserves. You cannot completely drain an oil well. There becomes a point in the life of a well when it starts to cost more money for the company to extract the oil from the earth than the company makes on the sale of a barrel.

Iraq is and always has been about one thing and one thing only....oil. This trend will also continue in the years to come as the United States fans out over the globe in an effort to control the remaining reserves. If this is not the case then explain Iraq? Explain what we are doing building new military bases across the oil rich regions of Africa. Why do you think President Chavez and Venezuela are public enemy #1.

Despite the smoke and mirrors, this administration constantly distracts us with. We are entering a new era. No longer will we fight wars for political or ideological differences. We have now started and will continue to fight wars based on control of the last strongholds of natural resources.


Meanwhile, Americans react passively, continue to buy SUVs, concentrate on deciding the next America's Idol, and generally sleepwalk through it all.

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