As a person who was forced to pay those ridculous prices for gas this summer, I can only say that I felt that I was ripped off especially when I see the profits that the oil companies had made in the same period. yes, gas is a commodity and a staple for the American people, but to take advantage of everyday people because of a natural disaster that didn't really cause them much harm is totally wrong. Their profits should be put into alternate energency sources and dvelopment but we don't know if that will ever happen, those of us who have to drive to work everyday to earn the money to pay for the gas that the oil companies made the huge profits on, should be given some sort of rebates or considerably lower gas prices for awhile to make up the difference.
The "Pros" of reinvesting profits in R&D are self evident; long term economic and ecological benefits, steady returns to share holders over time, a smoother transition from petrol based to ???-based economic models.
The big "Con" is that the current generation of executives would have to forgo personal economic benefit of HUGE short term profits. If only you were an oil company executive.
One big issue regarding the oil profits is that when the oil companies raised prices on gas, it was on gas that not only had already been refined, was not only already sitting in storage tanks, but was already under the ground at stations to be pumped out by consumers. At that point, it has nothing to do with world market prices because it's already been paid for. They were selling gas to consumers at a far higher rate than they paid for the oil and for refining it.
I'm all for capitalism, and I am not offended by the profit motive, but not when it's done in such a dishonest manner.
Big oil made the largest quarterly profits in USA history during the 3rd quarter. Clearly they engaged in crisis profiteering. They took advantage of the nation when it was hurting.
Besides, it's hard to take the word of oil execs who didn't have to be sworn in when they gave their congressional testimony. If we testified in Congress, we would have to be sworn in. But not big oil. Why should we believe them?
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