Obscene Profits

Exxon Mobil has announced that its first quarter revenues for this year are $89 billion. This is up from $82 billion in the first quarter of 2005. Their first quarter profits have risen by 7% to $8.4 billion. This means if they do as well in the following three quarters [and there is no reason to believe they won't], then the yearly profit for the company would be $33.6 billion.

Of course, while the oil companies are making record profits, the price of gas has risen sharply. AAA of Texas says the gas prices have risen by 77 cents just in the last year. Gas prices now hover around the $3.00 a gallon mark all over this country, and most experts believe prices will continue to rise.

Exxon Mobil's spokesman, Mark Boudreaux, says, "The main factor in gasoline prices is the global oil markets." This is a ridiculous statement. If this were true, then oil company profits should go down when the price of oil goes up. A rise in the price of gas would just help to keep profits from shrinking. For instance, a rise in the price of tomatoes might mean a resturant would have to raise its prices to maintain their profit margin, but it would not result in record profits for the resturant.

These oil companies must think we are stupid to tell us that higher company expenses have resulted in record profits. Record expenses cannot result in record profits unless the oil companies have raised prices far beyond what is neccessary to cover rising expenses. This is called "price gouging". If the oil companies cannot control their greed, then it is time for the government to do so.