There is a great big stink being made about Exxon's first quarter profit. Apparently Exxon's profits hit a record $8.4 billion.
The talking heads on TV are reaching news pitches of shrill while government wanks plan ways to buy political favoritism by finding ways to punish the oil companies. (For example Pete Domenici wants to raise a tax then buy voters with a $100 gas rebate.)
Anyway, looking at Exxon's profits. A few people have noted that most of this profit was made overseas. So, while Americans buy gas from overseas, a little bit of it comes back to the US in the form of profits.
Meanwhile the rise in gas prices is spurring American people to do something that no amount of legislation could accomplish. American people are once again engaged in figuring out how to use less gas! We are conserving more, and pumping investment dollars into research for alternative fuels.
I think there is a very good argument that Exxon/Mobile is too big. There is even a good argument that it is so large that it can assert monopolistic behavior. Approval of the Exxon Mobile merger was a bad, bad, bad, bad, bad, bad, bad mistake. Maybe splitting the company in half again would be in order.
A brain dead plan like raising taxes to give everyone a tax rebate check would be stupid. Cutting the taxes on gas would also be stupid since it would stop the current trend to conservation.
Encouraging people to stop wasting fuel is the right path.
I know!!! Why not leave the car home and ride the bike. Yes. Bikes are good. Bikes are fine. They only thing better than riding a bike is walking! Imagine walking a little bit more, and driving just a little be less?
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