Gas prices soared because of Big Oil's greed
S E E D E D C O N T E N T
Jeff Bezos criticizing the White House for criticizing Big Oil's effect on gas prices.
Jeff Bezos
@JeffBezos
· Jul 2
Ouch. Inflation is far too important a problem for the White House to keep making statements like this. It’s either straight ahead misdirection or a deep misunderstanding of basic market dynamics. twitter.com/POTUS/status/1
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@GunnelsWarren
June 2, 2014 Oil: $104.88 a barrel Gas: $3.69 a gallon Exxon's quarterly profit: $8.8 billion
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July 3, 2022 Oil: $108.43 a barrel Gas Price: $4.81 a gallon Exxon's quarterly profit: $16 billion+
Ouch. Gas prices soared because of Big Oil's greed. We need a windfall profits tax.
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'The problem is corporate greed, boss': Bezos blasted for defense of price-gouging
Jon Queally, Common Dreams 3-4 minutes 7/5/2022
Progressives ripped billionaire Jeff Bezos for his latest defense of corporate profiteering over the weekend in which the Amazon founder and world's second-richest person criticized a call by President Joe Biden for oil companies to lower the price of gasoline.
On Saturday, Bezos accused President Joe Biden of "misdirection" and ignorance "of basic market dynamic" in response to a tweet from the president which called on companies setting gasoline prices to "bring down the price you are charging."
While Bezos' comment sparked a sharp response from White House press secretary Karine Jean-Pierre—who said pump prices remaining constant despite a steep drop in crude oil prices isn't "basic market dynamics" but rather "a market that is failing the American consumer"—progressive critics also jumped into the fray.
Warren Gunnels, a longtime aide of Sen. Bernie Sanders and who currently serves as the Majority Staff Director for the U.S. Senate Budget Committee, responded to the back-and-forth between the White House and Bezos by offering a comparative rundown between the current price of gasoline and what it was in 2014:
"Ouch," said Gunnels, mocking Bezos. "Gas prices soared because of Big Oil's greed. We need a windfall profits tax."
In an earlier response, Gunnels pointed out the massive profits Amazon has enjoyed during the pandemic even as the retail raised prices for its consumers and launched an aggressive anti-union campaign against company employees organizing for better wages and working conditions.
"Ouch," tweeted Gunnels. "Amazon falsely blamed inflation on a 17% price hike on a Prime membership after its profit skyrocketed 453% since the pandemic while avoiding $5 billion in taxes, paying union busters $375 an hour and denying workers paid sick leave. The problem is corporate greed, boss."
In May, an analysis detailed how large oil and gas companies have used soaring profits—up 155% in the first quarter of 2022 compared to the year previous—to reward their shareholders and executives instead of offering relief to consumers.
As Common Dreams reported Sunday, such soaring profits by oil giants like Exxon Mobil have bolstered the continued call for a windfall profits tax—the revenue of which would be returned to consumers as a way to reduce the pain experienced at the pump. So far, the Biden administration has not aggressively embraced that progressive demand.
Economist Richard D. Wolff, professor of economics emeritus at the University of Massachusetts at Amherst, suggested Gunnels had it right.
"Bezos scared," Wolff responded on social media. "If supply less than demand markets raise prices (so too suppliers' profits). Oil suppliers know, use that. Gov't could cut prices, take over oil suppliers. Bezos fears same applies to Amazon 'services.' So wants to stop discussion."
John, do you bitch about Apple's profits, Amazon's profits, Google's profits?
In 2013 crude oil hit $118. a barrel. The price at the pump? $3.53.
Today's price: $113 a barrel and at the cheap gas place here in Sacramento? $5.79.
It's not rocket science.
So you think it costs the same today to take oil out of the ground, refine it, and transport it to destination as it did in 2013?
To start with, have you compared the environment regulations in place? How about the cost of labor; lawyers (those pesky environmental regulations); and permits (transportation laws have changed since 2013).
For those not familiar with Elogs- it helped cause the current driver shortage and increased costs to ship- it didn't roll out until 2016.
.
Seems that it is rocket science for some to understand why the cost of something is more now than it was 9 years ago.
The left is hot and bothered that Biden and the Democrats are going down due to their own stupidity. The only things they have left to run on are Trump and abortion. Midterms will not be kind to Democrats.
Exactly, rockets don't even use gasoline.
What is the profit margin on that gasoline at the Sacramento Gas Station?
Sorry Charlie. In 2014 Exxon for the same quarter had a profit of 8.8 billion. For 2022 profits from the same quarter were 16 billion. Profits are figured after all expenses.
Who's Charlie. Are most US gas stations individually owned? Does Exxon own that cheap place in Sacramento. I think Exxon's profits come from much more than gasoline sales? To make that $8,8 billion profit, how much capital did they have to invest?
Charlie is probably intelligent enough to realize that the "capital did they have to invest" was and has been subsidized by US, and STILL currently is to an extent. Why ? Why are You defending Big Corporations for raping US Citizens, cause $16 BILLION PROFITS in ONE Quarter, by one cmpany,, are not FCKN RIDICULOUs ? Cause some may have to 'Beg' U pardon, cause Big Oil and Large Corporations, have helped themselves to our pay to a play two party totally playing US via our lap dancing pols, placed, in our Washington going D, & C, to FCK U, & ME
Are you, like Biden, blaming the gas station operators for the high prices?
I've defended no one, why do you confuse questions with a defense. What were your thoughts when Exxon lost $22 billion in FY20 or their 2009 loss or barely breaking even in 2015?
So you are happy to let consumers take it up the ass for Exxon shareholders.
So they lost money one year. Where does it say that businesses have to increase their profits and stock prices every year? And at the expense of their customers no less.
Conservtives seem to enjoy being expoited by big business. They make enough damn excuses for it.
parsing words with the person who perpetually will provide a point provided that you may perceive as to the letter of the proverbial law that i'll order in contempt, for your persistent provided and produced pauses, prolonging the inevitable, that your perceived petulance does expedite, cause i'm wrong whence forth it comes to me being right, and i can write it, like a listing about my classified shipping lanes, i'll List for you, like your Bull Ship Listing, when i return, and will see if you persist to inquire with posed worthless inquires that only prolong the problematic predicament you will find yourself placed, cause, when i have one, i can cause a causation that could possibly, well, most probably, produce casualties , but worry not, i've pre accepted collateral damage to others, cause, i'll speak till dead, one place or another, as i refuse to be silent about being silenced, and or poked, cause eyes ccccc's a little bit, when reading shit, and just mite, find a weigh to hang on the subcutaneous, a few of my oh so subtleties, selected without subtitles, cause i am an Alpha betting i can conjure a possible retaliatorily responsive rebuttal of the subtle, cause i'll set off a Sace Shuttle of rebuttals' towards planet Ambiguity, cause thats where this has landed, my plain and simple post, and i dig footings. to be continued, off to lower the bar(s)
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Everybody did during the pandemic. People stopped living normally. Every place I go prices are up especially travel and hospitality. What two years ago it cost me to rent a car when on vacation, has nearly doubled as have the prices of lodging. Even restaurant's. And no the price of a hamburger or chicken wings hasn't gone up enough to justify a $2 increase. Everyone is trying to make up for lost profits or at least, trying to build a reserve for the next catastrophe.
With exploration costs and research etc, oil companies cannot withstand $20B losses.
Why ? Why if their profits are that substantial, have they not put BILLIONS aside for those few and far between rainy days, ca use how often is it, that big oil Not Reign over the daze and confusion that they use to play little people into defending their ridiculous profits excused by ridiculous self proclaimed prophets, who do so, ? Well, not really sure just Y, but it seems to be associated with the GOP Mantra and handbook , that trickle down their legs will eventually work as long as there are books to cook, distractions to make ones look, but Silly, but, hey, if that is the in look, I’ll just say I’m sorry for not feeling too silly, with so many silly strings attached to those detached from a reality I observe first hand, while looking at feats, that befuddle, with thoughts of those really deep puddles, do cause the drowning in denial, all while they are also placed in Defile, probably under Duped, cause our pols have certainly stooped , to lows I’ve not B 4 observed , and it has become an ovation, for those standing by this absurd, a T, placed upon this once grate Nation, and just my observation.
I don't know that we are taking it up the ass for Exxon shareholders. You were unable to answer my previous questions so I think that your opinion is relatively uninformed. The California Public Employees' Retirement System, the California State Teachers' Retirement System, and the New York State Common Retirement Fund, are some of those asshole Exxon investors. Fuck them for investing in this vulture company, right?
I've made no excuses and you've made no argument on exploration?
I've never seen a more non-sensible, run-on sentence of 14 lines here on NT.
Like I said, it's the cheap place, not Exxon. Exxon is about 55 cents higher and, yes, they do own it.
I think a (slightly) more balanced explanation is that after Covid disrupted the oil industry and they had to shut down a lot of their capacity due to cratered demand labor shortages encouraged them to charge more for the remaining limited supply. They quickly learned how to maximize profits in an environment of oil shortages and now investors would like to see them trickle out supply for maximum price in perpetuity.
This is not much different from the housing supply issue in America. We have a housing profit model based on shortages and it has been that way for many decades.
The scary thought is that corporations could get used to profit gouging in a prolonged environment of shortages in other areas as well.
Mother Courage, anyone?
(This is not an argument on my part but a contribution to the conversation.)