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sharing the burden

sharing the burden

Headline: Oil industry behemoth Exxon Mobil Corp. said Thursday its third-quarter earnings rose to $10.49 billion, the second-largest quarterly profit ever recorded by a publicly traded U.S. company.

I admit I know very little about the complex economic factors that produced such a record-breaking profit, and very little about the process and people that determine retail prices for oil products. I do understand that high profits are driven by high demand, that we pay more because we ask for more.

Nevertheless, I find the incongruity disturbing … that an oil company is making more money than ever, while its customers are struggling more than ever to find the money to pay the record-high prices for its products. Isn’t it true that in the end, that $10.49 billion comes out of our wallets? Exxon-Mobil makes more because it takes more … from us.

Energy is a common human need, and the increasing demand for energy coupled with a diminishing supply of non-renewable sources of energy is a common human problem. It seems to me that the burden of this problem should be shared, by consumer and producer alike.

So it would be interesting to know what Exxon-Mobil will do with its windfall profits. If the profits were to be invested in the research and production of new sources of energy, renewable sources of energy, that could be a way of sharing the burden …

who’s to blame?

who’s to blame?

From the Los Angeles Times (Exxon Reports Record-Breaking Profits)

Exxon Reports Record-Breaking Annual Profits
By Jesus Sanchez, Times Staff Writer

ExxonMobil Corp. today said its annual profits soared more than 40% last year to a record-breaking $36.1 billion as the world’s largest publicly owned energy company reaped the benefits of soaring prices and demand for crude oil and gasoline.

The company’s annual and quarterly profit figures, which were even larger than Wall Street had expected, sent the company’s shares up more than 3% in early afternoon trading on the New York Stock Exchange.

ExxonMobil’s annual profit was the largest ever reported in corporate history, Standard & Poor’s stock market analyst Howard Silverblatt told Associated Press.

The energy giant also claims the second-largest annual corporate profit ever reported, $25.3 billion in 2004.

The Irving, Texas-based company’s profits rose strongly across most of its units despite the damage and disruption to production and refinery facilities suffered during the Gulf Coast hurricanes. For the fourth quarter, the company said profits, including special one-time items, surged 27% on a year-over-year basis to $10.7 billion.

Company officials, mindful of the anger triggered by last year’s surge in energy prices that sent gasoline soaring to $3 a gallon in many parts of the nation, stressed the company’s investment in expanding production. Last year, ExxonMobil spent $17.7 billion in exploration and facilities.

“There is a great deal of public interest in global energy prices,” ExxonMobil Chairman Rex W. Tillerson said in a statement. “We recognize that consumers worldwide want and need reliable supplies of affordable energy — to fuel their vehicles, light and heat their homes and run their businesses. Our strong financial results will continue to allow us to make significant, long-term investments required to do our part in meeting the world’s energy needs.”

ExxonMobil and other industry officials have been active in trying to head off renewed calls to slap a windfall profits tax amid record profits.

Last week, Chevron Corp. also reported record high fourth quarter and annual profits despite costly repairs to its Gulf Coast facilities. The San Ramon, Calif.-based company said that annual profits surged to $14.1 billion last year from $13 billion in 2004.

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We have no one to blame but ourselves. We create the demand that drives up prices. We do not worry over much about finding alternative sources for tomorrow’s energy needs as long as we have enough to maintain our accustomed lifestyles today. We cannot blame elected leaders or oil company executives for an economic reality that we have created and we permit to endure.

And yet … There is something disturbing, something almost sinister, about the juxtaposition of regular folks in our own nation and around the world feeling the energy squeeze, choosing between heat and food, choosing between heat and health care, with the huge oil companies (and their executives) reaping unprecedented profits. Maybe that’s how the economic “game” works, but there are clear winners and losers. The pain is not shared. The people’s pain is the oil company’s gain.

I know I would have a hard time living with myself if my windfall came at the expense of someone else’s suffering …

save the arctic national wildlife refuge!

save the arctic national wildlife refuge!

Read the article posted by Matthew Gilbert, a Gwich’in himself. (NRDC Action Fund Blog: Why is drilling the Arctic Refuge wrong?) Here’s an excerpt:

The fact that it’s even a question whether we should drill in a pristine place like the refuge, the breeding grounds of Polar Bears, Porcupine Caribou Herd, and many bird species, is an ethical travesty of our time …

The Arctic Refuge should not only be protected for its natural value, but also for its value to the Gwich’in. The Porcupine Caribou Herd calves in the Arctic Refuge and is very sensitive to humans. Establishing oil rigs, roads, drill pads, and other industrial additions will drive animals out, change their migration routes, and harm the land.

Gwich’in who hunt the Porcupine Caribou Herd will be affected in more ways than one. We implement products of the Porcupine Caribou Herd in every area of our lives; warm skin clothes, ivory-tools, arrowheads, and traditional dresses. Gwich’in are extremely efficient with every animal we kill; we use a dead animal in the utmost efficient way. So when we harvest even one caribou, it provides us with a host of things used to survive and flourish.

If the Gwich’in lose the refuge they lose their identity. Without the caribou the Gwich’in will have a harder time making ends meet or move into the cities. So it is not only environmental doom that industry would bring to the Gwich’in Nation but also social doom. The refuge needs to be protected! Please join the Gwich’in in our fight to protect a way of life older than all the monumental wonders of the world. Protect a critical relationship that the Gwich’in have maintained with the caribou for nearly 20,000 years.

For thirty years and more, the American people have said “No” to drilling in the Arctic National Wildlife Refuge. How many times do we have to say “No”?

This choice will be a test of our national character. Will we choose a one-time short term energy “fix” at the cost of an irreplaceable natural wonder and a whole way of life? Or will we take a longer and saner and humbler point of view, recognizing that the value of this land rests not merely in what it can produce, but in what it is?

We need to keep the oil companies out of the Refuge for the sake of the Gwich’in, for the sake of the caribou … and for our own sake. For the sake of our own spiritual well-being we need to set limits on our gluttony, our greed, our hubris, and leave some things alone!