The other day I read that ExxonMobile posted 4th quarter earnings of $10 billion. I’m not sure, but I think that’s a lot of money. It’s like a one followed by like 18 zeros or something.
Now, I’m no economist, but something just doesn’t compute for me.
I thought high gas prices were a result of things like hurricanes, wars and garbage trucks (that on average get three miles to the gallon). Hurricane Katrina was a serious disaster, no doubt about that. It just tore the gulf coast apart in every way imaginable: homes, businesses, mass transit etc. Under businesses, I’m not talking about mom and pop hardware stores, even though I’m sure that some were lost (sorry grandpa), but rather the oil production and distribution facilities. I was under the impression that oil rigs in the Gulf of Mexico were beat up or destroyed by this hurricane causing shortages and extra spending to ship in stuff and yada yada yada. And there was a huge chain reaction caused by the hurricane that resulted in super high gas prices.
I was okay with that. It was something everyone just had to live with. There was nothing you could do. Well, except ride your bike to work, I suppose. But eh, that’s no good. Thankfully I got some good advice the day that Hurricane Katrina hit: “Fill your tank up because gas is going to go up 75 cents by the weekend” or something along those lines. I heeded the advice, thankfully. I paid in the window of $2.20 a gallon to gas up and was laughing all the way to the bank when I saw people lined up later that week paying nearly 3 bucks a gallon. Suckers.
But the prices didn’t really subside and the ole Honda Accord’s tank was starting to go dry. I made it a while and got filled up when gas had dropped slightly to 1.65 or so.
Then gas dropped down to just over 2 dollars around me, but is now back up around $2.30, which makes me mad. I guess I’m just cheap like that. Well, frugal sounds nicer. Let’s go with frugal.
And when I read how ExxonMobil posted their highest gain EVER in 2005 at $36.13 I just want to slit my throat. Or buy a moped. I haven’t decided yet (stay tuned).
It just makes me sick to think that the whole time I didn’t really get pissed about paying so much damn money for gas because I was under the impression that it was thanks to Mother Nature and her harsh brutality. A hurricane that seriously disrupts the production of something we are so dependant on was a lose-lose situation, I thought. Meaning that the oil refineries suffered a hit and now the wallets of commuting Americans were getting hit up, hard core. It’s simple cause and effect. Hurricane f-s stuff up, we pay more money for stuff.
That rational was destroyed when I read how corporate America was thickly lining their pockets at the expense of people like me who were upset with but accepting the unprecedented high gas prices because our nation had experienced a huge tragedy.
I wouldn’t say that “ignorance was bliss” before reading about the sickening earnings of ExxonMobil because it still sucked paying so much money to gas up my ride.
Again, I’m not good at economics (comm. major, remember?) but I don’t understand why the gas prices could not return to the pre-hurricane days. Can someone explain this supply-demand thing a little more clearly for me, please? I know the demand for gasoline is as high if not higher than ever, so I guess it justifies the high prices.
But how come in a time of war and hurricanes a company like ExxonMobil can profit more than ever. The government is shelling out millions to help the hurricane victims get basic necessities like power and water. Meanwhile, big wig execs at ExxonMobil are probably buying their wives fake tits and taking them on vacation somewhere where foreigners serve cocktails and have eyeballs made of dollar signs.
Apparently, 2006 could prove to be even more profitable by far if energy costs remain high.
I’m buying a moped.
http://money.cnn.com/2006/01/30/news/companies/exxon_earns/
http://articles.news.aol.com/business/article.adp?id=20060130080609990005&cid=403
Wednesday, February 01, 2006
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