Most leftists believe it is any profit that is not the governments to take. More specifically it is any profit that politician’s can demagogue. But where do those “obscene” profits go? Well if you have a 401K, you are a teacher in the teacher’s union, or a fireman in the firefighter’s union, your pension funds and private investments reap those “obscene” profits.
The oil companies are coming under attack by the likes of Congresswoman Maxine Waters who is ignorant on most issues, but she had the gall to publicly suggest a government takeover of oil companies. If you think, even for a nano-second that a government takeover of oil is a good idea, think again. Government regulations are the major reason prices are where they are today.
Between the permitting process to drill or build a refinery, a ban on exploration in the two largest reserves in the US, Anwar and the Gulf of Mexico, the insane number of grades of gasoline the oil refineries are forced to make, and the constant assault on the industry from the environmental nuts, it is no wonder gas isn’t $12 a gallon. And it would be if you put economic illiterates like Waters (or most of the current crop of congress) in charge of such a critical industry in our economy.
Seventy (70%) of the cost of a gallon of gas is in the crude price, the remaining 30% is for investment in alternative energy, R&D, taxes and 7% profit. That’s right 7% profit.
It is our government that has created the policy that has caused the current lack of supply and increased prices. And it is the government standing in the way of increasing the supply which will lower the price. And you want the government to take over the oil companies? Think again…