OK, there is something that has been bugging me for awhile now. It’s this liberal drone that calls for the destruction of "Big Oil," whatever that means. They decry the "windfall profits" and want to tax them. Somehow, this is going to make the little guy feel better, as we are finally "sticking it to the man." You know, make them feel the pain at the pump that we feel. So, so sad… and wrong.
The fact is that the oil companies are owned not by some big oil tycoon, who sits behind a desk twirling his slick moustache around his finger, they are owned by stockholders. You and me! I know what you’re thinking, "But Lee, I don’t hold any stock in an oil company!" Don’t be so sure. Most retirement funds are, well, funded by stocks that are held in companies. Some of those companies are oil companies. "But Lee, why then do oil company CEO’s make an obscene amount of money?" Well, it’s because those companies do an obscene amount of business… every day… 365 a year! Oil is a multibillion dollar a year business, so don’t you think that the people in change of running that business and securing profit for the stockholders should be rewarded? After all, when you are the whipping boy for the Democratic Congress, you deserve a larger pay scale just to have to sit and listen to those blowhards.
"But Lee, the profit margin of oil companies is out of control. Why are gas prices so high while they make so much money?" This can be answered in two parts. First off, why are prices so high? Supply and demand. The supply side has decreased now that China and India have got their shit together and joined the modern world. They are sucking up oil at an ever increasing rate, thereby lowering the worldwide supply. This, in conjunction with the "green" movement, which will not allow drilling in ANWAR (which is something both Obama and McCain are against) or the construction of new oil refineries or even nuclear power plants, have lowered the amount of oil we in the U.S. can have on a daily basis. When something becomes more rare, it becomes more expensive to obtain (for the same reason that a Picasso or a Rembrandt costs so much to own).
Secondly, the "windfall profits." I’m going to use a quote from Glenn Beck, who was kind enough to look into the numbers involved for me, as he has access to such things. In this, we find that there are far worse "offenders" that we should be going after – if we should be going after anybody – before we attempt to stop "Big Oil."
They are not talking about the hedge funds because the hedge funds give them all kinds of money. The hedge funds, these guys Chelsea Clinton works for a hedge fund. John Edwards worked for a hedge fund. Al Gore works for a hedge fund, owns his own hedge fund. Nobody wants to talk about hedge funds. You want to talk about obscene profits. Now, I don’t believe this is an obscene profit. I really don’t. I think if you can make this kind of a profit, God bless America. God bless America. But here’s their profit margin. Their profit margin in hedge funds is 87%. 87% profit margin. That is printing money. So you want to talk about an obscene profit margin, there it is. Again, as a capitalist I say God bless you. But that is ten times the profit margin of oil. Oil’s profit margin is about 8.5%. This is ten times the profit. Why are we going after them? How about healthcare facilities? 48%. Publishing, periodicals, magazines is 34%. Information delivery services, 23%. Silver is 22%. Application software industry is 22%. Shipping, 21%. Well, not anymore. Copper is 19%. Tobacco products, 19%. Drug manufacturers, 17%. Insurance brokers, 16. Beverages, wineries, distilleries, 15%. Long distance carriers, 15.8%. I mean, railroads, railroads, 13.9%. Steel and iron, 13.8. Cigarettes, 13.7. Integrated circuits, semiconductors, 13.6. I mean, the list goes on and on and on and on. Money center banks, 10.8. Hotel/motels, 10.6. Asset management, 10.5. Beverage, Brewers, 10.5. Resorts and casinos, resorts and casinos are 10.5. Casinos are 10.5. Oil is 8.5. I mean, when a casino makes 10.5 and a hedge fund makes 81.7, you’ve got to ask yourself what’s an obscene profit margin. Why aren’t you going after those guys? – from Glenn’s Radio Program
So please, for the love of all that is good and holy, pull your head out of your asses Democrats and think before you point the finger. After all, you may find (with an 87% profit margin) that the finger is pointing directly at you.
(NOTE: McCain is a very liberal Republican and I do not agree with him on all of his positions, but I will vote for him because Obama is farther left than Hillary Clinton.)