Is It Really The Oil Companies Fault?

According to John McCain we have become a "Nation of Whiners." Obama has retorted that we are not, and things are genuinely bad at the moment. However is that really true, are we whining? I feel that at least when it comes to gas prices we are.

It is not the oil company’s fault, but rather ours. The main complaint with the oil companies seems to be that they are making "windfall profits." But what defines a "windfall" profit?

It seems that a "Windfall" profit has become a profit that is greater than the revenue needed to keep a business going. However is not the ultimate goal of profit to be able to stay in business? I personally see this as the goal of profit. I find it sad that here in America the land of "equal opportunity" people are complaining about an industries profits when here they should have the equal opportunity to build their own industry if aptly able.

Note that I am in fact not advocating the "trickle down effect." However I am saying that we are complaining over the success of one industry while no longer striving to recreate that success in our own lives. It can be duly noted that the corporate executives in the oil companies have in fact gained personal wealth. However how much of this actually has to do with consumption as it does inflation. Could the prices have been made lower via increased drilling several years ago? Yes, would it have been profitable, no.

If we look at the recent drilling activities in North Dakota, we are left to ask the question; why are they drilling now? Why not three years ago? Very simply as the price per barrel went up the profitability went up. We all know that labor costs are less outside the U.S so why wouldn't they wait until the price was high enough that they could turn a profit off the oil they knew was there. Does it help gas prices now? No, but it does allow the oil companies to maintain profit and thereby giving us one sector of the economy which does not seem prone to an impending recession.

Furthermore I hear of the oil companies funding studies for alternative fuels, and people go well why would we trust them. They say that the oil companies are afraid of alternative fuels, that they know they'll put them out of business.

This is not the case though. The oil companies are not in the business of oil, but rather they are in the business of energy. This means that to continue to make profit they will be the companies to invest and push for the innovation of new alternative fuels.

Are there times when the oil companies policies are a bit sketchy, yes. Do I feel we regulate their business practices enough? No. However I am tired of people complaining over their profit when really if we want to switch to alternative fuels it is big oil that will lead us there. Lower gas prices would be great, however if we look at the "windfall" profits, are they so extravagant when that profit will yes, go to execs, but it will also go into research and development, taxes, and may eventually be the key to seeing lower prices at the pump.