Greed. Typically it comes back to bite you in the butt. Just ask Exxon how things are going now that people are using less fuel thanks to their skyrocketing prices.
Also, ask them how projections look, when Americans stop buying Hummers and Sufis- their best friends in boosting sales of their products.
Six months ago or so, big oil execs were being grilled by Congress about their record profits ($122 billion in one quarter). Now, we’ve got the US automakers begging for a bailout. There is a direct relationship here- but no one in Congress suggested that GM, Chrysler and Ford should go ask big oil for a handout.
$25 Billion shouldn’t be too hard for Exxon on its own:
Exxon Mobil made history on Friday by reporting the highest quarterly and annual profits ever for a U.S. company, boosted in large part by soaring crude prices.
Exxon, the world’s largest publicly traded oil company, said fourth-quarter net income rose 14% to $11.66 billion, or $2.13 per share. The company earned $10.25 billion, or $1.76 per share, in the year-ago period.
The profit topped Exxon’s previous quarterly record of $10.7 billion, set in the fourth quarter of 2005, which also was an all-time high for a U.S. corporation.
“Exxon can put out some amazing numbers and this is one of those cases,” said Jason Gammel, senior analyst at Macquarie Securities in New York.
Exxon also set an annual profit record by earning $40.61 billion last year – or nearly $1,300 per second in 2007. That exceeded its previous record of $39.5 billion in 2006.
Economic systems, even in the most free wheeling economy- are still all based on a closed loop. Henry Ford understood this when he thought that paying his employees enough to be able to buy the cars they produced was a good idea. Exxon and the rest of big oil should be first in line to back the American auto industry, since they have been providing the cars that are tops in consumption.
The American auto industry is the proverbial goose that laid the golden egg for the oil companies.
Why can’t we have a Congress with anyone smart enough to suggest this?