Rex Tillerson Defends ExxonMobil High Profits

“I saw someone characterize our profits the other day in terms of $1,400 in profit per second. Well, they also need to understand we paid $4,000 a second in taxes, and we spent $15,000 a second in cost,” Tillerson told ABC News’ Charles Gibson. “We spend $1 billion a day just running our business. So this is a business where large numbers are just characteristic of it.”

[…]

“We can’t drill our way out of this problem, just like we can’t conserve our way out of this problem, just like we can’t alternative fuels our way out of this problem,” he said. “There is no one solution to this; there’s an integrative set of solutions. And you have to undertake them all. So when the whole debate focuses around we have to choose this one solution or that, people are missing the point.”

Full Article and Video here.

Here’s a little refresher on profit margins again (cause they are the numbers that matter):

I’m for the ‘all of the above’ approach. How ’bout you?

Nancy Pelosi on Oil Prices

With skyrocketing gas prices, it is clear that the American people can no longer afford the Republican Rubber Stamp Congress and its failure to stand up to Republican big oil and gas company cronies.

[…]

Democrats have a commonsense plan to help bring down skyrocketing gas prices by cracking down on price gouging, rolling back the billions of dollars in taxpayer subsidies, tax breaks and royalty relief given to big oil and gas companies, and increasing production of alternative fuels.”

-Nancy Pelosi (April 24, 2006)

Here’s some recent audio from Nancy on the oil price problem:

Nancy’s Oil Plan:

  • Make oil companies drill where it wouldn’t be cost effective. (Maybe Baskin-Robbins should open an ice cream parlor in Antarctica while we’re at it.)
  • It would take 10 years for the price to reflect any change, if the government allowed oil companies to drill today. (Wrong. This is basic economics (see chart below): Investors will immediately see the potential that more oil will be added to the world supply and reinvest so they won’t get hosed – this will cause costs to go down. Plus, as Mark points out – it won’t take ten years. If there is money to be made – they’ll get the rigs in place ASAP.)
  • The high price of oil is only because we have to “two oil men,” (Bush & Cheney) in the Whitehouse. (Yeah, and they’re forcing the price higher right at the end of their term in office for what…so they can have even crappier approval ratings? Plus, doesn’t this sound a little conspiratorial? Where’s the evidence?)

Meanwhile – we should be investing in alternatives like solar and wind. How exactly are solar and wind energy going to fuel the millions of trucks, trains, planes, and ships that are distributing food and goods around the country and the world?

The other solution Pelosi has put forth is to wait for the magical clean energy solution to come along. Ok, I support that – except again, what are we going to power our distribution and transportation networks on until then…Hope?

We need a realistic solution for the energy situation now. Challenge American ingenuity to come up with a clean solution for the future — but if the oil companies know where the oil is, and can drill in a relatively environmentally safe way, why not let them?

Here’s a little supply and demand graph refresher:

  • P – price
  • Q – quantity of good
  • S – supply
  • D – demand

ht [Mark Levin Show]

Domestic Oil Production

Believe it or not, I really haven’t been all that impressed with the Republicans in Congress for the last several years. I feel like they have gotten a few things right – but it seems like they have failed to really promote and communicate policy that promotes Liberty, among other things. However – I do think they deserve credit for understanding the importance of energy independence. Today I ran across the following:

Congressman Roy Blunt put together these data to highlight the differences between House Republicans and House Democrats on energy policy:

ANWR Exploration
House Republicans: 91% Supported
House Democrats: 86% Opposed

Coal-to-Liquid
House Republicans: 97% Supported
House Democrats: 78% Opposed

Oil Shale Exploration
House Republicans: 90% Supported
House Democrats: 86% Opposed

Outer Continental Shelf (OCS) Exploration
House Republicans: 81% Supported
House Democrats: 83% Opposed

Refinery Increased Capacity
House Republicans: 97% Supported
House Democrats: 96% Opposed

SUMMARY

91% of House Republicans have historically voted to increase the production of American-made oil and gas.

86% of House Democrats have historically voted against increasing the production of American-made oil and gas.

HT: Powerline

I am all for developing alternative fuel sources and being sensitive to the environment, but realistically, we need a practical oil solution now. Freeing the oil companies to drill and produce oil here in the US seems to make sense, hence – I can grant credit to the House Republicans energy policy (at least attempted…) on this one. Anyone have any better ideas?