Looting at the Pumps: Americans have the right to ask whether such massive profits are appropriate at a time of national crisis. And they have a right to demand that government work to protect Americans from being held captive by Big Oil in the future by improving the energy efficiency of our cars and trucks and reducing our overall dependence on fossil fuels.
Looting at the Pumps
Statement of Tony Dutzik, energy policy analyst, National Association of State PIRGs
For many Americans outside of the Gulf Coast, the most immediate impact of Hurricane Katrina isn't looting in the streets, it's looting at the pumps. And while the supply crunch caused by Katrina may be the biggest driver of higher gasoline prices, there's little question who stands to benefit: Big Oil.
In just the last week, the stock prices of major U.S. oil producers ExxonMobil, ChevronTexaco and Conoco-Phillips have surged by 4%, 5% and 8%, respectively. Over the last year, their stock prices have increased by 31%, 26% and, for Conoco-Phillips, a whopping 80%.
Major oil refiners have done even better, with Valero (20%), Marathon Oil (11%) and Sunoco (23%) posting double-digit percentage increases in stock prices between the opening of markets last Friday and today's open.
Meanwhile, refineries are set to make huge profits this weekend and beyond, with the profit margin for refiners up to more than $23 per barrel -- more than 50% higher than two weeks ago and more than four times higher than a year ago.
Americans have the right to ask whether such massive profits are appropriate at a time of national crisis. And they have a right to demand that government work to protect Americans from being held captive by Big Oil in the future by improving the energy efficiency of our cars and trucks and reducing our overall dependence on fossil fuels. |
