When it comes to the issue of oil prices, never are politicians more on top of their game and of course the game is one of distraction. Capitalizing upon the fact that the average American is completely ignorant of even the most basic principles of economics it comes as no surprise that these politicians, particularly those on the left, attempt to levy a preponderance of the blame for high oil prices on the Exxons, Chevrons and BPs of the world. And because the oil companies apparently devote not a single dime toward public relations the average American is inclined to believe the drivel that comes out of the mouths of these socialist politicians.

So much is made about these so-called “windfall profits” and “tax breaks” that the oil industry receives. To the leftist, profit is a four letter word. But why is it we never hear about the concept of profit margin? In other words why is it we only hear about net profit rather than the share of profit per dollars invested or profit vis-à-vis revenue? Why? Because it we did we would quickly discover that these so called oil companies profit margins are eclipsed by other companies that aren’t so easy to vilify.

Why is it we never hear about windfall taxes, the amount of taxes levied upon every gallon of gas far exceeds the profits of any oil company. The federal government earns far more per gallon of gas than ExxonMobil could ever dream of earning, but here again our esteemed leaders in Washington take advantage of the fact that most of their constituents have no knowledge of this.

We here nothing of Wall Street and the role trading of oil futures has in influencing the price of oil. We hear nothing of the concerted effort by Washington to prevent increased production or refining capacity, thereby inflating profits further. Exactly why is it that these same politicians have worked to prevent exploration or the construction of new refineries here at home which would significantly boost supply? And why is it that we never here about the economic concept of supply and demand, specifically the role emerging economies like China and India (and their increased demand for petroleum) play in limiting supply and therefore driving up prices.

We don’t hear about these things because A.) These facts don’t suit the interest of these demagogue politicians and B.) Reporting such facts would reveal the complete incompetence of most politicians in addressing this energy crisis. Indeed all we hear from such do-nothing, know-nothing, achieve-nothing politicians is talk of tax increases, which further highlights their naiveté (or shall we say, stupidity) how else do you rationalize calls for tax increases which will serve only to drive up prices.
http://money.cnn.com/2008/04/01/news/companies/oil_hearing/