Bruce Horst

Have High Oil Prices Hurt Big Oil?


Posted: Tuesday, December 05, 2006

by Bruce Horst
WryteStuff

I've read with great interest this past week the antics of John Hofmeister, the president of Shell Oil Co. John has been traveling the U.S. trying to show how misunderstood Big Oil is by U.S. citizens. I was amazed as I read Johns words that the surge in oil prices over the past year have been bad for his industry. His concern is sincere, like Paris Hilton saying that wealth and beauty have made her life unbearable.

I saw John testify before congress that the profit margins in his industry are so large because his industry is so enormous. Come on John, percentages are percentages. You insult our intelligence. You boast of how many tens of billions your company has put into research of alternative energy sources, as if you are doing us a favor by planning for the longevity of your company. What has your research concluded? There are many small companies across the US which have made great strides in developing alternative energy sources, spending only a minuscule fraction of what Big Oil has spent. And they do not require us to pay for their research through high gas prices at the pump.

I watched John on NBC's Meet the Press in June as he snorted that he feared for America. If he was not allowed to drill off the coast of California and Alaska, he could not assure our energy security. It reminded me of a prohibition-era mobster going out and "selling protection" to local businesses.

John's message has been reported from several different angles, but it has never changed. It invariably ends with the conclusion which is obvious to him: America needs to open up more areas for domestic drilling, so he and his cohorts can continue with their business as usual. What he never mentions is that to be truly energy independent, the United States can not afford to be at the mercy of a few huge companies but rather we need to diversify using renewable energy sources which can be harvested locally and which do not require to be funneled through these few enormous companies.
Bruce Horst loves all his jobs, working with incredibly talented people.
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Top-level comments on this article: (3 total)
» left by r
 4 years 356 days ago.
Bruce, good article. I guess it is why my frustration is showing. Nothing ever changes. Best regards.
» left by 4 years 356 days ago.
I moved to Texas 20 years ago driving a car that got 50 miles per gallon. Now I'm looking for a 3rd vehicle since my oldest is 16, guess what? In 20 years car manufacturers have forgotten how to make a car that gets 50 MPG. Where did all that R & D go? Smells fishy to me, and I love a good conspiracy theory.... Thanks for commenting and putting up with my rant!
» left by Samantha Chang
 4 years 152 days ago.
13 fans.
Good analysis! Having covered energy several years ago as a journalist, I agree it's a shady business.
» left by Rich Smith
 4 years 19 days ago.
4 fans.
Want the real truth, the U S Government is our biggest enemy! For 35 years we have been lied to repeatedly!! Alaska has enough oil to last for 200 years and we have a 800 mile pipeline that should be shipping oil plus Alaskas Natural gas is being pumped back into the ground!WHY!! I'm not selling a book or a video, The book is the energy non crisis and the video is on you tube all free info,everybody should check this for the real information. Rich
» left by elle kynzer 3 years 267 days ago.
29 fans. Follow elle kynzer on twitter!
We now know, thanks to Fox News this week, that Pelosi made $250,000. on her investments last year betting on high oil prices.  It isn't in her, or other reps investing this way, best financial interests to vote to drill offshore, in ANWAR or anwhere else UNLESS they attach some idiotic pork barrell spending into a bill of their making.
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