You’re all probably wondering how someone can say such a rash thing, how anybody short of the devil himself could come to the defense of such a great evil as Big Oil. So let me start out by saying that by and large I am not a fan of oil companies. Their money too often finds its way into the pockets of too many politicians who are only too gracious to return the favor at seemingly any cost. Moreover, this country is entirely too dependant upon oil as a source of energy. Oil is one great big basket into which we have placed all our energetic eggs.
Having said that, looking back at the events of the past year, I feel inclined to come to the aid of big oil. 2008 saw oil at its highest price ever of $147.30 a barrel, with the average American shelling $4.11 for a gallon of gas this past July. Many accused oil companies of price gouging and demanded that greedy oil execs testify in congress to explain the soaring prices. Certainly people had a right to be angry (I have to admit that I was one of them), but the end of 2008 proved that we should have directed our anger not at oil, but instead on global speculation.
Prices dropped at the end of 2008 because the global economy tanked and demand for oil dropped. The fact that oil plunged to less than $40.00 a barrel provides vindication for oil companies, and proves that global demand and speculation rather than greedy oil tycoons drove oil prices to their record heights.
Even more importantly, oil companies are doing well what most other companies are not in the present economic climate: still employing Americans and paying taxes. Exxon Mobil, for instance, directly employs 30,000 Americans while employing thousands more through its subsidiaries and at its retail sites. With almost daily news of companies laying off thousands of employees, 30,000 secure American jobs is nothing at which to scoff. As far as taxes go, Exxon Mobil paid almost $30 Billion dollars in net income taxes to the U.S. government in 2007 alone. This number does not include the billions more the corporation shelled out for sales based taxes and other duties.
Exxon Mobil, along with other American owned oil and gas companies such as BP, Royal Dutch/Shell, Chevron and others employ thousands of Americans and continue to pay billions of dollars in taxes in the current tough economic climate. Yes, these companies garnered huge profits as gas prices skyrocketed, but profit is taxable and is ultimately used to create more jobs through capital investment and business expansion. There is a bad side to big oil, but there is certainly a good side as well in what it does provide for the U.S. economy. For this, at least, it should not be faulted.
