Connect the Dots, La, La, La, La

Oh Cruel fate, Oh Horrible, Cruel Fate...Gas is three dollars a gallon, what am I going to do.....The short answer to that, is nothing. Nothing is exactly what most of us are going to do. Would you like me to tell you why? Because many anal-ists predict, that you and I are going to do nothing, until gas is FOUR dollars a gallon. Thats right cats and kittens 1, 2, 3, FOUR.

But do not fret, gentle reader, because the Federal Government is on the case. These guys have a SIX POINT plan to handle the situation, and it goes as follows:

1) The President will follow 5 years of destroying the previous 8 years of environmental laws by ...That's right, lowering emissions standards!

Then Congress takes over for steps 2 and 3

2) Posture and act real indignant about the price gouging and record profits,

3) Trip over parliamentary procedure on the road to nowhere,

Congress gives the baton back to the White House for #4,

4) Complain about Democrats holding things up,

Then Congress brings the plan home with steps 5 and 6!!!!

5) Bide their time until November when you elect them back into office...

6) Go back to doing nothing, because hey, who will hold them accountable?



Now this begs the question, why do nothing? If the American people want it bad enough, why not take real measures to cut oil prices? For that answer we turn to the Center for Responsive Politics....Ok, not yet. Before we get to them lets talk for a moment about everybody's favorite little mom and pop oil operation, Exxon/Mobil.
Last fall when the county was gripped by the horrific aftermath of hurricanes Katrina and Rita, gasoline prices rose to record highs. The oil companies, Exxon/Mobil among them, cried and moaned about refining capacity and played the "If we do not raise prices, civilization will crumble" card. "It costs us more money to produce it now" They wept as profits bottomed out and their stock tumbled.....Profits did drop and stock tumbled right? Well not exactly.

This first chart follows gas prices over the past two years in Tucson and Philly:

Okay, now stay with me. The next chart tracks the price of Exxon/Mobil's stock price over the same period:


I think the most fascinating thing are the corresponding spikes in September '05 and the past few weeks. It is also interesting to note that on October 27th of last year, Exxon/Mobil announced RECORD profits for the third quarter. That of course, covered the time during the Katrina crisis when things were so hard for the poor oil companies.

Now lets get back to the Center for Responsive Politics. On their website they post campaign contribution numbers as reported by the Federal Election Commission. In the period leading up to President Bush taking office through March 13, 2006, the fossil fuel industry has donated $92,191,601 to political campaigns. On the average 80.5% of that has gone to Republican candidates, with 2006 seeing that percentage as high as 84%.

Now I know what some of you are thinking, "Well, when the Dems were in power the percentage was reversed!"...not really. In 1992 when the Democrats still had Congress, the split was 66/34...Still in favor of GOP candidates.

That's just Congress though, surely the President will find a way...Probably not. In two Presidential elections George W. Bush has collected $4.6 MILLION from the oil and gas industry with his Democratic opponents John Kerry and Al Gore pulling in $500,000...Combined. Just enough for the oil companies to hedge their bets in case the Democratic party accidentally stumbled to a victory.

CONNECT THE DOTS

• Price hike,
• You pay more,
• Oil company gets more cash
• Government threatens action
• Oil company pays out dividends,
• Shares with elected officials,
• Government shuts up,
• You vote them back in office
• Oil company complains of "Refinery Capacity"
• You buy another SUV,
• Price hike.

Enjoy summer driving season...

tomorrow, what if all companies got to be oil companies.

v.