When it was announced that former Exxon CEO would receive well over $150 million for his total retirement package during a time when oil prices were on the rise, folks went nuts. To many, this was further proof that capitalism was evil. Activists groups raised enough hell on Capital Hill to convince camera-addicted politicians to “investigate” the oil industry for price gouging. Nothing was ever found. But don’t tell that to some people. For some, the American oil industry is just dripping with corruption–no matter the findings of ANY investigation. While these folks are very quick to damn capitalism in America with little to no proof, they are very quick to overlook the proven corruption that regularly takes place in state-owned oil companies around the world. Check out the following article:
Sphere: Related Content(economist.com) EXXON MOBIL is the world’s most valuable listed company, with a market capitalisation of $412 billion. But if you compare oil companies by how much they have left in the ground, the American giant ranks a lowly fourteenth. All 13 of the oil firms that outshadow it are national oil companies (NOCs): partially or wholly state-owned firms through which governments retain the profits from oil production. Because these national champions control as much as 90% of the world’s oil and gas, they can do far more than the likes of Exxon to assuage the current worries about supply and to influence the accompanying record prices. But like most state-owned firms, they are prone to over-staffing, underinvestment, political interference and corruption. (more…)
September 25th, 2006 at 6:53 am
I think maybe the record profits while the price of gasoline almost doubled from Spring 2005 also probably had something to do with it. The huge retirement packages just pushed folks over the edge. Can you blame them? While the average person is skimping on necessities to fill their tank so they can go to their crappy job everyday, someone in the oil industry who is already by most standards filthy rich is getting richer. No mystery there. Does that prove corruption, or price gouging? No of course not. Is it bad PR, yeah. I think you are asking too much for the average person to applaud such a huge retirement package. People are pissed off, and it APPEARS as though oil companies are rubbing it in.
September 25th, 2006 at 10:01 am
While the average person is skimping on necessities to fill their tank so they can go to their crappy job everyday
I think you are being just a liiiiitle dramatic here, don’t you think? Nobody resorted to 1970’s actions by siphoning gas out of cars. People still ate and lived well (and I live in CA–considered having the highest living expenses in the nation).
The oil busness is naturally a highly profitable sector because its product is always in demand. Nobody is asking for any applause here–this is just capitalism in action and for whatever reason folks hate it.
September 25th, 2006 at 11:55 am
No, not being dramatic, just paraphrasing quotes from an article I read last summer about how gas prices are effecting peoples daily lives. I personally don’t drive much for other reasons. I prefer to ride my bike, walk or take public transportation, as my way of leaving a smaller footprint on the world and staying healthier. Gas prices have not noticeably affected my family. I’m sure if we analyzed our grocery bill for example, there might be a bump. I know the oil business is highly profitable, especially in today’s environment. I’m just saying, I understand if the average consumer gets a bit pissed off at huge retirement packages, while paying through the nose to fill up his car. I’m not saying it’s justified, just that I understand the sentiment. I don’t think folks hate capitalism. But in todays environment with record profits, then record severance packages…it appears to be a bit much. Whether there is actually something untoward going on, I don’t know, hopefully not. But you have to take a look at the backdrop in which this is presented. Corruption scandals at Enron, Halliburton seemingly war profiteering (I’m not making a charge, but on the surface it could appear fishy to the occasional newsreader). All of this sets the stage for people believing that somebody is taking advantage. If there is an appearance of impropriety, then the oil companies might want to do something about their image. You don’t want your customers looking for alternative products…