Yesterday, the Exxon-Mobil Corp reported record profits in its fourth quarter--a whopping 10.71 billion dollars. This brings E/M's yearly profit to 36.13 billion, which is the highest annual reported net income in American history. This record overtakes the previous record of 25.3 billion set by Exxon in 2004.
The highest growth period for the company was, predictably, during the 2004 quarter during the Katrina and Rita disasters, when production decreased by 1 percent, forcing prices up to yet more record numbers. In some places in New York City a gallon of gas rose to above 3.50$
Though there hasn't been an official White House response to this, there has been a huge murmur of disapproval regarding how the government handled the gas crisis during Katrina, leading many to believe that Exxon practiced wanton price gouging. In an unofficial poll conducted on MSNBC.com, of 43,840 responses, 92% believed that the oil industry was taking advantage of consumers.
At moments like this I think of Chris Rock's last HBO special "Never Scared" when he asked the question "Where are the low gas prices?" His point? Look everyone knows we went into Iraq for the oil, but now that we're there, why aren't the prices lowering? Good question, and one that deserves a response from the Bush administration. Are there any good defense that oil companies can use to counter the accusation that they are abysmally greedy? During the whole Katrina disaster the calls of price gouging were ringing loudly, not only from consumers but from Exxon clerks as well, who were given memos telling them to raise prices even though their storage tanks were full. This led Bush, speaking on Good Morning America on Sept 1, 2005, to say that "I think that there ought to be zero tolerance of people breaking the law during an emergency...Whether it be looting or price gouging at the gasoline pump..."
Yet nothing was done, and consumers were bled to marrow over the next two or so weeks.
Can you trust anything this man says?
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