Sanity Injection

Injecting a dose of sanity into your day’s news and current events.

Exploding the myth of “windfall” oil profits

Posted by sanityinjection on August 7, 2008

It is a common belief among many that the oil industry is reaping obscene profits from the current high oil prices. This assertion has been echoed by a number of legislators, who go on to suggest that oil companies should face additional taxes on these “windfall” profits.

Justin Danhof shows this idea to be an empty one with a little cross-industry comparison:

http://www.csmonitor.com/2008/0807/p09s01-coop.html

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One Response to “Exploding the myth of “windfall” oil profits”

  1. Dan said

    Everything we do as humans requires energy

    > To take a family of four to a movie at an AMC Theatre, it will
    > cost anywhere from $55.75 to $71.50, depending on whether the
    > family shares movie snacks or not, and this does not even include > gasoline.

    Everything in the movie theater was built, designed, filmed, and fueled primarily with the oil derivatives or oil derived energy, as well as the roads traveled there, the energy costs to build your car (40% of total lifetime vehicle costs I believe), and on and on. Oil executives should be be rewarded with a reasonable profit margin, but not a superior one, as oil energy costs are a drag on society as a whole.

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