Oil Companies Obscene Profits?

Everyone loves to demonize ExxonMobil, BP, Shell etc. They have been making record profits lately. Records in total dollar amounts anyway, their profit margins are miniscule.

Consider these facts from this article by Tom Morgan.

From 1977 to 2004 U.S. oil companies made $630 billion profit. Before they got to that bottom line they paid $518 billion in federal and state corporate taxes.
Now, who is ripping off whom?

Wait! Over the same years governments took in another $1.34 trillion in excise fuel taxes. The oil companies had to collect that money and pass it on to governments.

Everyone knows who pays excise taxes right? You and me, everytime we fill our gas tank or our oil tanks at home.

Mr. Morgan goes on to say...

In other words, governments grabbed nearly $2 trillion in taxes on oil and oil company profits. While oil companies made less than a third of what governments collected.

Think about this next time you feel good when you hear someone like Hillary Rodham Clinton claim that shes going to "take away" Exxons money.

Don't think for one minute that the government's confiscation of Exxon's profits will reduce the price you pay for gasoline. All it will accomplish is a pull back on exploration and production, which will result in a shortage of refined product, which will result in a price increase.

And the excise taxes will only go up.

What say you?

I say Mr. Morgan is exactly right and the government is the one with record profits. Government spending is scary too, but that's another story. I don't complain about fuel prices because it won't matter unless we all take a stand at the same time and do something about it. Unfortunately that'll never happen. Everyone for them selfs now days.