So how much are you paying for gas now? Here in Greensboro, regular gas is hovering right around $3/gal. How much higher will it go? It’s hard to filter out the analysts that are trying to scare everyone and those that are trying to accurately predict where it’s going. I think we’ll see a lot of places hit $4/gal, especially if this hurricane season is active.
There has also been a lot of attention given to the oil companies making obscene amounts of money, especially ExxonMobil. And while they have earned a ton of money, their operating margin last year was 16%. For comparison, the operating margin for Google was nearly 33%, twice that of Exxon. Microsoft was 36% last year. Now I realize that I’m comapring tech companies to an oil company, but my point is that there are other companies out there with much larger profit margins. But no one fusses when Google reports huge jumps in earnings. All we are drawn to is the sheer amount of money oil companies are making.
Even with all this outrage, what solutions are out there? A “windfall” tax? Give me a break. What will that solve? Will it make gas prices decrease? No. It will just give Washington some extra pork money.
Gas prices are high because we use so much of it. Do you really think that we would be paying this much for gas if our vehicles averaged 40 mi/gal instead of 20 (or so) mi/gal? Of course not.
[tags]Gas Prices, ExxonMobil, profits[/tags]