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November 16, 2005
Harry Reid's Oil Exec Sham. . . .
Democrat Minority Leader Reid wants some of the oil company executives who testified before Congress to return and face more questioning under oath.
While on the surface this may seem like a good idea, especially after the temper tantrum the Democrats threw when the executives weren't required to testify under oath the first time.
So let’s think about that for a second. Now supposedly the first testimony was to be in order to investigate why gas prices ran up following hurricanes that devastated the Gulf Coast region of the United States, shut down oil refineries (destroyed some) and forced the industry to shut down production and shipments, twice, once for Katrina and once for Rita. Congress also wanted to know about record profits recorded in that same quarter.
Now it's important to note that these "record" profits represented a margin of less than 10% FOR THOSE THAT ACTUALLY MADE A PROFIT. Not all oil companies made a profit however, Plains Exploration and Production lost 31.8 million, Endeavor International lost 14.5 million, Abraxas lost 3.3 million. Congress isn't calling the companies who lost money to testify, only those that made money. Again, keep in mind that these companies' profit margins were less than 10%. While it's true that the larger, more diversified companies who could draw from areas unaffected by hurricanes made money; many other oil companies lost money. In essence, the money was there to be made, it just got concentrated to those companies who had the infrastructure to keep it flowing, that's not a crime; it's a demonstration that the capitalist model works to provide supply to meet demands.
So I guess it's shady and borderline illegal to make less than 10% profit on your goods and services in America now, so borderline illegal that you may be called before Congress. Nevermind that many of these companies making money NOW because they invested capital to whether "the storm(s)" lost money last year.
I wonder Reid going to call Google executives before Congress for their 20% plus profit margin last year and who's profit margin topped 14% in the 3rd quarter. Are we now going to see other companies called to the carpet when they make money? Is it a crime to make money in America now? Or is it just that you made money AND you're an oil company?
Ok, Ok, I'm inflating the issue a bit, but not really that much. Not nearly as much as Reid and the Democrats are inflating the issue. Reid and the Democrats want to draw blood, they don't care from whom, they just need to demonize and attack someone in front of the cameras, because that's all they have left. No plans for the future, no suggestions to end foreign oil dependency, no plans for the nation in general. It's simply cry-baby cry; demonize America and everything American for the Democrats of late. Capitalism is a part of America, the oil companies are part of capitalist America, but the Democrats feel that capitalism is evil and those who practice it are evil (well, to be honest, they only think it's evil when they can attach it to the Republicans, and the oil companies are generally considered to be a Republican domain ---- unless you happen to look at Michael Moore's stock portfolio or Barbara Streisand's driveway).
There's a reason that the oil executives weren't put under oath when they were called to justify their 3rd quarter profits, and I'll tell you what it is. Quarterly Reports are ESTIMATES, they aren't facts, they have some facts in them, but they aren't facts in and of themselves. Quarterly Reports are an indication of where the company is heading in a period, what major events took place, what changes in strategy are being made and what the balance sheet appears to look like at the time. Had the Democrats had their way and sworn in the CEO's of the oil companies that made less than 10% profit, very few questions could have been answered by the executives. Simply put, you can't testify to something you don't know for certain, you can't testify under oath on possibilities and estimates, and you can't testify with a weeks worth of notice on business financials covering trillions of dollars, spanning the globe in a myriad of nations and involving thousands (even tens of thousands) of accountants. Testimony on such things takes weeks, even months to prepare, and that's AFTER the annual report is signed sealed and delivered to the stockholders. Until the annual report is done, all the year's incomes and expenses are tabulated, taxes paid and interest collected, the TRUE and ACCURATE financial picture of a company is unclear.
Furthermore, the Congress wants the oil executives to testify about a process they are only a small part of. The oil companies aren't the end all, be all, omnipotent gods of the energy universe. Nationwide gasoline prices are NOT SET BY EXXON EXECUTIVES, there are thousands, even millions of middlemen the world over who speculate, manipulate, horde, dump, find, trade, buy and sell oil, gasoline, natural gas, plastics and manage delivery networks at the local, regional, national and international level. All have a function in the price of gas at the pump. All have a small cumulative effect on the market that rises and falls responding to all manner of natural and man-made events, some real, some imaginary and some manufactured out of whole cloth. Not to mention inflammatory and downright scary reporting by "news" reporters who know next to nothing about free market commodities trading and also bombastic irresponsible speeches by moronic Democrat leadership.
Putting the oil execs under oath last week would have led to a series of "I cannot answer that at this time", or "that's simply information I do not have at my disposal" responses. Nothing would have been gained from the hearings if you put these execs under oath with a week's preparation, the entire notion is nothing but preposterous. However, if you want to talk freely about and actually understand how the oil markets and companies work, if you want to know what the thought process was for the oil companies during the run up and immediate aftermath of the hurricanes and how they prepared for the market disruptions, then surely, call them in for a friendly and productive session where honest questions can get honest answers.
I suspect that if Crybaby in Chief Reid gets his way and brings the oil execs back, and then swears them in under oath, we'll see an army of high priced lawyers come along with them. We'll see hundreds of mid-level execs and high-level analysts tag along for the ride too. The "event" will cost the American taxpayer and the American consumer of petro-products millions of dollars to prepare for a sham hearing seeking testimony that simply can't be given on events that are still in flux or completely beyond the control of the oil companies.
But the Dems will have their opportunity to grandstand, badger, attack and bemoan the executives for the cameras. We'll have high-profile Dems bitch and moan about the "evil oil companies" acting all "corporation-y". How dare they make less than a 10% profit on trillions of dollars worth of investment. How dare they make a less than 10% return for their stockholders (damn right, I want my oil stock returns to be 15%, and so does Michael Moore, in fact I want my oil stocks to perform like Google stock!!!).
Newsflash for Harry Reid, it's not a crime in any way shape or form for a company to make less than 10% profit. In fact, companies that make less than 10% profit are considered to "less than attractive" to investors because they aren't making enough. One can make more in the bond and real estate markets. I don't see Reid calling the Chief execs of RE/Max to testify.
If by some chance, the Oil Execs do make it to Congress and are forced to testify under oath about a crime that doesn't exist, and then please, by all means, let them testify, and let’s make sure that good Republicans take the time to ask the right questions.
Let’s make sure they ask:
"Why haven't any refineries been built in the U.S. in the last 20 years to meet increased demands?"
----Because the enviro-whackos won't let them
"Why has the price of a barrel of oil skyrocketed?"
----Because the Enron traders are out there working privately now to run the price of oil up.
----Because the market is dependent on foreign potentates who set quotas and prices arbitrarily
"Why is the price of gas at the pump so high?"
----Because governments look at gas taxes as a cash cow and have been steadily influencing the market upwards by taxing fuel at every opportunity.
----Because our means of refining, extracting and delivering gas and oil has been hampered by natural events beyond the control of the oil companies
(BEFORE SOME IDIOT COMES IN HERE AND SCREAMS THAT GLOBAL WARMING WAS CAUSED BY THE OIL COMPANIES, REMEMBER THIS, THE GREENLAND ICE CAP IS THICKENING YOU MORON, GLOBAL WARMING IS JUNK SCIENCE, A MYTH, OR AT WORST, A COMPLETELY NATURAL CYCLE AND WE'RE DUE FOR ANOTHER ICE AGE SO GET YOURSELF SOME PROPANE HEATERS)
There are a thousand and one questions I'd like to see asked that the execs for Exxon and the other biggies can answer honestly and truthfully to explain in real terms to the American public what the real reasons are that make prices at the pump so high (or so low by European standards, and we know how perfect the Euro society is, right?). So IF the oil execs are brought back, let Reid and the others make their bombastic threats, wild proclamations and lament for the cameras, and let the oil execs calmly and politely tell them that the 3rd Quarter figures are an estimate of income and that no specific information can be delivered until the year is over and a full accounting is done.
Then let the Republicans hammer home the need for new refineries in the U.S., let's hammer home that ANWR and the coasts need to be opened to drilling to reduce our dependence on foreign oil and let American traders use the might of OUR RESERVES to force the global price per barrel down. Let's spread our petro-chemical industry across the entire gulf-coast and open up new terminals on the east and west coasts so we're not dependent on the Port of New Orleans for a majority of our oil supply. Let's have some testimony that isn't just grandstanding for cameras and Democrats barking "SEE SEE they won't answer!" "SEE, Look at the evil corporations, acting all corporation-y."
Finally, BY ALL MEANS, let's drag Google into Congress and make them testify about their proprietary technology that they are making 20+% on when those evil oil companies with all their power and influence are only making LESS THAN 10%.
Before I finish, lemme just say that Reid is also trying to frame the Oil Exec Testimony around meetings with Vice President Cheney to discuss Energy Policy. This is a non-starter of the greatest degree. Firstly, you're getting into executive privilege here, and it should not be tolerated. Second, if you're gonna have discussions about Energy Policy, it's a good idea to get the guys WHO ACTUALLY MAKE THE ENERGY in a room and get some real work done without having to turn the whole thing into a parade.
I want everyone to realize, and I'm sure most of you do, that this is just one in a series of dog and pony shows by Reid to try and smear the administration by forcing a bunch of people under oath to testify about things that they legally and accurately cannot. Reid knows this, the media knows this, but he's going to put on his show anyway, and the media will report it as evil corporations in collusion with the evil Republicans to make an evil profit.
Ironically, Reid is doing this so the Dems can increase fundraising (make money) and the media is doing this to increase viewer ship and ad revenue (to make money). Making money is evil if you're Republican, but perfectly all right if you're a Democrat or Leftist (Michael Moore owns stock in Halliburton). Ten percent (or less) is too much profit if you're an oil company, but twenty percent plus is perfectly alright if you're an internet company.
Here's what will come from these hearings, if they ever happen, more legislation (leading to higher prices at the pump), more lawyers charging exorbitant fees (leading to higher prices at the pump) and a downswing in oil company stock (leading to less money for the American public, WHO ARE THE ACTUAL OWNERS OF THE PUBLICALLY TRADED OIL COMPANIES)
Way to go Harry, you dumbass!
--Jason
Posted by JasonColeman at November 16, 2005 8:45 PM
