Ethics and the Oil Industry

As the US Economy expands to dive, unemployment persists at a level non seen since the Great Depression, and the US Federal Government sees fit to continually bailout big business, it escapes logic wherefore the cost of fossil petroleum color once again, is on the rise. The US oil companies would require us believe it has to do with the Middle East oil producing nations acidulated back on production, therefore raising the wrong. The energy traders at the raw(a) York Stock Exchange shrug it off to supply and demand. Many speculate that America has billions of surplus barrels of oil. I believe it is pure covetousness from these entities.With so many Americans struggling to survive and just keep diet on the table, would it non be ethical to enact a fount of moratorium on fuel impairments? With the Freedom of Information Act working in full force, it is simple to find information on the World replete(p) Web that most industries would rather not confuse located. Take for example, the oil industry. As the wrong of gas at the philia changes daily, US oil companies abide to rake in huge profits. Even in the come alive of the recent oil spill which has had a globular affect, BP Oil, the London-based company clear $1. 9 billion from July through September, comp atomic number 18d with $5. 3 billion a family earlier. But the fact that BP returned to profits at all, coming after a loss of $17. 2 billion in the second quarter, indicated the companys operations stay solid despite the spill (Wardell, 2010). This company set aside $40 Billion for the pending lawsuits and cleanup and helping to restore the affected economies. I do not eff, how round dropping the price at the pump if the company really wants to effectively help out?It is speculated this spill leave be felt for years to come. I wonder how many think well-nigh the Exxon Valdez spill caused by a drunken ship captain As congressional leaders begun having many meetings to discuss this so lvent, the oil company CEOs continue to lay claim a huge percentage of the profits (of mannikin no dollar figure was given), is for creating new energy sources, really? Where argon the charts and PowerPoint diagrams that consumers can review to ease our minds while we are again, paying among $3. 00 and $4. 00 for a gallon of gas?I find it interesting that when asked, not one executive was forthcoming with information related to the quarterly dividend payments to the stockholders. I am always flabbergasted by the laundry list of excuses these executives strain out of their mouths. Two of my personal favorites are, 1 Twice a year, distributively oil company shuts off part of their refinery distribution for routine maintenance. certain(p) enough, for two to four weeks the price of a gallon of gas pull up stakes jump 10 to 20 cents. What I find interesting is when the price starts to drop again why does the price not drop the wide amount of the increase?I have personally watched s everal of these inquisitions on the C-Span channel. I wonder why during the Senate/oil company meetings, this question is never asked. 2 The oil producing countries are cutting production to inflate prices. I think the United States Government believes the American normal is clueless as to what is really going on. The congressional leaders raise their voice and shape up to grill the oil execs with questions and when the meeting is over, it is a slap-on-the-wrist and stop doing that , and life continues as it does.The Senate meeting appears to have been nothing to a greater extent than a dog and pony show for the American public. Society needs to remember that congressional leaders do not have to pay for their own fuel. It continues to beg the question, who is observation out for the rest of us that do have to pay at the pump? It certainly leave behind not be the futures traders at the unsanded York Stock Exchange. For those who do not understand futures, this is when traders sp eculate on the price of specific commodities such as Gold, Orange Juice and oil.Traders buy or sell based on what they believe will be the price by a certain date. Based on this type of fabricated speculation, the value of the dollar and supposed turmoil around the world, this can have a serious effect on the price of oil, or so we are lead to believe. In California, over a 21 calendar month period, October 2006 to June 2008, a gallon of gas rose from $2. 29 to $4. 59 a gallon (Herszenhorn, 2008). On a network-news website in Tallahassee, Florida, the lead article said, social intercourse is poised to investigate what role speculators are playing in rebellion gas prices. It went on to say, The prices keep climbing. The price at this Tallahassee localize was 10 cents cheaper just six days ago. Panama City displace are nevertheless worse where the price of gas Monday jumped 10 cents a gallon just Monday afternoon. (Ray, May 2008). In April of 2008, Governors from several states called on the clean House, the Energy and Justice Departments to begin an investigation into insider trading, illegal price reparation and speculator manipulation. This included collusion within the oil companies.Amazingly, by November 24, 2008, a gallon of gas was $1. 71 a gallon. Everyone was so relieved of the undreamt of price drop, no one bothered to ask the oil companies how it was affirmable that gas could drop $2. 87 a gallon in quin months when it took 21 months to increase $2. 30. I suppose we will never know. I suppose I would not fret if I was one who had a lot of stock in any oil company. For all the comport the US Congress looks to have perfected to an art form, there are still many unanswered questions when the discussion surrounding energy and oil surface.In a New York Times article, the overall indicate was once again, no concise ideas of how to deal with the price of oil mail service. Of course, the article talked about a lot of finger pointing towards OP EC (Organization of the Petroleum Exporting Countries). The article stated, High on the list of Congressional Democrats own proposals is an eight-year old bill first introduced by Senator Herb Kohl of Wisconsin in 2000, that would classify the Organization of the Petroleum Exporting Countries as an illegal monopoly in violation of the Sherman Antitrust Act (Herszenhorn, May 2008).It went on to say, The Republicans, meanwhile, recycled some of their old proposals to increase domestic production, with bills that would allow drilling in the Arctic, as well as in the Atlantic and Pacific, and would mandate change magnitude production of fuel derived from coal (Herszenhorn, May 2008). All we hear is more rhetoric and no ideas how to help the consumer. This is not only an ethical issue it points the arrow of social responsibility to the Government that should have the American publics best interests at heart. As of this month, November 2010, The number of unemployed persons, at 14. milli on, was little changed in October. The unemployment rate remained at 9. 6 percent and has been fundamentally unchanged since May (BLS, November 2010). And yet, fuel prices still continue to rise. In Addition, the milieu will continue to suffer as talks continue about drilling in North America to distance ourselves from fo hold oil. unable to locate the article, my father told me about a news article he read several years ago that came from the oil industry. The premise was if the US no longer needed foreign oil or were to even be able to cut usage by one third, the global economy would fall apart.It sure is hard to believe that every condemnation I pull up to the pump to fill the tank It would seem from not just a national perspective but as well a global perspective, we as consumers are in a situation that will never change. As consumers look to the Federal Government to reign in the oil companies, the price at the pump continues to rise. It is difficult to know who is lying an d telling the trueness as it relates to oil. In addition, what becomes the cutoff point when I am deciding what price I am volition to pay at the pump?It seems clear that our government will not be helping to curb oil price increases. OPEC will continue to do as they see fit and the US oil companies will raise prices as every holiday approaches and/or for whatever soil they see fit. Does it really matter? When it comes to the price of oil, the consumer cannot get the straight truth out of anyone. As we continue to read in the news about the push for alternative energy sources, the discussion continues among my friends that getting away from oil will probably never happen, in our lifetime.