Big Oil gouges public, then lies about it

Ken Anderson, Las Vegas

Saturday, April 5, 2008 | 2:04 a.m.

I am astounded when I read some things in the newspapers: For instance, when a spokesman for Big Oil recently pleaded his case to the public, which feels it is being gouged by prices at the gas pump.

Defending the high prices of gasoline, the man mentioned the price increase of crude oil per barrel and the increase in demand for petroleum products globally. Like the administration in Washington, he underestimated the public’s ability to listen to the weak answers we are expected to swallow, hook, line and sinker, from both Washington and Big Oil.

Let me make my point.

One of the outcomes of the energy crisis is that Big Oil has made more profits than ever with its high prices. Going back to the oil man’s response, if the public had been asking why the oil companies were losing money, his answers would have been right on.

Yes, increased costs of production can hurt a corporation’s profits. The company can raise the price of its product enough to maintain normal profits. But when it raises the price to the extent that its profits reach windfall proportions, it is simple to conclude that the public has been ripped off.

It is bad enough that the American public has been subjected to matters like gas prices and the war in Iraq, but when those in charge insult us by providing ridiculous feedback, we have every right to speak up about it.