For
many Americans outside of the Gulf Coast, the most immediate impact of
Hurricane Katrina isn't looting in the streets, it's looting at the
pumps. And while the supply crunch caused by Katrina may be the biggest
driver of higher gasoline prices, there's little question who stands to
benefit: Big Oil.
In
just the last week, the stock prices of major U.S. oil producers
ExxonMobil, ChevronTexaco and Conoco-Phillips have surged by 4%, 5% and
8%, respectively. Over the last year, their stock prices have increased
by 31%, 26% and, for Conoco-Phillips, a whopping 80%.
Major
oil refiners have done even better, with Valero (20%), Marathon Oil
(11%) and Sunoco (23%) posting double-digit percentage increases in
stock prices between the opening of markets last Friday and today's
open.
Meanwhile,
refineries are set to make huge profits this weekend and beyond, with
the profit margin for refiners up to more than $23 per barrel -- more
than 50% higher than two weeks ago and more than four times higher than
a year ago.
Americans
have the right to ask whether such massive profits are appropriate at a
time of national crisis. And they have a right to demand that
government work to protect Americans from being held captive by Big Oil
in the future by improving the energy efficiency of our cars and trucks
and reducing our overall dependence on fossil fuels.
