Is Big Oil Utilizing the Huge Profits Appropriately?

"Windfall profit" is defined as:
"A sudden, unexpected profit uncontrolled by the profiting party." (http://financial-dictionary.thefreedictionary.com/Windfall+profit

OK...so I'm quite sure we could define some of Big Oil's profits as being "windfall" (i.e. "sudden"), although I'd guess it would be hard to distinguish between 'windfall' and 'normal' profits, AND it might be harder still to believe Big Oil (the "profiting party") is NOT somehow "controlling" or "manipulating" things just a bit more than they let on.

Big Oil deals in Big Numbers, that's for sure. And, consequently, we tend to think they're always "gouging" because it's next to impossible to keep abreast of all the issues and political or economic impacts on the Oil Industry at large...so human nature tends to get a bit 'suspicious', I guess. I know mine does! And, I know a lot of others who express the same sentiments.

Certainly, there are legitimate reasons why oil companies should be allowed to collect whatever profits the market can bear. And nobody I know is out to take away their ability to continue their research and development of new sources of oil, or in alternative energy sources...things which need healthy profits in order to 'reinvest' in the future. I think most of us would probably agree that's actually a good thing, and even a necessary thing, no?

BUT........If Big Oil is collecting "windfall profits" and they are NOT using the profits to fund present AND future industry needs, then something needs to be done to perhaps 'force' such investment to ensure future stability. Nearly all facets of our economy and civilization rely very heavily on petroleum, and to 'neglect' the systems which are intended to deliver and distribute that is to guarantee future disaster.

For example, with the huge profits Big Oil is making, their operating equipment should be state-of-the-art, highly automated, highly technical, perfectly maintained and perfectly operating to "zero-downtime" levels.

Refineries and distribution infrastructure should be impeccably efficient and up to the minute accurate with zero errors.

Old equipment should be replaced with latest updates before expected lifespans are 'expired'...not after they break down.

There are also other areas which Big Oil should be reinvesting the bulk of their profits. If they are NOT, then I, for one, can only assume they're practicing things that, if not already illegal, surely SHOULD be (in my opinion)! After all, what they do now directly impacts what the future holds for our children and beyond.

I would also have to ask "what ARE they doing with these windfall profits, if they're not reinvesting to the appropriate levels (as deemed by prudent industry practices)?"

If the answer comes out that they're not spending as they should be, as "world-class" industries, then of course....."America...we have a problem!"

Here are a few questions I think need to be answered:

1. Does anyone know or even care how much Big Oil reinvests in the future?

There's one sad story described at this site: http://www.swordscrossed.org/node/1161. Looks like Exxon/Mobil, at least, is spending LESS now on future needs while earning MORE profits (figures compare 1Q '06 vs 1Q '07). So, basically this means they're "pocketing" more of the profits this year than they did last year...I'm just not sure what "pocketing" means in these cases.

2. Is the percentage of profit being reinvested simply a "token" or perhaps only mandated and unavoidable spending? If so, they may not be doing enough to guarantee future stability.

3. Are the profits somehow being 'divvied up' by top executives and top investors through slick "bonuses" or "stock options" or other sleight-of-hand trickery? If so, our legislators need to act now to end the nonsense.

4. Is it possible some of our Government leaders might somehow be benefiting from 'windfall profits' of Big Oil? If so, we're in more trouble than anyone realizes!

We must take back the power! Write or call your political leaders to demand the truth, and to demand that Big Oil be required to reinvest in their systems, infrastructure, etc. with "industry-best-practices-to-guarantee-future-stability"!