"Californians For Clean Energy" Seek Part of Oil Profits

[jpak]

http://www.renewableenergyaccess.com/rea/news/story?id=44936

Peterborough, NH When Exxon-Mobile reported the highest annual profit of any company in U.S. history last year ($36.1 billion), advocates of clean energy -- along with economically squeezed motorists -- saw a way to balance the scales: direct a portion of the oil companies' windfall toward alternate sources of fuel. As prices at the pump climbed and accusations of price gouging ensued, the idea gained widespread support.

"Our Initiative specifically prohibits the oil companies from passing along this tax to consumers. It is specifically prohibited in the language of the law."-- Julie Buckner, Californians For Clean Energy, media and communication director

In Congress, however, the notion of private corporations giving up some of their earnings for the greater public good has not gained momentum, and the oil industry has steadfastly denied jacking up prices in the face of tightening supply. According to oil industry officials, the high cost of gasoline is a function of market forces beyond its control. Lackluster production from Iraq, Bolivia and Nigeria, and increased world demand, particularly from China, has driven up prices, industry officials say.

The price gouging case may be impossible to prove, but now Californians For Clean Energy (CFCE), an organization backed by Hollywood producer Steven Bing and Silicon Valley venture capitalist Vinod Khosla, has channeled popular sentiment into proposed legislation. The Clean Alternative Energy Initiative -- which, according to CFCE, is well on its way to the November 2006 ballot -- calls for a special tax on crude oil produced in or off the coast of California.

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[phantom power]

1. Impossible to prove??

This endless faux debate over the reality of price-gouging infuriates me. There is no reason that anybody needs to settle for an "opinion" on this matter. The costs to refiners are well known, or if they aren't then their accounting books should be damned well subpoenaed.

I'm actually agnostic about whether or not this is price-gouging, but dammit, it's a question that can be answered quite easily by collecting a little data, and then applying a little arithmetic. If the answer is still ambiguous, it's only because those in power chose to not find out the actual answer.

Dammit.