Perp Walk for Big Oil

It looked like a bad episode of Law and Order yesterday when the heads of five gigantic oil companies took the perp walk into a Senate Committee on Finance hearing, These titans of industry should have put a coat over their heads and had their hands tied with those little plastic bands. I was waiting for Assistant District Attorney McCoy to take up the microphone rather than Senator Max Baucus (D-MT)

To reduce the deficit the Democrats seem to want to raise a few billion by skinning Big Oil or at least these 5 companies. Another pelt on the floor next to the pellet biomass burning stove. The benefit of attacking Big Oil-carrying the baggage of high gas prices and high profits-is it creates a nifty diversion from many of the conditions caused by these very policymakers, such as a collapsed dollar, incredible deficits, environmental regulations, bans on leasing and drilling and endless list goes on. 

 I am not defending Big Oil or Big Anything. The good citizenship of the oil companies is reflected in the poverty of Nigeria, the pollution of the jungles of Ecuador, the corruption of Angola and the oppression of Equatorial Guinea to name only a few examples. However, these companies are in the business to make money for their shareholders (remember capitalism) They are big boys and have learned to suffer the indignities of being used a cannon fodder, dart boards, doormats, and flogged in public. (Wonder if any of them flew in on private planes like the car guys?)  International oil companies have without a doubt exploited many a landowner, consumer, government and foreign dictator. They did not get this big for nothing as they do sell a product that is essential to modern life.

As I detailed in my last piece, the tax treatment of the industry is a serious question that taken in the right context deserves scrutiny. Contrary to the ranting of the ill informed, the industry is not treated any better or worse than other major businesses such as Obama darling General Electric or Microsoft for example. Many in Congress seem to want to outlaw the rules of supply and demand as they continue to demonstrate they do not understand the concept. There is a place to berate the bad guys but this is not one of them. The advocates of fleece the successful industry should stop the cheap theatrics and focus on real national energy solutions based on market policies, prudent regulations and focused subsidies, technology development and research.  Punishing these guys, parading them up front of sarcastic Senators is not going to lower the price at the pump or cut one barrel of foreign imports. But that was not the purpose, was it?

 This whole exercise is a political game bent on feeding raw meat to the converted. It is about re-election. It is about fundraising. The justification of reducing the deficit by selectively raising taxes on oil companies is laughable as well as insulting and sad. I apologize for being so cynical but I hope for better but never expect it.