Photo:Vlad Lazerian, Creative Commons, Flickr
A couple of days ago Big Oil executives talked to Congress about their big profits. Exxon (XOM), BP (BP), ConocoPhillips (COP), and Chevron (CVX) are all on the rise today in stock trading. The Boston Herald reports on Big Oil’s defense of record profits at this time:

Executives from Shell, Exxon Mobil, BP America, Chevron and ConocoPhillips defended their companies, saying their record profits are in line with other industries and justified due to huge investments that are made to find new oil fields.

This may be true, but it doesn’t explain why Big Oil needs continued preferential tax treatment and subsidies from the US government. The latest Big Oil profits show that such socialized capitalism is not really necessary for Big Oil. These companies would be making plenty of money without taxpayer help.

It is understandable that Big Oil cites continued oil exploration as expensive, since it is. It’s hard to maintain low costs when you are looking for something that is disappearing, and is increasingly located in countries with hostile governments. But isn’t the industry making enough money to fund its own efforts? And if Big Oil wasn’t getting the breaks it enjoys, would the companies branch out more meaningfully into more diverse ways of generating revenue, such as alternative energy?

Disclosure: I do not own Big Oil stock.

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