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As for oil industry profits, industry leaders argue that they
are good for the US economy. “The U.S. oil and natural gas indus-
try’s strong earnings signal growing strength in our economy,”
said Jack Gerard, head of the American Petroleum Institute.
Wrote economist Don Boudreaux, “When Exxon or Chevron has
a good year, their larger-than-usual profits are often invested in
new projects that grow the economy. The money is used to hire
new employees, buy new goods and services from other busi-
nesses, research and develop new sources of energy and give
raises to current employees.”
Gerard and Boudreaux also noted that many pension funds—
which provide income to people after they retire—are invested
in oil company stocks. So when oil companies make big profits,
many retirees and other Americans benefit. Industry leaders
also argued against higher taxes on oil companies, saying that
high taxes make it expensive for oil companies to do business
in the United States and may lead them to move operations to
other nations.
Hagens also stressed the importance of petroleum in mod-
ern life, observing,“[Oil companies] may not be noble, or admi-
rable, or even likeable, but oil companies are providing a critical
service to society. . . . Though gasoline is expensive relative to
what we have become accustomed to, it is still incredibly cheap
[considering] what it can accomplish for us.”
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No matter the outcomes of these ongoing controversies,
chances are good that Big Oil will keep getting bigger—because
global consumers continue to use more oil: 87.8 million barrels
per day in 2010, 88.8 million barrels per day in 2011, 89.7 mil-
lion barrels per day in 2012, and 90.3 million barrels per day
in 2013. And demand for oil will continue to grow, unless and
until major shifts in the world economy and energy technology
