We have all read the reports: , while at the same time as prices hover around $3.20 per gallon and in some places even greater.
But even that is not enough for Exxon. , Exxon's cash holdings are at $31.9 billion -- projected to surpass Microsoft as the richest American company:
Thanks to soaring oil prices and record earnings, global energy titan Corp. appears tobe on track to amass a cash mountain even taller thanMicrosoft's. That would give Exxon, the world's biggest company bystock-market value, bragging rights to one of the largest cash piles ata nonfinancial company.
Exxon's bank still isn't as big as Inc.'s. Neither is Microsoft's. But Berkshire boss Warren Buffettdoesn't pay out dividends or repurchase stock. Had Exxon followed thesame policy in the past three boom years, its cash pile would be aboutdouble that of Berkshire. Instead, Exxon these days pays out more than$2 billion a month to shareholders.
Despite such an outlay, Exxon's total cash hit $31.9 billion at the endof March, compared with $28.6 billion at the end of 2005, according tofigures filed late last week with the Securities and ExchangeCommission. That puts Exxon within reach of Microsoft's cash andshort-term investments of $34.8 billion at the end of March. Exxon'scash doesn't include $4.6 billion it has set aside related to theappeal of a court case. Berkshire had cash and equivalents of nearly$43 billion at the end of March, giving it the largest cash holding fora nonfinancial company, according to research provider Capital IQ.Banks, insurers and other financial firms, by definition, are huge cashcompilers. (A number of Berkshire-owned companies are financial firms,but Berkshire also owns consumer-goods makers and other types ofcompanies.)
On top of that, oil companies such as Exxon are currently .
This summer, as families all over the country (especially college students) think about planning their road trips, about driving 300 miles with gas prices expected to reach $3.50 per gallon by Memorial Day weekend. They might even be $4.00 by mid-July. A lot of people I know are either planning less getaways, or are cutting costs on hotel and meal expenses. The point is that gas prices could have a significant impact on all aspects of the travel industry.
A number of leading economists agree, as explained in :
In a USA TODAY survey of economists taken April20 to 25, 40% said higher energy prices are the No. 1 risk for theeconomy. While other risks were cited, such as a decline in the housingmarket and terrorism, energy was the top concern.
Economists mentioned that higher energy prices pose potential troubles for both economic growth and inflation.
released a few days ago shows that Americans are fuming:
"Which of the following statements comes closer to your views about the reasons for the recent price increase in gasoline? It is MOSTLY due to unethical behavior by people involved in the production and distribution of gasoline. Or, It is MOSTLY due to a decrease in the supply of oil and an increase in demand for it."
Unethical Behavior - 61%
Supply and Demand - 26%
Neither - 7%
Unsure - 6%
It has also been pretty much established by now that the short-term proposals by both the Republicans and Democrats were insulting. A $100 rebate would have only lasted a few trips to the gas station. Also, the elimination of the gas tax for two months was more of a joke than an actual long-term solution. Both parties need to do a better job of thinking 10 years down the road.
If this still remains a problem in 2008, don't be surprised if Al Gore is the Democratic front-runner, not Hillary Clinton.
A few months back, Al Gore said for sure that he will not run for President in 2008. Well, , several insiders indicate that Gore is still thinking about it, and will be more likely to enter the race if Hillary is in it:
The demurrals aren't persuasive to some Democrats,including former Clinton-Gore White House insiders. "I do know thathe's thinking about it. I know for a fact," a former adviser says."He's talked to people about the pros and cons."
Among those said to be pushing Mr. Gore arebillionaire venture capitalist and high-tech entrepreneur John Doerrand Laurie David, a global-warming activist and producer of the film,and wife of "Seinfeld" and "Curb Your Enthusiasm" creator Larry David."When people see this movie, I know they're going to see the real AlGore, and they're going to demand that he run," Ms. David says. But,she adds, he changes the subject whenever it comes up, and had to betalked into making the movie when she pitched it.
Mr. Gore has begun assembling a Nashville, Tenn.-basedoperation to help with the demands on his time. He has hired longtimefriend and top aide Roy Neel to head the office, and environmentalactivist Kalee Kreider, from a Washington public-relations firm, tohandle communications. Mr. Feldman says their work will focus on globalwarming, not on maneuvering for 2008.
Yet the talk of a political second act for the man whowon the 2000 popular vote, but lost in the Electoral College after aU.S. Supreme Court ruling, exceeds anything before 2004, when Mr. Gorecould have sought a grudge match against President Bush.
In recent weeks, he has been on the covers of VanityFair, Wired (its headline: "The Resurrection of Al Gore") and AmericanProspect, a liberal Democratic magazine. Defeated politically, henonetheless makes Time's list of the world's 100 most influentialpeople; Mr. Gore is featured under the headings "Heroes and Pioneers"and "America Takes a Fresh Look at 'Ozone Man'" -- the derisivenickname coined by the first President Bush in 1992 after Mr. Gore'sprevious environmental book, "Earth in the Balance," came out.
"His star will never be higher than it is right nowwith his movie coming out," says Democratic consultant Karen Skelton,Mr. Gore's former political director.
The Gore buzz reflects a sense among even somepro-Clinton Democrats that Mrs. Clinton, considered the prohibitivefavorite for the nomination given her support in the party's base ofactivists and donors, can't win the general election because she is apolarizing figure to many voters. These skeptics believe only someonesuch as Mr. Gore with the celebrity and fund-raising potential to matchMrs. Clinton could stop her.
Like Mrs. Clinton, Mr. Gore remains a negative figureto many voters, says a Democrat who has seen private polls. For both,that might only increase with the spectacle of a Clinton-Gore brawl.Even insiders can't fully account for the bad blood that has built upsince. At bottom, they say, it reflects contrasting views of what costMr. Gore the 2000 election: Mr. Clinton's scandals, or Mr. Gore'sdecision to so fully separate himself from a president who remainedpopular amid peace and prosperity. Several insiders say Mr. Gore ismore likely to run if Mrs. Clinton does than if she doesn't.
In 2008, voters will elect a man or women with a clear and honest vision for the future. Many people view both Hillary Clinton and John McCain as just part of the same run-down Washington establishment. Being that we face environmental and energy-based challenges over the next generation, voters might just embrace a candidate with a vision to rid America of its dependence on Middle East oil. Al Gore is just the guy.
On last night's Saturday NIght Live, the opening skit featured a meeting between President Bush and Senate Majority Leader Bill Frist -- played by Tom Hanks -- which drew parallels between the GOP's $100 gas rebate proposal and your typical infomercial:
Click to watch clip >>>
FRIST: "Now, what if I told you that every American was going to get $120 and three days and two nights at the lovely Busch Gardens Resort and Theme Park in Tampa Bay, Florida?"
BUSH: "Busch Gardens? I'd say I was pretty interested."
FRIST: "Well, what if gas hits $5.00 a gallon?"
BUSH: "And once again, it's gonna."
FRIST: "We're going to need to buy some more oil refineries. Now, would you want an oil refinery in your town?"
BUSH: "Well, no sir. Those things smell bad, and they're an eye sore."
FRIST: "But, what if I told you that everyone in your town would get one of these?"
BUSH: "What is that?"
FRIST: "Why, it's the new magic mop. It uses patented micro-fiber technology to spoon up both wet and dry spills on all household surfaces."
BUSH: "I don't know. Looks hard to use."
FRIST: "It couldn't be easier, Mr. President, to use. And to clean it, you just hold it under running water. And if gas hits $5.00 by August 1st, they will get not one, but two replacement shammies."
BUSH: "So wait. You're telling me that I get $120, the Busch Gardens vacation and the magic mop with two replacement shammies? And all I have to do is allow drilling in Alaska, mining in the Grand Canyon and have an oil refinery in my town?"
FRIST: "It's an over $500 value."
The GOP are so nervous about this November that they are drumming up just about every possible strategy in order to reverse public sentiment. The problem is that there is not an instant solution for the GOP on Iraq, high gas prices or the Washington corruption scandals without enacting policies that the Democrats have been begging for all along.
Until today, the Republican solution to solving the problem of soaring gas prices is to give each taxpayer a $100 gas rebate. Of course, they seem to forget that was still not enough, nor was it a long-term solution. Finally Bill Frist and the . House Republican Leader John Boehner, who until today supported the idea, :
"I just think that trying to satisfy voters with a $100 voucher is insulting."
Great. Most Americans would agree with that. Maybe the GOP took some time to look at :
So the GOP is 0 for 1 in their effort to find a solution to high gas prices. (taxing oil company profits) -- but will the media pay attention? Probably not.
The notion pushed on many conservative talk shows that the government has little control over the current soaring gas prices is not flying too well with the American public. :
And in , only 17% approve of the way Bush is handling the issue of gas prices. This is not a winning issue for the GOP this November. So if I were them, I would advise the White House not to continue its war mongering with Iran because it will just increase gas prices even more.
No wonder President Bush picked Tony Snow as his new Press Secretary. The White House needs help when it comes to reviving their conservative base. With Fox News' target audience being the conservative base, the Administration thinks that they have found their answer in Snow.
, which was completed late-Sunday. The news is once again sour for the President and his Republican friends in Congress:
WASHINGTON — Six months before Republicans tryto hold on to control of Congress in the fall elections, a new pollshows President Bush has slid to the lowest approval rating of hispresidency, and a majority of voters say they'll vote for Democrats inNovember.
A USA TODAY/Gallup Poll taken Friday throughSunday found Bush's approval rating at 34%, two points under hisprevious low. He also received the lowest ratings of his presidency onhis handling of the economy, energy and foreign affairs. He tied hisprevious low on Iraq: 32%.
The poll showed Democrats leading 54%-39% amongregistered voters who were asked which party they would prefer in acongressional race.
Speaking of party popularity, today from the Middle East .
Regardless of how unserious Republicans want to make the issue of gas prices, the American people are worried, :
"Have recent price increases in gasoline caused any financial hardship for you or your household?" If yes: "Is that a severe hardship that affects your ability to maintain your current standard of living, or is it a moderate hardship that affects you somewhat but does not jeopardize your current standard of living?"
Severe Hardship - 23%
Moderate Hardship - 46%
No Hardship - 28%
Unsure - 1%
is the Democrats' plan to put a dent in high gas prices.
Responding to growing public frustration over soaring gasolineprices, President Bush called Tuesday for a nationwide investigationinto possible price manipulation.
But even as he announced other steps intended to free up gasoline supplies, Bush warned that prices are likely to climb higher.
Is it just me, or is President Bush investigating the oil companies just as fake as if the San Francisco Giants offered to investigate Barry Bonds' steroid abuse? Neither are going to happen. And if they did happen, who is to say that those investigations would produce anything legitimate?
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