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economic windfall for the oil companies

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The price of a barrel of oil has been hovering around $60 resulting in a $2.50/gal gasoline. In the meantime the major oil companies have been making record profits at the expense of the consumer. What are your thoughts on this recent economic windfall for the oil companies and its impact to the economy?

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The price of a barrel of oil has been hovering around $60 resulting in a $2.50/gal gasoline. In the meantime the major oil companies have been making record profits at the expense of the consumer. What are your thoughts on this recent economic windfall for the oil companies and its impact to the economy?

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The recent bull run in the oil prices has surely benefited the oil companies a lot, but at the expense of the economy and the consumers. Due to the rising oil prices, cost of inputs rise for numerous products including the essential ones, thereby raising the monthly budget for consumers. Rising oil prices is a matter of prime concern for the government and economies around the world.

As suggested by Bush in one of his speeches, the oil companies who have made billions of dollars in profits due to rising oil prices at the expense of the consumers, should invest such extra profits and cash flows in developing alternative fuel sources and new technologies in order to avoid such a situation from happening again. In this way, they will be able to enhance the energy security in the economy and pay back ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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