What's Wrong with Profits?

Occasionally, as I'm perusing newspapers from around the country, I come across an article that gets my attention because it is so clear and plain-spoken.

Such was the case today when I read an Op-Ed by radio broadcaster Dan Fagan in the Anchorage Daily News. Writing about the recent congressional hearing where five oil companies were taken to task for their earnings, Fagan clearly defined the point-of-view that prevails among some Americans.

As he put it, there are people in our society who seem to believe that "Profits are bad. The word profit no longer travels alone in newspapers. It now follows the word obscene. Class envy is an old game in politics and politicians play it well. Especially when it involves an easy target like oil company executives. Politicians forget less than a decade ago the price of oil hovered around $8 a barrel. "

It's true that the oil business is cyclical; some years are good, while others are very difficult. The trick is in managing those financial peaks and valleys, while continuing to deliver energy to consumers reliably.

The oil and natural gas has demonstrated its ability to do that quite well, but it can't do it without making a profit, providing a fair return to its shareholders, and investing in energy for tomorrow.