How to cut the cost of gas at the pump

Thought for the day

I'm about to drive from Laguna to Carmel Valley next week for my son's wedding.  That said, I hope you'll find the following of interest ... 

By my count, there are 5 people in the U.S. to blame for the high cost of gas at the pump.  They are the CEOs of Shell, ExxonMobil, BP, Chevron and ConocoPhillips.  Did you know that, according to the Center for American Progress, the combined first-quarter profits of these five companies in 2022 was $35 billion?  In case you are wondering, that is triple the profit these same companies reported during the first quarter last year.  

If you ask me, these five business leaders should not be allowed to profit off of people's fears about the war in Ukraine, supply chain disruptions, inflation, a volatile stock market, or another COVID surge.  I'm no economist, but it is hard for me to believe there is any justification for charging customers anywhere from $5.00 to more than $7.00 a gallon for gas (depending on where they live in America).  

So what can be done to lower the price of gas?  The first step is easy.  President Biden needs to invite the five corporate titans in question to Camp David for a summit.  The next steps include taking pages out of former President Jimmy Carter's 1978 playbook.   Over the objections of people inside his own White House, Carter negotiated in secret with Egypt's Anwar Sadat and Israel's Menachem Begin for 12 days until these two old warriors finally agreed to a Middle East peace deal.  In case you have forgotten, that agreement still is in effect today.    

Call me naive, but I think Biden's gas summit could result in a similar breakthrough for U.S. consumers.  Imagine, after a week of negotiating day and night, Biden and the five CEOs agreeing to an immediate, across the board price reduction of $1.50 to $2.00 a gallon for gas.  While Shell, ExxonMobil and the three other companies would have to lower their future profit projections, thus risking blowback from stockholders, I believe those chief executive officers eventually would be hailed as heroes.  So would Joe Biden.

With summer travel about to explode, the timing for a Camp David gas summit couldn't be better.  The only question that remains is this:  Do the five CEOs in question have the courage to accept the president's invitation?

-DF

This photo was taken last week near the Beverly Center in Los Angeles.