Rumor has it, San Francisco has become the first city in the United States to average the highest price per gallon of gas. Over $4.00 per gallon. Yeah! Lucky us. What an honor. I mean, we finally got ‘first’ in something other than being the best city in the United States to live in. Phew. That title sure was getting old.
The housing market is out of control here. Seems fitting the gas prices would follow suit. Gah. Starting to get the feeling we, ‘the collective we’, are being penalized for living ‘the good life’.
Yeah, not so much any more.
Now, I know this is nothing compared to what the Europeans spend – but this is not about them. This is about me. 
I do find it interesting that as the U.S. dollar dips further in the world market and the housing market seizes up (everywhere EXCEPT San Francisco) – it took the rise of gas prices to raise the ‘thrifty’ bone in my body. My dad always said [proudly, mind you] that it was there. I never believed him though. I mean, I am my mother’s daughter. Born to spend. Here to help pump money continuously into the economy. Never slowing down, until now.
As a Nation so dependent on petrol, the rise in gas prices scares the crap out of me.
Because of this, I thought it high time to look into the rising gas prices and the compensation packages of the CEO’s at some of the big oil companies to see if there is some disconnect here. No surprise here. You knew there would be.
Step 1. Watch gas prices. There is so much movement in the Bay Area, this project actually kept me on my toes.
On March 30th, I checked out 4 stations in various parts of the city, we were averaging $3.85/gallon for middle (Plus) grade.
A mere two weeks later, on April 14th we had jumped $0.24 to an average of $4.09 per gallon. Jeebus.
Step 2. Check to see how the CEOs at the big oil companies are doing these days.
Oh hey, wow. Seems like things are good for these guys. ‘Light’ research shows the following packages (from 2007):
* Rex Tillerson, Exxon’s CEO, saw an increase of 18 percent in his package this year to $21.7 million, which includes base salary of $1.75 million, a $3.36 million bonus, and $16.1 million of stock and option awards. Nice.
* David O’Reilly, Chevron’s CEO, got a nice little 17 percent increase this year to $15.7 million. His package includes a $1.65 million base, supplemented by $3.6 million in performance-based incentives and stock awards valued at $10.2 million. I might be able to live on that.
* Jeroen van der Veer received $10.2 million in salary, bonuses and other benefits in 2007, up 19% from 2006. Starting to think I am in the wrong business.
* Bill Klesse, CEO at Valero, received compensation valued at $14.5 million last year. Base salary of $1.5 million, plus a bonus of $3.7 million. The remainder of the compensation came from incentive bonuses and stock and stock option awards. Holy smoke. I am absolutely in the wrong business.
So it seems while the rich get richer, the rest of us…don’t.
Don’t get me wrong, I am all for making a profit. I hail from a pair of sole proprietors and am a die hard capitalist. With that said, there is a fine line between making a decent profit, and that of stripping the working class of every penny they work so hard to earn.
The big oil companies seem to be following the latter path. That sucks.
I fell like calling Susan Powter. We need to Stop the Insanity.
Economists say the price of gas is directly related to decline in the dollar’s value. Add in increased demands from India and China and the barrel price gets wacky. You also can’t forget greed.
How do we battle it?
There are some interesting options out there. Drive less (if you can). Buy a hybrid. Get a tune-up. Drive consistently. Change your habits.
All I know is we DO NOT need this gas tax holiday being proposed by Hillary Clinton and John McCain. They say they are trying to help the American people keep more money in their pocket over the summer. Clinton and McCain are pushing to have the big oil companies pay this tax for a short term, which would save the average person about $30 over three months. Big whoopdedoo.
They both conveniently ignore the fact that the ‘holiday tax’, if effected, would not stop the big oil companies from increasing the gas prices even more. Their plan has nothing in place to stop them. Clinton and McCain are not offering a plan to protect the average American from more financial loss.
Barack Obama, on the other hand, has proposed a windfall-profits tax that could cost oil companies $15 billion a year at current profit levels. The plan would impose a tax on each barrel of oil over $80, and could cost oil producers three times the $50 billion, 10-year windfall-profits tax Clinton has proposed.
I am sure the CEOs listed above would do anything they could to protect their compensation packages. Sure they might have to take a little hit, but should not hurt them too badly if say they go from $15.7 million to $14 million per year, right? I mean, if they invest wisely, they shouldn’t notice too much different here.
The difference between what Clinton and McCain proposed vs. what Obama proposed? Obama’s plan provides incentive for the big oil companies to keep gas prices in check. Keep gas prices at a reasonable level.
Obama is thinking of way to help the American people keep more money in their pockets.
Not quite sure how I took a gas post and turned it into an Obama post, but I did it. And I am happy.
One more reason I support Obama for President. I truly enjoy getting in my car, taking a nice long road trip down the beautiful California coastline.
