Oil profits could spark some backlash

HOUSTON – Historic oil prices and $3-a-gallon gasoline have been contributing to fears of a recession, but they’ve yet to cause the hue and cry that some might expect. Americans may simply be growing more accustomed to high fuel costs, analysts say.

All that may change beginning Friday, when oilfield services giant Schlumberger Ltd. kicks off earnings season for the oil sector. Companies may not post record profits, but certainly may report big enough earnings to raise some eyebrows.


Given the weakening economy and prospects for $4-a-gallon gasoline, hefty oil profits are almost sure to renew debate over whether Big Oil is profiting at the expense of most Americans.

“This wouldn’t matter if we were talking about shoes,” said Judy Dugan, research director at the Foundation for Taxpayer and Consumer Rights, which advocates more government oversight of the industry.

“But oil is like water. It’s a necessity,” she said. “And (oil producers) don’t want to give up these profits even though they know what it’s doing to the economy.”

AP