The United States is in a recession and depends on foreigners to fuel our country. Oil companies are taking advantage of the power they have over gas prices and the economy is at one of the lowest points in all of our history. It can be seen that the way things are going now that change needs to occur for America to get back on its feet. Drastic changes will need to happen if we are going to continue to enjoy living in a very advanced and prominent country. By developing proper offshore drilling techniques, and alternate energy, America could eliminate debt and lessen dependence on foreign oil.
As it stands, oil companies have a firm grasp of the American economy. As the price of oil increases, the price of living also increases. Not only that, but they are getting away with paying dues they owe. "Oil companies have escaped more than 60 billion dollars in royalties because of a loophole to get access to more leases. The United States is the third largest producer of oil in the world, and 31 percent of that production comes from land owned by the federal government" (Offshore Drilling Will Enrich Big Oil Companies 2). America maintains this title even though "America's crude oil productivity has decreased since 1985" (Crude Oil Production 1). Currently, oil is becoming more expensive and damaging the economy while America is becoming more dependent on foreign oil; decreasing productivity and narrowing offshore drilling.
The oil industry is making an immense profit. Oil companies that secured leases in 1998 and 1999 haven't been paying royalties, even though a bill signed in November of 1995 required royalties to be paid in proportion to the oil profit made. An example of a company profiting because of this is "West Texas Intermediate Oil, who was trading oil at $18.28 a barrel and now oil is trading at 600 percent higher at more than 120 dollars a barrel" (Offshore Drilling Will Enrich Big Oil Companies 2). Exxon Mobil's profit excelled 30 billion in 2010. "Exxon Mobil's 4th quarter profit in 2011 has soared 53 percent in large part due to oil prices. Recently, in London Brent Quality Crude Oil passed $100 a barrel for the first time in nearly 3 years" (Exxon Mobil 1-2). Oil profit is at an all time high and is contributing to our current recession.
It is well-known that nowadays America is in a heavy recession with debt in the trillions. "In the summer of 2009 the debt was nearly 13 trillion dollars" ( The Federal Budget Deficit 1 ). "In 2010, the average American owed nearly $50,000 in consumer debt, and according to figures in 2009, the average American earned just under $40,000 a year"(Consumer Debt 2). The average American's debt is greater than the average American's salary. Increasing oil prices only make things worse. When oil prices rise, every price rises. "Fedex just raised its fuel surcharge on air deliveries from 12 percent to 13.5 percent. Local pizza parlors have been adding a few dollars to pizza deliveries" (Saporito...