

Rep. Darrell Issa (R-Calif.)









A finalized version of the rules is due this summer.

Source: The Detroit News

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RE: Want to save some money?
By Keeir on 3/2/2012 7:34:26 PM , Rating: 2
A few additional notes.

A quick trip to Google Finance will show you that most Oil and Gas companies make around 8% net profit margin and around 8% return on assests.

Apple and Microsoft are both in the 20%+ range for each of these categories.

Gap and American Eagle also both beat 8%.

General Mills and Kellog average around 10%.

Dish and DirectTV average around 12%.

Despite the price at the pump or the amount of profits, Oil and Gas companies are not significantly more profitable or better uses of Capital than the underlying US economy.

On speculation. Its true that Speculators can create artifically bubbles or troughs in pricing for a commodity. But bubble life is usually proportional to the lifecycle of a product. Oil and Gas contracts typically have a lifecycle less than a few years. Its unlikely that a long term bubble can be created by oil speculation. Consider the housing bubble in the US? It lasted around 5-6 years. Which incidently is right about the lifetime of a typical home purchase (large numbers of people live in a home for only 5-10 years)

