Reuters has reported that 4 of the 5 largest oil companies have reported a combined total of almost $50 billion in net income for the third quarter of 2022. Chevron reported a quarterly profit of $11.2 billion, its second highest ever, even against declining production over a year ago.

Exxon reported nearly $20 billion in net income while Shell earned $9 billion in 3Q2022. France’s TotalEnergies reported a record $10 billion in profits for the quarter.

This stark picture is one of record gas & oil company profits versus citizens struggling against the headwinds of rampant global inflation. One could counter that there is no such thing as too much profit. After all, companies always strive to maximize their profit margins to the greatest extent possible and that this is ‘normal’ behavior with a favorable outcome. Companies take risks and get rewarded with extraordinary cash flows now and then.

The reality is that sellers will always charge as much as the market will bear. This is ECON 101. But buyers control the release of cash from their pockets, most of the time. Petroleum distillates are an essential ingredient of life for most of us. If you cannot walk or bicycle to work, then some motorized vehicle must take you there. Zoning practices in the US make walking to work in a commercial or industrial zone problematic in most locations.

Politicians can hurl accusations of price gouging and maybe they will have some effect. A better approach is the reduction in consumption by consumers. It’s not always comfortable but it does work. We do have a handle to pull in this situation, but who wants to go first?