Big Oil

From Wikipedia, the free encyclopedia

Big Oil is a term used to describe the individual and collective economic power of the largest oil and gasoline manufacturers, and their perceived influence on politics, particularly in the United States. The companies generally described as being part of "Big Oil" include ExxonMobil, Chevron Corporation, British Petroleum, Royal Dutch Shell, and ConocoPhillips.

Usually used to represent the industry as a whole in a pejorative or derogatory manner, "Big Oil" has come to encompass the enormous impact crude oil exerts over first-world industrial society. Additionally, "Big Oil" is also utilized to discuss the consumer relationship with oil production and petroleum use, as consumers in the United States and Europe tend to respond to petroleum price spikes by purchasing vehicles with greater fuel efficiency during these periods. Historically, consumer interest in fuel efficiency and the oil debate wanes significantly as pump prices stabilize.

In 2005, the term Big Oil has been used regularly in the media as the United States pump price for regular unleaded gasoline passed $2.00 U.S., then $3.00 U.S. in early autumn. The critical increase in fuel cost has been attributed to the effects of Hurricane Katrina and Hurricane Rita, in addition the increasing costs of crude oil on world markets resulting from the uncertain status of supply and the ongoing Iraq War.

A current issue is whether the petroleum industry has engaged in profiteering by recording alleged windfall profits during a time of meteorological and political unrest. The oil industry has responded by outlining their extensive costs, market uncertainties and public education efforts with regard to industry background and how the system of commodity futures effects pricing. Industry supporters and many fiscal conservatives have supported the industry as an example of free market economics. Industry detractors have focused on specific profit reports and attempted to outline allegations that the oil industry has utilized unrest to achieve unjust enrichment.