02/01/08 :: [Other] Kinder Capitalism - II [permalink]
Today, Exxon Mobil report their full year profit. This quarter was the largest profit in history, a puny $11.7 billion, and $40.6 billion for the year. Chevron also had its best year ever at $18.7 billion. I remember in 2006, the oil industry had already totaled $100 billion in profit.
I am a capitalist, so I have nothing against profit. Profit is good, this is how R&D gets financed, sorry was financed. You would think as good capitalist the oil industry would bank profits to research new sources of energy since we are support to run out of oil or run out of air within my children's lifetime.
To give you an idea, the international community came up with $15 billion budget for the fusion reactor (ITER), for the whole lifetime of the project. I earned my Ph.D. from the University of Marseilles which is very close to the ITER site, in beautiful Provence. One of my friend was working as a researcher there and I was privilege to visit the reactor the day after it was first ignited in early 90s (if I remember correctly).
So in 2005, 2006 and 2007 the oil industry have made enough profit to run 10 ITER programs. I would bet that not a dime (I might be wrong) went to ITER. I maybe a bit unfair in making this criticism, since some of the companies are doing research in high temperature superconductors. But, the fact remains that true capitalist sensing the end of their market would heavily invest in alternative energy sources. I would also think that if capitalists are not wise enough to invest in future technologies like so many did before them, you would think that the middle-eastern nation would be at the forefront of research, and if these two fail, you would think that the good governments of the free world would, in good conscience, tax energy profits to redirect this money to the new energy R&D effort?
No, that would be too kind, instead you read in the WSJ that the oil industry cut output to boost profit. You can also find out that the CEO of Exxon landed a 400 Million parachute in 2005 after sipping a refined $51 Million compensation.
I am wondering if Mr. Gates ever considered approaching the oil industry to solve the world poverty? I am wondering if he ever considered convincing them to invest a tiny bit into nuclear fusion? Maybe more on fuel cells?