Why Exxon Loves Global Warming
Today’s Sacramento Bee publishes a story from the Kansas City Star that reports that consumers in the United States are spending about $2.3 billion more for gasoline and diesel because of higher temperatures. In other words, a warm gallon of gasoline contains less fuel than a cold gallon of gasoline — perhaps giving new meaning to the term inflation.
So Exxon and the other oil giants have good reason to welcome global warming since it helps to boost their already hugely profitable returns.
The industry is aware of the problem and is willing to make adjustments when cold weather costs it money:
“While the industry generally shies away from discussing the idea in this country, it has embraced temperature adjustment in Canada. The reason is simple. While hot fuel makes more money for the industry in the United States, cold fuel once cost the industry money in Canada. The industry put a stop to its Canadian cold-fuel problem beginning in 1990. That’s when a Canadian law supported by oil companies and other gasoline marketers went into effect that permitted retailers to temperature-adjust on a voluntary basis. Supporters said the change, which meant Canadian consumers would stop catching a break on cold fuel, brought fairness to the marketplace.”