Since 2005, the term Big Oil has been used regularly in the media as the United States pump price for a gallon of regular unleaded gasoline passed $2.00 U.S., then $3.00 U.S. in early autumn. Crude oil peaked at $147 per barrel in July 2008, before dropping in mid summer. The increase has been blamed on a number of factors, including increased demand from developing economies outstripping supply, political instability and nervousness in oil exporting countries such as Iraq, Iran and Nigeria, as well as (at various times) hurricanes off the American gulf coast.
A current issue is whether the petroleum industry has engaged in profiteering during a time of catastrophic weather events and political unrest. The oil industry has responded by pointing out the increase in the cost of gasoline is almost entirely due to increasing crude cost, which the supermajors collectively have limited control over due to their small market share in comparison to the large government owned oil companies. They also point out that their profit margins (profit as a percentage of revenue) as an industry have been significantly lower than other industries, such as pharmaceuticals and banking. They outline their extensive costs, market uncertainties, and public education efforts with regard to industry background, supply and demand, and how the system of commodity futures affects 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. An investigation by the US Federal Trade Commission has found no illegal market manipulation to raise the price of gasoline in the US.
Between 2004 and 2007, the profits of the six supermajors totaled $494.8 billion.
