Are oil companies making too much money?

Thanks partly to factors beyond their control -- e.g., the Iran war -- oil companies are raking in the dough. These forces are time-asymmetric, meaning it takes time for reduced oil prices to translate into lower prices at the pump. AdvertisementA windfall oil tax was imposed on oil companies in the U.S. in 1980 -- it wasn’t successful, either. AdvertisementThreatening accusations about oil companies making too much money is fraught with socialistic ramifications, potentially providing justification for a windfall tax, which can have negative impacts on industry dynamics. No, the oil companies aren’t making too much money.