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bitmasher's picture
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Don't blame us for gas prices...

I think hauling oil exec's in front of the Senate Judiciary Committee was largely just for show. What possible purpose do statements like these have?

Quote:
"You have to sense what you're doing to us - we're on the precipice here, about to fall into recession," said Sen. Richard Durbin, D-Ill. "Does it trouble any one of you - the costs you're imposing on families, on small businesses, on truckers?"

Its a classic example of reductionism. Reduce a complex problem to one scapegoat and score political points while lashing the goat with emotional rhetoric.

http://money.cnn.com/2008/05/21/news/economy/oil_hearing/index.htm?cnn=yes

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Location: Eatonville, Wa
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Don't blame us for gas prices...

Check out this clip its of maxine waters actually telling the truth about what she would like to see, although I think it was inadvertant. But none the less they would like to nationalize the oil companies. Which, If you dont mind even higher gas prices you can look foreward to that. If nothing else its good for a laugh.

http://www.stoptheaclu.com/archives/2008/05/23/maxine-waters-socialize-t...

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Location: Minnesota
Joined: 11/26/2007
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Don't blame us for gas prices...

...maybe all the politicians should take a reduction in pay so we can route that money into Social Security. The elderly are having a tough go of it with so little SS money to live on. What do politicians do with all that "campaign money"? There is quite a bit there. Maybe they could share that with us common folk?

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Don't blame us for gas prices...

Just posted on the Anything Goes forum -- the problem is China. Their oil imports went from 165.9 million barrels in 1996 to 1,064.6 million barrels ten years later. They're currently consuming 6.5 million barrels a day, which is as much as Germany, Russia, and India combined -- which makes China the world's #2 consumer of oil. This problem is accelerating as China's economy continues to expand at enormous rates, they industrialize more, and their middle class grows.

But the Democrats don't want to talk about China. They think everything negative in the world is America's fault, so obviously the problem is some sort of domestic greed -- whether it be oil companies or self-centered consumers with their evil SUVs.

The issue is supply, and the Democrats are doing everything they can to stop efforts to increase it. They just shot down a proposal to allow offshore oil exploration from 50 - 200 miles out, have opposed ANWR, consistently oppose new refineries, etc.

bitmasher's picture
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Don't blame us for gas prices...

B-I-N-G-O. I think there are a couple other components to the equation as well.

- Lack of new refineries. Gas prices can soar even when oil prices are low, due to tight refinery capacity. The U.S. needs at least one, possibly more, new refineries badly. Particularly a refinery that can handle heavy, sour crude, which tends to be less expensive and there is more supply than WTI (light, sweet). As bad as gas prices are now, I dread to think what is going to happen in the Gulf Coast gets hit with a Hurricane this fall.... (a good portion of the U.S. refinery capacity is in the gulf states).

- India. China leads the day in growth but India is not too shabby. They are upwardly mobile and the government subsidies fuel prices to drive the economy.

- Speculative trading. I suspect that at least some portion of commodity market is being pushed up by hedge funds, the same ones that helped along the stock market and housing bubbles of recent/current memory.

- State Controlled Fields. Most new finds and the bulk of proven reserves are controlled by state entities who (despite saying otherwise) use oil as a political tool. Several of these states also lack the expertise to produce the fields effectively. Its not main stream news, but Big Oil has locked out of many of these fields. TNK-BP looks like its on the fritz too...

- Falling production is producing nations. Iraq, Nigeria, and Venezuela to a certain extent are volatile and their production wavers.

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Location: Kingston, MI
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Don't blame us for gas prices...

Even with hauling the oil executives in and posturing for the press in front of all the camera's, I didn't see anyone mention the fact that only 4% of the total gas price is profit for the oil company supplying gasoline. Why didn't they discuss the 15% of the total gas price is tax. Why should the government make more money from a gallon of gasoline than the company that's responsible for drilling, refining and managing the logistics?

Maybe we are being gouged by the oil companies, but we're being gouged by the government as well.......and they're doing nothing to deserve the money received in the form of taxes.

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Location: Eatonville, Wa
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Don't blame us for gas prices...
Whelland wrote:
Maybe we are being gouged by the oil companies, but we're being gouged by the government as well.......and they're doing nothing to deserve the money received in the form of taxes.

This is one of the reasons I am very against this so called windfall tax. I can assure you that if it did happen it would not be good for all of us that are bitter clinging to religon and guns. In fact I would go as far to say that if the oil companies wanted to they could close up shop for a few days just to get their point across. As it stands right now the government just sees alot of money that they want and are just trying to find the justification to take it.

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Don't blame us for gas prices...

Another point to consider is that the Big Oil companies own very little of the land that they Drill on, (less than 5% I believe but don't hold me to the coals on that one), All the Oil wells drilled off the coast of the US are on land(sea botton) leased from......you guessed it, the Government. Add that to the Taxes paid by the Oil transporters, the Refinery, the Distributor and finally the Gas Station where we buy it and it becomes apparent who is making all the money from a Gallon of Gasoline and Diesel.
Have no fear though, Obama will Tax them thar bad ole Oil Companies and lower that gallon of fuel cost.

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Location: Eatonville, Wa
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Don't blame us for gas prices...

I am actually a driller by trade(or used to be anyways) but you would be suprised to find that most of the actual real esate that the oil companies own are either refineries or offices. The rest is leased, from the government or from private parties ect. I heard one liberal talk show host(ed shultz) talking about how the oil companies are holding leases on lots of land and not drilling on it. The important part he left out(theres always something) is the fact that you can own the property or lease it, have the rigs but it doesnt do anything if you cant get the proper permiting from..............you guessed it the government. Which in turn has to listen to all the animal rights groups, sierra club, and everyone else. But a lot of leftists and the media would have you to believe that its all big oils corprate greed.

expatriate's picture
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Don't blame us for gas prices...

And then there's the Hugo Chavez solution posed by the Democrats -- nationalize the refineries.

http://www.foxnews.com/urgent_queue/index.html#a54ef44,2008-06-18

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Location: Eatonville, Wa
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Don't blame us for gas prices...

There we go then we can redirect worthless legislation costs like a $40 billion farm bills toward oil and then they can use the same business model they used for medicare and social security. Yes if you would like to see mismangement and costly mistakes definately nationalize the oil industry. But for all of you out there who are a little left leaning.............you would be seeing alot more of haliburton. If you think they are making money in Iraq you should see what they actually make out in the oil fields. If you want to see gas costing $7 a gallon go for it. Open markets and competition is what drives down costs. Costs are higher now due to most of the oil companies merging in the last 10 years.

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