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Gas and Oil Prices Death Knell for the GOP in 2008

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Gas and Oil Prices Death Knell for the GOP in 2008

from JoeUser Forums



Energy prices could be one of the most important issues in the 2008 election. Surveys of probable reaction to the continuing increase in both gasoline and heating oil prices clearly show that almost 40% said they would be forced to cur spending in other areas because of higher energy prices.

Bush and the GOP have done NOTHING to deal with the energy issues or in moving our country to become less dependent on oil. They did not support major initiatives to develop alternate energy production such as wind, solar, geothermal etc. The refused to force conservation of existing oil supplies by passing a new round of CAFÉ standards.

What they did is try and drill in Alaska which does not have the potential to solve the problem because of the limited amount of oil believed to be there and the danger of another oil spill is a factor. They Gave Big Oil more and more tax credits which has done nothing to solve the problem. All Bush and the GOP has done is tell us we are addicted to oil.

In 2001 when Bush took over, Crude Oil prices were about $27 a Barrel. Yesterday they were $97 and we are more dependent on that higher priced oil then ever. Gas was under $1.50 a gallon in January 2001 and is over $3.00 today. The Bush supporters will tell us that bush and the GOP do not control the price of oil. They are correct. The issue is that had Bush and the GOP took aggressive and effective action seven year ago we would be better able to deal with these higher prices and because OUR demand would be lower, the actual price could be lower.

Bush has told us we need to judge him and the GOP in Congress by RESULTS. GOOD IDEA! After 7 years of his so called leadership we are more dependent then ever on foreign oil and look at what has happened to oil and gas prices since he took over. GREAT JOB Mr. Bush! The Voters need to look at the Bush/GOP leadership and decide if they want to continue the energy policies we have been following by electing another person who holds the same outlook as Bush on energy. Neither Ruddy, Fred, John nor Mitt has proposed anything that even looks like a solution. Just more of the same- another round of tax breaks for Big Oil.
politics
15,866 views 51 replies
Reply #26 from JoeUser Forums Top
endangers the environment.


so your saying that a hundred or two hundred mile pipeline is more dangerous than a 10,000 mile trip by oil tanker.

lets see in the last 20 years i have heard of one oil leak from the pipeline no oil actually got out.

and i cant count high enough to tell you how many oil tankers have run aground.


The amount of oil in Anbar has been estimated at less then 3% of out consumption would take 10 years to start the flow of oil and endangers the environment. That is a non solution. A ONE mile increase in the average mileage for new cars would SAVE more oil then is in Anbar which Bush and the GOP refused to consider.




wrong it is the same as what is in Iraq.


you really need to start listening to more than one group of people.


the north shore, that is where we are drilling was only estimated to have enough oil to last ten years. how long has it been.
Reply #27 from JoeUser Forums Top
wrong it is the same as what is in Iraq.you really need to start listening to more than one group of people.the north shore, that is where we are drilling was only estimated to have enough oil to last ten years. how long has it been.


I could support drilling in ANWR so long as it was part of a comprehensive policy that included increased auto mileage, a major push for non-oil energy and Federal Subsidies for new auto systems to move us from oil to other types of propulsion. It would also need to include an end to Oil company tax credits and an excess profits tax that would be used to fund some of the non-oil projects.
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Reply #28 from JoeUser Forums Top
I could support drilling in ANWR so long as it was part of a comprehensive policy that included increased auto mileage,



won't happen under either party.


a major push for non-oil energy and Federal Subsidies for new auto systems to move us from oil to other types of propulsion.



in the works however the main stumbling block are the democrats and the environmentalists.

Oil company tax credits


Topping the list for repeal are:

Tax breaks for refinery expansion and for geological studies to help oil exploration.


A measure passed two years ago primarily to promote domestic manufacturing. It allows oil companies to take a tax credit if they chose to drill in this country instead of going abroad.


Democrats say neither tax benefit should be needed for an industry reaping large profits at today's high crude oil prices.

you mean these tax credits aimed at getting the oil companies to do what you also want done.
Reply #29 from JoeUser Forums Top
by the way tax credits in this case means that the government won't take away money that is already yours.
Reply #30 from JoeUser Forums Top
Reply By: danielostPosted: Thursday, November 08, 2007by the way tax credits in this case means that the government won't take away money that is already yours.


How are tax credits to oil companies “taking away money that is yours”? This is money they are extracting from all of us and putting into the pockets of the few. In addition, the increase in oil and gas prices is far worse then any tax increase. It impacts all of us even those who can not afford it and the money ends up in the pockets of the wealthy at the expense of the masses. As I said, Robin Hood For the Rich!
Reply #31 from JoeUser Forums Top
Oil company tax credits Topping the list for repeal are: Tax breaks for refinery expansion and for geological studies to help oil exploration.


The size of Oil Company profits is such they do not need tax brakes for refinery expansion or other forms of energy. By the way what new refineries has big oil opened in the past 20 years?
Reply #32 from JoeUser Forums Top

As usual, it all comes back to increasing taxes on people who make more money than him.  Go ahead gene, increase taxes on "oil" and let us know how that works out.

LOL.

 

Reply #33 from JoeUser Forums Top

By the way what new refineries has big oil opened in the past 20 years?

LOL.  By the way, who are the people that are opposed to new refineries?

 

Reply #34 from JoeUser Forums Top
As usual, it all comes back to increasing taxes on people who make more money than him. Go ahead gene, increase taxes on "oil" and let us know how that works out.




what he is too stupid to know is that the oil companies would just pass those taxes on to us and him.
Reply #35 from JoeUser Forums Top

Arty, have I mentioned you're my favorite new blogger on this site?


Why thanks SanChonino, I'll try not to disappoint!

And in reply to Moderateman-

you are so stupid, you probabally try to shave the image in the mirror instead of your own face


  

My Gods, sometimes you crack me up. I would ask you to take a chill pill but then you wouldn't say things like this that make me laugh.
Reply #36 from JoeUser Forums Top
Reply By: danielostPosted: Thursday, November 08, 2007As usual, it all comes back to increasing taxes on people who make more money than him. Go ahead gene, increase taxes on "oil" and let us know how that works out.what he is too stupid to know is that the oil companies would just pass those taxes on to us and him.


The excess profits tax would then take back any price increases the oil companies would add and they would learn increasing prices to add to their profits would not work and the added tax revenue would help us become more energy independent as we built non-oil energy facilities!

The so called market is not moving us to anything close to be more energy independent. All it is doing in adding to the huge profits of the energy companies and the average person and all companies are paying the higher prices for energy which will increase inflation. Bush himself has said we have a major problem but refuses to change our policies to resolve the problem.
Reply #37 from JoeUser Forums Top
Oil Company Profits: Just Who Is Gouging Whom?
by Alexander Green, Investment Director, The Oxford Club


The new speaker of the House, Nancy Pelosi, calls oil company profits "obscene."

And at first blush, many would agree. Over the past 12 months, for example, ExxonMobil has made pre-tax profits of $164 billion on sales of $369.5 billion. That's a lot.

But are big oil company profits bad?

Hardly. Companies exist to maximize profits. Profits are what keep workers employed. They keep companies innovating, creating new products and services. They keep the economy humming and the country strong. And they allow you and I to invest and secure our financial future.

Even the school teacher who plunks some of her retirement account in an S&P 500 Index fund benefits from Exxon's rising share price - which is a direct result of Exxon's rising profits.

Many will argue that there is nothing wrong with an oil company's profits, per se. It's just that Exxon is gouging us at the pump. They're making too much.

But are they? After all, Exxon can't dictate gasoline prices. Markets determine the price of oil. It's supply and demand that sets the price at the pump.



Oil Company Profits

The Investment U e-Letter: Issue # 653
March 23, 2007

Oil Company Profits: Just Who Is Gouging Whom?
by Alexander Green, Investment Director, The Oxford Club


The new speaker of the House, Nancy Pelosi, calls oil company profits "obscene."

And at first blush, many would agree. Over the past 12 months, for example, ExxonMobil has made pre-tax profits of $164 billion on sales of $369.5 billion. That's a lot.

But are big oil company profits bad?

Hardly. Companies exist to maximize profits. Profits are what keep workers employed. They keep companies innovating, creating new products and services. They keep the economy humming and the country strong. And they allow you and I to invest and secure our financial future.

Even the school teacher who plunks some of her retirement account in an S&P 500 Index fund benefits from Exxon's rising share price - which is a direct result of Exxon's rising profits.

Many will argue that there is nothing wrong with an oil company's profits, per se. It's just that Exxon is gouging us at the pump. They're making too much.

But are they? After all, Exxon can't dictate gasoline prices. Markets determine the price of oil. It's supply and demand that sets the price at the pump.

Oil Companies, Profits, and the Courts

Some Americans are skeptical on this point, I know. So I direct them to last year's Supreme Court decision. The court ruled unanimously that oil companies have not been colluding to set prices.

Oil prices are high today because the economies of huge nations like China and India are developing rapidly. More oil is being demanded in the world market and there are few new sources of supply.

Hurricane Katrina destroyed a lot of oil processing capacity around the Gulf of Mexico too, so there has been less oil being processed. When less oil is supplied, gasoline prices rise.

What does the average oil company make today on the sale of a gallon of gas? Ten cents.

The federal tax on gasoline, on the other hand, is nearly twice that. Then there's state gasoline taxes. (If you live in New York, for example, you're paying 68 cents a gallon in taxes.)

If Exxon is gouging us at ten cents a gallon, what exactly is the federal government doing to us at 18.4 cents a gallon?

Who Is Gouging Whom?

After all, Exxon has to compete with other oil companies both here and abroad. It has to spend billions on exploration, billions more on development, and further billions on refining and transportation.

As a result, it's hardly making money hand over fist. Earnings at Exxon rose 9% last year but fell 4% in the fourth quarter, underscoring the challenges of rising costs and lower commodity prices.

And Exxon's profit margins are only 10.7%. Profit margins at Microsoft, on the other hand, are 26%. Perhaps we should pass a windfall profits tax on software companies.

Because that's what Big Oil's opponents really want: a bigger federal gasoline tax. Why? To fund the search for alternative sources of energy, such as ethanol and nanotechnology


in other words they want to steal money from the oil companies to put them out of business. this also includes gene.




Reply #38 from JoeUser Forums Top
Markets determine the price of oil. It's supply and demand that sets the price at the pump.


That is a LIE. The current supplies of gas are high relative to demand but the price of gas is at an all time high! Oil companies can set prices apart from supply and they also can control supplies and create artificial shortages to increase prices. Anyone that argues the free market is working in the oil business is simply not telling the truth!
Reply #39 from JoeUser Forums Top

Companies exist to maximize profits. Profits are what keep workers employed. They keep companies innovating, creating new products and services. They keep the economy humming and the country strong. And they allow you and I to invest and secure our financial future.

Something people like gene just don't understand.

 

Reply #40 from JoeUser Forums Top
Reply By: Island DogPosted: Thursday, November 08, 2007Companies exist to maximize profits. Profits are what keep workers employed. They keep companies innovating, creating new products and services. They keep the economy humming and the country strong. And they allow you and I to invest and secure our financial future.Something people like gene just don't understand.


Profits do keep companies viable but the profit levels of oil are FAR beyond what is needed to keep people working. You failed to explain that if it is supply and demand that sets the price in the oil business then the high level of supply would be driving DOWN prices not sending them to all time highs.
Reply #41 from JoeUser Forums Top
You failed to explain that if it is supply and demand that sets the price in the oil business then the high level of supply would be driving DOWN prices not sending them to all time highs.




the only problem is the demand is also high. and the higher the demand the higher the price.
Reply #42 from JoeUser Forums Top
Don't confuse poor Gene with such advanced economic concepts as Supply & Demand. That is at least 10th grade level stuff, and that's just a bit out of Gene's league.
Reply #43 from JoeUser Forums Top
Reply By: danielostPosted: Thursday, November 08, 2007You failed to explain that if it is supply and demand that sets the price in the oil business then the high level of supply would be driving DOWN prices not sending them to all time highs. the only problem is the demand is also high. and the higher the demand the higher the price.


Prices increase when DEMAND is HIGH relative to supply in a normal market situation. The supply of Gas now is high compared with demand and the prices should be going DOWN but are going up and are at an all time high. The oil industry is controlled by large and powerful companies that can manipulate the price and supply and the market has very little to do with it. The option of switching to another producer is not viable and the nature of the product is that for most people it is essential. That is why Government needs to offset the power of Big Oil to protect individuals and business from the predatory power of BIG OIL.

Supply and demand are working because of the control oil has over supply and price.
Reply #44 from JoeUser Forums Top
oil is high. our ability to make gas has been maxed out for over a year. so demand is higher than the supply of gas.
Reply #45 from JoeUser Forums Top
Reply By: danielostPosted: Thursday, November 08, 2007oil is high. our ability to make gas has been maxed out for over a year. so demand is higher than the supply of gas.


The Fed says there is no current gasoline supply problem. This is not a time of high travel.
Reply #46 from JoeUser Forums Top
The price of oil reached $50 a barrel over the summer, which is a record high, then fell slightly a few weeks ago.

~ Big oil reservoirs are becoming more difficult to find and development is becoming more

~ The technology to develop and produce oil is becoming more costly

~ World oil demand is growing at the fastest pace in over two decades

~ Oil companies have also been careful on costs since the '97-'98 price crash that slashed prices and triggered mergers.

~ Many new ventures are in remote areas, which demand more expensive equipment and are more susceptible to delays.

~ OPEC, which controls around half the world's exports, has in recent years worked hard to stop stocks building, especially in the United States .

~ Political instability in Venezuela, damage to oil pipelines in Iraq, and legal difficulties faced by Russian oil giant, Yukos, have all spurred fears that the supply of oil will be disrupted, leading to high prices




Reply #47 from JoeUser Forums Top
Don't confuse Gene with thoughtful analysis - drives him crazy.

You know what his momma taught him as a boy: "If you can't say something bad about Bush, don't say anything."
Reply #48 from JoeUser Forums Top
i really shouldn't confuse him by talking to him. but you have to stand up to bullies.
Reply #49 from JoeUser Forums Top
Reply By: danielostPosted: Thursday, November 08, 2007You failed to explain that if it is supply and demand that sets the price in the oil business then the high level of supply would be driving DOWN prices not sending them to all time highs. the only problem is the demand is also high. and the higher the demand the higher the price.


It is Demand relative to supply that normally sets prices. If both demand and supply are up prices should not increase. Even though demand is up in general, demand at this time of year is NOT at a peak and supplies are high. Again the supply vs. demand does NOT justify the current gas price increases. It is an example of how oil companies can and do set prices as they want. They can also create supply problems and drive up prices. The PROOF is in the Bottom Line. Oil Company profits. That is how we must control BIG OIL-- tax away their excess profits no matter if they create supply problems or just increase prices - the end result is the same-- The consumer must suffer from the increased oil prices and the oil companies rake in the added profit! That will all end if the added profit is taxes away and invested in non oil energy that is under OUR control!
Reply #50 from JoeUser Forums Top

It is Demand relative to supply that normally sets prices. If both demand and supply are up prices should not increase. Even though demand is up in general, demand at this time of year is NOT at a peak and supplies are high. Again the supply vs. demand does NOT justify the current gas price increases. It is an example of how oil companies can and do set prices as they want. They can also create supply problems and drive up prices. The PROOF is in the Bottom Line. Oil Company profits. That is how we must control BIG OIL-- tax away their excess profits no matter if they create supply problems or just increase prices - the end result is the same-- The consumer must suffer from the increased oil prices and the oil companies rake in the added profit! That will all end if the added profit is taxes away and invested in non oil energy that is under OUR control!


IE: More of the clueless ones BS. As quoted from a "government" page, Gene is shown once again to be wrong.


Why are gas prices rising?
For the past 20 years, the United States has benefitted from declining energy prices. With cheaper gasoline readily available, Americans renewed their enthusiasm for larger, less fuel efficient vehicles. Consequently, today the fuel economy of the vehicle fleet is the lowest in 20 years. Refiners have made business decisions not to build new refineries in the U.S. Instead, demand was met over the past 20 years by expanding capacity of existing refineries. As refineries reach maximum capacity, refiners and marketers often choose to import gasoline and other refined products. Today, Americans now confront a situation where supply and demand are in a delicate balance.

The following major factors contribute to rising fuel prices:

During the summer of 2004, worldwide crude oil prices have been at their highest level in more than 20 years. Excluding taxes, crude oil costs are the single largest component of gasoline costs and gasoline prices reflect those costs. Crude oil costs account for nearly half of the cost of a gallon of gasoline.
Fuel demand continues to increase. The fuel economy of US fleet is the lowest in 20 years and Americans continue to travel more. Vehicle Miles Traveled (VMT) is up. Over the past 20 years onroad VMT has increased by 114% while population has only grown by 27%. Also, the worldwide demand has increased, especially from China, India, and other countries with rapidly growing economies.
Tight supply. Refiners are shutting down for longer intervals for maintenance leading to draw down of inventories to low levels and little flexibility to respond to increases in demand.
Bottom line: the above factors have caused all gas prices -conventional as well as RFG- to increase in every region of the country.



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