The Democrats and the Oil Companies
Apparently, the words “democrat” and “demagogue” are similar not just phonically, but also in meaning. In reference, I cite the recent hearings in Congress about the “obscene profits” that oil companies are making.
First, read a bit of this article. (click link to go to article.)
In it, it states that in the US, consumers use about 168 billion gallons of gasoline per year. Oil companies, then, made about 75 cents’ profit per gallon of gasoline used (about $120 billion last year). The average tax on a gallon of gas in the US is about 42 cents per gallon. That means that the government made about $70 billion on the same gasoline.
There are two points I’d like to make about the above before I continue: The government did next to nothing for their portion of the profit. Secondly, the oil companies make money on a whole lot more than just gasoline. There’s diesel fuel. There’s heating oil. There are petrochemicals. There are plastics. There are a multitude of products that go into the oil companies’ profits. The figure cited for the government is JUST for gasoline.
Now, let’s look at an article from the local paper.
First off, the name of the committee holding the hearings is: House Select Committee on Energy Independence and Global Warming. Note that “Global Warming” is part of their agenda… I mean “responsibilities.” Not to mention that just today, the UN commission has predicted a COOLER climate next year and that the entire Global Warming Hoax is nothing more than hype, speculation, and hysteria, but this doesn’t portend well for the unbiased reception the “Big Oil” people might expect.
Secondly, the Chairman of the committee is Edward Markee, a democrat from the People’s Republic of Taxachusetts… At least that’s one way I’ve heard the socialist, nearly communist, State of Massachusetts described. With representatives like John “Hero” Kerry and Ted “Mario Andretti” Kennedy, I think that the appellation is probably apt.
Here’s the real rub, though. The Government gives tax breaks to businesses (and occasionally, to citizens) to encourage behavior or actions that they wouldn’t take, if they weren’t paid to do it. In this case, the US Government gives tax breaks to oil companies to encourage things like alternative energy research, experimental drilling in inaccessible areas, and other such projects.
The oil companies have decided that there is no profit in such activities, or not enough profit to justify the expenditure, so the US Government gives them a tax break to encourage them to do it, regardless of the lack of profit.
So, if they take away the “tax breaks” it isn’t going to lower pump prices one penny. What it will do is cause the oil companies to stop doing whatever they were being encouraged to do. So, this demagoguery does nothing more than grab headlines, and mislead people into thinking that the oil companies are making money only because the government isn’t making them pay taxes… NONE of which is true.
Democrats are even capable of lying without saying anything, apparently.
April 4th, 2008 at 2:32 pm
You know, the politicians that are whining and crying now are socialists. They are jealous of the magnitude of money the oil sector moves every year. They would love it if the oil companys just broke even. They would be even happier if they could control them.
I think that a main problem with career politicians is that they have never run a business. You start a business with the expectation that you will make enough money to pay the bills, draw your pay, AND receive enough PROFIT to fund future operations.
I wonder what Congress would do if the president of ExxonMobile held a public shareholders meeting and took a vote of shareholders on shutting the company down, selling the plants to the scrap dealers, and walking away because there was not enough profit to stay in business and expand to meet needs? It seems that is what congress is working towards.
Ignorance runs amok in Washington.
April 4th, 2008 at 4:39 pm
Wino add on top of the federal gas and highway taxes the fact that between April 1st and November 1st there are different federally mandated gasoline blends. During the cooler “winter months” there are only 6 different blends based upon the region of the country. During the “hot” months in a misguided effort to control smog and other polution there are at last count 37 different blends including 3 different ones in the greater houston area.
Then you can add on top of that the federally(EPA) mandated lower octane values over here compared to in europe where their premium gas is a 98 octane versus our 93. I could go on and on but it is Friday and I am going to have some fun this weekend.