BIG OIL GOUGING? What About Leadership Gouging?

        

We are all concerned about higher gas prices…can you imagine making 10-15 dollars an hour and having to commute 40 miles to your job one way? We are not talking Europe here where they have transportation rails and buses in their areas. Yeah maybe in New York, and large cities..but meanwhile what about the heartland?

              

    

.Our country was built on pretty cheap oil and we are spread out, sprawling suburbia, rural and long commutes..

You cannot possibly compare our gas prices to Europes. This should have been taken care of a long time ago..in the 70’s to be exact. Now we have all the environmentalists and greenies and our Government choking us as far as drilling goes..

So now we have the presidential candidates running around telling voters that they will help solve high gas prices. Well, if you believe that, you’ll believe that Hugo Chavez drives a Yugo. It’s just bull.



Both Hillary Clinton and Barack Obama are calling for “investigations” into “price gouging” by American oil companies. Good. There’s plenty of price manipulation going on and, under Presidents Bush and Clinton, little federal oversight. If a big oil company wants to tighten supply, for example, it’s a snap. Just slow down the refinery process by ordering some extra “maintenance” or something.

 

But who is going to investigate Senators Obama and Clinton over their opposition to oil drilling? The Democratic Party has consistently opposed new drilling, and nuclear energy as well. Even the dedicated liberal governments in France and Sweden bought into nuclear. But not the American left, no way.

We have oil in Alaska, the East Coast, The Gulf Coast that we are not drilling…a big ha ha from other countries ..don’t think for a minute Russia or China or Europe would not be using their own resources.

The price of gasoline is not set by Big Oil. It is set by futures exchanges around the world and is a direct result of supply and demand. As the world’s demand for gasoline has increased, it has all but exhausted the world’s surplus production capacity. No new refineries have been built in the U.S. since 1976. That is really looking out for us here at home…don’t ya think?

Governments own three-quarters of the world’s known reserves. Flush with oil revenue, these countries have little incentive to expand their production.

The U.S. is the third-largest oil producer. However, our government has restricted the supply of oil in the ground by putting more and more of our known reserves off limits, specifically parts of Alaska, the Pacific and Atlantic coasts and the Gulf of Mexico. In fact, Exxon – the top U.S. company – is ranked only 14th in the world in terms of oil reserves. In addition, our government has made it more difficult to build and refine oil into gasoline.

Yes we need to conserve, yes we need to be innovative like Americans have always been..Do we really need to be using our food sources? We are paying a high price for that now and I am afraid it will be higher in the future..shortages are already hurting people and it’s coming to America and I’m not talking Neil Diamonds song.

 

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A Government Engineered Food Crisis

May Be Subject To Food Rations, Warns UN

On the Republican side, President Bush has done absolutely nothing about rising gas prices, which is part of the reason is approval rating is approaching 20%. He blames the Democrats. Fine. But the President should be telling all Americans to cut back their gas consumption just a little. He should be urging us to use less gas. That would at least cut into foreign oil’s record profit margins.

Senator John McCain proposes a gas tax “holiday” this summer. True, that would save the folks a few bucks, but it would also add to the massive spending deficit. McCain is not going to rock the boat to make us ‘independent’ either. The government better start balancing the budget soon before Häagen-Dazs becomes more valuable than the U.S. currency.

The sad truth is that both political parties have sold out the folks. For decades, economists knew China and India were industrializing and those countries would demand much greater amounts of oil. Everybody knew that OPEC could slow down production and gouge the world if it could and, of course, now it can.


But if Americans would get angry and begin punishing the foreign oil bandits conserve, Use as much of our own resources as possible..then prices would drop. However, we are often a selfish people. We want those gas-guzzling Hummers and SUVs, and we’re paying a big price for that above and beyond the sticker.

We can buy less gas, urging folks to conserve energy in creative ways without falling into the Gore and his bunch green crap. We can be innovative..We can drill where we have not..We can build cars that get a lot of mileage..and they don’t have to be so little that we can barely get in and out..why not? We are the ones who got to the moon first! Are there now so many regulations that it does not pay to invent? What in the World has happened to America? Don’t answer…we already know..we are captives to globilazation, political correctness, just look at how we cannot say Jihad, thanks to Connie Rice…thats just for starters and leaders in both parties that pander to the vote now and in the future…They are not the ones that are going to have their way of life changed here…need I remind you?

 Instead They will create peer pressure against the guzzle crowd. They will use your children, guilt trip coming America..this oil stuff is all our fault..let’s just suck it up, conserve ..turn that heat down or off..air conditioning…who needs it? just open the windows.buy different light bulbs…of course, do you really think the carbon credit folks will be uncomfortable? Don’t bet on it..once in a while to look good they will pay some carbon credits..  Just watch the commercials Al Gore is bringing to us in prime time next season for the grand sum of 300 million.

I am all for profit and big profits, that is why most people work..to better their lives..however there is a fine line between profits making good money and extreme greed. Without profits there would be no jobs…of course, many of our jobs that make a living wage have gone overseas for cheap labor and that supports those countries.

 

To be fair,Profits reflect the size of an industry, and the oil industry is HUGE! From 2003 to 2007, average earnings for the oil and natural gas industry were approximately 8.1 cents for every dollar of sales, which was only a penny above the average of all U.S. manufacturing industries.
In fact, in 2007, the oil and natural gas industry earned 8.3 cents for every dollar of sales compared to 7.3 cents for all U.S. manufacturing. When you take out the financially challenged auto industry, U.S. manufacturing came out slightly ahead of oil and gas, earning 8.9 cents for every dollar of sales.
the oil companies aren’t owned by a few high rollers. Only 1.5 percent of industry shares are owned by company executives. The rest is owned by people like you and me. If you have a mutual fund or IRA, there is a good chance you own a piece of the oil industry you are looking to vilify.
Oddly enough, our oil and gas companies pay more in taxes, as a percentage of their income, than our manufacturing companies. In 2006, the oil and gas companies’ income tax expenses averaged 40.7 percent, compared to 22.1 percent for U.S. manufacturing companies.
The oil industry is capital intensive, and necessity dictates that the lion’s share of a company’s earnings must be reinvested. These costs remain high in boom periods, like the one the industry is now experiencing, as well as bust periods, like the one that occurred in the 1990s.
Also, it is important to remember that companies do not pay taxes, individuals do. Taxes must be passed along to consumers as part of the cost of doing business. Real people always will (always have) pay the cost of higher taxes. Let consumers – and voters – beware!
When politicians talk about putting a new tax on the oil companies, hold on to your wallets.

Big Oil makes its money by pumping oil out of the ground, not refining and selling it as gasoline. Only a tiny fraction of Exxon’s $36 billion profit last year came from making and selling gas in the U.S.

 

 

 

 

 

 

 

 

 

We need leadership on this energy business, or it is going to cripple our economy. Our energy incompetence has already empowered our enemies. Let’s think for once of the welfare of this country…Be outraged that we are not using our own Resources here in America, Let’s not depend on foreign oil..What is that old saying? Charity begins at home…Let’s use Alaska,the pacific, the Atlantic and the Gulf coasts..let’s stop being silly and destroying ourselves in the process. Enough already!

So let’s get ticked out here. We the people can do this. Big oil AND the Government nor the candidates are looking out for us. Let’s stop rewarding pretending they do.

McCain finally said he would enforce the border security…after much yelling by ‘we the people’..he is not going to change his stance at the present time on what happens to the ‘guest worker program’ pathway to citizenship’ or much else…including drilling….so it is time we make a whole lot more noise….lots of it..if we don’t..if we remain apathetic and lethargic on this…forget this country as you have known it..it won’t be recognizable in just a few short years…a very few short years…It is time to wake up America! Stand up as a people and bombard your reps with calls, letters and faxes…do it again and again until they have to hear you…let them know we are sick and tired of being sick and tired!

Sources:

oil facts by Jane Chastain with World Net Daily

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6 Comments

  1. We need leadership on this energy business, or it is going to cripple our economy..so true Angie and the Saudis know it!..wonderful piece..so thorough!! 🙂

    The Saudi’s like to keep their money, I hear. Thinking now of the report on giving I heard today…they gave a flat zero..oh, sorrrreeee.. we are talking about the Saudi’s knowing our economy could be crippled…yep, believe they do know it.

  2. You folks in American can cut back a lot on your gas consumption, people i know there often complain about the price of gas but they don’t want to buy a less powerful, more fuel efficient car. The thing is you don’t have to drive a freaking prius or something to save gas, just buy the right car for your needs. If you commute daily, buy a small piece of crap car and keep a nice one parked at home for when you’re off for the weekends or something.

    I’m not in favor of government stepping in to control your habits, but people themselves can make a lot of changes to save on money in their daily lives, it’s right there if you just look. I have noticed changes here in Australia too, many are now buying smaller cars because they live in cities and don’t really need them, where as those who need a big car get them. Previously no one really cared that much.

    I am not in favor of government stepping in, that is for sure. We do need to have better habits and we are going to be forced to change..it does not look like any raises are forthcoming. I would love to have a car that got 100 miles a gallon…just hope I can get my fat arse in it…lol! Seriously, one for work and one for pleasure would be good..problem is many people have to drive many miles in rural America to get a loaf of bread..so pleasure driving may be out. Depends on income..unless a drive is your outing. Yes, we do need to conserve..:)

  3. Angie, I love your posts. You really get right to the heart of the matter. This seems to be a political tactic nowadays to blame all the woes of the nation on some unelected entity (like the oil companies) and refuse to take the blame yourself.
    They’re using the same tactic against the Reserve Banks here in Australia (to divert the blame from the socialist Rudd government) and I’m positive they’re doing it over there too. Once you get supposed rogue groups running economies and people’s lives, democracy is gone.
    I don’t buy for one minute that our governments have no control. They must think we’re stupid or something.

    Thanks Aurora, You may be on to something right there..they think we are stupid or better yet, they can do what they want…blame each other and then of course the damage is done and what can we do about it that would make any real difference?

  4. “The sad truth is that both political parties have sold out the folks. ”

    Oh Ang, this is the solid truth! It seems that everyone is a sell out and out for the most money no matter the cost later. The “I’ve got mine and I want yours too.” mind-set of so many in positions of influence and power is going to be the USA’s downfall. That is why I fear it makes no difference of who is in the White House, it is who isn’t in the Big House for under the table deals, selling us out behind closed doors and on and on. Hugs to you dear Ang for telling the truth!!!

    Solid and Sad..””I’ve got mine and I want yours too.” mind-set” well said. It is the biggest mess I have lived yet to see. There has probably always been some of this to a degree but everything is so blatant now..that I want to throw up…Yes, it could very well be our downfall. Thank you CG.. Big ole hugs to you.

  5. I don’t understand why we are going after Iraq and pretty soon Iran when the Saudi’s are really the guys that have us by the proverbial balls. It’s all about the money honey!
    Yes they are our “friends” while jacking up oil prices to get money from the U.S. so they can fund terrorist schools and camps in Pakistan and Afghanistan that would love nothing better than to kill everyone of us.

    ANGE:Yes they do have us, probably right where they want us.. I wish we did not have to depend on the Saudi’s for energy at all. I don’t see them as ‘friends’. I feel they use us to keep their monarchy hold on the country. Just sayin…

    You guys remember those commercials about how drug use helped fund terrorists? The first thing I thought when I saw that was how lousy it was to blame drug addicts for terrorism when everyone of us is to blame. How much money comes from oil compared to drugs? I’m pretty sure it’s a lot more.

    ANGE:I don’t remember those commercials but I do remember reading about Terroists funding from drug sales. Think I may have done a post similar to that subject. Both are huge…which is more..hard to compare with illegal activity not reported..you may be right. Don’t know.

    As far as drilling in the U.S. goes, I don’t trust our government to protect us from the oil companies enough to do it. I’m from Louisiana, and let me tell you guys, not a single dollar goes to that state from the oil companies that have systematically torn up the coastline with their canals and pipelines. Everytime a hurricane would hit more and more land would be lost and the people living there would become more vulnerable. And this is not a bunch of rich folks living on the beach. There is no beach on the LA coast, and the people that live there have been on that land for 250 years. The people of LA have definitely used the oil companies for jobs. I know a bunch of guys that dropped out of high school and college to “work offshore”. The money was great! Unfortunately they are paying a high price for their shortsighted thinking. I wouldn’t want that to happen in other places too. I just don’t trust that the oil companies would do the right thing in Alaska and those other places.

    I guess if you don’t live there, are from there, and see it all disappearing because of greed…you just can’t understand why it’s not a great idea.

    ANGE:I don’t trust the government much either. To me, less gov is the best government. It is and would be tough to decide what where and how they could do it without damage. All I know is that we must not be dependent on countries that would like to ruin us and bring us to our knees. At the same time..I want beauty.. so go figure. I know there is a way to get it done..if we could get a man to the moon many years ago, this could be figured out if those with authority to do so wanted to get the job done and they could do it correctly. We have been sitting with this situation building since the 70’s and we are no farther along in progress.
    You are right..when you live next to it and see the consequences…we would not like it.. Some things really do have to be experienced. I do know we are innovative and something could be done to stop this nonsense. We have had too much ‘shortsighted thinking’ in some of the choices that have been made..
    I can understand the lure of big money now when you are young..but oh, the price they pay later..Finally once again, I too don’t trust the oil companies to do the right thing..at the same time I feel we could do something to use our resources in the correct way.


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