What is to blame for high oil prices?
OPEC
Big oil companies
Supply and demand
They are unavoidable
The true answer they left off is "CNN, the other MSM and Liberal Democrats!"
Posted on 05/21/2008 3:23:07 PM PDT by Libloather
Don't blame us for prices - oil execs
A Senate Judiciary Committee seeks answers from Big Oil execs for rising oil prices on day that crude crossed $130 a barrel.
By Steve Hargreaves, CNNMoney.com staff writer
Last Updated: May 21, 2008: 3:47 PM EDT
NEW YORK (CNNMoney.com) -- Amid increasing public outcry over record-shattering oil and gas prices, senators on Wednesday hauled industry executives in to testify about the recent runup.
**SNIP**
The executives said it did, and that they are doing all they can to bring new oil supplies to market, but that the fundamental reasons for the surge in oil prices are largely out of their control.
"We cannot change the world market," said Robert Malone, chairman and president of BP America Inc. "Today's high prices are linked to the failure both here and abroad to increase supplies, renewables and conservation."
Malone's remarks were echoed by John Hofmeister, president of Shell.
"The fundamental laws of supply and demand are at work," said Hofmeister. The market is squeezed by exporting nations managing demand for their own interest and other nations subsidizing prices to encourage economic growth, he said.
In addition, Hofmeister said access to resources in the United States has been limited for the past 30 years. "I agree, it's not a free market," he said.
The executives pushed the idea that large parts of the U.S. that are currently closed to drilling - like sections of Alaska, the Rocky Mountains and the continental shelf - should be opened.
"The place to start the free market is in our own country," said one executive. [The drilling ban] sets the stage for OPEC to do what we are doing in our own country, and that is effectively limiting supplies."
(Excerpt) Read more at money.cnn.com ...
RATS know how to do it - they just refuse to do it.
I don’t like high gas prices. But I wonder if these Dems. understand how world oil markets work, or how capitalism works, or the concept of supply and demand.
Was he heckling the Senators (*spit*) or the Oil Execs?
My grand dream is that those domestic resources are opened up and some of them bidded on in a lotto type environment to give some new companys a shot for a while. Not long term, enough to invigorate competition again. Then we get some good ol fashion free market going again.
Oh well. Not likely I know.
What is to blame for high oil prices?
OPEC
Big oil companies
Supply and demand
They are unavoidable
The true answer they left off is "CNN, the other MSM and Liberal Democrats!"
Thankfully there are Democrats around to make it sooo much easier for us, the public, and claim it's all Big Oil's fault. Hey, did Al Gore ever distance himself from all that Oxydental money?
There was a time when Rob Reiner, I believe, and his ilk were screaming for taxes to get $4 a gallon gas, claiming how it ‘would promote conservation, blah blah blah’; guess it’s just a problem when it doesn’t go into the governments pocket.
Although I don't use this product, since people are starting to use bicycles more, people might be interested in this autoshifting bicycle.
Autoshifting bicycleAlso, I'm keeping an eye on developments in bio-fuel production.
First, the bad news about ethanol. Ethanol fires are evidently harder to control than gasoline fires.
Ethanol fires hard to control 1Hopefully, ways will be developed to make controlling ethanol fires easier.
Ethanol fires hard to control 2
On the brighter side concerning ethanol, there's now evidence that people might get as much, or more, bang per buck for their gas dollars with gas / ethanol mixtures.
Gas-competitive gas / ethanol mixturesAlso, I was surprised by the introduction of a machine (popularly known as a still) for making home-made ethanol.
EFuel100In stark contrast to the 1700 gallons of water required to make one gallon of corn-based ethanol as indicated by the OP, the EFuel100 uses only 170 gallons of water to produce 35 gallons of ethanol In other words, the EFuel100 uses less than 1% (about 0.2%) as much water as corn ethanol, under five gallons, to produce one gallon of ethanol.
But also note that the water used in the EFuel100 process does not take into account the water needed to grow the sugar that is used for this process.
And watch out for fines for violating biofuel regulations.
Fines for violating biofuel regulationsAlso, progress is being made in the development of other non-corn ethanol production technologies as well.
Non-corn ethanolFinally, I've also been hearing good things about biodiesel production but need to find some links.
Its probably worth reminding people that 95% of the oil in the world belongs to governments.
When you are talking about “Big Oil”, you are talking about governments. Private oil mostly work on government concessions. They don’t own the oil they pump, the host governments own the oil they pump.
Private oil may be the most dynamic part of the oil business, but they own very little of it.
If I was on the committee, I would have stood and saluted you. I don't suppose that happened in real life, though. Heck, Hofmeister's remarks are should be the battle cry to recapture the House and the Senate, along with similar remarks on other hot button conservative issues.
But don’t it make a good show for CNN??
However, more and more Americans aren’t buying it.
Where’s the WINDFALL profits? Every figure I’ve seen, from every quarter, says that the net profit of an oil company for a gallon of gas is 7 cents. And for the gas station owner, it’s even less.
The U.S. government makes over twice what the oil companies make on a gallon of gas; California makes 10 times their profit. And neither expends a cent to get it.
Yeah, but as bad as ethanol fires might be, a hydrogen fire is the worst. Isn’t the safety rule to approach a hydrogen fire holding out a broomstick in front of you? When the broom bursts into flame or is cut in two, you have found the fire. Life sure will be interesting in the HCOT!
Headline News as on the TV at the gym. While I didn’t listen, I caught their push-poll question on the crawler: “Are you mad at the oil companies?”, followed by an 877 number to call.
We need to take back our country. I fear we’re beyond using political means to do so.
If these rats would take some of the millions they have stole from the people and invest that in the oil patch they would learn its not a sure thing like a gov. check.
They could give up their huge retirement and give it to the people to buy gas. The rats caused the problem in the first place.
Thanks for the photo. with obomba everting is staged.
A big fake.
Try oil. Once this non-drilling dam breaks, it's off to the races!
I bought some PetroHawk Energy Corp @ around $6.00. Whoo hoo! It doubled and I sold half. (Always protect the principle.)
Also check out LED lighting.
How do I invest in illegal alien deportation services?
Thanks for mentioning hydrogen fires. I don’t know much about hydrogen fires. I mentioned ethanol fires because I am trying to be objective about the pros and cons of relying more on ethanol.
That was me. It was for the obstructionists/senators. (*spit again*)
That's none of his damn business - and he knows it.
From the CNN article:
“Republicans generally favor opening up the Alaska Wildlife Refuge, large parts of the Rocky Mountains, and areas off the east and west coast that have been closed to drilling since the 1970s following a public backlash after several big oil spills.”
What oil spills? And was that “public backlash” or was it really environmental extremist pressure? I don’t know the answers, but I don’t trust CNN to give the honest lowdown. I’ve seen CNN grossly mislead their credulous viewers before.
ask the germans how much $8 dollar gas has reduced their driving. It hasn’t. Its been documented that they drive more than ever.
The only thing its done is reduce the family sizes.
F’in liberals. Everytime one of their bonehead ideas blows up in their faces, they always turn around and say, “But our intentions were good.....” Its the same deal with them wanting gas prices high. Everyone will continue to drive, but the economic damage will be devestating, and they will say, “But our intentions were good!”
Seriously, can Durbin REALLY be that stupid?
As far as I’m concerned, we’re getting hosed by BOTH SIDES: the suppliers of barrels of crude and the Gasoline Companies themselves. I think that Shell, Sunoco, etc. are truly enjoying this gouging that’s going on.
And here’s why I feel that way: If they (the gasoline suppliers) are only getting 8 cents a gallon from each sale, and if they’ve been getting this 8 cents for years, then how in the hell are they racking up incredible profits? I just can’t see it. If they have to pay larger amounts to get the crude, and if they still only get 8 cents a gallon profit, then there’s no way in hell that their profits can go thru the roof like they’ve been bragging about. I think that supply-and-demand rules are over when it comes to the oil companies. And, believe me, I’m all in favor of big business. But this just seems to me like a major gouging by both sides. And I think both sides are enjoying this.
About the only real way I think we could stop this is by refusing to buy gas at one nationally selected brand name (Sunoco, for instance) and buy it elsewhere. If NOBODY bought gas from just one particular brand name, they’d HAVE TO DO SOMETHING ABOUT THE PRICE.
America is getting screwed royally by the suppliers, the gasoline companies, and the morons in congress!
If they only get 8 cents a gallon, they can’t possibly rack up incredibly large profits! Just doesn’t make sense!
BS. Here's the CNN argument as regards gasoline prices. Lower taxes reduce the cost of gasoline to the consumer (unstated - they don't want to admit this). This encourages more driving. More driving increases gasoline prices.
In other words, lower prices lead to higher prices. But surely the net effect are prices that are lower than they would be with our current taxes. And let's not forget that if we chose to drive more, due to lower prices, it's because we want to. It's not bad that free Americans get their way; it's a good thing.
Please note the concern that the Government might have a cash shortfall. There is no corresponding concern that the people will have a cash shortfall.
“Proposals to suspend the gas tax ... were roundly criticized.” The use of the passive voice avoids accountability. Who criticized? CNN? The MSM? Left-wing Democrats? All of the above? Our sniveling, cowardly press disgusts me.
Yep, that numbnut did say it. Check out what came out of Feinteen's mouth...
Well leaky, at least you asked how much money they made unlike our elected officals who would be asked how much money they steal.
Thanks for the encouragement. However, I believe that oil pricing politics will continue to be as slick as the oil is for quite awhile.
How much 'profit' does gubmint collect (without lifting ONE finger to supply ONE drop of gas?) A dollar figure or percentage will do.
Time to do some homework.
Make 10, 20, 30 grand on the oil market. That will offset any cost of your gas. Oil is here to stay!
If they have oil in the ground, they should like government restrictions on supply. They can't help but compete against each other. But if governments, OPEC, US and others, restrict supply, the price of oil goes up. The USG has restricted supply. It hasn't been because of oil company lobbyists. The Government restricted supply because of environmental extremists. So the price goes up. Blame the environmentalists, and the meddling government.
Government restricts supply and the price goes up. It's not oil company gouging any more than if you sell your house after it has appreciated. Anyone with oil will sell their oil at the market price, just as you will sell your house at the market price. It's their oil, like it's you house. You can sell your house for any price you can get. They can sell their oil for any price they can get. In both cases, sellers should behave ethically. You shouldn't lie about square footage. They shouldn't dilute their gas (with ethanol or anything else) without telling you.
The price of oil and gasoline will go down when supplies go up. This reminds me of Clinton vetoing drilling in ANWR in 1995. He said it was because it would take ten years before the oil/gasoline came to market. I guess he thought ten years was an eternity. Even with his exaggerated ten year claim, that would have been 2005, and oil prices would be lower today. Give the oil companies freedom to drill and we will all benefit. If not for us, then do it for "the children."
When they leak oil, that washes up on Florida beaches, will they be blamed?
I have a solution: Congress should make it illegal for any company to sell oil in or to the US markets for a price over $50/barrel. That should solve it.
The sad thing, is that given the level of economic understanding of average voters and even that of Bill O. on Fox News, such an act may actually pass.
A perfect election issue. RATS complain about emissions (while driving their exhaust spewing, unmaintained vehicles.) RATS complain about gas prices not being as high as Europe's (even though they're getting close.) RATS complain about high gas prices (which they wanted in the first place.)
RATS are in real trouble this time around. No drilling, because of RATS, means even higher prices. On this one, they're toast. (What are the poor supposed to do?)
Put everything you own on the front lawn and charge $1.00 for each item. (See how that doesn't work?)
To boil it down, how can the oil companies make zillions of dollars profit if they still get 8 cents per gallon!!!!!!!!!
The supply is not at high as it should be, they’re still getting 8 cents a gallon profit, and whether the price of the barrel goes up (if they’re still getting 8 cents per gallon), then HOW CAN THEY BE MAKING ZILLIONS OF DOLLARS OF PROFIT.
It doesn’t make sense. The oil companies as well as the barrel suppliers HAVE TO BE HOSING US.
I agree about drilling for our own oil and refining it ourselves, but if the cost per barrel is going up, that has NOTHING TO DO WITH THE 8 CENTS PER GALLONS they tearfully tell us they’re making . . . and yet they post incredible profits. One and one is NOT TWO anymore!!!!!!!
http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html
It is the Energy Information Administration web page for gasoline. Tutorials on the current situation, structure of prices, lots of statistics on prices, etc.
I did not see or hear the hearings today but 8 cents a gallon profit seems awfully low. Prior reports I have read place oil company profits in the 8-10% range. Is it possible they meant 8 percent vice 8 cents? (Misspoke/misquoted?). That would make a pretty significant difference in profits. For example, using 8% profit, there was 30 cents profit in each gallon of regular unleaded I bought for $3.73/gallon today vice 8 cents.
(BTW 8-10% is considered to be at the low end of midrange for business profit. However, when you are selling between 350 to 400+ million gallons of motor gasoline daily (along with lots of av-gas and the other products), things do add up fast.)
One thing I would note, the retailers (gas stations) see very little of this money (a couple of pennies on the gallon). In fact, depending on the card, they can actually have negative income when the credit card companies subtract their processing fees from the sales total. We had one service station across from where I work simply stop selling gasoline and go exclusively into car servicing and repair. Pretty strange to see an open gas station with no numbers on its gas price sign board.
I am not sure it will be a battle cry for the RNC, they are to busy trying not to make anyone cry.
But I think Mr. Hodmeister statement is a tipping point that we may look back at as a defining moment. This is the 1st time in eons that a sitting Senator was effective shut up by irrefutable logic and in a polite way he told Leahy to pull it over his ears and call it curls....
For years these titans have business have gone to the hill and taken all sorts of crap from these buffoons, this time the business men came armed with something they haven't heard in a while, the truth.
Quite frankly not many may have heard it, but it may get more exposure in the talk radio echo chamber. But more importantly, I think folks may be coming around that it ain't big oils fault, but the fault of the big fools on the hill and the forces against economic growth and independence, i.e. the likes of the Sierra Club that have been filling their campaign coffers.
I think the power of the eco-weenie groups is going to be on the decline, soon ( G_d Forbid) if we are faced with cold and hunger folks are going to realize they have been had, and they will be really pissed.
We had odd and even days, meaning if your license plate ended with an odd number you could only buy gas on M.W.F. Even license plates could buy on the other T.TH.& Sat. And there were always gas lines. My non-working mother would fill her car and my father would siphon the gas to fill his car. Someone always ran out of gas in the hour long line and had to be pushed into the station. The worst was when you waited in line and the station sod out before your turn.
Is so-called “free trade”, making us rich yet?...
WAR FOR OIL! (Where is it?)
Just keep shopping with big oil, I'm sure they can help. They're ruining the planet. Might as well be responsible for that too. :-)
That right! I had for gotten about the odd and even days.
Precisely!
“To boil it down, how can the oil companies make zillions of dollars profit if they still get 8 cents per gallon!!!!!!!!!
... One and one is NOT TWO anymore!!!!!!!”
Sure it does. They are selling megagazillions of oil and gasoline every day!!!!!!!!!
An American art too many have lost is that of “minding one’s own business.” You should shop around for lower gasoline prices, plan and minimize your trips, and focus on school and/or work. Mind your own business; no one else will mind it for you. Otherwise you are apt to end up like one of my liberal relatives who has no savings for retirement.
As for minding the business of other people, you’re not smart enough, or good enough. No one is. Neither you, nor the politicians, know enough, or are trustworthy enough, to meddle in the business of the oil industry. Government should refocus on Government business. Examples include border security, apprehending and imprisoning criminals, and developing new weapon systems for our military.
“Uh... because the price is higher? Simple math.”
Doesn’t answer my question: If they only get 8 cents per gallon, and if people only use a set amount of gallons (some people say that consumption in USA is currently down), then how can 8 cents a gallon, at let’s say $2.01 per gallon, turn into a windfall of profits at 8 cents at $4.01 per gallon. They’re still saying they’re getting 8 cents a gallon. They’re not saying they’re getting 8 PERCENT a gallon, but 8 cents per gallon. Something stinks!
Although I am a strong capitalist and love big business, I think we’re being had by the crude suppliers and the domestic suppliers, and that the domestic suppliers will keep this up until they absolutely have to stop. So, screw the average person.
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