Obama’s Big Lie: Radio Ad Blames Oil Companies for Gas Prices

The Husaria: For Our Freedom and Yours ^ | 4/14/08 | Winged Hussar 1683

[Winged Hussar]

[Transcript of Obama radio ad, including an assertion that gasoline costs $4.00 a gallon in Pennsylvania.]

Obama is looking for a scapegoat for high gasoline prices, and let us see whether his statements are accurate or misleading.

Bloomburg.com carries energy prices here (http://www.bloomberg.com/markets/commodities/energyprices.html). As of April 14, crude oil was running at about $110 per barrel. There are 42 gallons to the barrel, so this translates to $2.62 per gallon of crude oil.

Here are current gasoline prices in Pennsylvania (http://www.pennsylvaniagasprices.com/). As of April 14, regular gasoline is available from Sheetz for $3.25 per gallon. In Scranton (Northeast PA), prices range from $3.26 to $3.40 or so, and we don’t know where Obama got the $4.00 figure–except from a desire to engage in sensationalistic demagoguery

The total markup on the gasoline is therefore 63 cents a gallon. Only a portion of this goes to the oil companies that Obama accuses of gouging the public. The oil company must pay the oil tanker or oil pipeline to deliver the oil to a refinery, which also has operating costs. Then someone must pay a tank truck to deliver the gasoline to Sheetz, Costco, Sam’s Club, or whomever, and the gas station must pay its employees and earn a reasonable profit.

This analysis reinforces our belief that Obama will say whatever he has to say to get credulous people to vote for him. Truth, as with the proclamations of Joseph Goebbels, is irrelevant to Obama’s campaign.

[Winged Hussar]

Barack Obama's radio ad to the people of Pennsylvania is an example of the Big Lie. If he will lie to voters about the relationship between oil and gasoline prices, what else is he lying about?

[Jeff Head]

THE TRUTH ABOUT BLACK LIBERATION THEOLOGY

[philled]

Does Obambi make reference to the federal and state taxes portion of a gallon of gasoline? I believe the government makes more off a gallon of gas than anyone...

[absolootezer0]

he doesn’t mention the $.507 per gallon of gas TAXES?

[gunservative]

Obama really ought to be blaming emerging countries for wanting to produce goods, make profits, and improve the welfare and infrastructure of their countrymen. Ha ha ha ha ha ha!!!!!! Declare war on the poor!

[Winged Hussar]

Thank you for reminding me about the taxes. That was a serious omission from my posting, and I will modify it immediately. It makes Obama look even worse.

[theBuckwheat]

If drilling in ANWAR had been allowed instead of being blocked by enviro-Dems so many years ago, by now that oil would be flowing and we would have lower prices for fuel.

[SoldierDad]

In California we are paying approximately 62 cents in taxes per gallon of gasoline. (for the cheapest grade of unleaded). That’s with the price of unleaded being $3.70 per gallon. Since we have a 7.75 percent sales tax on top of the state and federal gasoline taxes, the total tax bite is dependent upon the cost per gallon before the sales tax is added.

[Winged Hussar]

http://www.taxadmin.org/FTA/rate/motor_fl.html

Pennsylvania adds 31.2 cents of tax per gallon. If you then add the Federal tax, I can see how you get 50.7 cents a gallon.

[theBuckwheat]

Another point worth mentioning about fuel prices:

Government policy that mandates different forumlations of gasoline for different markets, and rules forbidding cross-selling to alieviate price differentials is only a receipe for high prices, and potential shortages.

see:
http://www.econbrowser.com/archives/2006/06/epa_report_on_b.html

"...These fuels are costly to produce, but they also segment the market and increase the market power of refiners.... we find that both cost and market segmentation significantly affect wholesale gasoline prices...."

Link to boutique gasoline balkanization:
http://www.econbrowser.com/archives/2006/06/exxon_mobil.jpg

[thackney]

Great thread for a reminder how much government makes off the petroleum industry. They take far more than oil companies keep as profits.

ExxonMobil 2007
Revenue $404.6 Billion
Profit $40.6 Billion (10.0%)
Taxes $102.5 Billion (25.3%)

Sales-Based taxes $31.728B
Other taxes and duties $40.953B
Income taxes $29.864B

2007 Financial & Operating Review
http://www.exxonmobil.com/corporate/files/news_pub_fo_2007.pdf
Page 16

- - - - - - - - -

ConocoPhillips 2007
Revenue $194.5 Billion
Profit $11.9 Billion (6.1%)
Taxes $30.4 Billion (15.6%)

Taxes other than income taxes $18.990B
Income taxes $11.891B

2007 Annual Report
http://www.conocophillips.com/NR/rdonlyres/3838234F-F20C-4BCE-AE8D-78DE29D67455/0/07RevisedARfinal.pdf
Page 60

- - - - - - - - -

Chevron 2007
Revenue $220.9 Billion
Profit $18.7 Billion (8.5%)
Taxes $35.7 Billion (16.2%)

Taxes other than income taxes $22.266B
Income taxes $13.479B

2007 Annual Report Supplement
http://media.corporate-ir.net/media_files/irol/13/130102/reports/CVX_ARsupp07.pdf
Page 3

- - - - - - - - -

Marathon 2007
Revenue $62.8 Billion
Profit $4.0 Billion (6.3%)
Taxes $8.5 Billion (13.5%)

Consumer excise taxes $5.163B
Other taxes $0.394B
Income taxes $2.901B

2007 Annual Report
http://www.marathon.com/content/documents/investor_center/annual_reports/annual_report_2007_book.pdf
Page F-4

[AFPhys]

Thanks for putting the Oil Company’s sales, profits and taxes on this thread. Good post!