Posted on 05/08/2007 2:07:54 PM PDT by Sub-Driver
Democrats slam Big Oil over $3 gasoline prices Tue May 8, 2007 4:46PM EDT
By Tom Doggett
WASHINGTON (Reuters) - The U.S. Senate's top Democrat on Tuesday accused big oil companies of shutting down refineries temporarily to raise gasoline prices and rake in"obscene profits."
Gasoline prices have topped $3 a gallon at service stations across the country because several oil refineries are offline due to maintenance or accidents, reducing gasoline production and making fuel supplies tight.
"It's outrageous ...Isn't it interesting every year about this time, a refinery goes down for repairs," said Senate Democratic Leader Harry Reid of Nevada.
"Is that coincidental? Or is it part of a plan that these multinational, huge companies who are making obscene profits in the tens of billions of dollars -- is this part of their game to keep the profits going?" Reid said.
House Speaker Nancy Pelosi on Tuesday announced seven congressional hearings in coming weeks on soaring energy prices and plans to put together a proposed package of energy bills by July 4 to address the issue.
"With Memorial Day travel and the start of summer driving only a few weeks away, drivers are paying a heavy price for the Bush administration's failure to enact a comprehensive energy strategy," said Pelosi.
"Years of Bush administration policies that have favored Big Oil over the consumers have resulted in record dependence on foreign oil," the California Democrat added.
(Excerpt) Read more at reuters.com ...
Add the refusal to site new refineries and to obstruct the expansion/updating of existing ones, and ... voila! ... you're in the situation we see now. As the political class should know, but either doesn't know or won't admit publicly, this shjt catches up with you, over time.
As a guess, this minute, the refiners are making around 35 cents a gallon. This is still less than the amount of tax on a gallon of motor gasoline in all but about 3-5 states. Further, as some of the maintenance and distribution issues are cleared up, figure 30-90 days, no more, the crack spread will revert to much more typical levels.
You can obtain all the intel you want on this subject at WTRG Economics. Might have to search around a bit, but it's there, I guarantee you.
Also, you can learn all you like about the history of the crack spread, and what times of year it widens and narrows, at Time & Timing, my website. Take the free trial by clicking on 'The WebApp'. Then, login and go to The SpreadMaster (click on the red link). Fill in your favourite values and click display.
If you have ANY difficulty using T&T (traders don't; non-traders might), FReepmail me, and I'll be happy to walk you through it.
FReegards!
US appears to have built its last refinery
....
Industry officials estimate the cost of building a new refinery at between $ 2 bn and $ 4 bn -- at a time the industry must devote close to $ 20 bn over the next decade to reducing the sulphur content in gasoline and other fuels -- and approval could mean having to collect up to 800 different permits. As if those hurdles weren't enough, the industry's long-term rate of return on capital is just 5 % -- less than could be realized by simply buying US Treasury bonds.
"I'm sure that at some point in the last 20 years someone has considered building a new refinery," says James Halloran, an energy analyst with National City Corp. "But they quickly came to their senses," he adds.
Correct me if I’m wrong, but haven’t the Dems OPPOSED every measure to increase domestic oil production?
Don’t let the truth get in her way. She’s on a tear.
Actually, if some Pubbie pol worth his/her salt wanted to pass some useful legislation, he/she would sponsor a bill mandating that gas stations would have to prominently display all federal, state and local taxes. Then folks could get a timely reminder every time they fill up.
They're only bashing the oil companies in order to forward their anticapitalist, class-war agenda, not because they actually object to high gas prices.
You are not only not wrong, you are spot on.
"Less gasoline is available to import because of spring refinery maintenance in Europe and a 17-day French port workers' strike in March."
I wonder if the Rats will criticize that union for forcing up gas prices?
Democrats need to slam Diane Fienstien over the billion dollar contract her husband got in Iraq.
“It’s outrageous ...Isn’t it interesting every year about this time, a refinery goes down for repairs,” said Senate Democratic Leader Harry Reid of Nevada.
Yearly maintenance, dumb dumb. You would have to do it with your automobile, but the little people who serve you do it for you. Now, that’s outrageous.
Federal motor gasoline tax is 18.4 cents/gallon. The rest of the taxes are state and local, totaling in many cases over 50 cents.
Yes, they do not want to talk about the record amounts of reinvestment for exploration and infrastructure being built. Nor do they want to mention the record amount of taxes being paid.
Yep. Cracks me up. How many of the complainers about three buck gas drive one to a car in SUV’s or, in the case of typical California Democrats, ride in a limo. And the same gripers are the ones trying to call an end to ‘global warming’. Bwahahahah
(Glad my Harley gets 52 MPG)
Yep. Been down now for 13 consecutive weeks, basis the Wednesday API report.
I'm still... Is this really Reuters? Did Harry Reid, even Harry Reid, really say those things?
The Dimocrats are making satire impossible.
Can someone who knows the industry tell me about how much of a $3.20 gallon of gasoline is profit? Is it more or less than a dime?
Boxer went on one hell of a rant. Thanks for posting it.
Google.com:
Results 1 - 10 of about 1,690 for "republicans slam". (0.15 seconds)
Results 1 - 10 of about 10,300 for "democrats slam". (0.03 seconds)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.