Posted on 02/19/2008 5:27:44 PM PST by smokinleroy
Oil is cause of downturn
Exxon-Mobil earned $81 billion in profits in the last two years. Are we surprised? Supply and demand — that's what they say. So Exxon-Mobil could reduce the price of a gallon of gasoline to $1.50 and the company still could earn $40 billion in profits in two years. Am I wrong on my math?
I predicted a recession two years ago when the price of gasoline hit the ceiling. It does not take a rocket scientist to figure out that if we suck all the extra dollars from our citizens and force them to put it in their gasoline tanks and heating oil tanks, they will have no money left to buy clothing, gifts, entertain, go out to dinner, or buy the things that Congress and President George W. Bush say we now need to buy to come out of the dive into which this country's economy is heading.
So, the country is going to go into more deficit spending to send everyone a check for $500 or more. If the oil companies lowered the price of gasoline to $1.50, we would have an extra $100 a month to spend. Of course, if you earn $100,000 or more a year, or have stock in Exxon, you don't care about that.
We have a milk marketing board in Pennsylvania that regulates the price of milk. Why not establish a gasoline marketing board? What we don't need is an excess-profits tax. We don't need to give more money to an already glutted Congress that spends money like the old proverbial drunken sailor. Shame on all of our elected officials from top to bottom for allowing this rip-off to continue. Price-fixing by the oil companies is running rampant.
Ronald Goebel
Cranberry Township
I was hoping so. Ya know when fuel started going way up, I recall some saying it would have little or no effect. If that were the case, where did they think people were going to get the extra money to purchase more expensive fuel?
$1.85 per gallon, wasn't that long ago.
Yes.
1. What percent profit did Exxon Mobil take in?
2. How much in taxes did the government take from Exxon Mobil?
The "author" is an idiot dem for sure.
Hey Richard, do you mind if I call you Dick? Yeah, you are wrong on the math.
Sad to say that this moron's thinking is too common in this neck of the woods, which is why murtha is my congress critter and Rick Santorum is no longer my senator.
You’re probably seen my ideas before, but I say:
Drill ANWAR.
Drill Offshore on EVERY spec of ocean property we own.
Build Nuclear Plants; they don’t “pollute” like coal plants do!
Harness our raging rivers for Hydro-electric Power. Sorry. Daredevils might have a few less places to risk a broken neck...
Build some more refineries. What a concept!
Tap into our coal reserves...if you don’t want nuclear power.
Build that Natural Gas line from AK down to the lower 48.
Drop “reformulated fuels” and drop the extortion tax each state, and the Feds add to the price of a gallon of gas.
Problem solved. :)
You nailed it dead on. Perhaps someday a strong will President and House will pass a resolution forbidding investments into the energy sector. It won’t happen until the U.S. middle class is literally screaming for blood and then perhaps we’ll vote people in that actually give a rats *ss about America. Till then, have a great MexAmeriSaudiChicom day!!!
Hey Ronnie, Exxon-Mobil +$1.64 today...woo hoo.
When all else fails, break out the class warfare.
I buy gas every Thursday whether I need it or not. I “Dollar Cost Average” on my gasoline purchases just like I do on all of my stock purchases. “Invest” the same amount every month, good times and bad. :)
Over the long term, it all evens out, and it helps my budget each month, too.
Do I buy milk when it’s $3 a gallon? Heck no! When it’s on sale for $1.99, I buy 6 gallons and freeze it.
However, I don’t think you’re supposed to do that with gasoline...and therein lies the rub; I need my own refinery...and a Dairy cow, LOL!
All great ideas..and have seen many of them posted all over.
I would add -— form alliances with non OPEC energy producers as a counterweight to OPEC.
OPEC delendum est!
Right. A gallon of orange juice costs more than a gallon of gasoline. Incredible.
I agree we haven’t built new refineries in years and we should be drilling in ANWAR. We should also be using nuclear energy for electric power and exploring the use of coal reserves.
We needn’t be serfs of the Islamofascists for ever. But we shouldn;t be serfs of Red China or Mexico either.
Excellent, Smithers! I’m adding that OPEC idea to my list. Thanks! :)
[So Exxon-Mobil could reduce the price of a gallon of gasoline to $1.50 and the company still could earn $40 billion in profits in two years. Am I wrong on my math?]
What margin of profit does $40 billion represent for Exxon?
Just asking.
Remember this one? Funny movie. Loved the hooker (Jamie Lee Curtis) who invested her earnings in laddered CDs, "Five more years on my back, and I'm outta here!" LOL!
If Exxon-Mobil were to cut the price of it's gasoline below its competitors cost, competitors could not match the price and remain in the business. No one would buy the more expensive gasoline until Exxon-Mobil's supplies were exhausted. Then the remaining companies would price their gasoline to the market.
If gasoline prices were fixed then there would be no pricing information and there would be no market. More likely there'd be shortages, gas lines and rationing.
Moreover Exxon-Mobil and the rest of the private sector owns less than 10 percent of the world petroleum resources. 90% is owned by governments. Take your complaints elsewhere and in the meantime consider owning shares of Exxon-Mobil and sharing in the profits.
OPEC (Saudis) controls the price of oil by opening and shutting the wells.
Period.
That is the problem here short term and long term, created by us the Brits many years ago.
Well of course; its not like gasoline grows on trees ya know.....
But we shouldn;t be serfs of Red China or Mexico either
China doesn’t produce oil. Mexico does but not enough to make a difference.
I am referring to a natural ally—a nation that seeks to ally with us and probably holds more energy sources than anywhere else on this planet-——but dangerous dark forces are destroying that relationship.
Nation?
Russia.
We could also ask to have some of those taxes on gasoline dropped to reasonable levels. In Washington State, we are paying a total of 41.4 cents a gallon (total state and federal).
This dependence on gasoline for taxes causes more problems than high fuel prices. As motorists begin to drive more fuel efficient vehicles and limit their driving, there is less tax revenue. Now what?
In Washington State, the legislature is thinking about tolls on the major freeways to make up for the downfall in revenue. Just what motorists need. Toll booths will make traffic flow worse.
This obsession with taxation from expensive, inefficient government is the root of the problem. And the reason that government is expensive is because of the costs of enforcement for all of the regulations by government.
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