House OKs bill to curb gas gouging

The Washington Times ^ | May 24, 2007 | Patrice Hill

[Kaslin]

he House yesterday passed a bill that would make price gouging by gas stations and oil companies a federal crime as prices at the pump surpassed a 1981 record reached at the height of the Iranian oil crisis. The White House, which has threatened to veto the bill, warned the legislation amounts to price controls and would lead to gas shortages and lines like in the 1970s.

    The cross over the threshold of $3.23 a gallon reported by GasBuddy.com equals the inflation-adjusted record high for gas prices and heralds a new era of high energy prices and scarcity of fuel as growing demand in China, India and the U.S. collides with scarce new sources of oil and sluggish increases in gasoline production worldwide. Economists say the House bill will not help to ease those shortages or bring down high prices.

    Business groups said the bill would be difficult to enforce and would set a dangerous precedent by opening the floodgates to frivolous lawsuits, further driving away any hopes of increased energy production that would take the pressure off prices.

    "This is a first step in addressing the outrageous prices we are seeing at the gas pump," said bill sponsor Rep. Bart Stupak, Michigan Democrat. Prices in recent years have peaked at about the Memorial Day start of the summer driving season, but they could climb higher this year if hurricanes or conflicts in the Middle East or Nigeria disrupt supplies.

    "This bill is all bark and no bite, and will do nothing to lower gas prices," said House Minority Leader John A. Boehner, Ohio Republican. "No American likes paying high prices at the pump. ... This bill could make the pain felt by consumers at the pump considerably worse."

[Kaslin]

what do you call it when gas taxes amounting to close to a DOLLAR A GALLON in many states is called?

What we need to do is stop Congress from tax gouging

[greasepaint]

10% comes from when?
1998?

its not 1998 anymore.

refinery margins are at record highs

[redgolum]

They are, but remember energy is not a high margin business like say, bottled water.

[cweese]

EOM made 10% profit last year (2006). They spent somewhere around $400 Billion to earn ~$40 Billion.

[kellynla]

“WTF are you talking about?

the refinery markup is at least 75 cents?”

According to EIA, TOTAL refining COSTS & PROFITS amount to less than 20% a gallon.

Now if you are smarter than the EIA and know something they don’t;
please share your wisdom with us all.

[greasepaint]

to 43

a long time ago, refineries were a lot like a supermarket.
big sales, but thin margins.

no longer

[never4get]

I point out the obvious...your desire for profit overrides your rationale judgment. I kind of had a feeling you and others who support the oil industry as just “supply and demand economics” have ulterior motives and rationale for doing so. No wonder you do not see a conflict in elected public officials owning oil stocks in an industry they have regulation duties a conflict....it puts money in your pocket. Well, cweese, I guess so long as you get your palms oiled so be the legality of the situation. Mmm, now figuring you out makes a lot more sense.

[greasepaint]

the last time i looked, commodity-wholesale gasoline
was $2.30, 96.60 a barrel.

WTI was 65 a barrel.

do the effin math.

[never4get]

“What we need to do is stop Congress from tax gouging”

I am in complete agreement with that as well.

[greasepaint]

to post 44

EOM, ok, they made 40B

how much investment, did that take?

[never4get]

Give up...this industry gives them there warm milk, cookies and a nice pat on the head before they go to bed every night...They could have Big “ol oil give em a swift kick right in the groin and they would say it does not hurt....

[cweese]

Well, if they spent $400B to earn $40B...

[cweese]

YOU wish to discuss rationality? LOL!

[thackney]

According to EIA, TOTAL refining COSTS & PROFITS amount to less than 20% a gallon.

Now if you are smarter than the EIA and know something they don’t;
please share your wisdom with us all.

Not at all. EIA has the wisdom we need.

You are including COSTS in your number. My response was only concerning PROFITS.

[greasepaint]

I give up.

please tell me the number.

just for the record,
I don’t begrudge anyone making
10% ROI.

[kellynla]

No, you do the "effin" math, genius!

[thackney]

-—10% comes from when?
1998?

its not 1998 anymore.——

Perhaps you should update yourself with the costs associated in today’s petroleum market.

2006 ExxonMobil
$39.5B profit on $365.5B revenue, 10.8% profit

http://www.sec.gov/Archives/edgar/data/34088/000119312507042435/d10k.htm#fin59931_2

1st Quarter 2007 ExxonMobil
$9.2B profit on $87.2B revenue, 10.6% profit

http://library.corporate-ir.net/library/11/115/115024/items/242049/1Q07_Earnings_Press_Release.pdf

2006 ConocoPhilliops
$15.5B profit on $183.7B revenue, 8.4% profit

http://www.conocophillips.com/newsroom/news_releases/2007+News+Releases/012407.htm

1st Quarter 2007
ConocoPhilliops
$3.5B profit on $41.3B revenue, 8.6% profit

http://www.conocophillips.com/newsroom/news_releases/2007+News+Releases/042507.htm

[corlorde]

The should start with the burdensome taxes levied at all gas using Americans.

[corlorde]

There you go again with your pesky facts...knock it off, it’s not fair to the emotionally minded and their feelings

;->

[greasepaint]

PLEASE tell me the return-on-investment.

PLEASE

nobody cares about thruput,
the important numbers
are PROFIT, and INVESTMENT