Posted on 05/24/2007 4:50:40 AM PDT by 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."
(Excerpt) Read more at washtimes.com ...
Grease....oh, they are drunk on the Kool Aide....Milk, cookies and a pat on the head for everyone!!!!
That would be an excellent place to start! Building more refineries as well as exploring for and exploiting new reserves would be a sensible next step.
If there is gouging, how come margins on gasoline retailing are so low? The margins are lower than walmart makes.. is walmart gouging? The margins are lower than Honda makes. Is Honda gouging?
I am discussing profit. When you look at ROI, make sure you look at a time span like a decade. 1998~99 was not that long ago. You don't get return on those investments for a long time in this industry.
No doubt about it. We have the ability to be almost completely energy independent while we develop other energy ideas. Drill, build nuclear facilities, refineries etc but we are handcuffed by our own stifling policies. That’s where big government should start...by looking in the mirror.
Upstream, which is exploring, finding, and drilling for oil
Midstream, which is refining and pipelines
Downstream, which is actually branding and selling the gas at the station.
Exxon does all three. There has been big money in Upstream for the last 6 or 7 years. To look at whether or not there is gouging, you would want to look at downstream profits. They are just not very high. Gasoline marketing is in fact a very very competitive business.
“Thats where big government should start”
...why should they, that would only mean that there dividends would shrink?
It takes quite a lot of time to build new refinery’s and even then you have to get the wacko enviromentalist permission to do so.
Exxon does all three but buys more oil on the market than they produce themselves.
Valero would be a review of refining and Marketing.
Anadarko is one of the biggest US companies that are basically a domestic crude oil producer.
to post 66
for whatever reasons, refineries ane not producing.
I don’t begrudge a company, 10% return-on-investment.
I don’t begrudge, a gas station making a 5c markup.
"Gouging" is when a short-term crisis leads to overwhelming price increases (usually 10-100 times the value the week before), and that price increase will be reversed when the crisis disappears. It's when flashlights go for $50, batteries for $20, potable water goes for $25 per gallon, and bread is $15 per loaf when a category-5 hurricane is coming to town, or a snowstorm will put your county out of contact with the rest of the world for 2 weeks. It's not when a common commodity has a price that politicians can exploit for their own personal gain. (That's called a "weekday".)
That's not what your buddies in the MSM are bellowing daily...they are using only the dollar amount of profit...which anyone with even a small brain should understand the more raw dollar revenue the more raw dollar profit.
Cool graphic! Anyone got the 2007 breakdown?
Updated and displayed at:
Gasoline and Diesel Fuel Update
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp
Gasoline Components Monthly History
http://tonto.eia.doe.gov/oog/info/gdu/gaspump.html
you’re reeeel big with, “thank you’s”, “excuse me’s & my mistake’s” aren’t you...
your rudeness is matched only by your potty mouth & ignorance of the subject at hand...
do us all a favor and GET LOST and leave us all alone ‘til you learn some manners, Mr/Ms WTF “Effin!”...
and PLEASE wash your mouth out b4 you come back.
What is your take on the restrictions to build refineries? EPA? If that is so, why wouldn't Exxon build a refinery across the border from Brownsville, TX and truck gas across the border? Barring reason unknown to me for not taking this step, it seems Exxon is artificially restricting supply to increase prices.
BTW, I own 2,000 shares of Exxon stock which I purchased a little over 3 years ago for under $40/share.
please tell me what the ROI is.
Exxon’s money would be stolen.
-—What is your take on the restrictions to build refineries? EPA?-—
An example:
Arizona refinery permit took seven years, Senate told
http://www.tucsoncitizen.com/daily/business/19103.php
Environmentatilsts, NIMBYs, liberal courts and weak-kneed legilatures that enable them are hold this country back.
-—If that is so, why wouldn’t Exxon build a refinery across the border from Brownsville, TX and truck gas across the border?——
PEMEX, the Mexican National oil company does not allow foreign investment in their industry.
Oil companies are expanding and upgrading the existing refineries in this country, where they can. Sometimes those expansions are as big as a new refinery. They are also building complete new refineries in other contries.
http://online.wsj.com/article/SB117789455598286509.html?mod=googlenews_wsj
http://www.motivaenterprises.com/images/editor/ExpansionUpdatePressRelease.doc
http://www.panews.com/local/local_story_120184906.html
http://www.bakersfield.com/102/story/122840.html
http://www.gulflive.com/news/mississippipress/index.ssf?/base/news/117645937628530.xml
http://www.turnto23.com/news/12468302/detail.html
http://www.tucsoncitizen.com/daily/business/19103.php
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