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 ...
As someone who owns 2k shares of EOM, you should be privy to the shareholders meetings. Perhaps a good question for the next one you attend.
Little short on insight. Are you suggesting Mexico is stealing money from General Motors - they build cars in Mexico..
Oh, the reasons are pretty sound, boyo. Texas City (>400,000 bbl/day) is still at just half capacity after the big blowout. Valero McKee is still partly offline. 3 or 4 others have had electrical problems, including one from a lightning strike.
Further, each year now, maintenance -- regular, planned maintenance -- tends strongly to take longer and longer, because plant is getting older and older. The short-term solution (say, 5 years' time) is to add capacity, but absolutely nobody wants to do that, because it's a lousy investment, not to mention the endless hassles from the gooberment and the lawsuits from the enviroa$$holes.
Indeed, why should ''Big Oil'' lift a single finger to remediate the situation? Unending criticism from the lamestream media, who haven't the first effing clue about the energy business? Constant accusations of 'gouging' from intellectual midgets, including those on this board? And for what? To expend an enormous amount of capital in order to build and operate very costly facilities to make a 6-8-10% net margin?
Would you expand capacity on those terms? I most certainly wouldn't, nor would anyone who can add.
And, do please note, I have never in my life worked for any energy company in any capacity, except for independent software consulting. Nor do I own any shares in US energy companies.
PEMEX does not allow foreign investment in the Mexico petroleum industry.
“Exxon is artificially restricting supply to increase prices.”
...Oh come on now, they would never do that!
Indeed. Very good point, Hack!
You might as well mandate that they own no stock in anything, since what they do affects everybody.
My guess is after that conflict is removed you may see drilling and real investigations into the industry on market manipulations.
To say that the oil industry manipulates the price of oil is like saying farmers manipulate the price of wheat.
I was not aware of that. So there is no country that would let Exxon build a refinery in trade for good paying jobs and permission to export the fuel to the open market?
True enough, I believe they view us largely as tools for revenue. The one thing that those those in Government fear above all else is being thrown out of office, before they can be useful to the corporations who put them there. If they are useful to the corporations who put them there, then they have lucrative opportunities in the lobbying business.
No, Big Oil would never manipulate markets, after all BP only manipulated the gas market. Neither Exxon, BOP or any other Big Oil company would ever, ever do that .......
http://www.msnbc.msn.com/id/13608828/
http://www.thememoryhole.org/corp/gas-prices.htm
As for there could be a list of Federally Regulated company stocks that affects the American economy with the greater impact, with our elected government officials and family having no stocks in them if they choose Public Service...I am all for it. Trying to determine which ones would be a free for all but Oil and energy stocks would have to be on the list. Of course, personal greed and conflict can and would never happen through actions of an elected official, with Big Oil lobby filling their pockets, so what am I thinking they need not have stock ownership in Big Oil...shame on me for even thinking that. .
Oil comapanies are building new refineries in other countries.
UAE firms expect to build $4b export refinery in Morocco
http://www.gulfnews.com/business/Oil_and_Gas/10127308.html
15 firms to bid for refinery
http://www.kuwaittimes.net/read_news.php?newsid=NzY4MTQ5NzQ4
New refinery to turn long-time importer Cuba into oil exporter
http://www.finalcall.com/artman/publish/article_3480.shtml
Eight firms to compete for Jizan refinery project - KSA
http://www.menafn.com/qn_news_story_s.asp?StoryId=1093153980
Surgut Plans New Refinery
http://www.energyintel.com/DocumentDetail.asp?document_id=202928
Qatar Petroleum to build $7b refinery in Panama
http://www.menafn.com/qn_news_story_s.asp?StoryId=1093153471
Rosneft plans to increase refinery by its own plants to 91 mil tons a year
http://www.akm.ru/eng/news/2007/may/22/ns1965014.htm
New refinery at Jamnagar 6 months early
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=18c2e535-e1b1-41d7-896f-9041bd59a7ca&&Headline=New+refinery+at+Jamnagar+6+months+early
Again, EOM is a great stock to own. Buy some, try to learn something about the energy business, and you’ll be happier in life. Attacking an industry you know nothing about is transparent and tiresome. You can thank me later after you’ve made some good money investing in EOM (or choose another energy co. if EOM is too ‘big oil’ for you).
The democrats want to turn us into a socialist country!
You realize, saying “Big Oil” doesn’t bolster your case, it makes one assume that you are a no-nothing fool. Now, I am not saying that you are a no-nothing fool, but 99% of those who say “Big Oil” are.
obviously, I meant “know nothing”, rather than no-nothing. sorry.
I understand the economic reasoning for the higher prices, and it's clearly the lack of refining capacity.
My question is this: what evidence do we have that building new refineries is not economically viable?
I know that there is anecdotal evidence that there's always strong resistance from environmental groups, and that government regulation adds significant costs. But the same could be said of many other kinds of construction. Why is such opposition and government regulation a complete show-stopper for refineries?
With prices as high as they are, why don't oil companies very publicly announce plans for some new refineries, explaining that they are needed to improve supplies? Environmentalists would get a lot of heat from the public by objecting in the current economic climate.
While I don't believe most of the "Big Oil" baloney, they sure do appear to be acting in effective concert, though there likely is no formal cartel. There sure isn't much going on in the way of vigorous competition.
I'm all for all congressmen and Senators having to put their assets besides Treasury bonds and their primary residences in a blind trust.
Why do you care how much profit is generated?
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