Comments on: The Myth About Oil – What Congress Doesn’t Want You to Know http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/ Pull up a chair and sit a spell... Wed, 17 Mar 2010 01:59:36 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Daniel http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/comment-page-1/#comment-9596 Daniel Fri, 20 Jun 2008 19:57:10 +0000 http://jscafenette.com/?p=3759#comment-9596 I read similar article also named The Myth About Oil – What Congress Doesn’t Want You to Know, and it was completely different. Personally, I agree with you more, because this article makes a little bit more sense for me I read similar article also named The Myth About Oil – What Congress Doesn’t Want You to Know, and it was completely different. Personally, I agree with you more, because this article makes a little bit more sense for me

]]> By: ~J~ http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/comment-page-1/#comment-9540 ~J~ Fri, 13 Jun 2008 11:15:08 +0000 http://jscafenette.com/?p=3759#comment-9540 The point is the Congress is still charging $.65 tax per gallon of gas sold, whether the gas sells for $1.00 per gallon or $4.00 per gallon. People still need to go to work and still need their cars to get there so even at higher prices Congress still gets its share of the pie. Now, people may not be doing as much leisure driving, but then the price of airline fuel is making it just as cheap, if not cheaper, to drive to their destination. As for profits on the drilling costs, do you think the oil business is in the business of buying expensive equipment, paying good salaries and making no money from it at all? What has the government invested in oil? Nothing and they still won't let us drill for our own oil while China is drilling right off the coast Congress won't allow us to drill. The question you should be asking is "why?". The point is the Congress is still charging $.65 tax per gallon of gas sold, whether the gas sells for $1.00 per gallon or $4.00 per gallon. People still need to go to work and still need their cars to get there so even at higher prices Congress still gets its share of the pie. Now, people may not be doing as much leisure driving, but then the price of airline fuel is making it just as cheap, if not cheaper, to drive to their destination.

As for profits on the drilling costs, do you think the oil business is in the business of buying expensive equipment, paying good salaries and making no money from it at all?

What has the government invested in oil? Nothing and they still won’t let us drill for our own oil while China is drilling right off the coast Congress won’t allow us to drill. The question you should be asking is “why?”.

]]> By: Parker http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/comment-page-1/#comment-9538 Parker Thu, 12 Jun 2008 18:29:35 +0000 http://jscafenette.com/?p=3759#comment-9538 The writer asks and answers: "Who profits from the higher oil prices? Washington likes to point the finger at “big oil”, but the dirty little secret is that state and federal governments make out like bandits. According to data from the California Energy Commission, when the price per gallon was $3.89 (April 28, 2008), taxes accounted for $.65 of the price paid at the pump. Crude oil was $2.83 of that. The remaining $.41 went for refining, transportation, marketing and profits." However this is disingenuous. If she is speaking solely about taxes on gasoline, then she would note that Congress always makes $0.65/gallon. This is a flat tax, so Congress is not making out like a bandit with high gas prices. On the contrary, Congress is losing money relative to low prices because high prices cause people here to buy less gallons and thus pay the $0.65 tax less often. Their take does not grow in proportion to the price of oil, that would be the oil companies. Basically as gas prices rise, the profit oil companies make rises while the money Congress takes stays flat. It is also disingenuous to compare Congressional gains from gas sales ($0.65) with only downstream operations of oil companies ($0.41) while stating the crude oil price as something independent and fixed. You forget to mention that while the downstream operations of O&G companies only make $0.41/gallon for transport, refining, profits...etc, the upstream exploration arm of those companies also make a large chunk of profit off of the $2.83 price for crude oil. So you have to count the proportion of cost of gas to the oil company as $0.41 + %*$2.83, which is greater than $0.65. If you wish to comment please notify me at nolasaint35@aol.com The writer asks and answers:
“Who profits from the higher oil prices? Washington likes to point the finger at “big oil”, but the dirty little secret is that state and federal governments make out like bandits. According to data from the California Energy Commission, when the price per gallon was $3.89 (April 28, 2008), taxes accounted for $.65 of the price paid at the pump. Crude oil was $2.83 of that. The remaining $.41 went for refining, transportation, marketing and profits.”

However this is disingenuous. If she is speaking solely about taxes on gasoline, then she would note that Congress always makes $0.65/gallon. This is a flat tax, so Congress is not making out like a bandit with high gas prices. On the contrary, Congress is losing money relative to low prices because high prices cause people here to buy less gallons and thus pay the $0.65 tax less often. Their take does not grow in proportion to the price of oil, that would be the oil companies. Basically as gas prices rise, the profit oil companies make rises while the money Congress takes stays flat.

It is also disingenuous to compare Congressional gains from gas sales ($0.65) with only downstream operations of oil companies ($0.41) while stating the crude oil price as something independent and fixed. You forget to mention that while the downstream operations of O&G companies only make $0.41/gallon for transport, refining, profits…etc, the upstream exploration arm of those companies also make a large chunk of profit off of the $2.83 price for crude oil. So you have to count the proportion of cost of gas to the oil company as $0.41 + %*$2.83, which is greater than $0.65. If you wish to comment please notify me at nolasaint35@aol.com

]]> By: EckerNet.Com » Blog Archive » Deep Thoughts With Kevin http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/comment-page-1/#comment-9466 EckerNet.Com » Blog Archive » Deep Thoughts With Kevin Wed, 04 Jun 2008 05:36:08 +0000 http://jscafenette.com/?p=3759#comment-9466 [...] The Myth About Oil…. Who profits from the higher oil prices? Washington likes to point the finger at “big oil”, but the dirty little secret is that state and federal governments make out like bandits. According to data from the California Energy Commission, when the price per gallon was $3.89 (April 28, 2008), taxes accounted for $.65 of the price paid at the pump. Crude oil was $2.83 of that. The remaining $.41 went for refining, transportation, marketing and profits. Would Congress dare to look in the mirror? [...] [...] The Myth About Oil…. Who profits from the higher oil prices? Washington likes to point the finger at “big oil”, but the dirty little secret is that state and federal governments make out like bandits. According to data from the California Energy Commission, when the price per gallon was $3.89 (April 28, 2008), taxes accounted for $.65 of the price paid at the pump. Crude oil was $2.83 of that. The remaining $.41 went for refining, transportation, marketing and profits. Would Congress dare to look in the mirror? [...]

]]> By: steve http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/comment-page-1/#comment-9422 steve Thu, 29 May 2008 18:19:17 +0000 http://jscafenette.com/?p=3759#comment-9422 Guess what. This problem is just about over. Inventories are getting quite high. Why? Because we're not buying at this price. Yes sir, the American consumer is going to fix this problem. There's tankers at sea right now that won't be able to unload. They're stuck out there. The only way to get them unloaded is to move out the oil. Price is about to collapse. Guess what. This problem is just about over. Inventories are getting quite high. Why? Because we’re not buying at this price. Yes sir, the American consumer is going to fix this problem. There’s tankers at sea right now that won’t be able to unload. They’re stuck out there. The only way to get them unloaded is to move out the oil. Price is about to collapse.

]]> By: Justus For All » Myths About Oil http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/comment-page-1/#comment-9416 Justus For All » Myths About Oil Thu, 29 May 2008 15:39:29 +0000 http://jscafenette.com/?p=3759#comment-9416 [...] J’s Cafe Nette (via the Anchoress) I asked my good friend COgirl to write a piece about our current energy crisis. She is proficient in the field as she and her husband are engineers who have worked in the field their entire careers. [...] [...] J’s Cafe Nette (via the Anchoress) I asked my good friend COgirl to write a piece about our current energy crisis. She is proficient in the field as she and her husband are engineers who have worked in the field their entire careers. [...]

]]> By: yo http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/comment-page-1/#comment-9414 yo Thu, 29 May 2008 14:02:11 +0000 http://jscafenette.com/?p=3759#comment-9414 I propose we drill for oil in hollywood, in beverly hills, in new york city, on boston, in san francisco, in george soros front yard, in the kennedy compound and finally in al gore's back yard.:d If they don't like it, I say, tough!:d/ I propose we drill for oil in hollywood, in beverly hills, in new york city, on boston, in san francisco, in george soros front yard, in the kennedy compound and finally in al gore’s back yard.Grin

If they don’t like it, I say, tough!Grin/

]]> By: Don L http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/comment-page-1/#comment-9413 Don L Thu, 29 May 2008 12:04:16 +0000 http://jscafenette.com/?p=3759#comment-9413 I'd like to propose a ten year compromise with the leftist greenies who hate modern civilization (it interferes with their private jet mobility) Drill, drill, drill Build refineries and nuke plants Pour money into alternative energy discovery -not give away carbon credit scams. As alternative fuels come on line -close a drilling platform for each equal production of AFs. Offer this once and then do it anyway! Forget those dreams of higher fuel standards unless you mean higher death tolls. I’d like to propose a ten year compromise with the leftist greenies who hate modern civilization (it interferes with their private jet mobility)

Drill, drill, drill

Build refineries and nuke plants

Pour money into alternative energy discovery -not give away carbon credit scams.

As alternative fuels come on line -close a drilling platform for each equal production of AFs.

Offer this once and then do it anyway!

Forget those dreams of higher fuel standards unless you mean higher death tolls.

]]> By: Guss http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/comment-page-1/#comment-9399 Guss Wed, 28 May 2008 09:35:27 +0000 http://jscafenette.com/?p=3759#comment-9399 I would respect a man for telling me the truth instead of trying to treat me like an idiot and pull the wool over my eyes. It sometimes hurts to know it but at least I would know where I stand and what to expect. I would respect a man for telling me the truth instead of trying to treat me like an idiot and pull the wool over my eyes. It sometimes hurts to know it but at least I would know where I stand and what to expect.

]]> By: Guss http://jscafenette.com/2008/05/27/the-myth-about-oil-%e2%80%93-what-congress-doesn%e2%80%99t-want-you-to-know/comment-page-1/#comment-9398 Guss Wed, 28 May 2008 09:28:46 +0000 http://jscafenette.com/?p=3759#comment-9398 I watched the hearings and had to shut off the TV. I'm so disgusted with the whole mess. When are we going to learn that all politicians are in it for them selves? What the heck do they care what the price of gas is at the pump? We buy their gas and they are full of it plus the solids that go along with it. Good post and I must say, very true. I watched the hearings and had to shut off the TV. I’m so disgusted with the whole mess. When are we going to learn that all politicians are in it for them selves? What the heck do they care what the price of gas is at the pump? We buy their gas and they are full of it plus the solids that go along with it. Good post and I must say, very true.

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