Like Oil & Water, Gas-Price Gouging Claims & Sanity Don’t Mix

April 25, 2006 Our Economy, Telling It Like it Is Comments

I came home today from listening to news audio snippets of all the politicians, including the President, railing on the “big oil companies” about profit this, gouging that, windfall taxes, etc., etc., ad infinitum. Hell, Sen. Chuck-E-Cheese Schumer wants to break up the big “monopolies” so they can have more control over the companies like Exxon-Mobil, Shell, etc. Why? It’s simply a power-play by both sides, and a smack in the face to intelligent voters who understand the truth about basic economics, supply and demand, and a free-market economy.

Both the Democrats and the Republicans have this one wrong, as well as the general public. I just heard the stupidest quote on TV I think I’ve ever heard. Some female being spot-intereviewed about gas prices actually said “We’ve got places to go and need gas, and they’re making a profit from it!!!!” What? How DARE they make a profit on a commercial product!

Does anybody but me see anything wrong with this statement? If so, then you know where I’m going with this. Anybody agree with her ridiculous statement wholeheartedly? Well, in the famous words of Bill Engvall, “Here’s your sign.”

There’s also the matter of a little thing called “capitalism” and the term “supply and demand.” What if we do slam the oil companies with “windfall profit taxes?” Who do you think is going to pay those taxes? The oil companies? You’re crazy if you believe that. Corporations do not “pay” taxes – they “collect” taxes from their employees, share-holders, and the consumers. So if we impose these insane taxes on the oil companies, it’s coming out of our pockets, folks! Wake up!

Do you know that the average oil company make about 9 cents profit per gallon of gas? Do you also know that in most states, an average of 50 cents per gallon consists of taxes! So “who’s doin’ who here?” If the government wants to bring down prices, they can eliminate some of their ludicrious taxes. After all, for the 9 cents the oil company gets in profit from us, we at least get a product or service. What do we get from the 50+ cents the government collects? We get the shaft…that’s what we get!

Okay, now let’s go for some facts and statistics from the EIA. I’d encourage all of you to spend some time on this site. It’s the most comprehensive, concise, and easy-to-understand website I’ve found on energy demand, costs, production, etc. Here is a list of world crude oil prices for your perusal. Do you see THAT much disparity in oil prices to the rest of the world? If oil costs $73 a barrel here, then it pretty much costs $73 everywhere else. Looking at these figures from the Energy Information Administration (EIA), you can see in projected oil consumption up to 2025, China and other “Emerging Asian” countries are estimated to have higher consumption at 33.6M barrels per day by 2025. For that same projected year, North America’s projected consumption is 32.9M barrels per day.

I’d highly suggest for all the data, good and bad, to go this website’s “Ask an Expert” page for any energy question you might have.

I also found some very interesting energy & environmental facts about China:

ENVIRONMENT

China suffers from major energy-related environmental problems. According to a report by the World Health Organization (WHO), seven of the world’s ten most polluted cities are in China. The country’s heavy use of unwashed coal leads to large emissions of sulfur dioxide and particulate matter. China also is important to any effort to curb emissions of greenhouse gases, as it is projected to experience the largest absolute growth in carbon dioxide emissions between now and the year 2025.

China is a non-Annex I country under the United Nations Framework Convention on Climate Change, meaning that it has not agreed to binding targets for reduction of carbon dioxide emissions under the Kyoto Protocol. While the Chinese government is concerned with its environmental problems, it tends to be more concerned with local problems, such as particulate matter and sulfur dioxide emissions. Thus, it is undertaking efforts to lessen emissions of pollutants such as sulfur dioxide and nitrogen oxide, through improved pollution controls on power plants as well as policies designed to increase the share of natural gas in the country’s fuel mix, particularly around major metropolitan areas.

So, does anybody still doubt why the U.S. wisely never signed on to the Kyoto Protocol? Why should we pay for China’s environmental issues?

And for those of you who think the Exxon-Mobil executive, Lee Raymond, got too much money when he retired, I ask you this: What did you do to earn the company for which you work $40M last year? Their share-holders are happy about that, and happy share-holders invest more into the economy. Plus, since when do we want the federal government telling private companies how much they can or cannot pay their employees? Oh, that’s right… they already do just that – the minimum wage. Yuck.

Oh, I have one more thought to leave you with:

Figures are according to the Energy Information Administration, on Weekly Retail Premium Motor Gasoline Prices Including Taxes as of 04/01/06. Note: This figure does not include the country of China or India.

So, looking at the legend, who wants to be paying $5 to $7.50 a gallon? Folks, we have it better than any other industrialized country in the world. We are getting off CHEAP contrary to what you believe or are told by the media!

Also seen at Expose the Left, Michelle Malkin, Right on the Right, Right Wing News, Jo’s Cafe, and Stop the ACLU.