Randy Inman
Kim K.
Why the left and right are both wrong on oil
June 25th 2008 00:35
Yesterday I said I would explain why both sides of the oil price-lowering debate are wrong. Well here it is...
The right wants to end the ban on offshore drilling. Anyone with a brain knows that this would not happen overnight. It would be years before the leases are figured out and drilling is even set up, not to mention prospected and actually brought up. It is projected that it would not affect prices until 2030. On top of that, the danger to our coastlines is imminent. I'm not a crunchy, but it only makes sense that when you are drilling underwater there could be some leakage. In fact, there was in 1969. Read about that here.
The left wants to tax the heck out of the oil companies. According to the Department of Energy, refining and profits account for about 17% of gas prices. The rest is crude oil price, distribution, taxes, and the pittance that stations get. It is estimated that refining is about 10% of that 17%, so using our great math skills we can see that somewhere around 7% of the price of gas goes to oil companies. At the present $4 gallon price, the oil companies make a profit of 28 cents per gallon. That money goes into not only some executive's pocket, but into the pockets of all the people involved in the process and all the shareholders who hold stock in those companies. Not that I agree with everything the guy says, but Ben Stein wrote a great article on this. Even if we take half of that profit away, it is only going to change prices by 14 cents a gallon. In my SUV, that accounts for about $2.50 per fill-up. OOO- now I can buy that pack of gum I've been eying up! In comparison, federal and state taxes account for about 15% of the price of gas. The government already makes more money on gas than the people who make it. Where is the windfall tax on them?
So what is the solution to the price of gas? I currently don't see one outside of a major overhaul of our system. The problem isn't the price of gas, but our dependence on it. We all know that, so why are politicians pretending like these things will work? To make us believe they are actually doing something and to pander to the people like we are idiots. Where is that 15% of the cost of gas going? Where is all this "research" that it should be funding? It’s just another case of the government sticking its nose in everywhere and mucking everything up. I believe that the government is there to protect us not as individuals, but as a whole. EVERY person is America uses oil for some purpose whether intentionally or not. Where is the candidate with real solutions to this problem? I want a candidate with a brilliant scientist at his side saying "this is the guy who will give us the next wave of engines and power plants." That’s the guy I will vote for.
The right wants to end the ban on offshore drilling. Anyone with a brain knows that this would not happen overnight. It would be years before the leases are figured out and drilling is even set up, not to mention prospected and actually brought up. It is projected that it would not affect prices until 2030. On top of that, the danger to our coastlines is imminent. I'm not a crunchy, but it only makes sense that when you are drilling underwater there could be some leakage. In fact, there was in 1969. Read about that here.
Just say no
The left wants to tax the heck out of the oil companies. According to the Department of Energy, refining and profits account for about 17% of gas prices. The rest is crude oil price, distribution, taxes, and the pittance that stations get. It is estimated that refining is about 10% of that 17%, so using our great math skills we can see that somewhere around 7% of the price of gas goes to oil companies. At the present $4 gallon price, the oil companies make a profit of 28 cents per gallon. That money goes into not only some executive's pocket, but into the pockets of all the people involved in the process and all the shareholders who hold stock in those companies. Not that I agree with everything the guy says, but Ben Stein wrote a great article on this. Even if we take half of that profit away, it is only going to change prices by 14 cents a gallon. In my SUV, that accounts for about $2.50 per fill-up. OOO- now I can buy that pack of gum I've been eying up! In comparison, federal and state taxes account for about 15% of the price of gas. The government already makes more money on gas than the people who make it. Where is the windfall tax on them?
So what is the solution to the price of gas? I currently don't see one outside of a major overhaul of our system. The problem isn't the price of gas, but our dependence on it. We all know that, so why are politicians pretending like these things will work? To make us believe they are actually doing something and to pander to the people like we are idiots. Where is that 15% of the cost of gas going? Where is all this "research" that it should be funding? It’s just another case of the government sticking its nose in everywhere and mucking everything up. I believe that the government is there to protect us not as individuals, but as a whole. EVERY person is America uses oil for some purpose whether intentionally or not. Where is the candidate with real solutions to this problem? I want a candidate with a brilliant scientist at his side saying "this is the guy who will give us the next wave of engines and power plants." That’s the guy I will vote for.
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Comment by Anonymous
WIth all due respects, I'm not sure you can say that the oil execs aren't making a very handsome income in all this gouging that's going on lately.
While I'll agree that they're not working for these big oil companies out of the good graces of their heart, they're hardly going to feel even the slightest pinch of what most of us would be saying OUCH about when we pump our tanks.
Psssst: It's one thing for your neighbors on the street to see you pumping your SUV, don't let the rest of the world know you've got one of those Saudi Underwriting Vehicles. (No, just kidding. I realized we all buy cars for varying personal reasons and we're entitled to that right. It come sfrom listening to NPR's Click n Clack!
You're blog's off to a good start, and that's from a non-libertarian conservative!
Comment by Cibbuano
Hunt Famous
Orble Post of the Day
Fat Cult
Techbreak
If you ask me, the West has dropped the ball on finding alternative sources of energy for transportation. Where are all our futuristic commuting technologies?
Comment by Josie
Cibbuano- I totally agree that the West, and the modern world in general, has dropped the ball for decades. I find it very hard to believe that the 100 year old engine is the best technology available to the entire world with all the advancements that have been made since then. This ISN'T just a USA problem, but man it would be great if we could be the ones to find a solution! Maybe regain some of that respect...but thats another story...