Thread: gas prices increase today... wow...
View Single Post
Old May 23, 2007 | 02:50 AM
  #23 (permalink)  
BrianBrave's Avatar
BrianBrave
<--- Huge Horsepower
Joined: Apr 2007
Posts: 3,217
Likes: 2
From: So Cal
Default Re: gas prices increase today... wow...
Originally Posted by sterling013
Well Maxwell, I see we need a refresher course in free enterprise 101. Profit is good. Without profit, there would be no investment, no business, no employment, and no tax revenue. Do you own stock and expect profit? The last time I checked, big oil was only making 9% profit. If my business only made 9% profit, it would be shut down and the capital would be invested in more profitable opportunities.

Maybe we should look at the vocal minority green extremists and spaghetti spined politicians who have not allowed a refinery to be built in over 25 years, or drill in a 12 square mile area of Alaska, or level heavy taxes on each gallon we purchase, to name a few. Environmental extremism is simply the old socialism.

I think I will go out and put some of that great premium fuel in my Crossfire. I will not even look at how much it costs, because I do not care, it just goes on my Visa. Then I will go out, in that direction, and see what is out there and have fun driving just for fun’s sake. Is this a great country or what?
This is NOT a course in free enterprise 101 - if it was - the US govt would raise the royalties on oil field leases (just like apartment rents go up when real estate prices rise) (after all they built the apartments before prices went up) but NO – govt. old field leases have GONE DOWN...

No Sterling013 - this is more like WAR PROFITEERING 101 - our govt. needs more funds to pay for the wars in Iraq and Afghanistan, (and BTW – we are still paying for troops and rebuilding in Kosovo – 8 years later – Thanks Mr. Clinton) (and the old domestic pork spending habits that never end) to fund this requirement, Oil companies reduce domestic production thus raising gas prices:

Remember – most of the oil wells in the USA are at low GOVT. lease rates with wells built in the 1970’s and 1980’s that have long since paid for themselves – thus the oil from them are pumped at a pure profit.

http://tonto.eia.doe.gov/dnav/pet/pet_sum_crdsnd_adc_mbbl_a.htm

(Please notice oil field production from the year 2000).

Reduce supply while demand rises - and spot prices go through the roof. (As priced by OPEC) Add to that that the US Govt. removed 10% of the world market crude from the free market to “Increase” the US petroleum reserve and BANG!! World spot market prices jump even more.

Do you need me to illustrate a supply and demand graph?

Windfall profits that the consumer (BTW that's you and I) pay at the pump - are lent to our deficit spending government at a mere 4.5% for 2 years

http://www.treasurydirect.gov/RT/RTGateway?page=institHome

Thus the consumer pays once at the pump and must pay again when the T-Bill is due (unless the government refinances the debt again)

It’s called the double screw. You and I will pay twice - it's just that the second time is being put off (refinanced) until sometime in the future (less we vote out the scoundrel that raises our taxes to pay these t-bills off) - but that day will come to us (just like it did to the Romans to pay for their expansion) and we will be under the JACK BOOT of the establishment.

Republicans and Democrats both use it (oil windfall profits) to finance the deficit spending. (Why do you think they call it DEFICIT?)

The law of SUPPLY & DEMAND would state that if we needed to build more refineries, then the supply of refined gasoline would be at a shortage.

Right?? - more refineries mean more supply, oil companies would only spend $$Billions$$ of dollars to build new refineries if you needed to sell the extra product - right.

Any gas stations in your area running out of product to sell (GAS?)

You wouldn’t buy more milk cows at your dairy (and the feed to fuel them) if the super market shelves were still stocked with milk and they were tossing out expired product - would you??

Any Gas stations in your area run out of gas - or do they have all they can sell?

Figure it out folks.

 
Reply
0