GOP News Flash: The real reason for soaring gas prices

[Foxfyre]

Why?

There is so much gasoline being produced in the US that refineries are exporting it, and Americans are WILLING to pay 4 bucks a gallon.

How do YOU fix that?

Maybe not a fix, but it can be helped in a number of ways. Something the government could do right now that would help:

1) Negotiate a deal with the oil companies to lower gasoline prices in the USA in return for no export fees or other costs that would reduce their profits in overseas markets.

2) Negotiate with the states to agree on one uniform formula for regular and premium gasoline sold throughout in the USA. When Kansas regs require one formula and California regs require another formula and Illinois requires still another, the refineries have to shut down much more frequently to retool and reformulate the gasoline.

3) Get rid of the refining mandates that most or all sulfur be removed from diesel fuel. Sulfur emissions had been steadily declining since 1980 and were down around 70% when the new mandate went into effect. Why the mandate? Because the EPA thought catalytic converter efficiency MIGHT be affected by high sulfur content in diesel. They didn't even bother to find out if that would be the case. So, instead of leaving it to the auto parts manufacture to come up with an efficient catalytic converter, they added about $1.00 to the price of a gallon of diesel for the refineries to remove the diesel.

4) Get rid of the ridiculous inclusion of ethanol in motor fuels and return food crops to food for livestock and the kitchen table,.

None of that matters as long as the refineries have overseas buyers willing to pay these prices for gas. What do you think happens to gas prices as more and more Chinese, and Indians, for example, actually get to where they can afford a car?

No. 1 on my list addresses that issues and could take care of it. The other issues are all costs that refineries have to add into the wholesale price of gasoline that the stations have to pass on plus some to cover the taxes and their profit. There is no shortage of domestic fuel supply. So lowering the cost for the manufacturer translates into a lower cost at the pump. A lower cost at the pump then generates more demand as people can afford to travel and drive for pleasure again, and the oil companies would enjoy profits from that too.

In the 1970's, there was supposedly a true gasoline shortage. Stations ran out of fuel and when a station did get a supply, there were long lines and long waits to get your car to the pump while you prayed that the station wouldn't run out of gas or your car wouldn't run out of gas before you got to the pump. That along with high prices for the fuel, high unemployment, double digit inflation, and double digit interest rates was a big reason Jimmy Carter was so thoroughly defeated in his re-election bid.

We are seeing no shortages of fuel anywhere right now. A much different dynamic is in effect.

 

[Dick Tuck]

Here's some very good debunking about the lies the right has been spreading about oil prices.

Gas price rhetoric pumps up the hype

I loved this tidbit about how the Moonie Times and Weekly Standard tried to distort the story.

D.C.-area residents are familiar with the insanely high prices of the Exxon station at the Watergate complex, which routinely charges as much as $1 a gallon more than other stations less than a mile away — including a Sunoco across the street. So that makes it a magnet for news organizations or other groups shopping for a shocking price, especially one within walking distance of the White House.

Hence a blog item last month in The Washington Times, which cited the Exxon under the headline “$5 gas hits D.C.”

Subsequently, The Weekly Standard featured a photo of the Exxon and its $5.39-a-gallon price, under the possibly satirical headline “The Shocking Photo the Obama Administration Doesn't Want You to See.” That was followed by a similar item on the Glenn Beck-affiliated website The Blaze and a photo on The National Review’s website.

 

[Dick Tuck]

Maybe not a fix, but it can be helped in a number of ways. Something the government could do right now that would help:

1) Negotiate a deal with the oil companies to lower gasoline prices in the USA in return for no export fees or other costs that would reduce their profits in overseas markets.

2) Negotiate with the states to agree on one uniform formula for regular and premium gasoline sold throughout in the USA. When Kansas regs require one formula and California regs require another formula and Illinois requires still another, the refineries have to shut down much more frequently to retool and reformulate the gasoline.

3) Get rid of the refining mandates that most or all sulfur be removed from diesel fuel. Sulfur emissions had been steadily declining since 1980 and were down around 70% when the new mandate went into effect. Why the mandate? Because the EPA thought catalytic converter efficiency MIGHT be affected by high sulfur content in diesel. They didn't even bother to find out if that would be the case. So, instead of leaving it to the auto parts manufacture to come up with an efficient catalytic converter, they added about $1.00 to the price of a gallon of diesel for the refineries to remove the diesel.

4) Get rid of the ridiculous inclusion of ethanol in motor fuels and return food crops to food for livestock and the kitchen table,.

None of that matters as long as the refineries have overseas buyers willing to pay these prices for gas. What do you think happens to gas prices as more and more Chinese, and Indians, for example, actually get to where they can afford a car?

No. 1 on my list addresses that issues and could take care of it. The other issues are all costs that refineries have to add into the wholesale price of gasoline that the stations have to pass on plus some to cover the taxes and their profit. There is no shortage of domestic fuel supply. So lowering the cost for the manufacturer translates into a lower cost at the pump. A lower cost at the pump then generates more demand as people can afford to travel and drive for pleasure again, and the oil companies would enjoy profits from that too.

In the 1970's, there was supposedly a true gasoline shortage. Stations ran out of fuel and when a station did get a supply, there were long lines and long waits to get your car to the pump while you prayed that the station wouldn't run out of gas or your car wouldn't run out of gas before you got to the pump. That along with high prices for the fuel, high unemployment, double digit inflation, and double digit interest rates was a big reason Jimmy Carter was so thoroughly defeated in his re-election bid.

We are seeing no shortages of fuel anywhere right now. A much different dynamic is in effect.

One dynamic is that economy standards have almost doubled on most average sedans, and quadrupled on hybrids. Our consumption of oil is down significantly from what it was in the '70s, in spite of population growth, and more cars on the road. Add to that the fact that our gas is blended with ethanol. I saw a figure that America now consumes about 5.3 million barrels a day. In the '70s we were over 8 million bbls/day.

The simple issue is that people in India and China, the two most populace countries, aren't traveling by bike as much these days. They're rapidly emerging, with a strong middle class, who want cars. Exxon, Mobil, Shell, BP could double their capacity, but they're going to sell at world prices. They're not in business to help Americans get cheap gas, they'll sell at what the market is willing to pay. Whether it's drilled here or in Saudi Arabia isn't going to change the price.

 

[The T]

Here's some very good debunking about the lies the right has been spreading about oil prices.

Gas price rhetoric pumps up the hype

I loved this tidbit about how the Moonie Times and Weekly Standard tried to distort the story.

D.C.-area residents are familiar with the insanely high prices of the Exxon station at the Watergate complex, which routinely charges as much as $1 a gallon more than other stations less than a mile away — including a Sunoco across the street. So that makes it a magnet for news organizations or other groups shopping for a shocking price, especially one within walking distance of the White House.

Hence a blog item last month in The Washington Times, which cited the Exxon under the headline “$5 gas hits D.C.”

Subsequently, The Weekly Standard featured a photo of the Exxon and its $5.39-a-gallon price, under the possibly satirical headline “The Shocking Photo the Obama Administration Doesn't Want You to See.” That was followed by a similar item on the Glenn Beck-affiliated website The Blaze and a photo on The National Review’s website.

WTF is the Moonie Times?

 

[Foxfyre]

None of that matters as long as the refineries have overseas buyers willing to pay these prices for gas. What do you think happens to gas prices as more and more Chinese, and Indians, for example, actually get to where they can afford a car?

No. 1 on my list addresses that issues and could take care of it. The other issues are all costs that refineries have to add into the wholesale price of gasoline that the stations have to pass on plus some to cover the taxes and their profit. There is no shortage of domestic fuel supply. So lowering the cost for the manufacturer translates into a lower cost at the pump. A lower cost at the pump then generates more demand as people can afford to travel and drive for pleasure again, and the oil companies would enjoy profits from that too.

In the 1970's, there was supposedly a true gasoline shortage. Stations ran out of fuel and when a station did get a supply, there were long lines and long waits to get your car to the pump while you prayed that the station wouldn't run out of gas or your car wouldn't run out of gas before you got to the pump. That along with high prices for the fuel, high unemployment, double digit inflation, and double digit interest rates was a big reason Jimmy Carter was so thoroughly defeated in his re-election bid.

We are seeing no shortages of fuel anywhere right now. A much different dynamic is in effect.

One dynamic is that economy standards have almost doubled on most average sedans, and quadrupled on hybrids. Our consumption of oil is down significantly from what it was in the '70s, in spite of population growth, and more cars on the road. Add to that the fact that our gas is blended with ethanol. I saw a figure that America now consumes about 5.3 million barrels a day. In the '70s we were over 8 million bbls/day.

The simple issue is that people in India and China, the two most populace countries, aren't traveling by bike as much these days. They're rapidly emerging, with a strong middle class, who want cars. Exxon, Mobil, Shell, BP could double their capacity, but they're going to sell at world prices. They're not in business to help Americans get cheap gas, they'll sell at what the market is willing to pay. Whether it's drilled here or in Saudi Arabia isn't going to change the price.

It won't change the price of a barrel of oil as that is set by the world market. But policy could change the price of a gallon of gasoline if the Administration wanted to help the American people. And they could do that with a policy that would provide the incentive for the oil companies to give the American people a break in return or making their profits on the world market.

The oil industry has not been a free market industry for decades now. It is among the most highly regulated industry in the country and the government does have the power to make a difference. But it has to be done in a way that profits everybody. Try to punish the oil industry without a reasonable offset and despite being under government control, the oil company does not have to play ball. The right and reasonable thing to do is find a win win situation for everybody.

 

[NYcarbineer]

Maybe not a fix, but it can be helped in a number of ways. Something the government could do right now that would help:

1) Negotiate a deal with the oil companies to lower gasoline prices in the USA in return for no export fees or other costs that would reduce their profits in overseas markets.

2) Negotiate with the states to agree on one uniform formula for regular and premium gasoline sold throughout in the USA. When Kansas regs require one formula and California regs require another formula and Illinois requires still another, the refineries have to shut down much more frequently to retool and reformulate the gasoline.

3) Get rid of the refining mandates that most or all sulfur be removed from diesel fuel. Sulfur emissions had been steadily declining since 1980 and were down around 70% when the new mandate went into effect. Why the mandate? Because the EPA thought catalytic converter efficiency MIGHT be affected by high sulfur content in diesel. They didn't even bother to find out if that would be the case. So, instead of leaving it to the auto parts manufacture to come up with an efficient catalytic converter, they added about $1.00 to the price of a gallon of diesel for the refineries to remove the diesel.

4) Get rid of the ridiculous inclusion of ethanol in motor fuels and return food crops to food for livestock and the kitchen table,.

None of that matters as long as the refineries have overseas buyers willing to pay these prices for gas. What do you think happens to gas prices as more and more Chinese, and Indians, for example, actually get to where they can afford a car?

No. 1 on my list addresses that issues and could take care of it. The other issues are all costs that refineries have to add into the wholesale price of gasoline that the stations have to pass on plus some to cover the taxes and their profit. There is no shortage of domestic fuel supply. So lowering the cost for the manufacturer translates into a lower cost at the pump. A lower cost at the pump then generates more demand as people can afford to travel and drive for pleasure again, and the oil companies would enjoy profits from that too.

In the 1970's, there was supposedly a true gasoline shortage. Stations ran out of fuel and when a station did get a supply, there were long lines and long waits to get your car to the pump while you prayed that the station wouldn't run out of gas or your car wouldn't run out of gas before you got to the pump. That along with high prices for the fuel, high unemployment, double digit inflation, and double digit interest rates was a big reason Jimmy Carter was so thoroughly defeated in his re-election bid.

We are seeing no shortages of fuel anywhere right now. A much different dynamic is in effect.

You'd never get an export fee through Congress, so you have no leverage for your number 1.

 

[Full-Auto]

The GOP doesn't like it when they think the government is messing with the free market.


Got news for you, it's the SPECULATORS who make you pay an extra 50 cents/gal over at Wall St.

And, if oil companies start posting record profits again this summer? EVERYONE is going to know who's fault it is for high gas prices.

And...........it ain't Obama's.

Speculators have an impact but not as much as the declining dollar.

Just print some more money why dont ya........................

 

[The T]

The GOP doesn't like it when they think the government is messing with the free market.


Got news for you, it's the SPECULATORS who make you pay an extra 50 cents/gal over at Wall St.

And, if oil companies start posting record profits again this summer? EVERYONE is going to know who's fault it is for high gas prices.

And...........it ain't Obama's.

Speculators have an impact but not as much as the declining dollar.

Just print some more money why dont ya........................

And then come back and complain about the rampant inflation...and blame Bush...

 

[Meister]

It sure doesn't help when our president wants the price of gas more in line with Europe's price

 

[ABikerSailor]

The GOP doesn't like it when they think the government is messing with the free market.


Got news for you, it's the SPECULATORS who make you pay an extra 50 cents/gal over at Wall St.

And, if oil companies start posting record profits again this summer? EVERYONE is going to know who's fault it is for high gas prices.

And...........it ain't Obama's.

Speculators have an impact but not as much as the declining dollar.

Just print some more money why dont ya........................

Currently, the economists have all said that the Wall St. speculators have added 50-56 cents per gallon purchased because of their bullshit.

This summer, gas was at 3.20 here in Amarillo, subtract what Wall St. took in, and gas prices would have been around 2.64 to 2.70 if it wasn't for them.

How much has the devaluation of the dollar driven up prices? Got a link, or are you gonna have The "T"ard parrot your bullshit again for ya?

 

[The T]

The GOP doesn't like it when they think the government is messing with the free market.


Got news for you, it's the SPECULATORS who make you pay an extra 50 cents/gal over at Wall St.

And, if oil companies start posting record profits again this summer? EVERYONE is going to know who's fault it is for high gas prices.

And...........it ain't Obama's.

Speculators have an impact but not as much as the declining dollar.

Just print some more money why dont ya........................

Currently, the economists have all said that the Wall St. speculators have added 50-56 cents per gallon purchased because of their bullshit.

This summer, gas was at 3.20 here in Amarillo, subtract what Wall St. took in, and gas prices would have been around 2.64 to 2.70 if it wasn't for them.

How much has the devaluation of the dollar driven up prices? Got a link, or are you gonna have The "T"ard parrot your bullshit again for ya?

However we have threads around here applauding Obama and the INCREASE of Wall Street gains attributing it to Obama...

HOW do YOU explain this phenom exactly?

 

[ABikerSailor]

Speculators have an impact but not as much as the declining dollar.

Just print some more money why dont ya........................

Currently, the economists have all said that the Wall St. speculators have added 50-56 cents per gallon purchased because of their bullshit.

This summer, gas was at 3.20 here in Amarillo, subtract what Wall St. took in, and gas prices would have been around 2.64 to 2.70 if it wasn't for them.

How much has the devaluation of the dollar driven up prices? Got a link, or are you gonna have The "T"ard parrot your bullshit again for ya?

However we have threads around here applauding Obama and the INCREASE of Wall Street gains attributing it to Obama...

HOW do YOU explain this phenom exactly?

How do I explain it? Same way I explained it in 2008 when I said that the oil companies were ripping off everyone, and they posted record profits after that.

Like I said, if you see the oil companies posting record profits again this summer, you're gonna know Obama didn't cause the increase.

It would be helpful if you'd pay attention once in a while, but I understand............that's why you're called The "T"ard.

 

[The T]

Currently, the economists have all said that the Wall St. speculators have added 50-56 cents per gallon purchased because of their bullshit.

This summer, gas was at 3.20 here in Amarillo, subtract what Wall St. took in, and gas prices would have been around 2.64 to 2.70 if it wasn't for them.

How much has the devaluation of the dollar driven up prices? Got a link, or are you gonna have The "T"ard parrot your bullshit again for ya?

However we have threads around here applauding Obama and the INCREASE of Wall Street gains attributing it to Obama...

HOW do YOU explain this phenom exactly?

How do I explain it? Same way I explained it in 2008 when I said that the oil companies were ripping off everyone, and they posted record profits after that.

Like I said, if you see the oil companies posting record profits again this summer, you're gonna know Obama didn't cause the increase.

It would be helpful if you'd pay attention once in a while, but I understand............that's why you're called The "T"ard.

Oil companies aren't rippiing anyone off you OAF...Government makes MORE on a gallon of gas than those that produe it fuckface.

 

[ABikerSailor]

However we have threads around here applauding Obama and the INCREASE of Wall Street gains attributing it to Obama...

HOW do YOU explain this phenom exactly?

How do I explain it? Same way I explained it in 2008 when I said that the oil companies were ripping off everyone, and they posted record profits after that.

Like I said, if you see the oil companies posting record profits again this summer, you're gonna know Obama didn't cause the increase.

It would be helpful if you'd pay attention once in a while, but I understand............that's why you're called The "T"ard.

Oil companies aren't rippimng anyone off you OAF...Government makes MORE on a gallon of gas than those that produe it fuckface.

Hey there you turd burgling colon commando, got a link for that bullshit?

 

[Meister]

If I remember correctly....the oil companies only make around 10 cents a gallon on profit. There have been numerous congressional investigations to try and nail them for gouging, but for a couple of service stations gouging, they could never come up with anything.

These oil companies are huge...even the small ones like Exxon. Everybody uses gas....this is why they have huge profits. Not from price gouging

 

[Meister]

How much profit does the average oil company make on an average gallon of gas right now? The answer will surprise you — $0.09.

The Cost of a Gallon of Gas :: ilovephysics.com

 

[The T]

How do I explain it? Same way I explained it in 2008 when I said that the oil companies were ripping off everyone, and they posted record profits after that.

Like I said, if you see the oil companies posting record profits again this summer, you're gonna know Obama didn't cause the increase.

It would be helpful if you'd pay attention once in a while, but I understand............that's why you're called The "T"ard.

Oil companies aren't rippimng anyone off you OAF...Government makes MORE on a gallon of gas than those that produe it fuckface.

Hey there you turd burgling colon commando, got a link for that bullshit?

What BULLSQUEEZE is that asswipe?[Nextime? DO your own RESEARCH]

 

[Meister]

Fed tax on a gallon of gas is 18.4 cents

 

[ABikerSailor]

Oil companies aren't rippimng anyone off you OAF...Government makes MORE on a gallon of gas than those that produe it fuckface.

Hey there you turd burgling colon commando, got a link for that bullshit?

What BULLSQUEEZE is that asswipe?[Nextime? DO your own RESEARCH]

Nothing in there about how much they make I see............good link, tells nothing.

 

[The T]

Hey there you turd burgling colon commando, got a link for that bullshit?

What BULLSQUEEZE is that asswipe?[Nextime? DO your own RESEARCH]

Nothing in there about how much they make I see............good link, tells nothing.

Good link...but tells nothing? really/ Are YOU braindead?