Why You Should Stop Whining About Big Oil
It's easy to blame high gas prices on the evil oil companies. But after enduring a dramatic upturn in the bitching and moaning market from politicians, the media, and people on the street, I would like to present to you the actual facts, and let you decide the truth:
http://www.energy.ca.gov/gasoline/margins/index.html
This is California government's assessment of what goes into the price of a gallon of gas. Currently, 25 cents per gallon goes to the costs of refining, distributing, and marketing, and big oil profits. Yes, these "windfall" profits are less than 25 cents per gallon, after you take out what it costs oil companies to maintain refineries, transport goods, and sell their product. This total has in fact gone down, from about 50 cents two months ago. Total taxes amount to about 66 cents, and the bulk of the price per gallon is due to the market price of crude oil (primarily determined by OPEC). So for all the complaining politicians do, they are taking a bigger cut of your money than oil companies are.
http://cbs2chicago.com/politics/gas.prices.taxes.2.729939.html
While 66 cents per gallon represents the average tax total in California, in my city of Chicago, taxes make up 20% of the total cost, up to 80 cents. The upturn in gas prices is actually a boon to the governor of Illinois, because it means he can take more of my money to buy off his bookie and mob contacts. This article includes a classy quote from Dick Durbin, the second biggest pussy from Illinois in the U.S. Senate, asking oil company execs, "Does it trouble any of you when you see what you're doing to us?", despite knowing full well that the feds and the government of his own state make more money on gas than oil companies do.
http://auto.howstuffworks.com/gas-price.htm
An easy-to-read and non-politically-motivated primer on how gas prices are determined. A must-read if you think you have any right to complain about how much you're paying for gas.
So how can gas prices be reduced? We can take away oil company profits, which will probably save you a few cents per gallon, and in return destroy any chance of future innovation in the development and delivery of new fuel. We can take away gas taxes, saving you up to 80 cents per gallon (although probably less, since tax cuts will be shared between the consumer and the producer). We can negotiate with OPEC to increase supply, which has never worked. We can open up new avenues of supply, like ANWR, once we get over our fear of forcing a few dozen caribou to move to Canada. Or you can stop driving by yourself 100 miles a day to and from work, you suburbanite whore. The choice is up to you.


1 Comments:
Another thing is to bring the troops home from Iraq. The US military buys its fuel for gas guzzling Humvees, tanks, plans, and other vehicles on the open market like everyone else.
Since Iraq gets to keep the money it makes from oil AND Iraqi oil production has yet to reach Saddam era levels - world supply gets a double whammy from the US military.
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