Thread: Gas Gas Gas

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    Bush Orders Price Gouging Probe

    There there. Things are going to be all better.
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    Quote Originally Posted by GeorgeWendtCFI
    These are two blatant examples of irresponsible media conduct. There simply is, by everyone's account, no gas shortage. This would have happened if gas was .50 a gallon. It is interesting to note that it is these idiot liberals who caused us to have to have 25 different blends of gasoline in the first place. They are also the ones who cause our reliance on foreign oil by blocking attempts at getting our own. They are also the ones who keep blocking construction of new refineries so that more gasoline can be refined more cost efficiently.

    Oh wait. I'm wrong. It's all President Bush's fault.
    No George, it's not all W's fault:

    Soaring gas prices are squeezing most Americans at the pump, but at least one man isn't complaining.

    Last year, Exxon made the biggest profit of any company ever, $36 billion, and its retiring chairman appears to be reaping the benefits.

    Exxon is giving Lee Raymond one of the most generous retirement packages in history, nearly $400 million, including pension, stock options and other perks, such as a $1 million consulting deal, two years of home security, personal security, a car and driver, and use of a corporate jet for professional purposes


    As prices spin out of control a company records the largest profits in corporate history and the CEO is allowed to take $400,000,000 out of the company. The excuse of lack of refining facilities is just plain crap. With a $36,000,000,000 profit, don't you think a few billion could be invested into refining facilities?

    I can't and won't "blame" the president, I just expect him to get to the bottom of such blatant corporate greed with the nations most valuable resource.

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    People gotta blame somebody................
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    I almost cried last night. On my way back from the Co meeting, I found gas for 2.99/gal. That was CHEAP. Never thought (well Ok, I hoped) I'd be happy to pay 2.99. 3.05 is average here now, for regular. I wont say what premium is worth.
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    MalahatTwo7 we would love to see $3.05 a gallon. Around here gas is selling at 110.9 a litre, that works out to $4.19 a gallon. Most places are 112.9 a litre - 4.26
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    Ya. I know. I keep up with friends 'n family back home and I've heard. Just plain sucks all round. Dont forget I get to factor in exchange rates: our current Treasury Board rate is 1.15, so that 3.05 is (according to the army) worth 3.51 CDN and your 4.26 is equal to 3.70 US. (I dont know what the current "Bank" rate is right now)

    So, ya we have a ways to go down here, but there are predictions that we might hit close to 4.00/gal by summer. Rumour has it another increase will hit during the Memorial Day weekend, 29 May.
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    Quote Originally Posted by GeorgeWendtCFI
    These are two blatant examples of irresponsible media conduct. There simply is, by everyone's account, no gas shortage. This would have happened if gas was .50 a gallon. It is interesting to note that it is these idiot liberals who caused us to have to have 25 different blends of gasoline in the first place. They are also the ones who cause our reliance on foreign oil by blocking attempts at getting our own. They are also the ones who keep blocking construction of new refineries so that more gasoline can be refined more cost efficiently.

    Oh wait. I'm wrong. It's all President Bush's fault.
    So how do you explain the price when all those factors were in place and gas was selling for half the price it does now only a couple of short years ago?
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    As sick as this is to say, thank God gas is only $2.77 where I live.

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    Quote Originally Posted by scfire86
    So how do you explain the price when all those factors were in place and gas was selling for half the price it does now only a couple of short years ago?
    Greed!!!!!

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    If I was posting this somewhere else, about every 2nd or third word would get me banned on here

    1. What the _______ does someone need $400 million bucks for???


    2. If Bush is to blame, why the ________ are Canada's prices so high?? Hmmmmmm??? Answer me that, all you Bush-hating Einsteins!!!!

    3. We're holding steady at 115.9 in Victoria.

    4. If this keeps up, even if I wanted to stay here I probably won't be able to afford it and back to Alberta I'd go. Already bus passes went up from $60 to $65 for a monthly pass. If this continues for any length of time, and we pretty much all see the writing on the wall for the upcoming summer months, everything else is going to go up too. (rent, gas, electricity, food etc etc etc) _________!!!!
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    I am surprised conservatives would discuss the salary of the CEO. This is the 'free' market of capitalism our society functions around.

    According to that doctrine, he deserves it.
    Politics is like driving. To go forward select "D", to go backward select "R."

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    Quote Originally Posted by RspctFrmCalgary
    If I was posting this somewhere else, about every 2nd or third word would get me banned on here

    1. What the _______ does someone need $400 million bucks for???


    2. If Bush is to blame, why the ________ are Canada's prices so high?? Hmmmmmm??? Answer me that, all you Bush-hating Einsteins!!!!

    3. We're holding steady at 115.9 in Victoria.

    4. If this keeps up, even if I wanted to stay here I probably won't be able to afford it and back to Alberta I'd go. Already bus passes went up from $60 to $65 for a monthly pass. If this continues for any length of time, and we pretty much all see the writing on the wall for the upcoming summer months, everything else is going to go up too. (rent, gas, electricity, food etc etc etc) _________!!!!
    Who supplies refined petroleum products in Canada? Is it the same companies as in the US? Could it be that we are all getting boned in our sphincters?
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    [QUOTE=E229Lt]

    Exxon is giving Lee Raymond one of the most generous retirement packages in history, nearly $400 million, including pension, stock options and other perks, such as a $1 million consulting deal, two years of home security, personal security, a car and driver, and use of a corporate jet for professional purposes



    Here's the CEO laughing all the way to the bank
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    Here's the CEO laughing all the way to the bank
    Well hell if I just recieved $400 million you damn right I would be laughing too and then some....







    WASHINGTON - Under election-year pressure to reduce surging gasoline prices,
    President Bush on Tuesday halted filling of the nation's emergency oil reserve, urged the waiver of clean air rules to ease local gas shortages and called for the repeal of $2 billion in tax breaks for profit-heavy oil companies.
    ADVERTISEMENT

    Still, experts said Bush's actions wouldn't have much impact on prices at the pump. The president warned that motorists would have to dig deep into their pockets all summer long.

    Bush urged lawmakers to expand tax breaks for the purchase of fuel-efficient hybrid automobiles, a politically popular measure that's also supported by environmentalists. He also directed the
    Environmental Protection Agency to use its authority to temporarily waive air quality laws in states if that would relieve a local gasoline supply shortage.

    The White House was unable to say how much Bush's actions could affect the price of gas.

    Bush said, "Every little bit helps."

    Wholesale gasoline futures prices for June delivery dropped 8 cents a gallon to $2.10 on the New York Mercantile Exchange right after Bush's remarks. May gasoline futures settled at $2.1291 a gallon, a decline of 4.48 cents.

    Democrats, eager to blame Republicans for high gas costs ahead of the November congressional elections, said Bush has had five years to find a way to lower prices and has favored big oil companies over consumers.

    "It's crystal clear that the current spike in gas prices is at least partly due to an act of greed,"
    said Sen. Bob Menendez, D-N.J., who proposed a 60-day suspension of the federal gas tax. "Greed that has been enabled, abetted — even encouraged, I would say — by this administration."

    The country's three largest oil and gas companies were expected to report combined first-quarter profits later in the week in excess of $16 billion, a 19 percent surge from last year. Bush, a former oilman, asked his administration to investigate possible price gouging and said Congress should revoke about $2 billion in tax breaks that Congress approved and he signed into law to encourage exploration.

    "Cash flows are up," Bush said. "Taxpayers don't need to be paying for certain of these expenses on behalf of the energy companies."

    Menendez spoke at a press conference where Democrats sought to turn gas prices — like Hurricane Katrina and the
    Iraq war — into an issue to undermine Bush's standing with voters. "What happened to Iraq oil, Mr. President? You said Iraqi oil would pay for the war. Ain't seen no money. Ain't seen no oil," said Sen. Barbara Mikulski (news, bio, voting record) of Maryland.

    The suspension of oil purchases for the federal emergency oil reserve until the fall is likely to have only a modest impact. The halt in deposits involves only 12 million barrels — less than the 20 million barrels of oil used every day in the United States for transportation.

    Bush resisted calls for a suspension of shipments to the reserve in the past. When his 2004 presidential opponent, Sen.
    John Kerry, D-Mass., suggested the same idea during the campaign, Bush called it "playing politics."

    On Tuesday, Bush said the nation's 685-million barrel petroleum reserve had enough fuel to guard against any major supply disruption over the next few months.

    The president said Democrats in the past have urged higher taxes on fuel and price caps to control fuel expenses, but he said neither approach works. Instead, he called for increased conservation, an expansion of domestic production and increased use of alternative fuels such as ethanol.

    David Friedman of the Union of Concerned Scientists said an even more effective move would be to require that vehicles sold in the United States get higher gas mileage.

    "The fundamental problem is that the fuel economy of cars and trucks is a disgrace and the world is just consuming too much oil and gasoline," Friedman said.

    The EPA said it will consider fuel waivers on a case-by-case basis if gasoline supply problems become apparent, which could result in price spikes or shortages of cleaner summer-blend gasoline.

    EPA spokesman John Millett said the waivers would not adversely impact air quality because they are only for 20 days, although states can request extensions.

    Refiners, meanwhile, said that most of the change to summer-blend gasoline already has been completed and waivers may not be needed — and might even be counterproductive in some cases.

    "You're going to have to be careful that you're not upsetting a plan that already is in the last stage of implementation," said Bob Slaughter, president of National Petrochemical Refiners Association.
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    The President is doing what he can. But the Dems have no room to complain.

    It is a simple economics exercise. Gasoline os a commodity, subject to price fluctuation caused by investors speculating on the cost. Those costs are driven by a number of market forces, perhaps most importantly, how much gasoline is available on the market. If there is a possible shortage, the price of the commodity goes up. If there is a possible glut, it comes down.

    What the Dems have done (and some Republicans, too) is stand in the way of every single possible solution to the increase of gasoline supply in hte country. From no drilling for oil in the ANWAR and off the east coast, to playing the NIMBY game with oil refineries.

    Alternative fuels are certainly the long term solution. But the short term solution is to get what we already have out of the ground and then turn it into gasoline and heating oil. When we can have less dependence on a commodity coming from an otherwise third world nation, the price goes down quickly.

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    Quote Originally Posted by GeorgeWendtCFI
    The President is doing what he can. But the Dems have no room to complain.

    It is a simple economics exercise.
    Sorry George- nothing about this, or anything else in politics, is ever simple. Oil in particular. Brazil is now energy independent. Why? Because they invested heavily in their own nation to figure out a way to do it 30 years ago and their ongoing research still dwindles ours. Conservatives will always say dems are to blame for high gas prices, liberals will say repubs are to blame for gas.

    Truth is, it is all of our faults. How many people skip the Exxon station to go to the gas-n-gulp? How many of us drive SUV's and p/u's (with nothing to haul) vs green cars (no way youd catch me in one of those j/k). Everyone wants alternative fuels, as long as your cars are at least as powerful (b/c honestly, I really do need 250 horsepower), or drive the same, and as simple to fill, etc. etc. We can blame ourselves. And one day, when gas hits $6 /gal (2007 or 2050, it will happen), people will throw in the towel and we will accomplish something.

    Just a piece of advice to the oil corporations- allowing people to hear about your profits right now to many people is akin to an insurance company announcing how much they make off of people who die prematurely.

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    There there. Things are going to be all better.
    Yeah...we all know the extensive history of Bush sticking it to the coporate world, don't we.

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    Truly I drive a Chevy Blazer, but then I have a dog that requires the added space - he's only 100 pounds of dog and when he sprawls out, is almost as tall as I am So ya, I (mostly) choose to pay for more gas.
    -------------

    I wonder if (when) the price of gas is going to REALLY start to cut into emergency response, due to lack of.....

    Local Governments Feel Sting Of Rising Gas Prices. Governments Responsible For Fueling Police Cars, School Buses

    POSTED: 7:24 pm EDT April 25, 2006
    UPDATED: 8:02 pm EDT April 25, 2006

    WASHINGTON -- Local governments are sharing in the pain at the pump with gas prices at an all time high and continuing to rise.

    The government is responsible for maintaining vehicles such as police cars, school buses and trash trucks.

    The Regional Council of Governments represents 19 different governments in the Washington area, and has been purchasing gasoline in bulk since the early 1980s, News4 reported.

    But officials said even buying gasoline in bulk can be pretty expensive, especially when buying nearly 20 million gallons a year.

    "The local jurisdictions, the school boards, et cetera, in the region purchase approximately 20 million gallons of gasoline during the course of a year," Director of Purchasing for COG Carl Kalish said. “Well, 20 million gallons adds up to a lot of money."

    D.C. is the only local government allowed to purchase gasoline at federal Department of Defense prices. But some said that advantage is still not much comfort.

    "That helps us a little bit. But it’s only a little bit because the gasoline prices they’re paying, the federal government is paying is also high and rising all the time,” D.C. Councilmember Carol Schwartz said.

    Like many, government agencies also have to cut other expenses to keep up with higher gas prices.

    "We don't have to pay the tax, but it is still very costly,” Ric Hiller of Arlington Environmental Services said. "When we had the hurricanes Rita and Katrina, there was a problem with getting fuel in and that’s when the prices really did escalate."

    Officials said the bulk purchase price was only $1.02 per gallon just two years ago. But today, that has gone up to $2.29 a gallon, and will be likely going up this summer.

    Nationwide, a gallon of regular gas is averaging $2.91 a gallon. In the District, that gallon is about $3.09. In Maryland, the average price is $2.98 a gallon. And gas in Virginia is about $2.92 a gallon.

    Copyright 2006 by nbc4.com.


    Interesting to note that DC pays the DoD price, whereas everyone else pays the regular wholesale price for bulk fuel.
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    Quote Originally Posted by scfire86
    I am surprised conservatives would discuss the salary of the CEO. This is the 'free' market of capitalism our society functions around.

    According to that doctrine, he deserves it.
    The problem here is that normal market forces have been taken out of play. The fact is that there are only a half-dozen or so major oil companies that are responsible for our fuel supply. The competition that normally provides the checks and balances of a free market no longer exist in the industry. It is Standard Oil all over again. These guys absolutely control the market and manipulate prices from the barrell to the pump.

    George accurately points out that refining capacity is a problem, but the question there is why? The excuse that our tree huggers have limited their ability to construct new and expand existing facilities only goes so far. If they really wanted to increase capacity, it would happen. Heck, NAFTA's been in place since 1994. If they couldn't do it here, I'm sure Pemex (Mexico's state-owned oil industry) would LOVE to talk cooperative venture. There hasn't been an increase in capacity because the companies have no compelling reason to increase supply. There's no competition, and we can't live without gas. Monopoly at work.

    From a political side, there is plenty of blame to go around. I saw the Dems taking potshots at the administration over oil prices yesterday but their hands aren't clean. They LIKE high gas prices, it drives the liberal environmental agenda. They seem to have forgotten that Al Gore, who was a few thousand Floridians from the presidency, said in his book that the internal combustion engine is the world's number one enemy and as vice president championed a huge tax on fuels based on BTUs. Conservatives don't get a pass either. They've been relying on the market to fix the problem but the market is broken. The only real reason you're seeing action now is that all sides are finally coming to understand that these prices are going to translate into 'throw the bums out' votes in the elections. The threat is bigger for Republicans because they're the majority party and thus have more seats at risk but everyone is getting scared of an anti-incumbent backlash.

    IF there is a sustained drumbeat from Congress and the DOJ, then there will be an immediate short-term reduction in prices simply to take the heat off the industry. Long term, alternative fuels will help but we will be depending on oil for probably another century. Congress has to act and restore sanity.

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    I don't believe the price of gas is all that high.

    I drove past McDonalds last night and saw numerous cars idling in the drive thru.

    If the price of gas were so high, folks would be getting out of their cars and walking up to the windows like they did when I was a kid before they could just sit in their cars.
    Last edited by scfire86; 04-26-2006 at 08:46 PM.
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    Quote Originally Posted by EFD840
    The problem here is that normal market forces have been taken out of play. The fact is that there are only a half-dozen or so major oil companies that are responsible for our fuel supply. The competition that normally provides the checks and balances of a free market no longer exist in the industry. It is Standard Oil all over again. These guys absolutely control the market and manipulate prices from the barrell to the pump.
    I don't know about the rest of your post since it deals with some speculation on voter behavior. But I agree with this aspect completely.
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    Quote Originally Posted by GeorgeWendtCFI
    From no drilling for oil in the ANWAR and off the east coast, to playing the NIMBY game with oil refineries.
    Can't say about the east coast since I don't live there. But ANWR is a feel good scam that will do nothing to help the US gain energy independence.
    Politics is like driving. To go forward select "D", to go backward select "R."

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    I was just watching the news and they were saying that tomorrow there will be a 14 cent price increase on the parkway.....also they were saying how Corzine wants to have SELF SERVICE pumps in Jersey...
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    More good news for Exxon

    NEW YORK, April 27 (Reuters) - Exxon Mobil Corp. (XOM.N: Quote, Profile, Research), the world's largest publicly traded oil company, on Thursday reported quarterly profit rose 7 percent to $8.4 billion, pushed higher by the surge in crude oil prices.

    It was the biggest profit ever posted by the Texas-based oil behemoth in the first quarter, but it still fell short of Wall Street forecasts.

    Exxon Mobil shares fell 2.2 percent to $61.70 in pre-market trading on the Inet electronic brokerage system, down from a Wednesday close at $63.10 on the New York Stock Exchange.

    Net income in the first quarter was $8.4 billion, or $1.37 a share, up from $7.86 billion, or $1.22 a share, a year earlier. Analysts' average forecast was $1.41 a share, according to Reuters Estimates.

    Revenue jumped to $88.98 billion from $82.05 billion.

    Crude oil prices have risen steadily from about $20 a barrel in 2002 to over $75 last week, handing oil and gas companies a long-running profit bonanza.

    But the fat profits have also angered U.S. drivers grappling with rising gasoline prices and provoked sharp criticism of Big Oil by lawmakers and consumer advocates.

    Exxon Mobil said its oil and gas production in the quarter grew 5 percent, boosted by higher volumes from projects in West Africa and Qatar. Excluding divestments and the effect of prices on production-sharing contracts, output was up 7 percent.

    Refining and marketing earnings rose, helped by higher marketing margins and improved refining operations.

    Lower margins led to a sharp fall in earnings from its chemical operations.

    Capital spending in the quarter jumped 41 percent to $4.82 billion.
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    Talked with a guy who works at a refinery today(also a firefighter). The way he says it they have major stockpiles of fuel. Its not supply/demand that is driving the prices up its fear/not knowing what the people with towels on there heads are going to pull next.
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