Gas prices on the rise again
Since the end of April, the nationwide price for a gallon of gas has jumped about 22%. Of course, in the pretend land of government, fuel prices are not included in inflation statistics. But, the US taxpayer is beginning to feel the consequences of a weak US Dollar and a precipitous rise in crude oil prices.
Gas prices continue to exceed most economists’ predictions, and many wonder if the recent surge will further extend the current recession. Early last year, severe weakness in the Dollar exploded gas prices to over $4 a gallon. With even more money printing, more spending, and more borrowing, are we headed there again? We’ll have to wait and see.
A weak US Dollar punishes the American people. Inflation is an insidious tax that robs hardworking taxpayers of their savings, wages, and purchasing power. Our last President, with the help of the Federal Reserve, significantly devalued our Dollar, and the current President, with the help of the Federal Reserve, seems bent on pursuing the same path.
Read here.
Keith A. Orsag said:
Question ?? What aboutthose in the oil and gas industry ? I am sorry prices are high. HOwever , those higher prices keep us drilling in the Gulf of Mexico . Those prices keep my child support paid , my creditors off my back till next month. Believe me I am feeeling it too. I woulod love to scream from the rooftops about the price of fuel. I can’t . It is my lifeblood. It’s all I know how to do. So Please next time you fill up and start think about how effed up it is, remember my daughters and I rely on that money. Not all of it is going to Saudi Arabia.
June 14th, 2009 at 10:51 pm
Evette Simone said:
The price of gasoline is being driven up by speculators. It has nothing to do with where it’s being drilled, Keith A.
June 15th, 2009 at 11:17 am
Keith A. Orsag said:
Let them speculate!! Really It doesnt matter where its drilled? Ok let give you some honest to God numbers from the very osshore supply vessel I am sitting on.
1) Day rate for the Motor vessel “Amber” $27,000.
2) Day rate for the drillship C.R. Luigs $500,000. The Luigs is owned by Global Sante Fe. Furthermore BHP has 2 other drilling platforms at about the same price.
3) BHP Billiton , the company we are contracted to just placed the second highest bids for leases in the Gulf Of Mexico , behind ? Shell Oil. BHP currently has 4 of our Offshore supply boats under contract at around the same day rate. BHP has 2 other supply boats from Hornbeck Offshore under contract at around 22 to 27,000 daily. Are you keeping up ?
1 1/2 million a day just to lease the rigs. 135,000 a day just to lease the boats to supply the rigs. I have not even factored in Fuel , food , and drilling fluids or specialty tools needed for ultra deepwater drilling.
the same oil drilled on land can be done for around 30,000 a day . So with all due respect it does have to with where it is drilled. The farther out we must go find and drill the oil and natural gas deposits increases the cost.
So please don’t tell me about speculators driving up prices. I have been in this industry for 13 years , why? Because it is a cash cow. as long as we are going after the ultradeep water deposits I won’t be getting laid off. Drilling and refinement in the Gulf keeps Americans like me working. If you position remains the same then thank a speculator for me.
June 19th, 2009 at 12:56 am
Pam Maki said:
OK let’s take a look at our government’s relationship with oil. There hasn’t been a new refinery built in the US since 1976, because our government made it illegal to do so. Today, of those 300 plus refineries there are only about 150 still operational. So not only did our government force us to be dependent on foreign oil, it greatly hindered our own ability to meet the need and make any profits. Today American oil companies can’t drill for oil off our own shores, but China and Cuba and a whole host of other foreign countries are drilling for oil off our shores and making a profit on it from us! Furthermore, the pain at the pump that we feel well, we can thank our government for that also since most of the cost of gas is actually Federal, State and City taxes. This is why gas prices vary so much from state to state even city to city within the same state! If the government would get out of the oil business and allow American companies to build new refineries and drill American oil for American use not only would it create jobs but we would see a drop in gas prices. Oil companies really don’t make that much of a profit here are some comparisons. Citibank makes a 33% profit,Microsoft has a 32% profit. ExxonMobil has an 11% profit margin and ConocoPhillips has a 7% profit margin! I personally do not think that is an unreasonable profit margin. In fact I doubt many people would create, own, or open a business if they knew that they would only have a 7% or 11% profit from their hard work each day. Oil companies are businesses and businesses are supposed to make money, that’s why anyone owns a business or has a job. A company pays it’s employees out of it’s profits. Mom and Pop stores are open for making money, not just for something to do each day.
Furthermore, oil companies re-invest most of their profits back into the energy area by researching for new energy sources, improving refining processes and developing safer and cleaner drilling and refining processes just to name a few. This money goes right back into our economy, which is how the market is supposed to work, but the government stands in the way, blocks it, screws with the system and we, the consumer pays the price, but they don’t want you to know this so they lie about it and tell you the evil oil company is to blame.
June 22nd, 2009 at 3:32 am
Keith A. Orsag said:
HOORAYY EVIL OIL!!
I win again !!
Sorry my smartass just came out . I have been trying to hold him back but he loves this job. Yes more refineries should be built by BONA FIDE AMERICAN CITIZENS. BiG Government needs to stay out of the way. People also forget that our “good” friends , the chinese are growing rapidly and are consuming oil at an alarmning rate . this reduces the amount avail to US. Unless we drill our own. As I stated prior this get expensive for offhore deposits.
However it does flow into US refineeries and keeps them good ol boys in Pasadena Texas working .
June 22nd, 2009 at 6:18 pm
Lance J said:
So if the system is so screwed up, stop paying your taxes. Or at least all the ones you can control. All of us, at the same time. They cant punish everyone in America. And it will send a message to washington that they cant have our hard earned money if they cant spend it wisely. Well… They have already proven that… So you can actually do something all by yourself that will evoke real change. Grow some balls Americans… We hold all the cards, we just have to play them…
June 26th, 2009 at 12:45 pm
June Moore said:
We are asking all to go to your federal bldgs at 9:00 tomorrow. Hold vigils against the passing of a tax on the American people. Call the 8 conservatives that voted for it and the 3 that voted present and ask them how they can justify a vote against the American people. WE sat as they passed tarp, we sat as they passed the stimulus, we will sit no more. SILENT NO MORE.
@junmoore on twitter…..Let’s Roll!!!!
June 26th, 2009 at 7:35 pm
B. Troglodyte said:
Amazing, here, how people are interested in the Price of Oil. It actually is one of the most fungible (i.e. “free”) markets around. US policy on refineries only means that they open them where people can make the most profit off them - i.e. the cheapest place.
One glaring point that we seem to avoid is that the US Taxpayer (or Debtor) used to pay $50 BILLION dollars a year to protect the sea lanes shipping oil.
One of the BIGGEST problems is that almost EVERY AMERICAN is a knee-jerk socialist, and that involves the majority of those who will show up at TEA PARTIES and yell about “government.”
The Right prefers to disguise their Socialism behind Government incentives and tax breaks. If the Government takes your money, and gives it back under conditions, that is Socialism. Calling it a “tax break for industries investing in refinery capacity” is just the same damn thing.
I’ve seen beanbrains advocate for “price controls on ammunition” due to the shortage - thankfully, not here. See? Socialism - kneejerk.
The BIGGEST problem is that pretty near ALL Americans are knee-jerk socialists. They prefer to point the finger and squawk about the Democrats - but the Republican Party’s just the same. Getting rid of the Democrats and Republicans won’t fix a damn thing - as long as America’s a big ol’ statist and Socialist Republic.
“The revolution is not a tea party.” Mao Zedong, Chinese Communist politician (1893 - 1976)
We don’t care about change, thanks Mr. Mao. We just want our tea, thank you.
July 4th, 2009 at 8:28 am
B. Troglodyte said:
Sorry - PS: I left off part of the discussion of oil. Used to pay $50 Billion a year back under Clinton. Then we had our little wars, and coughed up a trillion or so to monkey around in the Middle East. Interesting that if we just left the free market alone, folks like our friend up on the rig would see MORE local business for oil equipment and drilling. If the Middle East oil gets too dangerous to pump, the price goes up, and HEY! lots of local American wells get profitable.
But we just prefer to tax ‘n’ spend so that oil LOOKS cheaper, so people don’t bust the bank account driving to their Tea Parties.
July 4th, 2009 at 8:31 am