Thursday, April 27, 2006

THE RISING COST OF ENERGY......OR PASSING GAS

DEAR READERS:

AFTER THE PANDERING AND DEMONIZING BY BOTH PARTIES CONCERNING THE HIGH COST OF ENERGY, HERE ARE SOME THINGS TO THINK ABOUT:

1) WITHOUT A DOUBT, THE OIL COMPANIES ARE PRACTICING PREDETORY
CAPITALISM, INSTEAD OF RESPOSIBLE CAPITALISM. THIS IS EXTREEMLY
OBNOXIOUS SEEING THAT WE ARE A COUNTRY AT WAR. HOWEVER, BEING THAT
THESE ARE FOR PROFIT ENTITIES, IT IS UNDERSTANDABLE (NOT EXCUSABLE!) AS
A TIGER IS A TIGER AND A SNAKE IS A SNAKE, AND THEY WILL DO WHAT THEY
WILL DO. IN SPITE OF THE HIGH TOTAL MOUNT OF PROFIT (SHOWN IN THOSE
TERMS TO INFLAME THE POPULACE) THE PER GALLON PROFIT AVERAGES
TO ABOUT SEVENTEEN CENTS A GALLON (REMEMBER THIS FIGURE FOR LATE ON).

2) THE FEDERAL TAX ON A GALLON OF GAS IS EIGHTEEN CENTS.

3) THE NEW YORK STATE (HOME OF THE GREAT PANDERERS, SENATORS
SCHUMER AND CLINTON) TAX ON GAS IS SIXTY-TWO CENTS. THE HIGHEST
IN THE NATION. NEW YORK DOES NOT TAX BY THE GALLON LIKE THE
OTHER FORTY-NINE STATES, WE TAX BY THE DOLLAR. THIS INCLUDES LOCAL
COUNTY AND CITY TAXES. THE COST OF MAKING THE BOUTIQUE GAS
REQUIRED TO SELL IN N.Y.S. ADDS ANOTHER DOLLAR TO THE GALLON PRICE.
N.Y.S TAKES IN MORE MONEY ON GAS TAXES THAN BIG OIL (ANY INDIVIDUAL COMPANY, INCLUDING EXXON/MOBIL) MAKES IN PROFITS.

4) OUR REPRESENTATIVES (AND THOSE WISHING TO BECOME OUR
REPRESENTATIVES) WISH TO CLOSE INDIAN POINT AND CONVERT IT TO
ALTERNATIVE ENERGY. THESE SAME PEOPLE CHEERED WHEN A RECENT
RULING BY THE N.Y.S APPEALS COURT STOPPED THE PROPOSED NATURAL
GAS PIPELINE. THESE SAME PEOPLE DO AND HAVE DONE EVERYTHING
IN THEIR POWER TO STOP THE BUILDING OF ELECTRIC GENERATORS WHICH
WE HAVE NEEDED SINCE THE LAST POWER OUTAGE, AND EVERY ATTEMPT
TO PUT UP CELL TOWERS. DO YOU REALLY BELIEVE (AFTER READING HOW
MUCH THE HIGH COST OF ENERGY BRINGS TO THE STATE TREASURY), THEY
WILL ALLOW ANY BUILDING OF ALTERNATIVE ENERGY AT INDIAN POINT?
IF YOU DO, LOOK UNDER YOUR PILLOW NEXT TIME YOU LOSE A TOOTH FOR
MONEY.

5) THE PEOPLE IN GOVERNMENT AND THEIR HIGH POWERED HACKS WHO WISH
YOU TO DOWNSIZE YOUR CAR, DRIVE ARROUND IN HUGE SUV'S, LIMOS AND
FLY CHARTER. THEY ONLY WANT YOU TO CHANGE YOUR LIFE STYLE, THE
RULING CLASS FEELS THEY DON'T HAVE TO. THEY DON'T PAY FOR FUEL, WE
PAY IT FOR THEM WITH OUR TAX DOLLARS. THEY WOULD HAVE MORE
CREDIBILITY IF THEY PRACTICED WHAT THEY PREACHED. BY THE WAY, DID
YOU NOTICE WHAT KIND OF CARS THOSE POLITICALLY CORRECT BIG MOUTH CELEBRITIES ARE DRIVEN ARROUND IN ALSO, NO HYBRIDS THERE.

6) THE USE OF ALTERNATIVE ENERGY (IF IT WOULD BE ALLOWED), THE NEED FOR
SMART CONSERVATION, THE PRACTICE OF RESPONSIBLE CAPITALISM, THE NEED
FOR MORE REFINERIES AND PIELINE TO DELIVER THE FINISHED PRODUCT,
THE RELAXING OF SOME GOVT. REGULATION IN THE MAKING OF BOUTIQUE
GAS (WE HAVE FIFTY STATES AND FORTY DIFFERENT BLENDS), AND THE NEED
FOR MORE EXPLORATION WITHIN THIS COUNTRY (ALASKA AND OFF-SHORE) ARE
NOT MUTUALLY EXCLUSIVE. NONE OF THE ABOVE OPPERATE IN A VACUME. THEY
MUST ALL BE INVOLED IN A RESONSIBLE ENERGY POLICY TO EASE
ESCALATING ENERGY PRICES, AND AVOID ECONOMIC SUICIDE THE
NO-GROWTH SPECIAL INTEREST WISH TO ENACT.

7) REPEAT AFTER ME: CORPORATIONS DO NOT PAY TAXES, CORPORATIONS DO
NOT PAY TAXES, WE THE CONSUMER PAYS THOSE TAXES IN THE COST OF THE
GOODS AND SERVICES WE PURCHASE. REMEMBER THIS WHEN YOU HEAR THOSE
PANDERING POLITICIANS TALK ABOUT WINDFALL PROFIT TAXES AND THE
REMOVAL OF TAX BREAKS GIVEN TO THOSE CORPORATIONS. WHAT WILL HAPPEN
IS THAT THE GOVERNMENT WILL RECIEVE MORE MONEY, THE CORPORATIONS
WILL CONTINUE TO HAVE THOSE HIGH PROFITS. THE COSTS OF THOSE
INCREASED TAXES WILL BE PASSED ON TO US, KEEPING THE COST OF ENERGY
AT INFLATED RATES. WHAT WILL NOT HAPPEN IS ONE EXTRA GALLON OF GAS,
OR BARREL OF OIL WILL BE PRODUCED.

8) MEXICO HAS ANNOUNCED A BIG OIL FIND OFF THIER COAST IN THE GULF AND WILL SOON BE DRILLING THERE. CUBA HAS ANNOUNCED THEY WILL BE DRILLING
FORTY-FIVE MILES OFF THE FLORIDA KEYS FOR OIL. HOWEVER OUR
REPRENTATIVES CONTINUE TO REFUSE US ANY RELIEF FROM BEING HOSTAGE
TO PURCHASING OIL FORM OUTSIDE SOURCES.

9) AS THIS ELECTION YEAR WE WILL BE VOTING FOR ALL THOSE IN GOVERNMENT
WHO ARE AND HAVE BEEN EXPLOTING, TAXING, REGULATING AND OBSTUCTING
US INTO THIS SENARIO WE NOW FACE, IT IS UP TO US TO FORCE THEM INTO
A TRUE AND MEANINGFUL ENERGY POLICY DEVIOD OF DEMONIZING AND
PANDERING. THE REALITY IS THAT WE HAVE THE POWER ENACT CHANGE.
BY SMARTER DRIVING HABITS WE CAN PURCHASE LESS GAS, THEREBYE DRIVING
PRICES DOWN. BY TELLING THOSE WHO REPRESENT OR WISH TO REPRESENT
US, THAT THEY WILL NOT CONTINUE TO DO SO AS LONG AS THEY ACT AS OF
THEY ARE NOT MAJOR CONTRIBUTORS TO THIS PROBLEM. THINK ABOUT THIS
NEXT TIME YOU FILL UP YOUR TANK. THINK ABOUT WHO IS TRULY EXPLOITING
US.

NOTES OF INTEREST: IF YOU HAVE TROUBLE ACCESSING THE COOMENTS SECTION YOU CAN REPLY TO MY E-MAIL: atomtaxi@aol.com AND I WILL POST IT FOR YOU.
THE LETTER TO THE JOURNAL NEWS REPLING TO MY LETTER WAS WRITTEN BY MY HIGH SCHOOL ENGLISH TEACHER. IT WAS NICE TO KNOW THAT THIRTY-TWO YEARS LATER I COULD STILL GET A RISE OUT OF HIM.

BAZZO 04/27/06

4 comments:

A†Z said...

Oh, I'll remember alright.
When the dollar numbers on the pump go 'round...
I'll be seeing little Hilary, Chuck, et al. heads as a slot machine. However, there will be no payouts at the pump.

Bill the CPA said...

Has anybody seen a chain e-mail circulating regarding boycotting Exxon-Mobil? The e-mail ends by stating that we should not buy from Exxon-Mobil unless the price drops to $1.30 a gallon.

Folks, this is unrealistic. when compared to inflation in general, gasoline at $3.00 a gallon is CHEAPER THAN 30 YEARS AGO.

Furthermore, keep in mind that the oil companies do not -- repeat, DO NOT -- set the prices. The free market does. Traders do.

Oil is now at about $72.00 a barrel. There is the equivalent of 42 gallons of gas in a barrel. So, the oil companies are paying $1.71 a gallon BEFORE the distributors, gas station owners, taxes, and refining costs are taken into account. Sorry, but no oil company is in the business of losing $.41 per gallon.

Follow the price of a barrel of oil on the New York Mercantile Exchange. You can predict where gas prices are headed based on the weekly changes on that exchange.

Never forget that prices are ultimately determined by supply and demand. You want to keep gas prices low? Drive less. Carpool to work. Take the train or other forms of mass transportation. Or, of course, call Atom Taxi.

Ol Professor said...

I agree with Bill the cpa. All of a sudden the politicians are up in arms about the price of gas, like this is some unforeseen event. The US is part of the world economy. People seem to think that we have an unalienable right to cheap fuel. The price of gas is determined by supply and demand. They had an interesting article about the consumption of gas in yesterday's Wall St Journal. The basic tenets of the article were that, due to the price elasticity of oil, consumers will not change their consumption habits until the price rises to a certain level. That level may be $4.00 per gallon. Many people view the cost of gas as a given and they will continue to drive their SUV's and absord the cost.The article also said that the current price of gas is 14% less then the price level in 1981, when gas was at its highest. Back in the 80's, the cost of oil was a much higher percentage of people's total expenses than it is today. Therefore, when the price increased, people changed their habits by conserving oil and driving smaler vehicles.Today, people's income levels are higher and the cost percentage of oil is lower.

This country needs to have an energy strategy to free ourselves from foreign oil. This should have been done long ago, but the cheap price of oil did not provide the political will to pursue it. The politicians need to allow more oil exploration, more refineries, and a plan to incentivize consumers and businesses to use more alternative energy like 85/15 ethanol.

TJAW said...

Bill is correct that the oil companies do not set the price. The price per barrel is set by the market and not just supply and demand but the speculation that there will be supply problems in the near future due to Iran, terrorism and political unrest in many oil producing nations.

I personally boycott Citgo because of Hugo Chavez. I urge everyone else to do the same. I don't know that it'll make a difference to the Venezuelan Dictate..,I mean President but I can sleep better at night. I also know of a little grocery store owned by a drug dealer, I don't care how cheap the milk and eggs are at his store I won't buy them.