Why Don't They Gang Up on the Oil Companies?

[71GTX]

Our Democratically controlled Congress wants to eliminate tax breaks to the oil companies, and they have in turn stuck it to the consumer, US!
http://money.cnn.com/2008/04/01/news/companies/oil_hearing/index.htm?cnn=yes

[70_challenger]

Our Democratically controlled Congress wants to eliminate tax breaks to the oil companies, and they have in turn stuck it to the consumer, US!
http://money.cnn.com/2008/04/01/news/companies/oil_hearing/index.htm?cnn=yes

Riiiight.  Because while the oil companies have had these tax breaks (and record profits), they have always passed on those savings to us consumers, right?

Sorry - I read the story, and I don't see your point.  I have NO problem with them eliminating the tax breaks, for the reasons outlined in 3 pages of this thread. 

-Tom

[71GTX]

From the article, "The oil executives urged the panel to open up areas off the U.S. east and west coasts for oil and gas drilling, arguing that bringing more supply to market is one of the best ways to lower prices.

"The U.S. government restricts supply to American consumers," said Shell's Hofmeister.

"Open up the 95 percent of the outer continental shelf that's off limits," said Peter Robertson, vice chairman of Chevron.

Most drilling off the U.S. coasts has been banned since the 1970s. A proposal to lift the ban surfaced in 2006, but was defeated. But with sky-high oil prices and growing demand worldwide, interest in offshore U.S. oil has been revived.

"We all know that we have resources off the coast, and these can be developed," said Rep. Marsha Blackburn, R-Tenn."

[JH27N0B]

From the article, "The oil executives urged the panel to open up areas off the U.S. east and west coasts for oil and gas drilling, arguing that bringing more supply to market is one of the best ways to lower prices.

"The U.S. government restricts supply to American consumers," said Shell's Hofmeister.

"Open up the 95 percent of the outer continental shelf that's off limits," said Peter Robertson, vice chairman of Chevron.

Most drilling off the U.S. coasts has been banned since the 1970s. A proposal to lift the ban surfaced in 2006, but was defeated. But with sky-high oil prices and growing demand worldwide, interest in offshore U.S. oil has been revived.

"We all know that we have resources off the coast, and these can be developed," said Rep. Marsha Blackburn, R-Tenn."

We won't drill but others don't seem to have a problem with it??
http://www.iht.com/articles/2006/05/09/news/cuba.php
Ridiculous!!!!!!!!!!!!!!!!!!!!!

[70_challenger]

And they can't do all of this drilling, because Congress wants them to pay their taxes?  Sorry, it just doesn't hold water.  I haven't seen the oil companies using my tax money to lower costs before now.

Congress is asking for long-term solutions to a difficult problem, and the oil companies are demanding taxpayer subsidies AND more land for drilling.  

Hard to feel sorry for the oil companies, when part of the higher price excuse is excess inventory, and refineries cutting back capacity.  Having read all of the material in this post, it is obvious to me that the oil companies would take their tax breaks, and their increased drilling capacity, and just find another excuse to drive up the market cost of crude.

-Tom

[jeryst]

And the Chinese are drilling 6 miles off our shores!

[70_challenger]

And the Chinese are drilling 6 miles off our shores!

If they're drilling 6 miles off our shore, I expect the Coast Guard to get out there.  From what I saw in the story, it is on the Cuban side of the Florida Straits. 

The good news?  One of the excuses the oil companies are using for gouging us is increased demand for oil in China.  So...If the Chinese are drilling more oil of their own, then our prices should go down.  Yippee!!!  Sure, keep watching for that...

-Tom

[jeryst]

The Chinese are drilling almost within sight of Key-West. They are also slant-drilling, so even though their rigs are in one place, they are drilling towards us, and our reserves.

[Carlwalski]

And this is different from the US drilling on Iraq soil, because? 

[hooD]

  drill this 

[Carlwalski]

Mature response. Well, I'm just saying, if others are going to compare what other countries are doing and being hypocritical, lets bring it back down to earth and see what their own country is doing. Simple as that.

[hooD]

Mature response. Well, I'm just saying, if others are going to compare what other countries are doing and being hypocritical, lets bring it back down to earth and see what their own country is doing. Simple as that.

You can take my response any way you wish.  Simple as that, mate!

[MJS73]

It is perceived supply and demand.

Perceived supply and demand is the basis on which speculation operates.

Riiiight.  Because while the oil companies have had these tax breaks (and record profits), they have always passed on those savings to us consumers, right?

Whether or not you believe these tax breaks are passed on to the consumers, you can bet that the revocation of the tax breaks WILL be passed on to the consumers.  And tax breaks aren't meant to be passed on to the consumer, they're meant to spur re-investment in the business, explore new technologies, etc., all of which create jobs.

Besides, anyone that owns a business in the U.S. knows that corporations don't pay federal taxes.  These "tax increases" to corporations are just added fees that get passed right on to the consumer.  It's how politicians increase taxes on citizens without looking like the bad guy.  The tax the "bad guys" (corporations).

For anyone that wants to learn more about economics, the master on the Subject is Dr. Walter Williams of George Mason University.  I have a one-hour interview with him on my website.  It's a large mp3 file, so you may want to download to your computer to listen to after it's been downloaded.  Right-click on the link below, choose "Save Target As" or "Save Link As" and save it on your computer.  It's great listening.

www.mikes73.com/williamsinterview.mp3

Mike

[Aussie Challenger]

  Here in Australia we are paying $1.55 per litre ( 3.5 ltrs US gallon), but the government make more than the oil companies,     that is why the government doesn't stop the price rising.       
Every cent the price goes up the government make millions.   

[kingtroll]

In the 70's I remember going to Pennsylvania to New York with my parents and they limited how much gas you could buy at the gas stations. That's the time when their was an oil crisis. This is not a new problem it's just going to keep coming back until there is no oil left. As an individual I know when the gas prices get to the point where I can't afford it I'll have to buy a car or motorcycle or whatever it is that doesn't use as much gas. Those that can afford it will drive Hummers, tanks, land cruisers or whatever until that can't afford it or there isn't anymore fuel. The majority of people don't worry about conserving fuel until they are FORCED to conserve and that's the way it is unfortunately.   The oil companies are just like any other company (in a free market)  they want to make the most money that they can.