Are you tired of high gas prices? Even though prices are coming down how long do you think the OIL COMPANIES will let them stay down? The OIL COMPANIES are not out to help the American people. They are not even out to help cut our dependence on foreign oil. They are only out to help themselves. If they were trying to help the people of our great country they would be dropping the price of gas at the same percentage rate of drop in oil prices ( which by the way is grossly uneven). Oil has dropped almost % 50 from its all time high and yet gas has only come down a measly % 20 from its all time high.
OIL COMPANIES here in the US talk about needing to drill more to increase production and lessen our dependence; and they want more refineries to "keep up with demand". Did you know that the OIL COMPANIES export a large portion of our oil to other countries instead of using it to help lessen our dependence. And did you also know that our OIL COMPANIES refine oil into fuel for VENEZUELA because they do not have refineries of their own? President Chavez HATES AMERICA and will do anything he can to destroy us, and yet the OIL COMPANIES sell them fuel instead of making sure that America has ample supply.
I think that we all should do our part in trying to free ourselves from the TYRANNY of OIL. There are many options out there but few are feasible to the average American citizen.
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1 comment:
Craig, I posted in response to your response to DJ McGire's blog...
Point one: Did you miss the news about the supply problems in the SE following Gustav and Ike? Gasoline inventories in the Lower Atlantic sub-region fell to their lowest leves ever (since sub-regional information has been tracked in 1990) after Ike due to the disruption to refining and importation following the hurricane. They have just returned to more normal levels last week. Econ 101…Low supply = high price
Point two: Now that inventories have rebounded, prices are falling more in line with other areas in the US. Yesterday, the wholesale price for gasoline was around $1.60 (before taxes, transportation, and retail margin). Now, wholesale prices take about 7 to 10 days to show up at the retail level, so we should see US average of $1.60 + 0.494 = $2.094 in about two weeks…
As for now, last week, wholesale prices were about 1.90 on 10/13. Add to that the 18.3 cents in federal taxes and the additioinal taxes that your fair state adds (33.3 cents–which, by the way is MUCH higher than MO, which is 17.7 cents) and you get $1.90 + 0.534 = $2.434 (before any retail margin or transportation costs). Compared to MO $1.90 + 0.36 = $2.26.
AAA has the average price in FL at $2.838 and in MO at $2.503. The difference is 33.5 cents. About HALF of this is taxes…so, what about the other 17.9 cents?
Neither MO nor FL have refineries! However, Missouri receives its petroleum products from several pipelines that originate in the Gulf Coast region (the main area of refining in the US). The Mississippi and Missouri Rivers also provide important transportation routes for petroleum products moving via barge.
FL, on the other hand, relies on petroleum products delivered by tanker and barge to marine terminals near the State’s major coastal cities. TRANSPORTATION BY TANKER IS MUCH MORE EXPENSIVE THAN BY PIPELINE. Plus the import duties added to products coming from overseas adds more cost.
Point three: Due in part to Florida’s tourist industry, demand for petroleum-based transportation fuels (i.e., motor gasoline and jet fuel) is among the highest in the United States. ECON 101 again…High demand = high price
Point four: The refinery you live close to (I assume it is the one in Atmore, AL) is one of three refineries near you (all in AL). ALL THREE OF THESE REFINERIES ARE CONNECTED TO THE COLONIAL PIPELINE SYSTEM and do not supply Florida!
Point five: The “Greedy Oil Companies” make, on average, about 9 cents on each dollar of sales! (At $3/gallon, that is about 27 cents…where the State of Florida makes 33.3 cents…those Greedy Bureaucrats!–Leave alone that at $2, Big Oil will make 18 cents–nearly half of what the central planners and social engineers in the state government will get—AND THEY DIDN’T DO ANYTHING TO GET THIS TO YOU THE CONSUMER!)
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