OT ~ William "Bill" Phillips on Oil and Gas
- From: "JanOrme99@xxxxxxx" <JanOrme99@xxxxxxx>
- Date: Thu, 26 Jun 2008 06:59:36 -0700 (PDT)
Subject: Bill Phillips on Gasoline
Bill Phillips spent nearly 50 years in the US oil and gas industry;
most of his career was with the Phillips Petroleum Company. Bill is a
descendant of Frank Phillips. Frank Phillips, along with his brother
Lee Eldas (L.E.) Phillips, Sr., founded the original Phillips
Petroleum Company in 1917 in Bartlesville, OK. Do you remember
Phillips 66 gas stations? Phillips Petroleum Company merged with
Conoco, Inc. in 2002 to form the current ConocoPhillips oil company.
So, when Bill talks about oil and gas issues, listen - very closely.
You will find Bill's thoughts and facts very revealing, very
compelling and very difficult to argue with.
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As you prepare to cast your crucial ballots this Fall, please think
long and hard about the far-reaching, cumulative effects of the US
political philosophies, policies and legislation that have contributed
to the current and future US oil supply situation.
Did you know that the United States does NOT have any big oil
companies. It's true: the largest American oil company, Exxon Mobil,
is only the 14th largest in the world, and is dwarfed by the really
big oil companies -- all owned by foreign governments or government-
sponsored monopolies -- that dominate the world's oil supply.
With 94% of the world's oil supply locked up by foreign governments,
most of which are hostile to theUnited States, the relatively puny
American oil companies do not have access to enough crude oil to
significantly affect the market and help bring prices down. Thus,
ExxonMobil, a "small" oil company, buys 90% of the crude oil that it
refines for the U.S. market from the big players, i.e, mostly-hostile
foreign governments. The price at the U.S. pump is rising because the
price the big oil companies charge ExxonMobil and the other small
American companies for crude oil is going up as the value of the
American dollar goes down. They will eventually bleed this country
into printing even more money and we will go into runway inflation
once again as we did under the Carter Democratic reign.
This is obviously a tough situation for the American consumer. The
irony is that it doesn't have to be that way. The United States--
unlike, say, France--actually has vast petroleum reserves. It would be
possible for American oil companies to develop those reserves, play a
far bigger role in international markets, and deliver gas at the pump
to American consumers at a much lower price, while creating many
thousands of jobs for Americans. This would be infinitely preferable
to shipping endless billions of dollars to Saudi Arabia, Russiaand
Venezuela to be used in propping up their economies.
So, why doesn't it happen? Because the Democrats -- aided, sadly, by
a handful of Republicans --deliberately keep gas prices high and our
domestic oil companies small by putting most of our reserves off
limits to development. China is now drilling in the Caribbean, off
Cuba but our own companies are barred by law from developing large oil
fields off the coasts of Florida and California. Enormous oil-shale
deposits in the Rocky Mountain states could go a long way toward
supplying American consumers' needs, but the Democratic Congress won't
allow those resources to be developed. ANWR contains vast petroleum
reserves, but we don't know how vast, because Congress, not wanting
the American people to know how badly its policies are hurting our
economy, has made it illegal to explore and map those reserves, let
alone develop them.
In short, all Americans are paying a terrible price for the Democrat's
perverse energy policies. I own some small interests in tiny, 4 barrel-
per-day oil wells in Wyoming. We have 14 agencies that have iron-hand
jurisdiction over us. If we drop any oil on the ground when the
refinery truck comes to pick up oil from our holding tanks, we are
fined. Yet down the road the state will spray thousands of gallons of
used oil on a dirt road to control dirt. When it rains that oil runs
into rivers and creeks. Yet a cup of oil on the ground at our wellhead
is a $50,000 EPA fine plus additional fines from state regulating
agencies. They treat oil as if it were plutonium that has the
potential to leak into the environment. We are fined if our dirt burms
are not high enough around a holding tank, yet the truck that picks up
our oil runs down the road at 60 mph with no burm around it. People
wonder why there is no more exploration in this country. It's because
of the regulators; those people who have lived their whole lives doing
nothing but imposing fines on small operators like us for doing mostly
nothing.
So, America enjoy your $4.00 per gallon gasoline. Your dollar is now
worth 0.62 Euro-Cents. The lack of American production of GNP, the
massive trade deficit (as labor markets have moved overseas to fight
insanely high union imposed labor costs in America) and the run away
printing of money (backed by nothing of value here in America) has
caused the dollar to become more worthless on the international
market. And that's where our oil comes from. It's paid for with
dollars that become more worthless everyday. If we had just kept par
with the Euro we'd be paying $62 dollars per barrel for oil (42
gallons) or about $1.50 instead of $2.50 a gallon for crude oil.
What the US government also does not tell you is that it is the
leaseholder and royalty recipient of most oil production and receives
25% of the gross oil sales before we pay for electricity to lift the
oil, propane to keep the oil-water separators from freezing in the
winters. We pay a pumper to visit each well everyday plus we have
equipment failures all the time. We pay for that out of our 75% of
gross sales. The government does not share in any expenses to run any
production well. So, if the Big Oil Companies are making record
profits, then so is the federal government from it's 25% tax on every
molecule of oil sold to a refinery in this country. Why isn't the
government on the stand for "Record" profits? What you don't see is
this 25% of the sales price of crude oil being siphoned away by the
government. That money plus the road taxes, state taxes, etc. amounts
to over $1 per gallon of gasoline you are buying while the governments
only admit to about 50 cents per gallon.
To all you Democrats, when you go vote for your candidate, a blazing
liberal like Barrack Hussein Obama or Hillary Clinton, just keep in
mind that their liberal spending habits will further decrease the
value of the American dollar on the world market and your gasoline
costs will hike even higher. As they introduce more give-away
programs, raise taxes on everyone to pay people not to produce or
work, your dollar will continue to dwindle on the world market and you
will be paying $10.00 per gallon at the next election. Cheap
hydrocarbon fuel is all over. Enjoy! Enjoy the fruits of your decision
to elect these folks when you are there in that voting booth and you
stab your pin through a Democrat's name.
William "Bill" Phillips