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Myths About Oil and Gas
Townhall.com ^ | May 13, 2011 | Bob Beauprez

Posted on 05/13/2011 8:50:52 AM PDT by Kaslin

As voters around the country wince at rising gas prices, panicked Democrats, in a rush to cover the failure of their all-or-nothing bet on the alternative energy industry have started singing a familiar tune – blame the oil and gas industry.  Instead of facing the reality of his owned failed policies, President Obama is calling for an end to the "tax giveaways" he claims amount to $4 billion in “subsidies” to the energy industry. 

This tactic isn’t surprising given the effect that rising gas prices have on the President’s approval ratings and his obsession with re-election.  But, less than truthful innuendos and political spin hardly helps American working families that are getting hammered at the pump. 

If our leaders are going to have an honest discussion about energy, it's important to clear up a few rumors, misconceptions and outright falsehoods being perpetrated about the oil and gas industry.  Let's begin with three of the more common ones:

1.      The industry doesn’t receive any taxpayer funded subsides.  None.

2.      Rampant speculation and Wall Street tricks aren’t driving up gas prices.

3.      The oil and gas industry is not dodging the taxes they owe and withholding “their fair share”. 

I'll say it again; contrary to popular opinion and the President's spin, oil and gas gets no taxpayer funded subsidies.  The tax code does allow them certain tax credits and deductions to encourage continued investment in an industry that is heavily front-end loaded with capital expense.  These are the same kind of incentives available to Coca-Cola, General Electric, Ford, and Micro-Soft and other companies doing business in the U.S.  Or, for that matter, like the deduction for mortgage interest payments enjoyed by homeowners.  But, importantly these are tax credits, and markedly different from direct taxpayer cash subsidies like the 45 cent per gallon payment blenders get to put ethanol in fuel mixes. 

When businesses invest in America, we all benefit.  The oil and gas industry plows about $300 billion into domestic projects per year – that's 75 times more than Obama's phantom "taxpayer giveaways"  amount - and employees over 9 million people.   Those are real numbers; not Washington spin, and if government would allow and encourage even more domestic production there would be more jobs and more investment – and more total taxes paid, too. 

Another argument that often circulates when gas prices go up is that a phantom class of “Wall Street speculators” is to blame for the increase of prices.  So pervasive was this school of thought that in 2008, President Bush commissioned an exhaustive review, via the Commodity Futures Trading Commission, of the effect that speculators had on market prices.  Their conclusion was surprising, according to The Wall Street Journal, “The agency concluded that speculators—otherwise known as traders—were putting downward pressure on prices. The liquidity they provide helps to smooth volatility.”  

Not satisfied with the 2008 study, President Obama recently resurrected this school of thought, even tapping Attorney General Eric Holder to police perceived illegal activity and price gouging.  Yet within the Presidents’ own Administration, the Federal Trade Commission found that the recent spike in oil prices is due primarily to normal market forces, including booming demand from developing economies in India and China and not because of any questionable behavior from Wall Street.

The third popular attack is that somehow oil and gas industry isn’t paying its fair share in taxes.  Democrat mythology aside, the oil and gas industry pays a much heftier percentage of net income in taxes (41.1%) than the average of all other S&P Industrials (26.5%).   Every single day, the industry is sending more than $85 million to the U.S. Treasury for taxes and royalty payments.  Yes, the energy companies are profitable, but their profit margins are right in line with manufacturing, aerospace, and food industries, while computer, pharmaceutical, and the beverage companies have triple the net income margins of traditional energy.  

I don't like subsidies and I don't like Congress or the IRS deciding what is good economic behavior and what is bad.   But, I do understand that you get more of what gets incentivized, and less of what is penalized.  And, there is a huge difference in "redistributing the wealth" through direct subsidy payments, and a tax credit that encourages investment in much needed production that creates jobs and taxable income. 

If congress is serious about creating jobs and jump starting the economy, they should lower the corporate tax rate, which is the highest among the 34 OECD nations, rather than increase the tax burden on energy or any industry.

Capital is fungible, and energy production is the prototypical global industry. Plenty of nations around the world are providing a far more welcoming business environment for energy production that the U.S. already with a less onerous tax code and far less regulatory burden.

If increasing our domestic supply is really a national objective, then this might not be the best time to send exactly the opposite message to the people that provide the capital to drill the wells. 


TOPICS: Business/Economy; Editorial; Front Page News
KEYWORDS: alaska; china; demagoguery; democratcorruption; democrats; drillheredrillnow; economy; energy; gasprices; india; liberalfascism; obama; oil; palin

1 posted on 05/13/2011 8:50:52 AM PDT by Kaslin
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To: Kaslin

We need more jobs, more domestic production, not more taxes.


2 posted on 05/13/2011 8:58:52 AM PDT by thackney (life is fragile, handle with prayer)
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To: Kaslin

The demagoguery has never been so stark as the democrats on this issue. Their lying through their teeth for political advantage.


3 posted on 05/13/2011 8:59:40 AM PDT by DManA
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To: Kaslin; DManA; thackney

I have seen editorials applauding House Speaker Boehner for embracing the perpetual populist canard for eliminating oil-industry tax benefits, so they can begin to pay their fair share in taxes. The statement is false because corporations do not pay, but instead collect taxes from customers for government benefit. Corporations, partnerships, and individual proprietorships of any size prepare a budget where taxes are a cost of doing business. The final budget document given to managers to work from ends with after tax profit. This is a critically important number, at least because dividends are paid from after tax profits.

If in fact taxes cannot be passed to the customer, companies either leave the business or suffer an anemic presence compared to competitors. The first area to suffer is the capital budget and next is compensation, which means they are at a disadvantage in competing for people. A company like ExxonMobil has the sophistication and size to compare benefits available from a multitude of countries, and choose those maximizing the profitability for the next dollar invested. They would never continue investing money in a country where they paid taxes, and did not receive comparable sets of government benefits.

Editorials stating such things as “ExxonMobil this week reported first quarter profits of $10.7 billion – up nearly 70 percent from last year” should at least bemuse or amuse people. The profit is worldwide for the world’s largest company, with only one quarter of it coming in the U.S. Also, the profit margin was just over 9%, which of course does not help this typical editorial. It would also be useful to juxtapose General Electric, which in 2010 earned $14.2 billion, received $3.2 billion in benefits, and paid no U.S. taxes.

Excuse me. I should say we paid no taxes for our G.E. purchases, but did pay our fair share of their $3.2 billion in subsidies.

ExxonMobil profits up 69 per cent on high oil prices
http://www.monstersandcritics.com/news/business/news/article_1635844.php/ExxonMobil-profits-up-69-per-cent-on-high-oil-prices

General Electric Paid No 2010 Income Taxes
http://abcnews.go.com/Politics/general-electric-paid-federal-taxes-2010/story?id=13224558


4 posted on 05/13/2011 9:12:10 AM PDT by Retain Mike
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To: Kaslin

The energy development model as now constituted is not working for the US economy or the citizens. Tweaking is not an answer any more. There has to be a game changer.

If the government was serious about lowering the cost of energy, it would open up the development of oil resources in the US, remove/reduce restrictions on development, and if necessary, provide subsidies for refinery, pipeline, and well development wholly owned by US shareholders.

The quid pro quo would be that all of that energy would stay in the US.

Any oil shipped out of the US would have a $30-$40 a barrel tariff placed on it to pay back the subsidies.

Since these companies would be owned by Americans, assisted by subsides from the government, in essence our money, and the energy used here, this would provide jobs for Americans and provide energy the lowest cost.

Let the rest of the world play the global energy game and the US should set up the largest CO-OP in history.


5 posted on 05/13/2011 9:15:06 AM PDT by burroak
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To: burroak

Please, no more subsidies. Not even ones that would directly benefit me personally.

Just open up more areas to exploration. Be reasonable and consistent on regulations and permits. Be competitive globally on taxes and rarely tweak them.


6 posted on 05/13/2011 9:22:37 AM PDT by thackney (life is fragile, handle with prayer)
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DONATE



7 posted on 05/13/2011 9:34:34 AM PDT by TheOldLady
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To: thackney

Same old, same old.

You are looping.


8 posted on 05/13/2011 9:40:03 AM PDT by burroak
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To: Kaslin

Biggest myth = oil is a fossil fuel


9 posted on 05/13/2011 9:42:30 AM PDT by texas_mrs
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To: Kaslin

Great article. I am tired of the lies about the oil companies. You hear about their profits but what the government takes on every drop of oil produced is by far greater. Plus the government does absolutely nothing to produce oil or energy but instead puts restrictions on production thus driving the cost up more.


10 posted on 05/13/2011 9:48:42 AM PDT by TheBigIf
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To: burroak
Subsidies are not needed. They will only distort the market more.

Hussein could lower the price of energy tomorrow. By presidential order he could:

1) End the blending of "boutique" gasoline.

2) Approve ALL outstanding drilling permits immediately.

3) Open up all areas in Alaska and off both coasts for drilling.

4) Fast track the Keystone pipeline project.

These moves alone would decrease the price of a barrel of oil dramatically. They would have the added benefit of spurring job growth. They would not cost the government a penny and would generate billions in taxes.

For the longer term he could announce a real comprehensive energy program along these lines:

1) End all subsidies for "green" energy programs including and especially ethanol.

2) Announce a billion dollar program to build six coal to oil plants.

3) Grant all pending permits for coal mining and open up federal lands to coal.

4) Announce a billion dollar program to build six nuclear plants using new technology centered around "pebble bed" or thorium reactors. These reactors would be located on the coasts and could be twinned with desalination plants that turn saltwater into freshwater. Run the water plants at night when energy use is less.

5) Announce a billion dollar program to help develop shale oil and algae/bacteria to oil schemes.

6) Close the Department of Energy and the EPA.

The money you save closing those two departments and the extra tax money generated would fund those three billion dollar programs.

Oil prices would drop like a stone.

Now, if I can come up with this stuff, off the top of my head, why doesn't Hussein do any of this? Either he doesn't think it would work, in which case he is either stupid or ideologically blinded. Or, he is not interested in lower energy prices. I think it is a combination of both.

11 posted on 05/13/2011 9:52:46 AM PDT by Former Proud Canadian (Slugs and Bitter Clingers Unite.)
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To: thackney

More domestic productions, which include drilling


12 posted on 05/13/2011 9:59:42 AM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Former Proud Canadian

I’ll sign on to all that. Just develop all we have in the US. Process it here, and use it here.

Tariff the hell out of any oil that leaves the country.


13 posted on 05/13/2011 10:02:51 AM PDT by burroak
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To: burroak
Forgive me, burroak, but you have to think a little bigger. If the US had the will (it has the capital, the technology, the workers, and the risk takers) it could become an energy colossus.

You wouldn't want to or have to tax energy exports. You would be producing more than you need. You would have to seek out foreign markets for the energy you produce, just like Canada and Mexico and OPEC do. You would be able to reduce your trade deficit. You would be able to export new technologies. Your service industries would be in demand to build new plants and infrastructure overseas.

You don't want to tax exports. You want to encourage them. You export products and commodities where you have a comparative advantage. Believe it or not the US has a vast comparative advantage in coal. You could develop a comparative advantage in oil and, perhaps more importantly, in the infrastructure needed to produce and move energy to market. You just need the political will to do so.

14 posted on 05/13/2011 10:14:53 AM PDT by Former Proud Canadian (Slugs and Bitter Clingers Unite.)
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To: Kaslin

Big oil gets about 3 cents per gallon in profit while big government gets about 50 cents per gallon in taxes. Who do you think is the bigger cause of high gas prices?


15 posted on 05/13/2011 10:22:14 AM PDT by jurroppi1
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To: jurroppi1

Excellent point


16 posted on 05/13/2011 10:25:23 AM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Former Proud Canadian
Now, if I can come up with this stuff, off the top of my head, why doesn't Hussein do any of this?

Because he hates America as it is and wants to destroy our way of life. He wants to humble us.

17 posted on 05/13/2011 10:34:32 AM PDT by Max in Utah (A nation can survive its fools, and even the ambitious. But it cannot survive treason from within.)
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To: burroak

More jobs, more domestic production, less taxes.

I would say that is worth repeating until a few more politicians understand it.

It doesn’t need to be limited to the oil industry.


18 posted on 05/13/2011 10:40:53 AM PDT by thackney (life is fragile, handle with prayer)
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To: Retain Mike

http://www.gereports.com/setting-the-record-straight-ge-and-taxes

GE claims they paid $2.7 billion in taxes in ‘10 and paid $23 billion in the last 10 years.


19 posted on 05/13/2011 10:43:42 AM PDT by mountn man (The pleasure you get from life, is equal to the attitude you put into it.)
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To: Retain Mike
Editorials stating such things as “ExxonMobil this week reported first quarter profits of $10.7 billion – up nearly 70 percent from last year” should at least bemuse or amuse people. The profit is worldwide for the world’s largest company,

ExxonMobil IS NOT the worlds largest company, its not even the largest oil company. It IS NOT the largest employer of people in the US. Exxon has the largest GROSS profit, BUT NOT near the highest profit margin. In fact their profit margin is about average at best.

20 posted on 05/13/2011 10:52:11 AM PDT by mountn man (The pleasure you get from life, is equal to the attitude you put into it.)
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To: thackney

It may well be good to apply across the entire economy, but the laser beam is on gas prices right now. Use the Left’s mantra against them, “Don’t let a crisis go unused.”

IMO, our energy future is to become isolationists and develop any and all resources and mandate that they be confined to the US economy, unless a huge tariff is applied to exports.


21 posted on 05/13/2011 10:58:05 AM PDT by burroak
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To: Kaslin

When Chukie “slime” Schumer was asking to select between student loans and the oil industry. The executive should have made reference to the very real jobs of the oil industry PAY BACK AND PAY FOR those student loans.

It also does not help when democrats support unemployment and prevent paying back those non-dischargable student loans.


22 posted on 05/13/2011 11:11:45 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: texas_mrs
Biggest myth = oil is a fossil fuel

Yes...the oil fairy delivers it...all we have to do is drill it and it replenishes overnight.

23 posted on 05/13/2011 11:15:39 AM PDT by Gondring (Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
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To: burroak
IMO, our energy future is to become isolationists and develop any and all resources and mandate that they be confined to the US economy, unless a huge tariff is applied to exports.

I don't agree with this concept. In the next decade or so, we will be a net exporter of Natural Gas (in my opinion). Trying to reduce that export only hurts us for jobs and trade balance.

24 posted on 05/13/2011 11:17:56 AM PDT by thackney (life is fragile, handle with prayer)
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To: jurroppi1

obama will declare a gas tax holiday for 5 weeks. Starting Oct 1, 2012.


25 posted on 05/13/2011 11:20:07 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: thackney
Just like Dorothy " . . always had the power to go home., we could always have been energy isolationists(we actually have as much or more oil), but just like the wizard used Dorothy to dispose the witch, our money is used to buy weapons dirt monkeys can fight with.

That's always been the sit..

Dispose of that broomstick up our collective a$$hat Mr. & Mrs. Scarecrow and jobs & oil will flow here like mothers milk.

26 posted on 05/13/2011 11:28:25 AM PDT by de.rm ('Most people never believe anything you tell them unless it isn't true."-Groucho Marx)
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To: Kaslin

IMHO...

Increases in the market price of crude oil are the symptom of the problem that previously 3rd-world nations, i.e., India, China, etc., are dramatically increasing their consumption as they move towards the western lifestyle which is so emphatically deplored publicly by the left wing.

If we (the U.S.) use more of our own domestically produced oil, that will only moderately decrease the market price of crude.

Every time we walk away from a foreign well, the new “Eastern-bloc”, i.e., enemies of America, proceed to commandeer the well and add it to their source of supply.

So far, enemies of America show only signs of increasing their per capita use of crude oil; there is no sign that they plan on decreasing.

As crude oil is very important to economic prosperity and military capability, it is strategically wise to garner as much of the world’s supply as possible at a low a cost as possible.

Bottom line, commodity prices that we experience are the symptom - the disease is a relative decrease between the rate of U.S. wealth gains versus foreign nations. The main stumbling block which is lowering our rate of wealth increase is our decreasing morality amongst the general public. The President, as all Democrats, was elected largely by the Democratic party voting base. And the core of that voting base is far-left, i.e., communist (notice the che guivera t-shirts on young people), anti-Christian, and deviant in it’s thoughts. “Blue-dog” Democrats are simply clinging to their party solely because of it’s name and heritage of being the party of their ancestors. That one can be a Christian or Jew and vote Democrat defies common sense given the platform planks of Robinhood, i.e., lying, government, institutionalized promotion of sexual deviance and excuses and acceptance of drug abuse, just to name three planks completely antithetical to both the Old and New Testaments. The rampant upswing of immoral thoughts and actions has seeped into schools, entertainment, and news, and government and business management as well. This produces a hollow leadership and vision that finds it impossible to do what is right for the nation but instead constantly makes a circus of politics, government handouts and movement of capital to foreign nations. These situations have been the end of every great empire, from Rome to Great Britain.

We can not and should not rely our government to maintain a wall of separation for domestic capital and labor. Our business leadership must, in the end, realize their responsibility towards the nation in which they do business and think in the long-term. Accordingly, the nation will prosper in spite of the necessary evil of having a government, and the citizens will continue to vote out elected representatives until they realize that the only real purpose they should fulfill is the military defense of the nation.


27 posted on 05/13/2011 11:35:01 AM PDT by PieterCasparzen (Huguenot)
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To: thackney

OK, so we export it. Tax the hell out of it. Jobs and the economy are not getting better with this model. Break it. Why be manipulated by foreign interest.

The trade balance is caused by buying foreign oil. Just stop it.


28 posted on 05/13/2011 11:51:52 AM PDT by burroak
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To: burroak
so we export it. Tax the hell out of it.

Putting a huge tarrif on it means the work goes somewhere else. We are not the only ones with Shale Gas, we just started developing our first. Already this is being developed in other countries. Why make us noncompetitive and send the jobs elsewhere.

The trade balance is caused by buying foreign oil. Just stop it.

Easier said than done. Are you just going to quit driving to work and the grocery store?

29 posted on 05/13/2011 12:02:51 PM PDT by thackney (life is fragile, handle with prayer)
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To: longtermmemmory

And then immediately declare a per mile use fee that dwarfs the gas tax...


30 posted on 05/13/2011 12:04:24 PM PDT by jurroppi1
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To: burroak
So who do you propose to tax? The purchaser or the seller?

Tax the purchaser and they'll buy it cheaper somewhere else. We are already taxing the oil companies.

I agree, we do need to be using our own oil.

31 posted on 05/13/2011 12:07:08 PM PDT by mountn man (The pleasure you get from life, is equal to the attitude you put into it.)
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To: mountn man

My link does say it is the largest company by market value. You are right. I should have at least included that qualifier. Considering how business stories are handled outside the WSJ, the qualified statement is also probably suspect.


32 posted on 05/13/2011 12:10:21 PM PDT by Retain Mike
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To: mountn man
My first reply to you is probably applicable here. Outside of the WSJ, there are probably few publications that are going to get a business story right.

The issue seems to be the difference between the check they actually wrote to the feds and the elegance of accrual accounting required by FASB’s. I doubt few could read the cash flow statement, and it would not have helped the Times anyway to acquire that skill.

“The ‘tax benefit’ reported in our financial statements was the “U.S. current tax provision on continuing operations” which is a book accounting concept and is not the same as our cash tax liability or cash tax payments. There was a benefit in our current tax provision because we didn't’t end up owing taxes we had accrued in prior years. This tax benefit resulted from reversing the taxes we had accrued in prior years, but much of this benefit was offset by increases in our tax liability for future years.

33 posted on 05/13/2011 12:29:52 PM PDT by Retain Mike
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To: Retain Mike
The Dimocrats are picking on the wrong people/ Look At Exxon, they net .4 cents per dollar on their investment. The trough feeders in Washington should be quizzing their Buddies in New York in the Banking and Stock Market.The Banks and Stock Brokers are the ones manuliplitating the Oil Market. They are the one pushing prices up, and causing a false shortage it is not the Oil Companies but the Leaches in New York
34 posted on 05/13/2011 12:37:00 PM PDT by BooBoo1000
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To: thackney
Easier said than done. Are you just going to quit driving to work and the grocery store?

As I read this thread, I realize that I am not well versed on this topic as most of the posters here.

It just seems to me that we are going to have to drill at some point. Zero encourages drilling by the people of Brazil. He states the we will be their 'best customer'. I have also heard (could be wrong) that our strategic reserve is only one year. It doesn't seem enough.

35 posted on 05/13/2011 1:24:15 PM PDT by He Rides A White Horse ((unite))
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To: He Rides A White Horse
I have also heard (could be wrong) that our strategic reserve is only one year.

Keep in mind the Strategic Petroleum Reserve (SPR) doesn't have to replace all our oil supplies at the same time. War between Saudi Arabia and Iran might shut down the entire Persian Gulf, but it won't shut down Texas, Canada, Brazil, Nigeria or others.

The SPR holds 726 million barrels. Depending on what source we have to replace, depends on how much time it lasts. However, it cannot be less than 165 days because the maximum withdraw rate is 4.4 million barrels per day.

36 posted on 05/13/2011 1:39:34 PM PDT by thackney (life is fragile, handle with prayer)
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To: Kaslin
Instead of facing the reality of his owned failed policies, President Obama is calling for an end to the "tax giveaways" he claims amount to $4 billion in “subsidies” to the energy industry.

I guess this is REALLY bad news to the ETHANOL 'industry'!

37 posted on 05/13/2011 2:05:20 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Retain Mike
General Electric Paid No 2010 Income Taxes

Most folks think that businesses pay taxes.

They don't.

It is just another cost of doing business that is ADDED into the PRICE of their product.

The CUSTOMERS (you and me) 'pay' the taxes: the business merely COLLECTS them for the gummint.

38 posted on 05/13/2011 2:08:13 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: longtermmemmory

You REALLY mean 2011...


39 posted on 05/13/2011 2:10:54 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Elsie

Apr 21, 2011 ... The ethanol subsidy currently costs US taxpayers $6 billion annually

http://bioenergy.checkbiotech.org/news/bill_introduced_eliminate_ethanol_subsidy


40 posted on 05/13/2011 2:19:31 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: thackney
Keep in mind the Strategic Petroleum Reserve (SPR) doesn't have to replace all our oil supplies at the same time. War between Saudi Arabia and Iran might shut down the entire Persian Gulf, but it won't shut down Texas, Canada, Brazil, Nigeria or others.

Good. An Abram's tank would look silly with a windmill on top.

Seriously, people always want a scapegoat. It's all the fault of rich people they will say. I'm certainly not a person of wealth; but I am not covetous either. It's not my business how you spend your money.

I will say however that Obama (which is my business) is bad for everybody. He seems bent on driving many people into a third world status.

Thanks for your response. Bookmarked.

41 posted on 05/13/2011 2:30:29 PM PDT by He Rides A White Horse ((unite))
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To: Former Proud Canadian
2) Announce a billion dollar program to build six coal to oil plants.

4) Announce a billion dollar program to build six nuclear plants using new technology centered around "pebble bed" or thorium reactors. These reactors would be located on the coasts and could be twinned with desalination plants that turn saltwater into freshwater. Run the water plants at night when energy use is less.

5) Announce a billion dollar program to help develop shale oil and algae/bacteria to oil schemes.

6) Close the Department of Energy and the EPA.

Who would run the coal-to-oil, nuclear, and desalinization plants? I'd expect that if the Federal government is going to fork over the money, then they'd be the one's running it.

And do we really want the Fed doing that? Maybe make the funds a reinbursement program for anyone who'd be willing to build the plants, instead.

As for the Department of Energy and EPA, according to budget figures, you'd save a total of $36.8 billion by shutting both down. Which would definitely start to help in getting our Federal budget under control.

http://www.gpoaccess.gov/usbudget/fy10/pdf/budget/energy.pdf
http://www.gpoaccess.gov/usbudget/fy10/pdf/budget/environmental.pdf

42 posted on 05/13/2011 3:00:41 PM PDT by gogogodzilla (Live free or die!)
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To: Elsie
Below is my statement from my original post. When I posted nearly the same letter to a Register Guard editorial, someone still made the unsupported statement that corporations pay taxes. I did not reply. The individual was clearly chanting a portion of their mantra, which they have to recite in order to hold onto their liberal orthodoxy.

“The statement is false because corporations do not pay, but instead collect taxes from customers for government benefit. Corporations, partnerships, and individual proprietorships of any size prepare a budget where taxes are a cost of doing business. The final budget document given to managers to work from ends with after tax profit. This is a critically important number, at least because dividends are paid from after tax profits.”

43 posted on 05/13/2011 3:22:21 PM PDT by Retain Mike
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To: gogogodzilla
I'd expect that if the Federal government is going to fork over the YOUR money, then they'd be the one's running it.
44 posted on 05/13/2011 4:13:33 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: mountn man

The tariff, by its very nature, is accessed to the foreign buyer. If they want the oil, they should pay a premium, as we do. My intention is to make it exorbitant.


45 posted on 05/13/2011 4:58:31 PM PDT by burroak
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To: Kaslin

Well done. Bob wrote an informative and honest piece.


46 posted on 05/13/2011 10:17:42 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; ColdOne; Convert from ECUSA; Delacon; ...

Thanks Kaslin.
  1. The industry doesn't receive any taxpayer funded subsides. None.
  2. Rampant speculation and Wall Street tricks aren't driving up gas prices.
  3. The oil and gas industry is not dodging the taxes they owe and withholding "their fair share"
The price of petroleum drives the price of everything up and down; we rely on petroleum for transportation of goods, services, and ourselves, but it also plays an important role in the chemical industry. Agriculture not only uses fuel, it uses chemical fertilizers, pesticides, and herbicides.
47 posted on 05/14/2011 7:12:07 AM PDT by SunkenCiv (Thanks Cincinna for this link -- http://www.friendsofitamar.org)
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