Posted on 12/16/2013 3:59:27 PM PST by Libloather
The flood of North American crude oil is set to become a deluge as Mexico dismantles a 75-year-old barrier to foreign investment in its oil fields.
Plagued by almost a decade of slumping output that has degraded Mexico’s take from a $100-a-barrel oil market, President Enrique Pena Nieto is seeking an end to the state monopoly over one of the biggest crude resources in the Western Hemisphere. The doubling in Mexican oil output that Citigroup Inc. said may result from inviting international explorers to drill would be equivalent to adding another Nigeria to world supply, or about 2.5 million barrels a day.
(Excerpt) Read more at money.msn.com ...
There will be a huuuuuge rush down to Mexico to invest in their oilfields. Good for them, good for us.
Yeah, exactly ... as more gas guzzlers are phased out, more electric cars are on the road (and the hybrids) - the revenue becomes less and less (in absolute terms) - while the roads and highways and infrastructure keeps wearing out.
Same thing happened with D'Anconia Copper ;-)
I’m always extremely thrilled when I get to pay a tax on a tax.
Well, I suppose those aguave distilleries down there might could convert the fiber remnant into flotation and sell it to us. Reminds me of a friend's MIL who went up to AK ~1989 to help with the Exxon Valdez oil slick/wildlife recovery. She lasted 2 days - the organic fumes vaporizing off the crude on the beaches made her sick. Exxon deserved all the crap/political fallout it got because of the lousy handling of that accident by its executives. The parent company of Tylenol set the gold standard in the early 1980s for how executives should respond to such crises.
One thing I just thought of: Isn’t OPEC going to throw a hissy-fit? They’ll no longer have the oil option to control the world or the US for that matter. Our region will become the world’s oil exporter.
yeah tax on tax is really cool
almost as good as collecting tax for one purpose and spending for another
and found this
CALIFORNIA’S GAS TAX HISTORY
1923: State lawmakers institute first gas excise tax of 2 cents a gallon.
1927: Tax rises 1 cent a gallon to pay for new road construction.
1932: A 1-cent federal gas tax is created.
1947: State raises tax to 4.5 cents a gallon.
1971: State applies sales tax to fuel purchases, with money going into the general fund.
1983: Lawmakers boost excise tax to 9 cents a gallon; federal gas tax also raised from 4 cents to 9 cents.
1990: Federal gas tax rises to 14.1 cents.
1990-94: Voters support Proposition 111, which hikes excise tax to 14 cents a gallon, with automatic penny increases each year through 1994, to a total of 18 cents a gallon.
1993: Federal gas tax rises to 18.4 cents.
2002: Sales tax moves out of general fund into transportation.
2010: Sales tax on gasoline reduced, and excise tax set at 36 cents a gallon.
2013: Increase of 3.5 cents a gal
Just for your information, there have been recent articles about how OPEC is about to lose the control they once had. I believe this is true.
And another thing that I’ve been reading over the last couple of years is that the USA will become the number one exporter (that’s the “USA” - not North America) of oil to the world - in the next decade - far outstripping Saudi Arabia. I believe I recently read that the USA has over four times the reserves of oil that Saudi Arabia does.
You would have to search that out for the details - but the general picture I’m talking about is coming down the pike.
That makes perfect sense in a confiscatory government like ours. They are always on the lookout for additional revenue streams.
Yet.
Would you bet your life, your fortune and your sacred honor that obama, pelosi and reid won't make it so?
That's not what I'm talking about. If Mexico allowed foreign private enterprise to invest in their country, they would be much better off. As of now, they have an obsolete nationalistic economic model which produces corruption and stagnation.
The illegals in the U.S. sending home millions back to their relatives is an entirely different subject matter.
The gov’t will just add a gasoline purchase fee. No need for taxation.
Yeah ... I would say that’s a safe bet that they’ll not turn those taxes into a price fixing mechanism. They couldn’t ever keep up ... LOL ...
I mentioned earlier that I saw gas prices in Tulsa, Oklahoma run all the way down to 99¢ a gallon in January of 2009 — from a record high just a few months prior. No one could have ever adjusted the taxes to keep up with that.
And just recently, over the span of a few months, I’ve seen the prices fluctuate about 60¢ a gallon - both up and down. You can’t get laws passed that quick ... :-) ...
SO ... no, you won’t see gas taxes used as a price control mechanism.
Any reasonable person would realize that lower gas prices would encourage people to drive more. More gallons of gas sold=more tax revenue, especially if people start driving honking big SUV’s. However, I doubt that there are enough reasonable people in government to realize this.
Because of FCPA and the UK Anti-Bribery Statutes there will be few US or UK companies participating. This is the same reason US companies are not represented very well in Iraq or Afghanistan.
Sorry about my post formatting above
Right - only if Obamalamadingdong will allow it. If he sees his Muslim friends hurting rest assured he'll do everything he can to prevent us from being self sufficient. I still can't fathom why Reagan didn't let it happen.
Obama can slow things down right now - but he can’t change the long term dynamics of the situation. This changes the entire worlds political dynamic as far as oil is concerned.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.