Posted on 04/12/2002 8:40:43 AM PDT by eseales
If you have received this stupid e-mail, copy and send this back to them. I did a little leg work this morning and this will provide them the facts they obviously and desperately need.
The Cost of Oil and the Price of Gas
The price of gasoline is determined by the cost of a barrel of oil on the world market. There is only one cost for oil around the world and it fluctuates according to supply and demand and occasionally other events, such as war. The current cost per barrel is $27.00.
Oil companies do not simply choose a price for gasoline that will make them the most money. That is an intellectually lazy and ridiculous argument. Anyone with common sense and an Economics 101 education understands that the market determines prices.
As with any other product, gasoline does not come from the ground ready to be pumped into your car. Once an oil company purchases crude oil, it must be transported to the United States, refined, and delivered to various areas around the country. According to the Energy Information Administration, about 26% of the price of gasoline goes toward this process.
Arm yourself with the facts and learn more about the price of gasoline from: http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/primer_on_gasoline_prices/html/petbro.html
Learn about oil companies from people who actually know something about them: http://www.phillips66.com/energyanswers/OilProfits.htm
TAXES
The biggest cause of high gas prices after the cost of crude oil is the amount of taxes that are collected per gallon. The latest posted profits of oil companies amounted to about 7.3 cents per gallon. Wow! They’re really screwing us! Below is a chart displaying the current amount you pay in taxes on top of what oil companies supposedly “gouge” us. I see that in North Carolina, I am paying 95 cents for gas and 40 cents in taxes. How much is the government gouging you??
Alabama 36.4 Alaska 26.4 Arizona 36.4 Arkansas 37 California 36.4 Colorado 40.4 Connecticut 54.4 Delaware 41.4 DC 38.4 Florida 31.4 Georgia 25.9 Hawaii 34.4 Idaho 43.4 Illinois 37.4 Indiana 33.4 Iowa 38.4 Kansas 36.4 Kentucky 34.8 Louisiana 38.4 Maine 37.4 Maryland 41.9 Massachusetts 39.4 Michigan 37.4 Minnesota 38.4 Mississippi 36.8 Missouri 35.4 Montana 45.4 Nebraska 43 Nevada 43.15 New Hampshire 37.9 New Jersey 28.9 New Mexico 37.275 New York 41.05 North Carolina 40.7 North Dakota 38.4 Ohio 40.4 Oklahoma 35.4 Oregon 42.4 Pennsylvania 44.3 Rhode Island 47.4 South Carolina 34.4 South Dakota 38.4 Tennessee 38.4 Texas 38.4 Utah 42.9 Vermont 38.4 Virginia 35.9 Washington 41.4 West Virginia 43.75 Wisconsin 42.2 Wyoming 27.4
The federal tax of 18.4 cents is included in the above sums and is collected in all states. Source: The Louisiana Mid-Continent Oil and Gasoline Association.
Dependence on Foreign Oil
Our dependency on foreign sources of oil has a great deal to do with why we pay more for gasoline. In 1992, the United States imported about 30% of its crude oil from foreign sources. Today we depend on foreign sources for about 50% and that is expected to increase to 60% in the next four years unless we do something about it.
The more we depend on OPEC and other foreign nations for oil, the more influence they have on not just the amount we pay for gas, but on our economy as a whole. Saddam Hussein’s halting of oil exports earlier this week cause fluctuation in gas prices. Did you know that the U.S. is the single largest importer of Iraqi oil around the world? Hussein needs our business, and because democrats and environmental groups refuse to allow us to explore and drill for oil in our own continent, we have no choice but to buy from him.
This is why drilling in Alaska and in other U.S. areas is so important. Despite what environmental groups in this country would have you believe, drilling for oil and other minerals has advanced as impressively as medical technology. You wouldn’t believe someone if they argued that heart surgery was done today using methods from 30 years ago, would you? The myths circulating about the damage that could be done to ANWAR are foolish and false. Drilling for oil leaves barely a footprint anymore and the economic boost it would provide to Alaska is why the state is pushing so hard for it. How selfish of environmentalist in the lower 49 states to impose their ignorance on a region desperate for jobs.
And as for the lie that there isn’t “even enough oil there worth drilling for,” It is estimated that the amount of oil that is known to be available in Alaska could take the place of Saddam’s oil import to the U.S. for 43 years. And that is just the oil we know is there. Drilling technologies allow us to drill deeper than before, promising further discoveries.
Democrats
This country has not had an energy policy in almost 10 years. The Clinton Administration managed to avoid one during their stay and now that President Bush has sent one to Congress, Democrat Senate Majority Leader, Tom Daschle has refused to allow a vote on it. Did you get that? **REFUSED TO ALLOW A VOTE** It is one thing for a bill to lose in the Senate based on a lack of support, but it is entirely another when one man decides what will and won’t be voted on. The longer we allow Senator Daschle to delay meaningful policy on energy, the more you can expect expensive gas. Perhaps Mr. Hollsworth should be encouraging a boycott on electing democrats?
I explained that to one of the idiots that sent me the e-mail and suggested that if they really wanted to make a difference they should just stay off the road. This way they would actually buy less gas and the real plus would be my less time consuming commute no longer hampered by fools driving clown cars at 20mph.
I agree. Although I gotta admit those clowns really know how to carpool. I saw about 15 of them get out of a car at the circus.
I would stop buying gasoline in a heartbeat--but my car is addicted to the stuff. What a bunch of idiots!
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.