Average Government Taxes on One Gallon of Gasoline: $0.481/gallon
(This is a national average for taxes. In Connecticut it is $0.68, New York $0.679, California $0.67)
Oil Company Profits on One Gallon of Gasoline: $0.07/gallon (US Operations)
Who is Gouging US! You got it, Our Government!
Below is information that we posted back in May of 2011. All of the data is still applicable and some has been updated:
I had a Progressive friend who said to me one time that companies had to have a “corporate conscience” when it came to profits and how they act as a “citizen” of a country. After staring at him for about 10 minutes and calming down considerably, knowing that he was big in the stock market, I asked him, “As a stockholder, what would you do if you owned Exxon stock, and you heard the Chairman of Exxon announce that the company was going to drop oil prices by $40 Billion dollars so they could reduce gas prices at the pump by 20 cents a gallon, and oh by the way, the $40 billion is coming out of what was going to be stockholders dividends!” He said he would file a class action suit against the company for driving down the stockholder’s share value! So much for “corporate conscience”!
Big Oil Company profits are large in terms of raw dollars due to the shear size and volume of their gross income. In reality, Big Oil Companies percent of profits are less than 1/4 that of Microsoft and Apple. But, Idealogues in Washington and others point to the raw dollar profits instead. Companies live and die by profits but let’s see just where the money goes.
Q1/2010: ExxonMobil net profit: $10.65B
Q1/2010: ExxonMobil Income Taxes: $8.0B
Q1/2010: ExxonMobil Capital Investment: $7.8B
GENERAL ELECTRIC, A DARLING OF OBAMA HAD A NET PROFIT OF OVER $5B AND PAID ZERO US INCOME TAXES! In fact, has almost a half a billion in tax credits.
Q1/2011: Current Profits Per Gallon of Gasoline:
ExxonMobil: $0.07/gallon (US Operations)
Local, State and Federal Gas Taxes: $0.481/gallon
Taxes are 7 times higher than Big Oil Profits per Gallon!
Now, wonder why Washington and the Community Organizer in Chief needs a scape goat? Who is gouging the consumer? It gets worse.
Who is limiting the supply of domestic gas and oil. Come on, guess! You are right, Washington DC. Who is killing nuclear development in the US? You are right, Washington DC. What is Washington DC doing? They are going after speculators!
Speculators are watched us bomb Libya, one of the largest oil producers in the world; they are worried about the Nut Jobs in Iran who we have utterly failed to control over the past 12 years; we are ignoring pleas from Saudi Arabia, the largest oil producer, to help quell uprising all over the oil-producing Middle East and North Africa and help to re-establish a stable environment; and now we face a very real threat from world-wide small acts of terror from Al Qaeda with the death of Bin Laden and the ridiculous Koran Burning incident in Afghanistan for which we are apologizing. All of these external pressures will keep oil prices up as speculators are betting that oil is going to get harder to extract and supply lines will be disrupted. Would you bet right now that the world is getting more or less peaceful? Less = Higher commodity prices, period!
At the same time, the US is printing money and raising its debt by leaps and bounds driving the dollar into the financial commode. This will raise oil prices as well. The only thing putting downward pressure in oil prices is our government’s incompetence in dealing with the recession that is driving down demand due to more and more Americans fleeing to public assistance due to loss of jobs and opportunities.
Do I feel sorry for Big Oil and Speculators? No but I don’t blame them for our woes either. The blame is squarely in the District of Columbia!
- Maybe drilling won’t solve all of our problems but let’s see just how close to self-sufficiency we can get!
- Maybe Shale is not the answer but let’s give it a shot and see if that helps lower our foreign energy dependence.
- Maybe build a 20 more refineries so when we have to take one offline for maintenance there is not a 15 cent per gallon spike.
- Take a shot at building local smaller and more stable nuclear reactors.
- Open Yucca Mountain to store spent fuel rods rather than leaving them and us exposed by having to store them in less safe environments.
If I was an oil company executive, I would pre-book a flight to Washington DC every 6 months or so to accommodate my semi-annual invitation to testify before congress or the justice department. 2011 will be no exception! In addition to those nasty OIL COMPANIES who must be investigated and demonized, those nasty SPECULATORS are also bad people who are only looking to stick it to the consumers and they must be investigated and intimidated as well. Do I like paying $4.50 for Regular Gas? Hell No! but do I blame the oil companies or the speculators? Hell No! I look in the mirror and say to myself, “YOU JERK, YOU SEND THESE MORONS TO WASHINGTON! YOU ARE AS MUCH TO BLAME AS ANYONE!”
Oil is not the only commodity that is demanding a high price; STUPIDITY is actually outpacing the price of crude oil! Most of the latter is above ground in Washington DC and is cornered by about 536 Congressmen and the President of the United States. Can we take a deep breath; purge our minds of the insane sound bites from the media and the politicians; and examine two key scapegoats of high gasoline prices?
Speculators are made up of investment consortiums, individuals, and assorted investors. All commodities such as oil/gasoline are traded on various exchanges via futures contracts or spot market positions. Trades are two-sided; for every person buying a contract, someone else is selling a contract. When there are more buyers than sellers, the buyers “bid up” the price of the contact and the commodity price goes up. When there are more sellers than buyers, the opposite takes place. Buyers and sellers are the same, they are neither good or bad. They are trying to make money either by selling for more than they paid for a commodity or selling short and hoping that the market goes down. In short, speculators make markets. Without speculators, there is no market and stock markets, currency markets and commodity markets would cease to exist and we would be back to local bartering.
Why are Speculators always put up on the Demon Pedestal? Because they are easy, nondescript bogey men and women. They don’t exist, you can’t see them; touch them; and their business cards don’t carry the title of “Speculator”. Politicians always use strawmen to point the finger away from themselves. This administration takes this to an art form worthy of the great masters. The bottom line is that speculators cannot directly influence the production of a commodity; directly impact the delivery of a commodity; directly expand the supply of a commodity; directly influence geopolitical events that can impact the price of one or more commodities. Speculators merely sit on the sidelines and try to guess what the impact will be on the commodity prices from such events. They, in short, make the market based on external events that they do not control.
2008-SPECULATORS REDUCE RETAIL GAS PRICES
FROM $4.12/GAL TO $1.61/GAL IN 4 MONTHS!
This is absolutely true! Speculators were the ones that sold down futures until they reduced gasoline prices by $2.51 per gallon. Were they invited to Washington DC to have Congress marvel at how they were able to reduce the prices so fast and so much? NOPE! But Congress was out on a witch hunt 4-6 months earlier trying to find those dirty SOB speculators who were driving gasoline prices up to $4.12/gal! Did Congress or the President go on TV and praise speculators for their humanitarian efforts to reduce gas prices? NOPE!
In short, get the government out of our energy lives so we can live our lives. Remember some of these facts the next time Obama takes on the Oil Companies. Or the next time he want to eliminate legitimate tax deductions that oil companies take. Who do you really think is going to pay the $4B expense deductions Obama is going to eliminate from the oil companies. Yep. Look in the Mirror Sucker… You have been politicized and bamboozled again by a politician. Class warfare is how they win. Oil Companies today, drug industry tomorrow, when is it going to be your turn? It will happen and sooner than you think.
Wake up America
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