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Excuses, Excuses, Excuses . . . for high gas prices. The industry profits are the smoking gun.

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bigtree Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 11:44 AM
Original message
Excuses, Excuses, Excuses . . . for high gas prices. The industry profits are the smoking gun.
Whatever the reason, no one can convince me that the oil executives and everyone else who is enjoying record profits from the increased price of gas will EVER be willing to do whatever it takes to reduce the price of oil and gas unless directly challenged. They're already assuming it's their right to burden those who DEPEND on oil and gas with their obscene profit-taking.

While there is little argument that we need to reduce consumption, the recent price phenomenon could be solved in the consumers' favor if the industry had the will to do what it takes to bring production up and lower prices. But, they have the knife in now, and they're twisting it. They won't stop unless we directly confront them as consumers.

One way to confront them, other than with the long term goal of reducing consumption, is to have a sustained, long term boycott of particular oil companies to drive their prices down and hope to spark a price war as they reduce the amount they're charging to stem losses.

Can you think of any other direct actions against the industry and their enablers - outside of a long-term consumption strategy - which would be effective in moving them off of higher prices?

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Monkeyman Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 11:48 AM
Response to Original message
1. Rant On Brother K&R
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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 11:48 AM
Response to Original message
2. I recall when people were blaming Bill Clinton for the price of gas.
Are the same people blaming Bush; if it's as simple as scapegoating one person for the ills of the world?

Light rail is here and there are few reasons WHY it cannot be used. Oil is used for lots of things other than gas (plastic being the most obvious); the oil businessmen would not lose their house and homes.
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Horse with no Name Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 11:50 AM
Response to Original message
3. The talking point seems to be pointing the finger at Europe and the prices they pay for gas
to make it all better.
The time to nationalize our oil supply is here. With the obscene profits that the oil companies are making, the profits alone would pay for a national healthcare plan. I surely wouldn't mind paying $4 or more for a gallon of gas if it was paying for something else besides lining the pockets of the already wealthy.
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snappyturtle Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 11:52 AM
Response to Original message
4. They're not going to be moved off of higher prices....oh
contraire.....they're going to keep them up....make money while the sun shines!
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wilt the stilt Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 11:54 AM
Response to Original message
5. makes me laugh
The oil companies say that there are unexpected repairs to a refining facility and that is why the prices are high. Name another industry that is allowed to pass along costs because they didn't maintain their equipment.
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louis-t Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:24 PM
Response to Reply #5
20. Insurance companies that were allowed to pass their stock mkt. losses
on to consumers.
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bigtree Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:32 PM
Response to Reply #20
25. some industries need the subsudies
the oil industry obviously doesn't
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Buzz Clik Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 11:58 AM
Response to Original message
6. The prices go up, but the consumption stays high.
Why should the oil companies change their strategy when apparently nothing they do influences consumption?
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Captain Angry Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:00 PM
Response to Reply #6
7. Exactly.
I want to see those demand numbers though.

I want to see how long the lag is between when demand is reduced, and when prices are reduced.
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Cobalt-60 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:16 PM
Response to Reply #7
16. Credit purchases absorb the shock
I don't borrow so I begin suffering immediately.
Debt Slaves can merely ' put it on their tab".
Then they whizz by me in a Suburban at 80 mph.
They often shake their fists as they pass because I'm not driving fast enough for them.
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Captain Angry Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:26 PM
Response to Reply #16
21. You and me both.

I get looks from the people in my car when I only do the speed limit.

I don't borrow either. I pay with a credit card, but that is just for the cash back. I pay the card every month, and pay no interest.
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bigtree Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:31 PM
Response to Reply #21
24. Many folks are just absorbing the interest, adding to the cost.
Buying gas is much like buying any necessity. The card is there, along with the need. I've heard anecdotally that this is a widespread phenom.
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bigtree Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:06 PM
Response to Reply #6
12. consumption has always risen, but the industry seemed to know what the public would bear
Edited on Mon May-07-07 12:11 PM by bigtree
It's never been this bad, I think. They won't stop until we signal that we've had enough.

Why are taxpayer dollars still subsidizing the oil and gas industry? We started subsidizing the oil industry in 1916. Why can't they stand on their own?


from The Union of Concerned Scientists:

"Government directly subsidizes oil consumption through preferential treatment in tax codes. A multitude of federal corporate income tax credits and deductions results in an effective income tax rate of 11 percent for the oil industry, compared to the non-oil industry average of 18 percent. If the oil industry paid the industrywide average tax rate (including oil) of 17 percent, they would have paid an additional $2.0 billion in 1991. Our results are consistent with a recent report by the Alliance to Save Energy that estimated the benefits of individual federal corporate income tax provisions. Their results showed that in 1989 preferential treatment yielded $1.8 billion to $4.6 billion in individual income tax benefits to the oil industry (Koplow, 1993).

At the state and local levels, sales taxes for general revenues on petroleum products are lower than the average sales tax rates, and consequently, motorists underpay for general government services. (Sales taxes are charges on petroleum products above user fees that are used for general revenues.) Another recent study, by the Alliance to Save Energy, found that state and local governments taxed gasoline at about half the rate as other goods -- approximately 3 percent versus 6 percent (Loper, 1994) -- resulting in an estimated $2.7 billion revenue loss from gasoline sales alone in 1991. When home, industry, and office petroleum products are included, the total state and local revenue loss sums to $4.1 billion.

Net Government Expenditures

Federal, state, and local governments provide a variety of oil- and transportation-related infrastructures and services. Some of these expenditures are financed through earmarked user fees, such as dedicated highway fuel taxes and vehicle registration fees. What we refer to as "net government expenditures" (i.e., government expenditures not financed through user fees) are either direct subsidies or indirect subsidies. Direct subsidies include government-funded energy research and development. Indirect subsidies include the Strategic Petroleum Reserve, military expenditures related to the Persian Gulf, and police and fire protection related to highway use. Although "user fees" in the form of gas taxes, registration fees, and tolls pay for a portion of the infrastructure services, large government outlays remain that must be covered by general revenues. Delucchi and Murphy (1995) estimated the net government expenditures at the federal, state, and local levels to be from $25 billion to $45 billion in 1991. (Delucchi's <1995> estimates were only for transportation and ignored the portion of expenditures that subsidized oil not used for motor vehicle fuels. Total oil industry and motor vehicle subsidies would consequently be larger.)

Based on a recent report by the Alliance to Save Energy (Koplow, 1993), we estimated that the total expenditures by federal agencies alone amounted to between $1.4 billion and $2.0 billion in 1990. (Unlike Delucchi <1995>, Koplow <1993> i) does not include state and local government outlays directly benefiting the oil industry; ii) does not include government expenditures on non-oil motor vehicle infrastructure and services; and iii) includes federal expenditures for infrastructure and services related to the shipping of oil. The first two factors far outweigh the third. Consequently, the direct federal outlays are an order of magnitude smaller than the total net government expenditures.) The five largest agency outlays were the Army Corps of Engineers Civil Program, the US Coast Guard, the Maritime Administration, the Strategic Petroleum Reserve, and the Department of Energy. The first three outlays total about $1 billion annually and benefit the oil industry through infrastructure and services related to the shipping of oil. The Strategic Petroleum Reserve's existence is a direct result of our overdependence on imported oil and is intended to reduce the impacts of a severe supply disruption. It costs $320 to $400 million annually to maintain. Finally, the Department of Energy spends over $100 million annually on developing and improving oil production techniques.


http://go.ucsusa.org/publications/report.cfm?publicationID=149

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Buzz Clik Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:33 PM
Response to Reply #12
26. "They won't stop until we signal that we've had enough." Absolutely!!!
... and it's a signal we've have never given in this country.
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Greyhound Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:10 PM
Response to Reply #6
14. I'm not sure, but you seem to imply that the rate of consumption is
optional. While there could possibly be a single digit reduction, the fact remains that this nation has been built around the automobile for the last 60 - 70 years and that is not going to change any time soon.

That is not to say that changing this should not be pursued, but it will take generations to realize the change and the benefits of such a course.


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shenmue Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:01 PM
Response to Original message
8. Where I come from, it's called "extortion"
The vast majority of drivers in this country have standard cars. If you want to get a hybrid, there's a waiting list. We're up against the wall. :grr:

This kind of shit should be prosecutable for racketeering.
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Greyhound Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:04 PM
Response to Original message
9. Winfall profits tax.
Set the tax to kick in at profits over $250,000,000 to 60%, the proceeds to go into two areas, alternative energy research and development, and repair and improvement of the transportation infrastructure.

This would have two immediate effects in addition to the acceleration of switching away from oil as a source, lowering of the price at the pump in order to mollify the outrage of consumers and take the focus off of the companies themselves, and slow the increase in share prices, removing much of the short-term speculation and encouraging long-term investment, both of which which would slow the rate of real inflation.

If the afore mentioned tax were implemented it would encourage the companies themselves to develop the needed alternatives (we might be surprised at how innovative these entities can be when properly motivated), and to build the increased refining capacity needed to take the constant upward pressure off of pump prices.

There would be several perceptually negative effects on the companies themselves and the Wall Street investors would scream at heretofore unheard volume, but the long-term stability of these organizations would be enhanced, a goal that has been ignored for far too long.


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Double T Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:04 PM
Response to Original message
10. There is plenty that can be done................
barrage congress and the media with phone calls and letters. Trade in your 6 and 8 cylinder vehicles when there is NO REAL NEED for such a vehicle; replace the gas guzzler with a fuel efficient 4 cylinder engine. Force exposure of the cheney super secret screw America energy policy. Force investigations into the 'reasons' for the shutdown and limiting of gasoline production at oil refineries, reasons for the EPA not granting permits to build new refineries (as if we don't already know...dick) and impeach the bush administration so that big oil and the WH can't collude to screw the American people.
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bigtree Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:08 PM
Response to Reply #10
13. I just finished my workout with my human-powered push mower
I bought it a couple of years ago from a company called 'American'
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Double T Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:13 PM
Response to Reply #13
15. Great idea!! I'm adding the push mower to my garage sale purchase list.
Thanks!
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bigtree Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:22 PM
Response to Reply #15
19. Mine's really lightweight. They have an assortment of designs and sizes
You're going to have to get used to a rougher cut, but the looks from the neighbors on their riders and those pushing their heavy gas guzzlers are well worth it. You may have to go over an area a few times to get it down, but it's served me well. I'm always proud to pull it out and put it to work.

Here's an Amazon sales testimonial page for an American pusher: (I bought mine new for $130.00

American Lawn Mower Company 16-Inch Hand Push Reel Mower #1415-16



List Price : $109.99
Amazon's Price : $107.89
You save : $2.10

In these modern times, where channel surfing is rapidly becoming the nation's most popular sport, the American Lawn Mower Company suggests to return to a simpler time with this hand push reel mower. The mower runs solely on manpower, thus saving valuable resources such as gasoline, oil, and electricity while simultaneously eliminating the noise and air pollutions frequently associated with fuel-run lawn mowers. Additionally, this mower combines necessary yard work with exercise, improving both the user's lawn and cardiovascular health. Owners of hand push mowers also benefit from a lack of fuel expenses, and may also save by allowing grass clippings to mulch for natural fertilization.

This hand push mower provides best results when used on grasses no longer than 3 to 4 inches high. Regular lubrication of the bearings and blades with WD-40 further the success of this mower. The mower features four spider five blades, ball bearing reel. With an adjustable four-section roller, the mower has a cutting length range of 1/2 to 2-1/4 inches. Both the reel and blades are constructed from tempered alloy steel and are held in place by an unbreakable steel plate. The cast iron wheels measure 10 inches in diameter and the mower covers a width of 16 inches. The mower weighs 32 pounds upon shipping with some assembly required. --Jessica Reuling

Features :

* Hand pushed reel lawn mower ideal for low-growing grass up to 4 inches high

* Cutting heights from 1/2 to 2-1/4 inches with adjustable 4-section roller and 3-position adjustable wheel height

* Tempered alloy steel reel and blades held in place with unbreakable steel side plate

* 10-inch diameter cast-iron wheels; 1-inch welded torsion bar frame; powder coated flare-style cushion-grip handles

* 16-inch cutting width; assembly required

testimonials here: http://www.flowerpotheaven.com/amazongardensupplies/American_Lawn_Mower_Company/American_Lawn_Mower_Company_1415_16_Full_Feature_Hand_Push_Reel_Mower__16_Inch_/B00008IHSK.html
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ComerPerro Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:17 PM
Response to Reply #13
17. I'd thought about those for a while. how well do they work?
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bigtree Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:27 PM
Response to Reply #17
22. it takes some adjustment. I'm a typical yard head who was religous about my lawn
Edited on Mon May-07-07 12:28 PM by bigtree
I cut the size of the lawn down with flower beds to make the transition.

You have to make a couple of passes to get it down, but the light weight makes that effort equal to pushing a regular mower on one pass. It needs to be sharpened, but mine sharpens by adjusting the blade and cranking it with a lubricant and the crank they provided. Easy stuff.

The mental reward is fantastic, and the environmental ones are more than evident.
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mmonk Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:05 PM
Response to Original message
11. Without the huge profit margins,
one could blame it on shortages or increased production costs. But that isn't what we're seeing so its market manipulation.
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INdemo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:19 PM
Response to Reply #11
18. I agree
and if congress should pass a windfall profit tax (which would be vetoed)but if they should the oil industry has already told congress go ahead pass it ,,,,we'll just pass it along to the consumer..
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bigtree Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:34 PM
Response to Reply #18
28. that threat could be a lever, though
if Congress got serious.

. . . and we KNOW how to make them pay attention to us
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raccoon Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:28 PM
Response to Original message
23. I think it's extortion. It works the same way those Enron trader creeps

jacked up the price of electricity in CA, by creating artificial shortages.
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Iwasthere Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:34 PM
Response to Original message
27. Check out these solar lawn mowers
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bigtree Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-07-07 12:42 PM
Response to Reply #27
29. nice effort
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