Drill, Baby, Drill, and Export to S. America

[boutons_deux]

Oil companies are making more money and less fuel

http://www.latimes.com/media/photo/2011-04/61227702.jpg

The nation's refineries are operating at about 81% of their production capacity,

Refiners are exporting large amounts of gasoline and diesel to foreign buyers willing to pay a premium. Demand for refined products such as gasoline is expected to go back into decline in the U.S. by the end of 2011 because of increased use of alternative fuels, among other things, so refinery companies are looking to broaden their reach with new customers overseas, particularly with diesel fuel.

"U.S. refineries have been sending 15% to 20% of their production overseas for about a year now,"

http://www.latimes.com/business/la-fi-oil-refineries-20110429,0,6421589,print.story

==============

So no new refineries because of regulatory NIMBYism? no, because insuffiicient demand, and no desire to invest, much more profitable (for mgmt, investors )to pocket the low-taxed profits than invest. Low taxes discourage investment.

[boutons_deux]

Thirty Years Ago, Gas Prices Were 30 to 40 Percent Higher

As gasoline prices approach $4.00 a gallon, we are tempted to think this is the highest price it has ever been. But in 1981 the average price was $1.35 and by many indexes that was much higher than today.

If we adjust that price by the CPI the 1981 "real price" is $3.24. But the average gas mileage of a car was 16 mpg in that year and is about 23 now. So the "real" price of gas (in 2010 dollars) to drive a mile in 1981 was 17.8 cents. If you divide $4.00 by 23 you get a price per mile of 17.3 cents. So by comparing the two periods using the CPI to deflate and price per mile seems about the same then and now.

The CPI is, however, not the best index for this comparison. (Go to the Relative Value of a U.S. Dollar to see a discussion of this.) It would make more sense to use the average wage or the average amount spent per household (what we call the consumer bundle). Under these two indexes, the "real price' was $3.62 and $3.92. These indexes give you a "real" price of gas (in 2010 dollars) to drive a mile in 1981 of 22.6 and 24.5 cents. This is 30% and 40% more expensive than the per mile rate at the current 17.3 rate of a $4.00 gallon of gas today.

Two more things that one should consider: The lowest federal income tax rate was 13.83% in 1981 and it is 10% today. And this year all wage earners are not paying their half of the social security tax.

http://www.huffingtonpost.com/samuel-h-williamson/thirty-years-ago-gas-prices_b_856058.html?view=print

[boutons_deux]

U.S. Becomes Net Exporter Of Fuel For First TIme In Twenty Years

According to data from the Energy Department, starting last November -- with the exception of the month of January -- the U.S. began exporting more petroleum than it imported.

In February, the U.S. exported 54,000 barrels of oil more than it purchased abroad, with diesel and finished petrol leading the increase. According to the American Petroleum Institute, an industry group, U.S. refined oil product exports rose in the first quarter of 2011 to 2.49 million barrels per day, a 24.4 percent year-over-year increase, the Financial Times reports.

Imports dropped to 2.26 million barrels a day, a 14.4 percent decline, according to the FT.

Analysts attribute the increase in exports to a combination of overlapping factors: unrest in the Middle East leading to higher oil prices, a weak U.S. dollar and increased spending power abroad, particularly in Latin America.


http://www.huffingtonpost.com/2011/05/03/us-becomes-net-exporter-o_n_857085.html?view=print

[Wild Cobra]

Who cares?

[DMX7]

Who cares?

Who cares that we're subsidizing Big Oil to produce domestically and they're sending their oil to South Africa?

[Wild Cobra]

Who cares that we're subsidizing Big Oil to produce domestically and they're sending their oil to South Africa?
Subsidizing how?

[DMX7]

With tax breaks.

[DMX7]

And I meant South America. Also, sad that Valero is one of the main culprits.

[TeyshaBlue]

Didn't we give Brazil something like 2 billion bucks for them to explore for oil off their coast last year?

[Wild Cobra]

With tax breaks.
Tax breaks are not subsidies. They are not being given money, just paying less to the government.

As long as you liberals are going to misrepresent reality, we cannot have a proper debate.

Subsidy (http://www.merriam-webster.com/dictionary/subsidy):

: a grant or gift of money: as

a : a sum of money formerly granted by the British Parliament to the crown and raised by special taxation

b : money granted by one state to another

c : a grant by a government to a private person or company to assist an enterprise deemed advantageous to the public

[ChumpDumper]

:rolleyes

[boutons_deux]

"Tax breaks are not subsidies"

tax breaks are expenditures, tax revenue that is "spent" on the beneficiaries of the tax break.

fuck your semantics

[Wild Cobra]

"Tax breaks are not subsidies"

tax breaks are expenditures, tax revenue that is "spent" on the beneficiaries of the tax break.

fuck your semantics
Proper wording is important if one wishes to have credibility.

[ChumpDumper]

Why does the oil industry need so many tax breaks?

[Wild Cobra]

Why does the oil industry need so many tax breaks?
That's above my pay grade, but riddle me this.

Exxon's first quarter this year net $10,650 million after paying $26,236 million in total taxes. Is that right that the shareholders pay more in taxes than they receive?

EXXON MOBIL CORPORATION; FIRST QUARTER 2011 (http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-EventDetails&EventId=3939935)

[ChumpDumper]

That's above my pay grade, but riddle me this.

Exxon's first quarter this year net $10,650 million after paying $26,236 million in total taxes. Is that right that the shareholders pay more in taxes than they receive?

EXXON MOBIL CORPORATION; FIRST QUARTER 2011 (http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-EventDetails&EventId=3939935)So you want a mandatory minimum profit margin for businesses.

O

K

.

[Wild Cobra]

So you want a mandatory minimum profit margin for businesses.

O

K

.
Aren't you dizzy yet from all this spinning you are doing today?