Big Oil

[Tiger]

Did you know that the United States does NOT have any big oil companies. It's true: the largest American oil company, Exxon Mobil, is only the 14th largest in the world, and is dwarfed by the really big oil companies--all owned by foreign governments or government-sponsored monopolies -- that dominate the world's oil supply.

With 94% of the world's oil supply locked up by foreign governments, most of which are hostile to the United States, the relatively puny American oil companies do not have access to enough crude oil to significantly affect the market and help bring prices down. Thus, ExxonMobil, a "small" oil company, buys 90% of the crude oil that it refines for the U.S. market from the big players, i.e., mostly-hostile foreign governments. The price at the U.S. pump is rising because the price the big oil companies charge ExxonMobil and the other small American companies for crude oil is going up as the value of the American dollar goes down. They will eventually bleed this country into printing even more money and we will go into runway inflation once again as we did under the Carter Democratic reign.

This is obviously a tough situation for the American consumer. The irony is that it doesn't have to be that way. The United States -- unlike, say, France -- actually has vast petroleum reserves. It would be possible for American oil companies to develop those reserves, play a far bigger role in international markets, and deliver gas at the pump to American consumers at a much lower price, while creating many thousands of jobs for Americans. This would be infinitely preferable to shipping endless billions of dollars to Saudi Arabia, Russia, and Venezuela to be used in propping up their economies.

So, why doesn't it happen? Because the Democrat Party--aided, sadly, by a handful of Republicans -- deliberately keeps gas prices high and our domestic oil companies small by putting most of our reserves off limits to development. China is now drilling in the Caribbean, off Cuba, but our own companies are barred by law from developing large oil fields off the coasts of Florida and California. Enormous oil-shale deposits in the Rocky Mountain states could go a long way toward supplying American consumers' needs, but the Democratic Congress won't allow those resources to be developed. ANWR contains vast petroleum reserves, but we don't know how vast, because Congress, not wanting the American people to know how badly its policies are hurting our economy, has made it illegal to explore and map those reserves, let alone develop them.

In short, all Americans are paying a terrible price for the Democratic Party's perverse energy policies. I own some small interests in tiny, 4 barrel-per-day oil wells in Wyoming. We have 14 agencies that have iron-hand jurisdiction over us. If we drop any oil on the ground when the refinery truck comes to pick up oil from our holding tanks, we are fined. Yet down the road the state will spray thousands of gallons of used oil on a dirt road to control dirt. When it rains that oil runs into rivers and creeks. Yet a cup of oil on the ground at our wellhead is a $50,000 EPA fine plus additional fines from state regulating agencies. They treat oil as if it were plutonium that has the potential to leak into the environment. We are fined if our dirt berms are not high enough around a holding tank, yet the truck that picks up our oil runs down the road at 60 mph with no berm around it. People wonder why there is no more exploration in this country. It's because of the regulators; people who have lived their whole lives doing nothing but imposing fines on small operators like us for doing mostly nothing.

So, America enjoy your $4.00 per gallon gasoline. Your dollar is now worth 0.62 Euro-Cents. The lack of American production of GNP, the massive trade deficit (as labor markets have moved overseas to fight insanely high union imposed labor costs in America) and the run away printing of money (backed by nothing of value here in America) has caused the dollar to become more worthless on the international market. And that's where our oil comes from. It's paid for with dollars that become more worthless everyday. If we had just kept par with the Euro, we'd be paying $62 dollars per barrel for oil (42 gallons) or about $1.50 instead of $2.50 a gallon for crude oil.

What the US government also does not tell you is that it is the leaseholder and royalty recipient of most oil production, and receives 25% of the gross oil sales before we pay for electricity to lift the oil, and propane to keep the oil-water separators from freezing in the winters. We pay a pumper to visit each well everyday plus we have equipment failures all the time. We pay for that out of our 75% of gross sales. The government does not share in any expenses to run any production well. So, if the Big Oil Companies are making record profits, then so is the federal government from it's 25% tax on every molecule of oil sold to a refinery in this country. Why isn't the government on the stand for "record" profits? What you don't see is this 25% of the sales price of crude oil being siphoned away by the government. That money, plus the road taxes, state taxes, etc., amounts to over $1 per gallon of gasoline you are buying while the governments only admit to about 50 cents per gallon.

To all you Democrats, when you go vote for your candidate, a blazing liberal like Barrack Hussein Obama or Hillary Clinton, just keep in mind that their liberal spending habits will further decrease the value of the American dollar on the world market and your gasoline costs will hike even higher. As they introduce more give-away programs, raise taxes on everyone to pay people not to produce or work, your dollar will continue to dwindle on the world market and you will be paying $10.00 per gallon at the next election. Cheap hydrocarbon fuel is all over. Enjoy! Enjoy the fruits of your decision to elect these folks when you are there in that voting booth and you stab your pin through a Democrat's name.

William "Bill" Phillips

[Hunter]

So true Tiger, the same is happening here. Soon we will be paying 2.25 per liter. It's already at 1.50. We have enormus amounts of gas and oil reserves and unlimited amounts under ground not yet even drilled. They don't want to use it for the consumer,just reserved for war times,thats what they say.well looks like theres a war around here somewhere. But no they just keep buying of saudies.

[k43_8mm]

~S~
Did you know domestic oil is exported for higher prices!? : )~
Tiger mighta covered that but I didnt read tha whole thing.

[Hangman]

Great post tiger, another fact, in 2007 the fedral goverment made 1.44 trillon dollars in fedral gas tax. a big reason why they wount even think about suspending the fedral gas tax, imagine what the state you live in made off the 07 gas tax. Also in my state Maine canada drills off shore of us while we squabble over the passmquaddys putting a natural gas pipeline through tribal land . i want also to include a email i recived from my nice libral congress rep after i wrote an email supporting a bill by a republican congressman from penslvania which at first never got out of committy because all the democrates voted it down. The bill ( if pasted ) would unleash the oil companys in getting our own oil in our country. It would also have lifted bans on building new refiners, and nuclear power plants, and solar, wind and hydroelectric power. sadly i got the typical im owned by the green partys responce. this guy is trying to get one of our republican sentors seat this year, again sadly our sentor is a rino ( republican in name only ) so no help from both of our republican sentors. the letter is as follows : Dear Peter:



Thank you for contacting me regarding increasing fuel prices. I appreciate hearing from you.



The high price of fuel is the single-biggest issue currently facing our country. There is no more pressing issue than the prices millions of American families are paying right now at the pump and for next winter's heating fuel. I support increased domestic oil production coupled with long-term policies that will make our country more energy independent.



I strongly encourage oil companies to utilize drilling rights and refining capacity that they already have at their disposal. Currently, oil and gas companies hold leases to 68 million acres of federal land that they are not producing on. It is estimated that these inactive leases could produce an additional 4.8 million barrels of oil per day. In addition, 80 percent of the oil and gas resources in the outer continental shelf are located in areas where drilling is already allowed or has been recently authorized, but the majority of these resources have not yet been tapped. These sites should be tapped now, but we must be realistic in recognizing that even these resources will take years to come on the market.



Congress has taken action to help turn the tide and push fuel prices down, including suspending shipments to the Strategic Petroleum Reserve to help increase supply. Congress has also passed an energy measure which prohibits oil companies from engaging in market manipulation or providing false information about prices in the wholesale petroleum markets. In addition, Congress has started to close the so-called 'Enron Loophole,' which allows energy speculators to run up the price of oil with little or no oversight. Last spring, Congress voted to help stop OPEC from cheating consumers at the pump by authorizing the Justice Department to take legal action against OPEC state-controlled entities that conspire to limit the supply, or fix the price, of oil.



In the long term we must reduce our dependency on a single fuel source for our energy needs. Congress has taken steps in this direction by establishing new fuel economy, building and appliance efficiency standards. The House has passed and the Senate needs to pass important extensions for numerous incentives promoting investment in alternative energy and conservation measures. Finally, investment in research, development, and commercialization of new energy technology needs to continue. Altogether, these actions will provide us with a robust energy economy that can weather the ups and downs of the petroleum markets.



Thank you again for sharing your views with me. In addition, I also provide occasional email updates on a range of issues affecting people in Maine. If you would like to receive this information, please visit my website at http://michaud.house.gov/email_newsletter.asp and sign up for my email newsletter. I appreciate the opportunity to represent you.





With warmest regards,







Michael H. Michaud

Member of Congress


this line he added in here is un true : I strongly encourage oil companies to utilize drilling rights and refining capacity that they already have at their disposal. Currently, oil and gas companies hold leases to 68 million acres of federal land that they are not producing on. It is estimated that these inactive leases could produce an additional 4.8 million barrels of oil per day.


We in american havent built a refiner since the middle 70's last i herd there running at capacity, some never have been moderinized. There building a new refiner i think in Colorado a first in 30 years! second the leases fact is in true and im sorry but i forgot the facts on this. i think its got to do with the term of the lease and obtaing permits to drill on the land. just cause the oil company leases the land 1 doesnt mean they can drill on it and 2 they may or may not know exacly how much oil is in the land there leasing, they think theres oil there and buy the lease. same thing vietnam and china is fighting over to drill off from Florida.

I can go on but long post make for boring reading. But i urge everyone to start calling there reps and makin as much noise as possable, oil is the life blood of our country if it goes too high and planes cannot fly, and trucks cannot aford the fuel to transport oranges or king crab then our country will look alot diffrent then the way we know it