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There are no special subsidies in this discussion... what they want to do is cut out business deductions that are used by every business. This is simply an attack on oil companies for political reasons.
As far as leases not being used... you don't have all the facts. You bid to win a lease but then you start exploration and if you don't find hydrocarbons that you can produce profitably in the current environment you don't work that plot. Just because the government leased you the plot does not mean there is oil there.
The oil companies make much less percentage profit than many other industries and a heck of a lot less per gallon of gasoline than the government does in tax.
This is political folly from DC.
there are plots that no exploration have occurred. also...most oil companies aren't truly in the business of selling gallons of gasoline. there are numerous stages along the way that oil companies mae their profit.
The 'government' pays for nothing... it is we the people. I use cars, trucks, buses all the time. All of the products I buy are transported by vehicles powered by oil and driven on roads. My police and fire protection count on oil and roads. I would love to have some 'magic' alternative but don't see one coming.
the entire fleet of L.A. County Buses run on natural gas. there are plenty of alternatives that require no magic at all. But we have to wait until people wake up and see for themselves, since the subsidies to the oil industry will likely never stop in the near-future. you have to realize, it's not just gasoline consumed by cars and trucks. it's everything that we use petroleum for, and in many cases is just utterly no reason for it to be in it (dish soap, laundry detergent, etc). everyone focuses the conversation on driving, which sure, it's somewhere around 50% of our oil consumption, and big changes to that system will result in reduction in oil consumption - but there are many areas where we can eliminate petroleum from our lives.
you aren't off base to question. we just need to put things in perspective:
"During the first three months of this year, for every gallon of gasoline and other products we refined and sold in the United States, we earned about 7 cents," Exxon executive Ken Cohen told reporters on a conference call.
"Compare that to the 40 to 60 cents per cents per gallon that went from gasoline consumers to the government (state and federal) in gasoline taxes," he said.
we have a government which is choosing to tax and regulate excessively, and there has to be some consideration given to that aspect. we are currently dependent on reasonably priced oil for our economic recovery-or simply there isn't going to be one.
what i seriously don't understand is why we are not going towards natural gas development. we have HUGE amounts of natural gas available, we don't have to go overseas to get it, we don't have to fight wars to get it, and conversion wouldn't be that difficult -assuming the EPA stays out of it.
at least people should have a choice. there about 8 million light duty NGVs in operation, so it isn't an "unproven" possibility. THAT would certainly generate some NEW american jobs.
i wonder how much more profit they'd have if they saved their lobbying dollars they spend around the world? partial saracasm. but seriously. how would you like to pay for the roads we travel on if we reduce the gas taxes?
the government takes in a LOT of money but seems to have an excuse for where it is going all the time.
use some of the money that they already took from the workers of this country.
we could be creating good jobs in this country with american oil exploration and natural gas conversion but, instead, people would rather focus on blaming the bad oil companies for trying to make a profit.
at the same time, the retirement savings of workers across the country are being plowed into oil companies.
the government takes in a LOT of money but seems to have an excuse for where it is going all the time.
use some of the money that they already took from the workers of this country.
we could be creating good jobs in this country with american oil exploration and natural gas conversion but, instead, people would rather focus on blaming the bad oil companies for trying to make a profit.
at the same time, the retirement savings of workers across the country are being plowed into oil companies.
there was part of the stimulus that went to construction, yes. but generally speaking, ongoing maintenance comes from that gas tax. it's got to be paid for somehow. eliminate the taxes, and do what? toll them privately like CaptainNJ says? i'd love to see how expensive roads would be then....
toll them privately like CaptainNJ says? i'd love to see how expensive roads would be then....
i didnt say that. id definitely like it considered but it may not be the most efficient way to do it. they may also consider collecting the taxes and subcontracting the work out and seeing if private companies can do it more cheaply.
i didnt say that. id definitely like it considered but it may not be the most efficient way to do it. they may also consider collecting the taxes and subcontracting the work out and seeing if private companies can do it more cheaply.
well, privatizing roads would only mean private toll roads. i can't imagine any other way for a company to maintain the roads without charging directly for their use?
as for collecting the taxes and subcontracting the work out...that's essentially what is done in most places i know of now. the road construction is done by companies that bid for the work. now, of course, we know the bidding process isn't always the best, but for the most part i think this is pretty basic. maintenance of roads has gotten more expensive over the past decade because of the rising prices of the commodities used in the contstruction of roads. another thing is, many folks are short sited and choose to use cheaper materials that last less time than higher quality materials that cost more but require less maintenance.
read the article i pointed out. one of the subsidies they are targeting are really for all manufacturers....but they only are attacking the "oil subsidies" in that category (oil companies benefit from the subsidy that many other companies benefit from as well).
the funny thing is...conservatives are the ones trying to block the end of these subsidies, while at the same time arguing for "less government". i love it.
I am a conservative and I am all for dumping the subsidies but what would you do about the $2.1 billion Shell Oil has spent more than $3.5 billion in Alaska outer continental shelf drilling, including $2.1 billion for leases in the Chukchi Sea in a 2008 lease sale, but has little to show for it because of court challenges or failure to obtain permits.
In just a single lease Shell paid $2.1 billion to the government but now the same government refuses to issue permits.
Should Shell get their $2.1 billion back or should we all just say *********, shell and while you are at it we suggest you explore for oil off Brazil?
well, privatizing roads would only mean private toll roads. i can't imagine any other way for a company to maintain the roads without charging directly for their use?
as for collecting the taxes and subcontracting the work out...that's essentially what is done in most places i know of now. the road construction is done by companies that bid for the work. now, of course, we know the bidding process isn't always the best, but for the most part i think this is pretty basic. maintenance of roads has gotten more expensive over the past decade because of the rising prices of the commodities used in the contstruction of roads. another thing is, many folks are short sited and choose to use cheaper materials that last less time than higher quality materials that cost more but require less maintenance.
yeah, i think that you need to have a more competitive environment. government needs to drop rules that dont do anything to improve quality or reduce costs.
i just cant support them getting additional funding with the logic: they need more money to fix the roads. the roads arent worth pissing away money on. id rather let their condition suffer than throw good money at an incredibly inefficient and corrupt process.
Last edited by CaptainNJ; 05-09-2011 at 12:10 PM..
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partial saracasm. but seriously. how would you like to pay for the roads we travel on if we reduce the gas taxes?