Posted by
Jack Cruger on Sunday, July 06, 2008 12:26:35 PM
Oil, Energy, Politics:
Ask questions and you will learn.
The question I asked was “why do the Gas Stations raise the price of gas when their inventory, in their ground tanks was purchased at a lower price. The answer makes common sense.
The Gas Stations are retailers and buy the gas from wholesale gas distributors at a certain price, for sake of this example, let’s say $1.00 per gallon, they apply their profit margin and sell it to the consumer. During the time the gas is being pumped from their in the ground tank the wholesale price goes up to $2.00 per gallon. If the Gas Station does not raise the per gallon price at the pump to meet the cost of replacement of the gas in the ground tank, they, the Gas Station, will not have the money to refill their inventory in the ground, which now has to be purchased at $2.00 per gallon. They will be $1.00 per gallon behind, thereby, losing money each time they order. Obviously, over very small period of time, the Gas Station would go out of business paying the difference.
So now I have the confidence to know that the guy in the corner is not ripping me off so where would I look next. I am going to start with trying to understand the proposed wind-fall profit tax.
I can tell you up front that not any of the big oil companies pay any taxes. In other words the government can tax them all they want and they will just pass them along to the consumers. California Sen. Barbara Boxer, sponsorship of S.3044 “the windfall profits tax” is one of her typical do something not knowing what she doing. Her logic is “the oil companies could avoid paying the tax by using their "windfall" to push alternative energy programs or refinery expansions”.
Now don’t you think if the oil companies could build new refineries they would do it without Boxer’s incentive? The problem is not the refineries it’s not getting enough oil to refine and even though some refineries are being expanded and built, the oil companies have been hamstrung by the politicians, because refineries are not the best looking structures, like Senator Harry Reid, the new U-Tube star telling the public we are all dying from oil and coal. He certainly looks and sounds like he is. Harry our life expectancy is on the rise and guess what, we are all going to die any way you, idiot.
Politics is our problem, congress is trying SCAM us with another HOAX and is for what ever reason been making us more dependent on foreign oil then we should. You see they can’t see the forest from the trees. They seem to forget oil is just not putting gas in our cars and heating and cooling our homes, but oil is use to produce many other items such as plastic. I am sitting at a desk, made of plastic, entering the document into my computer, made of plastic, and just printed out an E-Mail on my plastic printer, looking through my glasses with plastic lens, drinking from a plastic water bottle and have slippers on with plastic soles. I would be lost.
This is a monumental crisis and the fact that we think the same people who got us into this mess have the intelligence to get us out is just as stupid as thinking more taxing is going to cause gas prices to drop.
We got SCAMED into relying on our Federal Government to make sure there would be enough oil for all and as the old saying goes, “if you depend on the government for your daily bread we will have submit to the government demands or in case high oil prices”
States have to take maters into there own hands. They should drill for oil if they have it available, they should mine coal and use it, they have to apply for building nuclear reactors and use them. The Federal Government can not stop the states from drilling for oil and obtaining other fuel resources available to them.
Environmentalists, dig yourselves a deep hole with a glass roof, but stay out of the way.