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Sunday, April 06, 2008
Austin Hill :: Townhall.com Columnist
I'm A Conservative Republican, But......
by Austin Hill
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“I’m a Conservative Republican like you, Austin…”

The voice resonated through my headphones during the final minutes of my radio program, at AM 630 WMAL in Washington, D.C. The caller to the program - - we’ll call him “John” - - paused mid-sentence, and I sensed that there was a “big but” coming next.

“But,” he continued, “we’ve just gotta do something to reign in these excessive profits from the oil companies.” Oil industry executives had been questioned by members of Congress earlier in the day about why their profits, and prices, have been so high. The inquisition on Capitol Hill, which was quite a spectacle in itself, was still top-of-mind for many.

“What is excessive?” I asked.

“Oh, please, you don’t think they’re excessive?” he replied.

“I don’t understand what you’re saying. Commercially operated businesses are supposed to produce the greatest level of profit that they can; they are beholden to their stockholders to do that. What do you mean when you say ‘excessive?’”

“I mean over forty billion dollars in profits last year for the Exxon corporation is excessive.”

“Okay,” I said, “how much profit would be reasonable for Exxon to make?”

“Oh, I don’t know, that’s not my point” he replied. “I’m just saying that $3.29 a gallon for gasoline is outrageous, and we need to do something.”

“That’s a pricing issue” I said, “not a profits issue. Prices won’t decline until demand for gasoline decreases, or the supply of oil increases, or both. But forget the oil companies for a moment and let’s talk about you. How much profit did you make last year?”

“That doesn‘t concern you” he replied, sounding irritated.

“No, no, it concerns me a lot John. You’ve made it your concern to attempt to regulate the profits of oil companies - - ”

“Because gas prices are outrageous” he said interrupting me, “and they’re unfair.”

“Right, and you might have made more money last year than I did,” I replied, “and that would be unfair for me. We may very well need to regulate your excessive profits.”

“And you’re a pathetic hack for corporate America” he shouted at me. And then my conversation with John, and my evening radio show, ended.

It’s alarming to me how often I encounter people who are self-described “Conservatives” or “Conservative Republicans,” yet are quite comfortable with ideas and principles that are the antithesis of the “conservative,” “limited government” vision that has been the apex of the Republican Party for nearly all of my life.

More money taken away from private individuals in taxes. More governmental regulation of private affairs. More governmental intrusion into the lives of individual citizens. More of my “needs” being met by the government. At an increasing rate, ideas such as these are just fine for Republicans, so long as the expansion of government makes one feel better.

I understand John’s frustration with gasoline prices. But the U.S. Government that he seeks to harness so as to “reign in” oil company profits is the very same U.S. Government that has restricted or forbidden the development of many of our domestic oil supplies, and that requires oil companies to produce and sell both region-specific, and season-specific “blends” of gasoline, in varying parts of the country.

In short, the government that John believes can “save him” from the injustice of high gasoline prices has, by its own well-intended meddling, driven the price of gasoline upward.

And John is not alone in his questionable “conservatism.” During the Republican primary election process, the only presidential candidate to receive an endorsement from the ranks of social conservative leadership was a politician who raised taxes and opposed children’s educational choice initiatives while he was Governor of Arkansas - - Mike Huckabee.

Apparently “big government” politicians are just fine for some Republicans, as long as the candidate is sufficiently “pro family” and attends the right church.

In my home state of Arizona, the Republican-led legislature has ushered-in a whole new level of government “snooping” into the lives of private individuals, requiring all employers in the state to participate in the collection of personal background information of employees. The goal was to enable employers to verify the citizenship status of their workers, and to crack-down on the hiring of “illegals.”

Yet the collection of citizens’ personal background information - - facilitated through a federal government database - - forms the basis of a “national I.D. card,” an idea that Republicans found to be abhorrent only a few years ago.

No matter how uncertain or “unfair” the private sector economy may seem; no matter how comforting politicians’ promises of “free healthcare” may feel; no matter how “right” it may seem to vote for candidates who share common faith commitments; all Americans would do well to develop a healthy sense of skepticism about the government’s ability to “fix” our nation’s problems, and to reject politicians who promise such “fixes.”

And “Conservative Republicans” would do well to recall Ronald Reagan’s words of nearly 28 years ago: “In this present crisis, government is not the solution to our problems; government is the problem.”

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About The Author
Austin Hill is a Talk Show Host At Boise, Idaho's 580 KIDO Radio, and a frequent Guest Host on the Fox Newstalk Radio Network. He is the Author of "White House Confidential: The Little Book Of Weird Presidential History," And Co-Author of the forthcoming title "The Virtues Of Capitalism: A Moral Case For Free Markets" (Northfield/Moody Press, 2010).
 
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I am a conservative Republican
Horse Patootee, This is another socialist/communist hiding out under the guize of conservative/republican! There is no such thing as excessive profits in the U.S.! If you get the speculators out of oil then prices may drop. Oil is a commodity just like beef and brocolli. The purpose of American business is to make as much profit as can be made. Not so in communist lands, the State controls everything and business slowly rot and die! Electing people like Billary Clinton/Brack Obama will rapidly get you into full blown Communism. Four years but eight for sure!


Is this a joke?
The volume of the author's ideas
is a good summary of reasons for government to leave corporations alone, but the fact he does not even consider the possibility that this issue originates from just another case of corporate price fixing is implausible.

The caller obviously would have welcomed an investigation into whether the oil companies have been illegally colluding to control the supply of oil to drive up prices. And doing this would simply be enforcing existing regulations, which exist to protect society from corporate crime.

But the author just didn't get it? Yeah, right.

All kinds of publically-owned corporations, including energy corporations, are well-known to engage in criminal schemes, such as reducing supply, to increase their prices and thereby increase their profits. This is done to enrich the corporate leaders, although the shareholders may also benefit. The fact that shareholders benefit does not mean a thing, because corporate insiders are often among the biggest shareholders, and much of their compensation is based on how much profit they make for the company anyway.

Such schemes are obviously criminal,
so if some simpleton would suggest
that proper regulation is anti-conservative, it would be interesting to see where he would, in fact, ever approve of enforcing regulation of corporations.

Bush and Co. are NOT stupid
I finally figured out the reason for invading Iraq. It wasn't to steal the oil. It was to CONTROL the oil. Why else would Paul Bremmer have sold every piece of oil drilling equipment that was owned by Iraq to Exxon and the other "big oil" companies but NOT THE OIL ITSELF? Why did the Bush administration demand that Iraq join OPEC? Follow the logic: Low supplies create higher prices. Iraq has the second largest proven and easily obtainable oil reserves in the world. So you have OPEC limit Iraq's oil production to 3 million barrles a day (which I believe they have). Then follow the money. Every business involved in obtaining and refining oil for retail consumption with the exception of the delivery truck drivers and the retailers is making record setting profits. And what business is the Bush family heavily invested in? I bet now I know what Cheney and the heads of all those big oil companies were discussing during thier TOP SECRET energy policy writing sessions a few years back.

And I am sure this is all part of the bigger plan that is being implemented right in front of our noses. Read this and see if you agree.
http://canadafreepress.com/index.php/article/2174

Unfair Gas Prices?
John sounds like a whiny teenager when he states that gas prices are "unfair". Where in the Bible or the Constitution is any person promised fairness?! Do I believe our gas prices are higher than they really need to be? YOU BET! But not because some evil corporate exec is setting the price. Every State in our once Great Union has different formula requirements that drive up the cost of refining. The State I live in, Washington, has very high gas taxes- an additional 0.05 was tacked on to each gallon by our incredibly arrogant legislators AFTER the population voted Against raising the gas tax. I haven't personally researched this, but I would imagine that Washington State is not unique in it's taxing choices.

didn't john mac
Vote against drilling in anwar?
A friend of mine goes there often..he said the spot for drilling is a drop in the bucket and it's absurd that we are not drilling there!
elvis

I do no longer
Believe oil is from fossil fuel, but is abiotic.

To each his own, but so far no one can prove it came from rotting organisms.

http://questionsquestions.net/docs04/peakoil1.html

Some say this:
quote:
"All unrefined oil carries microscopic evidence of the organisms from which it was formed. These organisms can be traced through the fossil record to specific time periods when quantities of oil were formed."

And others say:
quote:
"The modern Russian-Ukrainian theory of deep, abiotic petroleum origins is not controversial nor presently a matter of academic debate. The period of debate about this extensive body of knowledge has been over for approximately two decades (Simakov 1986). The modern theory is presently applied extensively throughout the former U.S.S.R. as the guiding perspective for petroleum exploration and development projects. There are presently more than 80 oil and gas fields in the Caspian district alone which were explored and developed by applying the perspective of the modern theory and which produce from the crystalline basement rock.

Russia has no problem with oil production or finding plenty of it.

Only here and said to be at its "peak".
I call it bs.


The oil companies are taking
advantage of a good thing but they are not creating it. Now if India and China were paying $15 a barrel, i'd say yes. But Exxon is not setting oil prices in China. International demand has created a totally new dynamic in fossil fuels and no one here has moved to deal with it, except the US oil producers who have been re-opening wells not commercially profitable for many years. The private market has been reacting slowly because most of the alternatives available can be turned into economic disaster with a stroke of an Arab pen. Enviro-whackos that are preventing drilling in the Carribean even as Chinese engineers drill towards the US from Cuban waters certainly are no help. Govt investment in oil-shale technology that will put a ceiling on the cost of well oil is long over due, the cost justified for strategic reasons.

Looks like i'm outside looking in
I have always considered myself a conservative. For decades i called myself a Republican. now, ater reading the comments about this article i still consider myself a conservative,but i now realize that i'm neither a Republican or Democrat.It's understandable that the Liberals are against anything thats good for America, but for anyone that can't see what the major oil companies are up to tells me that this country needs a third party.

GUESS WHAT...!
Read a report the other day...most of the voters
dont read the internet and bloggings to influence
their thinking towards the election!
You mean to say that we are spewing all this ...
wisdom for nuttin'!
elvis

Mr. Hill
"Apparently “big government” politicians are just fine for some Republicans, as long as the candidate is sufficiently “pro family” and attends the right church."

...Sounds about right. I see no problem with that. What I do see a problem with, Mr. Hill, is this idiotic infatuation with Reagan you have. Atomicity, Equal Access to Resources (oil), Non-Strategic Interaction are all market failures that plague the oil market and give rise to cartels, which lead to abnormal economic profit (economic theory dictates that the profit differential between a current activity and the 'next most profitable' ought to equal zero, and that anything beyond this extends beyond a competitive return).

You whine constantly that social conservatives don't adopt your agenda. We believe in good morals, and enforcing morality through the law, be it the murder of abortion, the sanctity of marriage, or otherwise. Note the use of the word "law" here. It does require some government action, so no, we're not going to lie down and take your "smaller government now, so we can let any moral infraction go unchecked!" politics.

...Sounds like you're another Mittwit though who thinks everyone that supported Huckabee is a bigot. Sorry, but if anyone's the bigot, it's you who jumps to such asinine conclusions about the sum of candidate's voting bloc.

WENDY

.....Have you given any thought to my idea of a take-out franchise for fricasseed fetus wings and drum sticks? ...I think we could have a real money maker here since parts are dirt cheap .....COLOSSUS

WHY ARE THERE SO MANY LIBERAL POLS?

.....Take a look at Democrats like Charles Shumer and "Little Dick" Durbin and count the black voters in their District. ...take away those votes and you have your answer ...

.....Now those same voters and their white-guilt enablers are trying to give us Obama ...a man who is running on taking away the profits of the Oil Companies ...can it get any worse than this? .....COLOSSUS

Applause
Austin, you nailed it! Thank you for demonstrating rational thinking to your audience.

I find my aggressive tendencies being provoked whenever I hear someone imply that there is such a thing as too much profit. Profit is good! Profits keep us ALIVE! The more, the better!

TWIRP & TWIT??!
HA, HA ,HA,...GIVE ME A BREAK TALENT HA HA HA !
Hey, if mc juan and jorge are not republicans
what are they? TWIRPS OR TWITS?!
Sheez, this is killing me!
Somone laid out a list of so called conservative
items and juan scored 49.49 %, and Mitt scored
56.456 % now you know why I like Mitt! smile!
Gotta go and work out on my guitar!
elvis

Democratic Mantra
If its American and profitable it must be destroyed:

Oil
Chemicals
Pharmaceuticals
Auto industries
Health Care
Nuclear energy, etc, etc, etc.

Energy Self-destruction policies
40% of the Oil Companies are to a great extent owned by retirement funds like the Teachers Union, which votes wholesale as Democrats.

In CA there are 70 cents of taxes for every gallon of gas, which, the California Lesgislature uses to stick it to the oil and automovile industry, and therefore reducing revenue.

Al Gore, says the greatest threat to civilization is the internal combustion engine and,

Environmentalist pray for a catastrophe to wipe out the hated human race.

China is drilling 30 miles south of Governor Crist's state major city, polluting Florida on one coast as Mexico does on the other.

Democrat(ic) policies are the psychosis of self-destruction.

Circle of deceit
War-caused inflation and/or any deficit spending leads to a drop in the dollar. That leads to oil prices rising. That leads to more dollars going to oil producers. That leads to oil producers buying Treasury Bonds more treasury bonds which the government uses to further finance the war.
We defend them. They tax us. They use our taxes to buy our bonds which we then use to further finance the war.
The whole shebang is a back door tax on us to pay for the war.
It is a circle of deceit.

Gestell
You would be completely correct if they didn't get gov't subsidies and were subject to competition that would keep their pricing honest. However, they are making their money primarily on the backs of everyday Americans.

The way that it works now, they can charge whatever the heck they want with no risk to their company. We have no alternative but ride the bus or take a bicycle to work.

If we removed their subsidies and used that revenue to open their market up to greater competition, we will all see reduced pricing almost immediately.

They are charging those high rates because they are all in collosion with the same profit margins. If a competitor came in with pricing based on smaller margins, they will get the picture very quickly.


A second thought
Conservatives should listen to their libertarian/pro-capitalist wing and understand that there can be no such thing as profits that are "too high," "unfair," or "excessive." Such judgments can be made by liberals, or at least some liberals, but you guys are disallowed from making them. Moral judgments should not be made about the operation or results of a free market economy. Reading whines about the evils of the oil companies assures me, as if further proof is needed, that my services in explaining conservative doctrine to conservatives on TH are still needed. I provide these explanations as a public service because I hate to see ideologues get off message.

Senator Lugar-ethanol is good policy
I just opened a mail from him. He claims with documentation that ethanol is good for America. He also asserts that energy independence is a national security issue in which ethanol plays a part. This is his stated reason for supporting subsidies.
He also asserts with documentation that net BTU for ethanol is greater than for gasoline, factoring in ALL the inputs. Lastly that vehicles tuned for E85 get equal or better gas mileage.
I am stunned.
At least the man came at me straight. I do respect that.

JamesJ
Sure is. Also, the US still uses much more oil than anyone else.

However, does that explain more than a 100% increase in prices over the last few years??

Check out this article from '06
http://www.washingtonpost.com/wp-dyn/content/article/2006/0 4/03/AR2006040301788.html

...this one from last year
http://www.boston.com/business/articles/2007/05/22/gas_pric es_at_record_high/

...and one from a few minutes ago
http://news.yahoo.com/s/ap/oil_prices;_ylt=AkChalWwZKP8VfkT luL6UYmAsnsA

They all point to peak driving season as a reason that the price will go up again very soon. But,this still doesn't explain why we haven't enjoyed the flip side of this via a price reduction in the past few months when nobody was driving.

Dude, we're getting rippeed off. Don't buy that India/China arguement. Their volume over the past few years doesn't support the price increases. The ratios don't add up. Up by a lot, down by a little, up by a lot, down by a little.

First, they blamed it on Katrina, then India, then China, then Hugo Chavez. However, this entire time, the oil intentories never changed! There was plenty of supply! Why are we paying more????





RAM
"Our gas prices have continued to go up irrespective of the fact that demand is low (not driving season) and supplies are high (no refining issues/maximum capacity). "
Where are you getting your info? Oil is sold as a world wide commodity. Demand is way up thanks to China and India

Oil companies are screwing us
The problem is the the members of Congress are either too ignorant or too biased to ask the right questions.

Our gas prices have continued to go up irrespective of the fact that demand is low (not driving season) and supplies are high (no refining issues/maximum capacity).

We're getting screwed here ladies and gentlemen and this has NOTHING to do with capitalism. I'm a business owner and am very familiar with profit margins/markups. It's very easy to see what they're doing to screw us.

Every other peice of US economy is cyclical nature of capitalism, BESIDES the oil companies. If the price of oil goes up, they pass on the charge to us. If it goes down, we get only a small portion of the savings. If you pay attention, you'll see that we never really gained the relief that winter usually gives for gas prices. 2 months ago, they were saying we shouldn't look at the "old model of suppy/demand". Now, since driving season is about to go underway, they'll start justifying their prices sreaming about the demand.

This is truly a cartel. Our "friends and countrymen" in Texas are in cohorts with OPEC and are screwing us royally. Not sure why we get the OPEC price for the oil that's pumped out of the US. If you think about it, it doesn't really matter if they pump in ANWR or Montana. If we get the OPEC price, it doesn't matter where we get it. We're still screwed.

I'd like to see real data
the value per gallon of gasoline - a simple pie chart - producer, refiner, taxes, local retailer, etc.

The caller Austin Hill was referring to should be more upset with Congress for blocking new sources of oil - ANWAR, coastal Florida, shale, etc. I'm one to believe that our own Congress is more responsible for the cost of oil and gasoline by discouraging supply. People dream of simple fixes and villians to persecute but at the end of the day it is governmental intervention that ruins the markets and creates artifical costs to the consumer.

Dustyo

The only thing is, one could argue the tables are turned now.

In a lot of ways, China is more of a free enterprise economy that the US economy is.



Some people who are concerned about Peak Oil suggest that it shows a failure of market economics.

However, having the economy run by bureaucrats rather than based on market forces (in other words, switching to socialism) is something that has always proven a failure when tried by countries in the past.

Some people say we need to replace a market economic system with something else, but don't specify what that "something else" is. Because they can't come up with anything that would be better.

In my view market economics is the best system anyone has come up with to-date, but it doesn't solve everything, at least it does not solve everything expeditiously.

As oil becomes more scarce, market economics may well lead to new businesses creating new energy sources that will eventually get us out of the energy hole, but I believe the crisis is coming upon us much more rapidly than the solutions are.

So I believe we are headed for some very rough times for at least 10-20 years.

It would be shame, however, if that leads society to false solutions. For example, the credit crisis is being blamed on free markets and therefore we need more regulation. However, the credit crisis was caused the the fact that we DO NOT have a free market banking system, we have a government chartered banking cartel known as the "federal reserve system". When the FED goes around declaring what level interest rates are to be set at, that is not exactly a "free market".

It is in fact the injection of financial heroin into the banking system (massive credit available at Greenspan's 1% interest rates) that led to the whole housing/credit debacle.


Oil executives ask Congress for support

Do you think the oil industry will sovle the energy problem?

Politico-Top executives from the nation’s five largest oil companies told the special House global warming committee Tuesday that the companies can’t meet future energy demands unless Congress stops punishing them for their profits.

The House voted last month to remove $18 billion in tax breaks for the oil industry and reinvest the money in solar, wind and other renewable energies.

The move has been lampooned by the business sector and many Republicans, who contend it will push up gasoline prices. Oil executives asked lawmakers Tuesday to support their investments in renewable energy, rather than punishing them for their profits.

“Imposing punitive taxes on American companies, which already pay record taxes, will discourage the sustained investments needed to continue safeguarding U.S. energy security,” said Exxon Mobile Corp. senior vice president Stephen Simon.

Shell Oil Co., BP America Inc. and other companies have invested billions of dollars developing biofuels, wind farms, and other sources of renewable energy.

READ MORE

http://controlcongress.com/uncategorized/oil-executives-ask -congress-for-support

Wasn't this why China went Communist?
Dealing with huge problems by only looking at the surface issues,such as the profits of the oil companies, and not going all the way to the source is a huge mistake we will regret in regards to the oil companies in America.

We have done this with the car industry and other businesses, and we have found that it didn't work because they send their work over seas and hire people over there where there aren't oppressive regulations.

The Chinese revolution I believe was over this very thing. Greed, which said the rich are getting richer and the poor are getting poorer so lets build a government that takes charge of everything and makes everything equal. But what happens is the government becomes the rich bad guy getting richer every day, and there are no rich people, they are ALL poor. Some do get rich but they may get caught and executed, because what they are doing, is considered illegal by that oppressive government. Do we really want that kind of life here in the States? If you do continue to beat up our business in the States and keep asking the Government to control everything.

the big issue to me

So, if we can look at the bigger picture:


The oil company profits issue is a red herring that deflects from the big picture.


The big picture is that we have reached Peak Oil.


So what are we going to do about it?


Some actually believe that we are doomed. Most people probably don't realize that our whole technological revolution of the last 200 years has been built on a foundation of cheap energy.

So, if cheap energy goes away, it could very well be that western civilization stops dead in its tracks, and sadly the human race could very well die off.

Even the food that sustains the bloated human population is largely produced through heavy use of fossil fuels. So those who claim the human race is headed to extinction in my view have some arguments.


Is there anything we can do to forestall that? Well, I am RELATIVELY optimistic. There are some fairly promising approaches to producing electricity on the large scale. Besides nuclear, which at best would help address an energy shortage in the medium term (setting aside fusion, which there is not so far a basis to believe it will prove feasible), there is for example solar thermal.

The bigger problem is those applications where hydrocarbons do not any future substitute that we can identify at this time: Jet fuel for example. You can't run a plane off an extension cord. And agricultural fertilizers.

I think we will find a way for the human race to survive, but it is possible it may require radical lifestyle changes. I don't believe driving sports barges around is going to be viable in the twilight of the oil era. Perhaps we will still be able to drive golf cart type vehicles, though.

You a liberal?
You come and argue exactly like one.
Confess you are a liberal CW, the truth will set you free.
You come to argue with me on a personal level, and interweave your liberal thoughts on a few of the issues.
Try and stay on target and stop with your liberal like arguments at persons.
--------



CW writes:
Talent scout
Talent scout: “I did not mean to hurt your feelings CW”

CW writes:
You didn’t hurt my feelings but apparently I’ve hit a nerve with you.
--------
ts:
I probably do not like your smug attitude either.
Thinking you know me or what my feelings are, you do not know anything of the sort.
But smugly think you do, and is why I responded to your arrogance.
I do understand that you will not agree with me concerning your own attitude, but it came across clear to me with your adjectives in thinking you know me, and know nothing.

capiche?
Lay off trying to describe me, and stick with Austins smug attitude about the frustration of the caller.
"john" is far from the only person in America that feels manipulated by all of them who are at fault for high prices.

Oil Companies
Oil Producers
"Environmentalists"
Government.
Bankers funny money

Just stop arguing like a liberal CW, else I will think you are one and here as a plant from the liberals and environmentalists.











Profits
CW writes: 1:29 PM
Talent Scout:
Talent Scout: “Do not question profits, they are the most holy of all goals.”

CW writes:
So how is it you manage to support yourself without having made a profit at something? Or do you mistakenly believe that the income you’ve earned during your life is not the same as a profit?
-------
ts:
The word itself hardly describes the issue.
If the word itself is above reproach, then it would not be any need for any laws against theft, as that can be profitable too.

I have no problem with the concept of profit.
I do have problems with manipulation of markets for profit, and monopoly of profits.

bot_feeder is getting into some of that as I have tried to do, howbeit weakly.

When gas sold for as little as 25 cents a gallon, (and yes it did at one time) the gallon of gas has not increased to some other amount of gas, but the cost of that same gallon has come from somewhere else.

A multiple of places.
Fiat funny money inflating.
No refineries built in over 30 years.
No use of our own sources
Government restrictions with regulation and taxes.

So why bother arguing over profit?
It is much more to it than profits.

Talent scout
Talent scout: “I did not mean to hurt your feelings CW”

You didn’t hurt my feelings but apparently I’ve hit a nerve with you. I was simply trying to understand the logic of you basically agreeing with the premise of the article, but then calling Hill a “smug, little twirp.” Doesn’t make much sense does it? Kind of like you scolding the rest of us for being evil profiteers even while you must make be making a profit at something too, unless you live in your mother’s basement.

jerabaub says
"It is a cartel. Its strategy is to "milk" the developed world, especially the west, transferring wealth from the west to gulf fiefdoms."

Yes, OPEC is a cartel. But I see no reason why oil nations have any obligation to sell us oil cheap so we can drive a 2 ton barge down the street to pick up a box of cereal.

The oil they own is guess what: Their oil, to do with as they see fit. And it appears to me that it is very much in the interest of their own people that oil prices remain high so that they maximize the revenue they get for this resource which happens to be their one and only main economic asset.


As someone pointed out astutely in an article I read recently, it is also ludicrous for us to go around trying to get OPEC to pump more oil while we are not willing to even develop our own remaining oil sources. (judging from the analysis of experts like Matt Simmons, the OPEC nations may very well not even be in a position to increase production if they wanted to)


But the bottom line is that we have reached Peak Oil and the days of cheap oil are over for good.

We had better get cracking on alternate sources of energy.

And that is the one major criticism I do have of the oil companies, they have been too slow to acknowledge that we are at the beginning of the end of the oil era and we need aggressive development of other energy sources.

But the government's record is even worse- they have been subsidizing corn ethanol which provides no net energy, starves people in the third world, and increases carbon emissions.

But hey, let's get our priorities straight. What's more important? The contined existence of our society, or winning the Iowa primaries?



MOre enthusiasm, Austin
Many of us liberals do indeed understand why there are high oil prices, and not all of us fantasize that government can just regulate the price to our satisfaction. What surprised me was that Austin wasn't very enthusiastic about oil company profits. A real conservative should be applauding the increase in the value of oil company stock and the return it brings to the investor.

Also, I would have appreciate a really good paragraph or two on nuclear power. It's rediculous that this source of energy isn't at the top of the energy priorities of any candidate.

By buying foreign oil, we

are conserving our own petroleum resources. If the supply of oil is finite, our oil will be worth much more 30 years from now. If it is relatively infinite, prices will come down eventually.

Also, much of the oil we import comes from Canada and Mexico. It is better to rely on good neighbors than on enemies.

The price of oil is related to worldwide production versus worldwide demand.

When supply increases slower than demand, prices go up. There is nothing anyone can do to change that relationship. The only way to get lower gas prices is to have supply increase at a faster rate than demand is increasing. Good luck on that.

Rising prices may have a squelching effect on demand and consequently slow the increase in gas prices. It has certainly slowed the sales of gas guzzling motor vehicles and increased the sales of high mileage motor vehicles.

What are affecting the increase of supply and the increase of demand?

Supply has been somewhat slowed by government regulation. Demand is increasing due to global economic development, particularly in China and India.

The most effective response by a U.S. citizen to the current gas price problem is to cut consumption. If each driver cut consumption by 25%, gas would experience a large drop in price. Of course, then people would drive more. That is the dynamic of the real world.

I failed to recognize until now

How superior you are to me and all, forgive me this evil.


CW writes: 12:48 PM
Talentscout:
You said: “These "liberals" who want the supply of oil limited, actually end up working for the very same goal the Oil Companies work for, higher profits due to limiting the supply of oil.”

CW writes:
First, most liberals don’t understand the connection between high oil prices and liberal policies.
--------

ts:
I did not know that.
Wow, how perceptive you are to grasp it all in its simplicity.
Liberals cannot possible grasp such a complex result.

You are indeed a genius.
I bow before such intellect.

Got anymore nuggets to share?
I cannot wait for you to fill my empty heart and mind, and here all the time I had thought of myself as a conservative.

I never got it either, until now!
Thank you sir.

moonkeeper

By golly I forgot the falling dollar on my list of the causes of high oil prices. It should have been #1 on that list, actually.

The promiscuous creation of counterfeit money known as "US Dollars" by the Federal Reserve is the #1 reason for the price inflation we are experiencing in all consumer products, including petroleum products.

The more funny money our government creates, the less it is worth. Basic economics, although the nitwits at the Federal Reserve are so deep into crackpot economic theories they won't acknowledge it.

They claim that it is just "inflationary expectations" that lead to inflation. In other words if you can fool the public into thinking that prices aren't going up, then prices aren't really going up. Sounds absurd, but that's the kind of thing you get when people are so deep into crackpot theories they have no idea how the real world works.

Talent Scout:
Talent Scout: “Do not question profits, they are the most holy of all goals.”


So how is it you manage to support yourself without having made a profit at something? Or do you mistakenly believe that the income you’ve earned during your life is not the same as a profit?

oil companies profits

One thing I am glad is that that John Edwards got nowhere this year with his sleazy demagogic campaign against unnamed boogeymen engaging in "greed".

Sort of reminded me of the Joe McCarthy era. Come up with some boogieman and try to rally public fervor around that.

Come to think of it, wasn't there a guy named A. Hitler that did the same thing?

Glad it didn't work for Edwards.

continued
Gas prices are high because:

1). Oil is becoming scarce, hence the price per barrel is high
2). Massive taxes and royalties are imposed on oil & gas by governments

3). Oil company profits are perhaps the 3rd biggest cause. However, if you taxed a greater portion of oil company profits, marginal development projects for new sources would cross the line from being economically attractive to unattractive, thus suppressing supply and generating higher prices, so that it is quite possible that higher taxes on the oil companies would INCREASE, rather than DECREASE prices.

Now those so concerned about carbon emissions that they feel it is a GOOD thing if those marginal supplies become uneconomic, that is a legitimate point of view. But a person with that view can't then complain when gas goes to $25 per gallon.

Don forget the declinging dollar...
In terms of gold, a ton of commodities and a load of floating foreign currencies the price of oil has barely budged. If you want cheap oil, bring back the strong dollar policy.

talent scout sez
"Then of course you will not call George Bush a Republican or John McCain or would you?"


Of course they are not. They both have stood opposed to virtually everything the Republican Party stands for.


The Republican party has been taken over by the neocons. What an oxymoron "neocon". As if to engage in radical and reckless big-government policies is "conservative".


Now, back to oil: I agree with the commenter who proposed that the caller was probably not a conservative.

Although, it is true that the half-witted so-called conservative named Bill O'Reilly spouts the very same kind of nonsense about the oil industry.


I read a recent article that broke down how much of Exxon's revenue goes to various items. $40 billion of their $400 billion revenue goes to profits. That's a hefty 10% profit, but it's far too little to explain why gas prices are so high. Guess who makes even bigger profits. Governments collect $100 billion of that $400 billion Exxon Revenue. So if you want to look at who is making the windfall profits, that is where the big money is.

If you want to crack down on windfall profits, you need to crack down on people like Hillary Clinton.


continued

Why you so angry CW?
CW writes: Monday, April, 07, 2008 12:55 PM
Talentscout:

I understand the problem now: you’re a loon.
---------
ts:
What have I done to you?
Are your feelings hurt?
I did not mean to hurt your feelings CW, I simply forgot how tender the heart of a child is, forgive me my assault into your innocent purity.

Not-so-conservative-Conservatives
I agree with Mr. Hill. Whether jumping on the "global warming" scam with its attendent corporate welfare (ethanol subsidies), of knuckling under to the environmental extremists, so many "conservative" Republicans have gone taken positions formerly held exclusively by the far left that voters rightly see little difference between the parties.

Unfortunately, the more elections Republicans lose because of their left-leaning positions, the further to the left they lean.

John Caile
Eden Prairie, MN

This was from love

Talentscout: “What is your source for discerning my feelings?”

CW writes:
Talentscout:
Gee, I don’t know, maybe it was remarks like these:

“Austin smugly sums John up…”
“…you smug little twirp…”
“Austin smugly pats his own back”
“…Austin, but do not know how to deal honestly with this mans frustration with the entire issue.”
-------

Are you angry?
What is causing your anmger here at little ole me CW?
You a loony?

Get a grip man, its not from anything but a serene and peaceful love for all, that I try to be accurate in calling Austin a twirp.

Without animosity and a pure love, I beg understanding from you high and holy priests of profit


Not-so-conservative-Conservatives
I agree with Mr. Hill. Whether jumping on the "global warming" scam with its attendent corporate welfare (ethanol subsidies), of knuckling under to the environmental extremists, so many "conservative" Republicans have gone taken positions formerly held exclusively by the far left that voters rightly see little difference between the parties.

Unfortunately, the more elections Republicans lose because of their left-leaning positions, the further to the left they lean.

John Caile
Eden Prairie, MN

Anyone making a profit
In America is above reproach, (according to some here)

This country has no greater value than money, profits and riches,
Maybe fame rises close, but nothing else is even close.


Do not question profits, they are the most holy of all goals.
Do not even think that the pursuit of profits come from anything but high and holy ambition, above reproach.
And the people who are making a killing would never stoop to any manipulation of the market place.
They are simply above such methods, and is beneath their holy intent.

And for any unbeliever out there, you are silly and just dumb to not see it for yourself.

This is the message I hear from such as Austin Hill, CW and few others.

Does this make them priests of profit or evangelists of free markets?
Just an honest question from a serene and contented heart.
From humility and meekness in seeing how holy the profiteers are to Americans.

Talentscout:
Talentscout: “What is your source for discerning my feelings?”

Gee, I don’t know, maybe it was remarks like these:

“Austin smugly sums John up…”
“…you smug little twirp…”
“Austin smugly pats his own back”
“…Austin, but do not know how to deal honestly with this mans frustration with the entire issue.”



TS: “If Austin is frustrated with the man called "john" who holds no power in government abuse, and GW Bush does, yet has abused his power, do we expect Austin to write an article and tell us all how much a superior conservative he is over GW Bush too?”

I understand the problem now: you’re a loon.

Improve the World
There are three reasons for the current high price of crude oil.

(1) Greatly increased demand from rapidly developing economies such as those of China and India. They're not getting around on bicycles over there any more.

(2) The United States shackles its own ankles by restricting domestic production.

(3) The leaders of oil producing countries understand that the price goes up when they act irresponsibly, while their costs are minimal and controlled. Hugo Chavez and that little piece of Iranian filth see an uptick in their revenues every time they act up. Sure, they have other motivations, but concern for the effect of their behavior on their economic well-being is moot.

We cannot do anything about #1. We can fix #2 any time we want, though that won't go very far toward solving the problem.

But #3 will be with us for as long as the world is willing to put up with it. The custodians of the world's oil supply, the only parties in this transaction who are experiencing any sort of "windfall", are malfeasant and should be removed by whatever means are required. If they cannot act responsibly with the resource, it should be removed from their care.

Talentscout:
You said: “These "liberals" who want the supply of oil limited, actually end up working for the very same goal the Oil Companies work for, higher profits due to limiting the supply of oil.”


First, most liberals don’t understand the connection between high oil prices and liberal policies. Those that do have decided that they are (a) willing to trade high prices for the difference they think they’re making in the environment; or (b) they erroneously believe that they can artificially control prices through gov’t intervention, even as they interfere with the supply of oil.

If the Left is willing to pay high prices because of the impact they perceive it’s having on the environment, that’s a choice they are entitled to make – but not for everyone. They shouldn’t be allowed to forward their personal agendas at everyone’s expense by falsely making “big oil” the boogieman. This is, however, how they operate. And we can expect more of the same if and when we ignorantly elect more libs.

Grown ups argue CW
CW writes:
Talentscout – wrong argument
What are you so angry at Hill about?
-------
ts:
What is your source for discerning my feelings?
Why are you so confused about me feelings?
A man does not have to be angry to disagree with Austin Hill, or you, capiche?
Are you into palm reading?
Tea leaves?
------------


CW writes:
No where in the article does he hold up George Bush as an example of the conservative ideal. In fact, he doesn’t mention Bush at all. The whole point of his article relates to his own frustration with republicans who have strayed from their conservative principles.

-------
ts:
Right
I did
If Austin is frustrated with the man called "john" who holds no power in government abuse, and GW Bush does, yet has abused his power, do we expect Austin to write an article and tell us all how much a superior conservative he is over GW Bush too?

Just an honest question, and from a calm, collected, serene love for all

If a liberal works for a conservative

What is he?
Is he a liberal or a conservative?
Its confusing.
These "liberals" who want the supply of oil limited, actually end up working for the very same goal the Oil Companies work for, higher profits due to limiting the supply of oil.

Now is it possible that these "liberals" are purely faultless in their love for mother earth?

And hold such high values for the environment that they would die for?
Is there any possible way for drilling in ANWAR that can be done without the destruction of the Universe?

Evidently they do not believe there is anyway to produce oil without the end of the world.
Which coincidently happens to work out for limiting oil and oil products skyrocketing as it is today.

I wonder where the environmentalists get all the money to lobby and use the court to fight these poor oil corporations?

Do they have church somewhere and take up offerings to their earth worship?
Must be, because I can find no trail to follow where they get their money.

Perhaps someone here can tell me.

Article from the Washington Compost.

http://www.washingtonpost.com/wp-dyn/content/discussion/200 5/10/27/DI2005102701293.html




On Thursday , Blum wrote about a coalition of environmental groups that is targeting about 30 members of the House and a handful of senators in a final push to win swing votes to defeat proposed drilling in Alaska's Arctic National Wildlife Refuge.

Are environmentalists liberals or are they conservatives?
Its all so confusing

Talentscout – wrong argument
What are you so angry at Hill about? No where in the article does he hold up George Bush as an example of the conservative ideal. In fact, he doesn’t mention Bush at all. The whole point of his article relates to his own frustration with republicans who have strayed from their conservative principles.

You said, “And being a life long conservative, I find government intrusion into the marketing of oil an abuse of power.”

Why do you think Hill was upset with his caller? Because, after claiming to be a “conservative republican” the caller was suggesting that the government should intervene in the price oil companies charge for gas! Isn’t that the kind of government interference you just complained about?

Come on – make some sense.

Choice!
The free market economy will always dictate pricing of goods, UNLESS the consumer has no choice. American cars are run on gasoline. Period. We have to buy gasoline to get our cars to run. Yes, there are hybrids and a token sampling of alternative transportation vehicles out there, however, until Americans have a CHOICE of THIS type of powered automobile, or THAT powered automobile, we are at the mercy of Big Oil. Plain and simple.

Can you verify this for me?
RA writes: 11:33 AM
Oil Company Profits?
Oil companies make about .10 cents a gal.
----------

Is there from a verifiable source of information?
I would like to see it, if there is one.

That would mean the oil companies make $5.50 a barrel at 100 "dollars" (hate using the word for the funny money we use today)



At the Heart of the Problem
The reason for high oil prices is due to the current high cost of crude oil (I know, DUH). We are currently at the mercy of the price we have to pay foreign suppliers, many of whom do not have our best interests at heart (another DUH). We have vast oil reserves in and around the territorial United States. We cannot drill for that oil to ease the supply and cost burden to the US consumer because of (government). Tell me again who is the heart of the problem?

Austin smugly pats his own back
With this in response to "we’ll call him “John”".


“But,” he continued, “we’ve just gotta do something to reign in these excessive profits from the oil companies.”
“What is excessive?” I asked.

“Oh, please, you don’t think they’re excessive?” he replied.

------

Austin replies:

“I don’t understand what you’re saying. Commercially operated businesses are supposed to produce the greatest level of profit that they can; they are beholden to their stockholders to do that. What do you mean when you say ‘excessive?’”

-----------------
You do understand what he is saying Austin, but do not know how to deal honestly with this mans frustration with the entire issue.

The price of oil is not from just one group.
The price of gasoline is caused by many factors, and not just demand.

We have government involved with the force of law, rules, regulations, taxes.

We have environmentalists, lawyers and activists involved that limit the supply.

We have blockage of the supply of gasoline from many angles, by government, environmentalists, oil companies and oil producers.

One thing all of them find common ground in is money.

If government was completely removed from all questions in the supply of oil, I think the price of gasoline would come down.
And being a life long conservative, I find government intrusion into the marketing of oil an abuse of power.

But if some republican abuses their power in government, Austin supports that abuse and smugly condemns citizens as "liberals" if they do not support government abuse of power if its a 'republican' doing the abuse.

There has never been a more abuse of government powers than under GW Bush, but Austin smugly pats his own back as he supports this "conservative" GW Bush.

Worth a horse laugh to me.

Want lower gas prices? Defeat a lib.
Five stars to Austin Hill for a brilliant article. The only way to better (and more limited) government is to get back to basic, conservative principles. We’ve lost our way when republicans follow the liberal example of interfering with the laws of natural consequences. Case in point: oil prices.

Try as you might you cannot get around the natural laws of supply, price and demand. This is something liberals never have and never will understand (once they do they will no longer be liberals – guaranteed). In the case of oil, the natural increases in demand - coupled with artificial restriction of supplies imposed by the Left - has lead to a prolonged and sustained increase in price. It’s as simple as that. As is typical with the Left, they are unable to see the connection between their actions and the outcome, and they lash out at the wrong party: “Big oil.” What’s the libs solution to the problem they don’t understand their contribution to? They want to limit the profits of the oil companies. How would they do that? By controlling prices. And what did we learn at the beginning of this paragraph? That price, supply and demand are inherently connected – you cannot change one without affecting one or both of the others. When you fix prices you remove people’s natural incentive to curb demand AND you negatively affect the producer’s incentive to increase supply. There is only one logical outcome – a shortage in supply. Anybody remember gas lines? That’s the liberal solution.

Conservatives respect the natural laws of supply and demand. There will be a point when the increase in price will naturally force a solution. People will find creative ways to lower demand, increase supply, or find alternative sources of energy – or some combination of all three. But the best (and most democratic) solution will only emerge if the laws of natural consequences are unimpeded. Therefore, we must defeat the Left.

Oil Company Profits?
Oil companies make about .10 cents a gal. The government makes 4-5 times that much. Yet they say the oil companies profits are too high. Gross hypocracy.

Its the $10/gal energy terrorist politicians who want your gas cost to go thru the roof so you will be forced to drive mopeds and rickshaws.

We have more oil in the Dakotas than Saudi Arabia. We need to build 6-10 new refineries. We need to stop forcing oil companies to make 50-60 different grades of gas to suck up to the environmental wackos.

Stop voting for energy terrorist politicians mostly Democrats but some Republicans too. Stop committing economic suicide because of the lies of hysterical, unscientific earth worshipers.

A word I learned

In my Grade School days elvis, back then it was cool.
-----


elvis writes: Monday, April, 07, 2008 10:27 AM
good morning talent...!

Could somebody define twirp for me, in case I cant find my dictionary!!?
elvis


------------
Not in the dictionary?
Well, it should be there right along side of twit.

Down with Big Oil/NO, Down with Big Govt
Oil Companies make 9 cents profit on the dollar compared to banks making 22 cents profit. How much does the Federal Government make in profit on a dollar of gas? Well, the citizens have paid nearly 3 times the amount of the oil companies profits in taxes and the Govt wants more.
All the while, they won't let them drill, they won't let them build new refineries and they blame them for the high price of gas.
We have more oil in the western states than all of Saudia Arabia, Iran, et al, and they won't let them drill it. We could be totally energy self-sufficient and they keep us beholding to OPEC. What is wrong with that picture?
Also, who owns the oil companies? It is millions of Joes on Main St who have their retirement funds in oil.
I say DOWN with BIG GOVERNMENT; NOT DOWN WITH BIG OIL.
BTW..anyone noticed how the value of the dollar has dropped and the economy is heading south since the Dems gained control of Congress?
Wake up people!

This is true Savage 99
As you write:

"Gas prices are about as clear an exression of supply and demand as can be imagined. Those who can't see that are hopeless fools."

----------

And who understands this fundamental fact of life better than the Oil Companies and OPEC?

Here is the arguments as I read them to be, my small world take on the information I have searched for, to find some truth as to the basics of supply and demand.

1. Oil is limited
or Oil is unlimited

Oil Companies say its limited, and for some reason that work out for higher prices.
Which benefits Oil Companies.

Who would lose money if Oil was unlimited?
Who would lose money if more Refineries were built?
Who would have no reason not to build Refineries if there were no environmentalists stopping their construction?

Would government be making more money off taxing gasoline at 3 dollars a gallon or at 1 dollar a gallon?

Would OPEC?

Would OPEC be in control of the supply due to the demand if government was not involved with rules and regulations that stop drilling, building refineries, and their taxes?

I mean if we really had free markets wouldn't the LAW of supply and demand bring prices down?

They cannot come down when the supply is intentionally blocked by government, environmentalists, Oil Companies and Producers.

Who all seem to work together to KEEP Oil high.
Not to mention the profits of Wall Street when Oil is high.

I think these are legitimate questions that deserve honest answers


The recent congressional hearing
deomonstrates the stupidity of our congressmen as they reprimanded the oil executives for not doing more research into alternative energy sources ( They actually spend billions.) But that is like saying to a restaurant owner that he should turn his business into a car dealership. Oil companies are not in the business of putting themselves out of business.

Congress might be more helpful to the public if they allowed oil companies to drill in Anwar or off the coasts. A lot of money is spent just finding far flung places to drill.

A lot of people have been taken in by the democrats drumbeat of "bad oil companies". Even my brother who once owed a gas station for 30 years recently railed at the profit taking of the oil companies. I pointed out the government through taxes makes more then the oil companies per gallon.

What exactly is a fair profit? Does anyone know and how does one cope with the boom and bust nature of doing business in this industry? Why doesn't the public know more about the cost per barrel of buying oil? Why doesn't the public know more about the many beneficiaries of oil profits through pension trusts and individual stock options?

Taxes
Exxon paid $30B in taxes in 2007. If our reps. really want to reduce the price at the pump, maybe they should forego those taxes and the pump taxes as well. And then reduce the size of the government at the same time. And that all doesn't include the taxes paid by the 80,000 employees of Exxon.

JOHN WAS NOT A CONSERVATIVE

.....Chances are that he was a "seminal caller", a Liberal trying to get past your call screener to get out his Liberal talking points .....COLOSSUS

good morning talent...!
Iam always glad to read your bazooka responses!
TWIRP?! Hmmmmm? I gotta go look it up..!smile
I like your list-----
TWIRP...BLEW MY THOUGHTS! Now I can't remember what I was going to say! ha ha ha
Hope all is well with you and family.I can see YOU have had your WHEATIES,already!
Could somebody define twirp for me, in case I cant find my dictionary!!?
elvis


BENEHOGAN

.....It is the eco-nuts and enviro-weirdos that lobby Congress to prevent us from developing our own oil, coal and natural gas ...we have a 300 year supply of oil in the shale of Colorado an South Dakota and another 300 year supply of coal in Utah ...join my group so we can lobby Congress to take back our Country ...

JOIN "HATE" NOW TO SAVE THE HUMAN RACE

.....TOWNHALLERS ....awhile back I founded "HATE"
(Humans ARE the Environment) to stem the tide of
eco-nuts and enviro-weirdos who are trying to destroy
the Human Race ...

.....The premise for this org. is that humans are
superior to tse tse flies and assorted vermin and that
humans should be in charge of things ...our mission is
to hunt and eat all endangered species ...in this way
we are helping nature do its job of ridding the Planet
of species that cannot adapt and thus should be
allowed to become extinct ...

.....Polar bears and seals and whales are an important
part of the food chain and should be hunted to feed
all the impoverished and hungry children in the world
...kangaroo rats should be trapped ...Delphi sands
flower loving flies should be swatted and California
gnats should be sprayed ...

.....Members of the Sierra Club and Peta should be
rounded up and confined to asylums infested with sand
fleas so that they can commune with Nature
.....COLOSSUS

Oil realities
The subsidies the oil companies get are a small fraction of the taxes they pay. They should not be receiving or getting either. Most countries (even those of the left) don't tax corporate profits at all.

Oil is a worldwide commodity. The oil companies are helpless to raise or lower the price. If they weren't, they would have done so in the 1980's when they were going broke selling oil for $7 a barrel.

The current price reflects booming worldwide demand coupled with artifical government restrictions on supply, and high taxes. The oil companies profits serve only as a minimal incentive for further production.

As usual, the market is the answer, the government the problem.

One Question
Will we ever get to drill and refine the oil that is already in our country?

I want to, do you? Let your elected rep know.

CONSERSATIVES OPPOSE MONOPOLIES
But nothing...A true conservative supports the free market system whcih is based upon competition. That means opposing monopolies and companies that conspire to fix prices to restrain competition and thus destroy the free market. The American Oil Cartel was exempted from Anti-Trust Laws in the 1990s. This casued a reduction in the number of American Companies from about 15 down to 5 or 6. It's also one of the main reasons (EPA is another) why there hasn't been a new refinery built in 20 years. Debate of "excess oil profits" is semantics. The truth is we have a government sanctioned American Oil Cartel that plays ball with the Arab Oil Cartel and fixes prices by destroying the free market.

I am a Republican, but
Your article is very good, BUT having already given in to government programs like SS and health care the Americans have already forfeited the right to anonymity in the matter of proof of citizenship. Also, the constitution requires similar proof for voting. Max Stanton

para-dimz
Good idea. As a matter of fact, i had the same idea long ago. Many of these operations that nobody wants in their back yard like nuclear plants or oil refineries, or oil shale recovery plants, could be placed on govt land. Cost should be guaranteed by the govt, as justified by strategic considerations, but the operations should be by lease to private companies. The arrangement could be similar to the type of thing govts do with power companies. A friend of mine with a degree in forestry spent his military career as resource officer responsible for maintaining the forest on a huge military base. He said their policies were very wasteful, and that intelligent application of renewable resource forestry would have enhanced the vitality of the forests. Of course, any commercial use was an absolute, and stupid, no no.

Deathstar, Anne
Agreed. Govt bailouts are counter-productive, whether corporate or private. I always thought the financial industry bailout during Reagan's administration was a serious mistake. The only way procedures get better is if those involved get whacked when they are foolish. The mortgage/foreclosure situation is a case in point. Gas prices are about as clear an exression of supply and demand as can be imagined. Those who can't see that are hopeless fools. US govt kowtowing to enviro-whackos (as contrasted to true environmentalists) has been a contributor, since it reduced supplies. I've been hearing rumbling of new sources coming on line. Didn't stop me from investing oil and against the American dollar.

Government collection of gas tax higher
Government collection of gas tax is higher than the oil companies profits. We are being ripped off more by federal AND state taxes than anything the oil companies do to us.

gasoline is merely a symptom
The government has managed to do something with the gasoline industry, that in its best way is insidious. By burying taxes in the price of the product,few realize how much we pay in gasoline taxes. The government has created the same thing in collecting income taxes and payroll taxes. The average American has no clue how much we pay in taxes. If the average American knew how much we paid in taxes, there would be another "Boston Tea Party". That is why the fair tax has yet to be considered. The government makes far more in profits than the oil companies do; and while there is a need for auto makers to increase fuel standards, we need to open ANWAR,develop oil shale technology, and construct new refineries, or we will continue to have energy problems.

Is this a new idea?
Austin writes a good one, as far as it goes. Above commenters, by and large, reinforce and strengthen Austin's point.
But here is a new idea. ONe I haven't seen, at least.
We have lots of government land. Some are parks an the like but some are military installations. Government is always trying to close them and has done so. The local communities get hurt. Why not lease said land for the specific purpose of refining oil. The lease itself could be very cheap but the environmental regs could and should be stringent; to the letter and spirit of the law. Open the land to bids. I bet someone would snap it up.
Here is who wins. The government. They get to close a base they don't need and make some money. The local community. They get a new, much needed industrial complex. The country gets new refining capacity. The NIMBY's don't get this in their backyard.
What do you think?

p.s.
socalled "interest only loans".

my mistake.

OPEC; Bear Stearns
I read that if it were not for OPEC, and oil was allowed to be priced in some relation to marketforces, the American consumer would be paying about $1.00 or $1.50, for a gallon of gasoline at the pump.

It is a cartel. Its strategy is to "milk" the developed world, especially the west, transferring wealth from the west to gulf fiefdoms.

And it has been quite effective.

I agree with Hill that it is sloppy thinking to simply blame Big Oil and its profits. It is too easy to make Big Oil the villain here. I just don't buy it.

On Bear Stearns:

I can see the argument that it is hypocritical to bail out Bear Stearns, and let the individual homeowner wither on the vine.

I am sure corporate decisions at Bear Stearns greatly contributed to the company's financial woes, and it seems almost criminal for the government to in effect excuse what probably is incompetent decisionmaking at Bear Stearns.

But, lots of homeowners had to be really stupid to think these no-interest loans, and other gimmicks, would not one day come back and bite them in the arse.

The government is saying if Bear Stearns would have failed, the ripple effect throughout the U.S. financial industry would have been so severe as to possibly bring about financial crisis as serious as the Great Depression.

And that would have affected almost every American.

On balance, I think the government had little recourse here.

Oil companies
make about ten cents per gallon of gas. Their profits seem obscene because they refine and sell so much of the stuff. The government does nothing to produce a gallon of gasoline, but it makes 5-10 times that per gallon in taxes. Who's raking in the obscene profits now?

When will everyone wake up
I don't care if you are conservative, liberal, socialist or from the planet Mars there is one undeniable truth that you should always consider before all else. Politicians every move is not designed to lower prices, protect your freedom, provide you health care or educated your children. Every bill considered, every regulation proposed, every breath a politician takes. no how it is packaged, is for the sole purpose of either acquiring more revenue for them to control or to buy more votes to keep them in office.
When discussing the pros and cons of this that or the other in Washington politics the operative word will always be politics.

McCain's Wife
If you think McCain is left leaning check out his wife.

Charlie Crist of Florida is a RINO
He has demonized insurance companies in Florida to no end. Cannot stop himself. Hates them. Do some GOOGLE research and ask yourself if this pseudo-Republican slug believes in freedom or really wants to be a Democrat. And THEN ask yourself if you can vote for him if he is on McCain's ticket.

Lost Vision
That Austin Hill's vision is no longer the apex of Republican thought is the reason all correspondence from the RNC goes straight to my shredder. I wasted several minutes the other day in a lengthy harangue at the Republicans when called by a fund raiser. That she had heard it all and could care less was evident.

You can run to socialism or you can stroll to socialism. You wind up in the same place.

Austin
When it comes to our money - liberals are crooks; stealing from productive Americans to give to non-productive Americans so they can live a consequence-free lifestyle!

Great article!

It's their gas
No matter how you slice and dice it. They own it, we need it, and they have a right to sell it and make a profit. It's fundamentally wrong to try and set the prices for them. Until you go out in your back yard, drill a hole, pump the crude and refine it yourself, you have no say in the price, except what you are willing to pay before you start conserving. I would be mad as heck if the government told me I could not make a profit on building a house because it wasn't fair that some people could not afford it. If i build a house, i have a right to the profits at whatever level the market will support. I say it's time we kick the government out of the market place when it comes to price controls of any kind. including the next big scare...health care

What to do with profits .... Hmmmmmmmmm.
Let me see if I remember my basic college ECON 101...companies sell stuff, make a profit, invest the profit in newer and better equipment and facilities, make and sell more stuff at a lower price, make more profit, invest more ..........on and on. The problem with oil is not "windfall profit", it is the inability to re-invest to make more fuel cheaper and faster. What is causing the inability to improve equipment, facilities, raw material, and all the other things need to manufacture the huge amount of fuel need by humanity? Why has no new refinery been built in the United States in approximently 25 years? Think this over .... The Sierra Club ... PETA ...the St. Algore Church of Climate Change, Unreformed ... Any NIMBY who has filed suit to stop a refinery, storage depot or new oil well anywhere on the planet.

I know it is dumb to burn oil for fuel...Petrochemicals are part of the basic buildings blocks of our civilization ... But until we can do proven fairly priced alternatives, we've got to run with what we have. And for it to be affordable, we need the manufacturing and supply assets, assets the oil companies will be more than willing to invest those "windfall profits" in. Get out of the way and let free enterprise work! How in the name of God above do you think we've gotten this far from the caveman? Let business do what it knows how to do!

Oh....and all you far left types who believe that oil companies truly want dirty water and air, no trees or grass, and dead animals and children .. let me ask you to really think about that statement. Maybe, just maybe, you will realise how d**ned foolish that position is.

Republicans are *NOT* conservatives
--
Not necessarily, and not in any meaningful sense of the word "conservative" as it pertains to the Constitution.

Sure, they may be "social conservatives."

But so was "populist" Democrat William Jennings Bryan, and he was as rabidly opposed to the 1st Amendment as is any modern-day GOP-voting dead-from-the-neck-up God-besotted boob reflexively groping for the Republican Party one-swoop lever in the voting booth.

But when it comes to government limited under rule of law - the strict enforcement of the Bill of Rights, for example - and a "What is it about the expression '...shall not be infringed' don't you understand, you arrogant sonofabitch?" attitude toward elected politicians, the *LAST* thing you can call the average Republican is "conservative."


But if you want the price of light sweet crude oil to drop precipitously (to about $15.00 a barrel), see http://tinyurl.com/649swh and follow the suggestions incorporated therein.

The oil company executives *ARE* a buncha whores, and they're scared out of their panties by alternate technologies (like thermal depolymerization) which they've done their political best to blot out of existence.

It's not the prices your paying at the pump that should enrage you, but the suppression of cheaper sources of gasoline that you're not being allowed to buy.



---------
"The state is the great fiction by which everybody seeks to live at the expense of everybody else."

-- Frédéric Bastiat



Thanks, Austin
From my perspective, the US Federal Government should be doing the things the Constitution tells it to do, and not doing anything else. I don't find regulating the economy in that particular document. If it can be shown that there is an antitrust issue, then that needs t be dealt with, but apart from that the way to get lower gas prices is to, as you say, buy less gas or provide competing supply.

AFAIK, the most likely reason for current gas pricing has to do with Venezuela's political issues with the US (not OPEC's, although it may not be politically correct to point that out). Offset that oil source with a more accessible source, and we're onto something.

and,,,,,,
That caller was no conservative. He is a lier!

government makes far more off of oil
The government makes far more money off of oil per gallon via gas taxes. The amount collected makes the profits the oil companies look like pocket change.

The government makes more per gallon then the oil company, or the gas station owner. The government doesn't drill, refine, transport or market or sell the oil but makes more then any of the people who do! It is amazing that the oil companies can still make a profit on something so highly regulated. Would people like it if we had to subsided the oil companies because no profit can be made?

If the government really wanted to lower the price of gas (it isn't one bit interested) it could happen overnight. Stop collecting the gas tax. The price would drop by at least a third in most places. The fact that a third of the price is taxes is a insane. But most peoples complete lack of understanding of money is the reason government gets away with this kind of crap.

prices...
and just how much money are we being charged per gallon in taxes at the pump? Maybe the government is making more than the oil companies???....

Oil companies welcome to their profilts
What I have a problem with is the muli-billion dollar tax subsidies they enjoy, thanks to you and I.

I agree with the CEO of Exxon
When the gas prices were almost reaching the 1.50 a gallon at the pumps, Exxon sent their CEO to explain why. No one put words in his mouth. He proudly said it was his job to make as much money as he can for his shareholders. That was his first concern. We're in the business to make money was the last thing he said. I totally agree, this is the attitude of the gas compainies and not just Exxon. Their first concern is making money for their shareholders and their in the business to make as much money as possible. Raising prices at the pump because their saving for a rainy day, is as bogus as their reasons for raising the price of gas every week.

The man feels manipulated

we’ll call him “John” :
“And you’re a pathetic hack for corporate America” he shouted at me. And then my conversation with John, and my evening radio show, ended.

Austin smugly sums John up with:

It’s alarming to me how often I encounter people who are self-described “Conservatives” or “Conservative Republicans,” yet are quite comfortable with ideas and principles that are the antithesis of the “conservative,” “limited government” vision that has been the apex of the Republican Party for nearly all of my life.
---------

Then of course you will not call George Bush a Republican or John McCain or would you?

How do you feel about the President mailing out checks that amounts to billions?

Or is that with-in your idea of small government?

People are frustrated over everything concerning fuel prices.
The inflation of the Federal reserve Notes.
No Refineries built in 30 years.
Not using our own oil, from Alaska to Texas.
Forced to buy from a price setting group of islamics.

Job loss, growth of Government into private business with the new Banking powers.
Global warming nonsense.
National debt
Trade deficits
Endless war
Taxes
People are feeling very frustrated you smug little twirp, and with good reason.

High Gas Prices?
If anyone thinks gas prices are high now,wait 'til Gore and all the global warming crazies add all their taxes to it.

If we can't drill for oil right off the coast,why can China? Why can't we drill in Alaska? Why can't we build more nuclear plants?There are two huge ones less than 50 miles from my home.Never had any scares in many years of operation.

I will tell you why.The leftist environmentalists will not allow it.They fight it tooth and nail,then carp about high gas prices.They would complain if they were hung with a new rope.

The new Democrat congress has been in office a year and one half.Why is the economy falling apart? I thought they were going to save us.Exactly what have they done,except whine about Bush and his policies.Such a disappointment.

Government should Un-intervene
That goober wasn't a conservative. "Pathetic hack for corporate America" gave it away.

The oil business has been structured for decades such that producers make more when the market price is high, & less when it's low.

Back in the '80's, they were capping wells because the price was barely worth the effort. Who expressed concern about their plight?

Anybody'd think the greenies are secretly in cahoots w/ the oil companies, because they push policies that make oil more scarce, & therefore its market price higher. ANWAR didn't exist until Waco Willie created it w/ a penstroke to ensure the oil fields there didn't reduce the market price for his Indonesian buddies.

Hate hi prices? Get out of the way, let us drill, & build refineries. (Lack of refinery capacity is the big bottleneck)

Furthermore, WW pushed trade policies that developed Red China at our expense, so they're replacing oxcarts & bicycles w/ cars, trucks, & motorcycles, & thus bidding against us for oil. The air around Beijeng is becoming almost lethally filthy, the IOC is gravely concerned about the athletes' health, yet the greenies are OK with that, & with giving China & India a special pass on minimizing carbon dioxide emissions.

You'd think a developing socialist country could be expected to develop in a "sustainable" "green" manner & show us how it's done & that socialism is actually good for something, but nooooo.

Anyway, I'm old enough to remember the Carter Malaise, w/ fuel shortages thanks to price controls, & I'd rather have somewhat higher prices than artificially restricted supplies.

Savage: The ONLY way I think the govt

should step in is to tell the greenies to sit down and shut up and the oil companies ARE going to upgrade and build new refineries, and they ARE going to drill for oil in ANWAR and wherever else there are oil deposits.

Beyond that, the idea that HELLary and BHO think they have to right to redistribute the profits is just sheer insanity.... oooops, no socialism.






Savage 99
Your right. No, I don't believe the government should step in, but I didn't think that the government should have bailed out Behr-Stearns, either although I didn't see one column on that issue here on TH.

Bush has stated publicly that homeowners whose ARMS exploded shouldn't be aided by the government but he never did explain why his logic didn't apply to B.S.

I have heard, or read, so many conservative radio jockeys defend Exxon, but it never seems to go much deeper.

Deathstar
Hill states a listener is irked at Exxon because of high gas prices and thinks govt ought to step in and make things fair. Hill further states he thinks this is against basic conservative principles and surmises his listener is not really conservative. Where do you disagree with this interpretation of the article? If you believe the govt SHOULD step in and regulate Exxon's profits, say so. There is no need to be crytic or sarcastic.

Savage 99
Maybe we should just shut up and accept what Hill is telling us:

What's good for Exxon is good for the country!!

Right.

Politicians may or
may not have to compromise, but voters never have to. And as soon as the voter puts himself first over his fellow citizens, he will find he is trying to spend himself rich with his own money. Divide and conquer is the tried and true tactic of the demeagogues, race baiters, and class warriors that have taken over the govt. No solutions will come from the present bunch or any similar replacements. Until the voters support reps that put the whole country first, they will find they are shooting holes in the other guy's end of the boat. You know, the same boat we are all in.
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