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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:13 PM
Original message
Big Oil defends profits before irate senators
Source: Associated Press

WASHINGTON - On a day oil prices leaped to unheard-of highs, senators lined up Big Oil's biggest executives and pummeled them with complaints that they're pretending to be "hapless victims" while raking in record profits.

"Where is the corporate conscience?" Sen. Dick Durbin, D-Ill., asked the top executives of the five largest U.S. oil companies.

It's all about economics, came the reply. Supply and demand. The company leaders tried to shift attention from motorists' anger over $4-a-gallon gasoline to a debate over new areas for drilling.

But senators at the Judiciary Committee hearing weren't having any of that. They wanted to press the executives about public anguish over paying $60 or more to fill up a car's gas tank.

"People we represent are hurting, the companies you represent are profiting," Sen. Patrick Leahy, D-Vt., told the executives. He said there's a "disconnect" between legitimate supply issues and the oil and gasoline prices motorists are seeing.

The executives, sitting shoulder to shoulder in the hearing room, said they understood people were hurting, but they tried to blunt the emotion with economic analysis.

Profits have been huge "in absolute terms," conceded J. Stephen Simon, executive vice president of Exxon Mobil Corp., but they "must be viewed in the context of the massive scale of our industry." And high earnings "in the current up cycle" are needed for investments in the long term, including when profits will be down.

"'Current up cycle,' that's a nice term when people can't afford to go to work" because gasoline is costing so much, replied Leahy with sarcasm.

Read more: http://news.yahoo.com/s/ap/20080521/ap_on_go_co/oil_congress?_ylt=Aml8PUneRnJQGeHvsH3p4vmb.HQA



many, many more single sentence paragraphs worth reading
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alstephenson Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:16 PM
Response to Original message
1. Thanks for posting.
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islandmkl Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:18 PM
Response to Original message
2. how do you like their "What are we supposed to do?" stance...
when what they are saying is "What are YOU going TO DO about it?"
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The Political Jerk Donating Member (117 posts) Send PM | Profile | Ignore Wed May-21-08 09:18 PM
Response to Reply #2
51. We HAVE to do something about it. They are draining everyone...
their profits = the economy's losses.

As congress wakes up (or gets kicked out) things will have to change. We can't let these corporations railroad us into recession.

-The Political Jerk
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FirstLight Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 09:59 PM
Response to Reply #51
58. sorry NOT recession..DEPRESSION
I am working 3 jobs this month and any extra money I would have made is going nowhere..I almost couldn't afford to drive HOME from one of my jobs because I had no gas and no cash!

oh, and my bank account is in the negative, AGAIN...so any money I make will have to be (paycheck cashed at the pawn shop) kept in my pocket, because I can't have the bank taking my money for food for my kids. how do I get outta THAT hole, mr. bush

we were hanging by the bottom rung at the beginning of the year...now more like by a thin thread... don't know how we are oing to survive from one wek to the next.
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StarryNite Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 06:49 PM
Response to Reply #58
116. You're working 3 jobs?
Well if * knew that he would say to you, "Uniquely American, isn't it? I mean, that is fantastic that you're doing that. Get any sleep?"
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LiberalFighter Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 09:44 PM
Response to Reply #2
55. I have a suggestion.... shoot the commodity traders involved in oil futures
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AllyCat Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 10:32 PM
Response to Reply #55
64.  I don't advocate killing people, but the traders are the crux of the problem
Edited on Wed May-21-08 10:33 PM by AllyCat
Remember Enron??
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:37 AM
Response to Reply #64
85. Not really.
At any given point there is a quantity available on the market and there is a given demand. This is what ends up setting the price. If the traders guess too high then selling oil at that price would mean there would be excess oil left on the market driving the price down. A similar result follows for a price that is too low. Traders who arbitrarily bring the price up stand to loose greatly if they are wrong about the quantity available and the demand. The notion that speculation changes the price is only true in the short run and cannot lead to sustained high prices.
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robinlynne Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 03:44 PM
Response to Reply #64
112. how about nationalizing oil production because it is a common need,
how about making it not for profit?
how about churning out electric cars and solar panels?
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liberal N proud Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:25 PM
Response to Original message
3. "we're doing all we can to put downward pressure on prices."
Who the fuck do they think they are kidding?

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mcollier Donating Member (887 posts) Send PM | Profile | Ignore Wed May-21-08 06:31 PM
Response to Reply #3
7. Talk about a win win situation
for Opec and the Oil companies.... So now the US is a paying for oil at a rate of $800 billion a year... My Friends, the bottom is about to fall out from under us.
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truedelphi Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 09:49 PM
Response to Reply #7
56. Yep it is truly win-win-y
For the rich and whine whiney for us.

And every time the failing financial institutions get a hand out from Uncle Sam (That is we the taxpayers) well every time that happens, then the dollar deflates, and since oil must be paid for in Euros, the cost of oil goes up.

It is yet another transfer of wealth from the poor to the rich.
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uberllama42 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 10:23 PM
Response to Reply #56
60. Oil has to be paid for in Euros?
When did that happen?
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ohio2007 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 06:56 AM
Response to Reply #60
99. then drill for oil in the US nt
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truedelphi Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 11:35 AM
Response to Reply #99
107. Far better than drilling for oil, we need a sensible alternate fuels
policy.

This ethanol thing of converting the corn kernels, ie the food, to ethanol was one of the most blatantly bogus attempts ever to hijack the alternative fuels movement and mis-educate the public to the fact that croops to ethanol can't work.

It can work. We need to avoid using the "food" in the corn crop, as that is what drives up the food prices. Instead, we can use the "waste" of the corn crop to produce the ethanol - and immediately begin to have the type of prosperity that VBrazil is experiencing. (Though Brazil uses their sugar crop rather than corn.)
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uberllama42 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 06:41 PM
Response to Reply #99
115. What?
Oil is not sold on the world market in Euros. The only exception I know of is Iran, and I would guess that Norway deals in Euros as well. As far as I know, the top five US sources all sell in dollars. That has nothing to do with drilling in the United States. Your response doesn't really address my question.
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truedelphi Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 11:32 AM
Response to Reply #60
106. Right before the 2003 Shock and Awe campaign
Saddam Hussein decided that the oil purchases for his country's oil had to be paid for in Euros.

Iran has followed suit.

European nations are delighted with the decision.

But for us, it is exactly like when The Brits made currency decisions in the 1930's that locked
Germany and Japan out of the world economy. Both those nations became aggressive, in part as a result of the currency decisions.
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uberllama42 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 06:38 PM
Response to Reply #106
114. The top five oil exporters to the US are Canada, Saudi Arabia, Mexico, Nigeria, and Venezuela
As far as I know, all of those countries sell their oil in US dollars. And we don't buy oil from Iran. The Europeans who by from Iran are happy that they can pay in Euros. But I don't see how that effects us.
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truedelphi Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-23-08 11:55 AM
Response to Reply #106
121. You need to let the editors at the NYT business' pages know abt this
As they seem to be seriously mistaken.

And on Sunday night, I heard the former head of the CIA talking on CNN abt how our national security depends on the Middle East. I don't think he was talking about our need to import sand.

Here is one citation:
U.S. Oil Still Pours From a Mideast Barrel
BuzzPermalinkBy NEELA BANERJEE
Published: October 22, 2002
Even as talk of war with Iraq and the continuing fallout from Sept. 11 stoke concerns about American dependence on Persian Gulf oil, Western oil companies are showing no intentions of veering away from the Middle East, industry executives say. The Bush administration has made broadening the sources of America's oil supplies a touchstone of its energy and foreign policies, but officials concede that progress has been slow.

''I believe that the administration's emphasis on increasing and diversifying global energy supplies is having a positive impact on investment decisions -- but this impact is difficult to quantify,'' Spencer Abraham, the energy secretary, said in an interview.

Recently, the administration has encouraged efforts to import more Russian crude oil to the United States and announced plans to open a new consulate in oil-rich Equatorial Guinea. American oil companies say that they welcome such efforts. But the proportion of United States oil imports flowing from the Middle East remains high -- about 24 percent, down from levels during the oil crises of the 1970's, but up by a third over the last few years. And oil executives say that they have not markedly changed their plans for where to seek out, produce and purchase oil.

###############################

Oh and maybe the people in charge of our military policies should know that we don't need any of the oil from Iraq - that would be the best outcome of full disclosure of the five top nations being the ones that you name. At last, our troops can come home!!
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Raster Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:53 PM
Response to Reply #3
14. Reminds me of the tobacco execs swearing to Congress that cigarettes weren't addictive.
The oil companies are recording RECORD PROFITS each and every quarter. There is no way they are going to "put down pressure on prices." They've done everything they can to increase prices.
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Happyhippychick Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:50 PM
Response to Reply #3
30. Reminds me of when OJ said he would dedicate his life looking for NIcole's killer.
Disingenuous bullshit.
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bluesmail Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:28 PM
Response to Original message
4. Laissez-faire economics
Free to do as they want, just sickening.
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whistle Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:32 PM
Response to Reply #4
41. No it is actually collusion
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bvar22 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 11:45 PM
Response to Reply #41
76. Agreed!
Record Prices + Record Profits = Rigged Market

Otherwise, fair competition would drive down prices.
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:15 AM
Response to Reply #76
81. It's a scarce resource with investment decisions being made quite a while before
the finished product is produced. The same results could occur in a market with minimal market power if either property held.
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Dukkha Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:28 PM
Response to Original message
5. how's this for a lame excuse
And high earnings "in the current up cycle" are needed for investments in the long term, including when profits will be down.

So it's like their saying they need to put away profits for themselves to accommodate their executive lifestyles later on like alimony. I'm sure that's comfort to all the starving families.
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bulloney Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:37 PM
Response to Reply #5
44. So, when are we going to see these companies invest in more refineries in the U.S.?
That's for the short term.

For the long term, when are we going to see some serious investment in alternative fuels?

I'm not expecting to see any pigs growing wings any time soon.
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Miss Chybil Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:19 AM
Response to Reply #44
82. Never.
1. They are not going to invest in anything that will bring the price of their product down. It's much easier to make more money by making less product.

2. They don't want to invest in oil when the world is looking for an alternative.

3. It's a lot easier to make more money by making less product.
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hootinholler Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 05:59 AM
Response to Reply #5
96. How many new refineries have been built?
0

-Hoot
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ladjf Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:29 PM
Response to Original message
6. Total waste of time.
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acmavm Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:31 PM
Response to Original message
8. Unlike gasoline, talk it cheap. Let's see some price controls. Or even
some bigtime penalties for price gouging during wartime. It's their fucking war that we're fighting. And while the lower and middle classes kill (and be killed) for these corrupt treasonous bastards, they profit.
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Raster Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:54 PM
Response to Reply #8
16. Not going to happen. Remember the Texas Petroleum Mafia has paid BIG BUCKS to have their
"Dream Team" installed in the White House and Vice President's mansion.
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Frisbee Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:33 PM
Response to Original message
9. And after everything is said and done...
Lot's will have been said, and little done. I certainly don't expect things to improve before next year, and even then, I wouldn't hold my breath. Big oil calls too many of the shots in Washington now.
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rpannier Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:37 PM
Response to Original message
10. Maybe the execs would see it if there were price controls, or a windfall profits tax or dare I say
Nationalize the oil industry in the name of National Defense and the National good.

That might shake them up a bit.
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eilen Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:58 PM
Response to Reply #10
19. How about rescinding
the fucking subsidies to the oil companies passed in the last energy bill?
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rpannier Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:00 PM
Response to Reply #19
21. That's another good one.
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bulloney Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:32 PM
Response to Reply #19
42. How about the oil companies footing a major portion of the bill to keep our military in the ME?
I would include the costs of the Iraq war.

That's the only reason we have a military presence in the Middle East. These companies should reimburse the taxpayers who have made their windfall profits possible there.
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eilen Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 08:09 AM
Response to Reply #42
101. Amen brother/sister!
Can we also demand Mexico compensate us in cheap oil for all the social services we have provided their citizens (education/healthcare/legal/police) that have come to work and live here illlegally? I think you are on to something.
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PinkyisBlue Donating Member (617 posts) Send PM | Profile | Ignore Thu May-22-08 01:47 AM
Response to Reply #10
89. But the executives specifically said they don't want to pay more taxes.
'And they said they're worried Congress was talking of requiring the five companies to pay more taxes.
"I urge you to resist these punitive policies," said Hofmeister.'

Thousands of our men and women have died or been injured in Iraq for these oil companies to increase their profits, and these executives consider paying taxes on their profits "punitive"? These profits are tainted by the blood of countless thousand innocent Iraqis and Americans. They should be ashamed to talk about not wanting to pay taxes while innocent people die so they can make more money.

It's pretty obvious what Cheney's secret energy task force meetings with these oil executives were about before the war started. They would be free to rake in as much profit as they wanted in exchange for.... I believe a lot of our "leaders" are on the oil company's payroll and are personally profiting from all of this.
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magellan Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:43 PM
Response to Original message
11. Durbin is really looking for corporate conscience in the oil industry?!
GOOD LORD, WE ARE LOST.
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BreweryYardRat Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-24-08 04:06 PM
Response to Reply #11
127. Less "looking," more "public shaming."
At least, that's the implication I drew.
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louis-t Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:49 PM
Response to Original message
12. Supply and demand? Talking out of both sides of their
faces. One minute it's "supply and demand", the next it's "nothing to do with supply and demand, it's what the market will bear".
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brentspeak Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:49 PM
Response to Original message
13. As if the oil execs will ever admit to gouging customers and manipulating prices
Did anyone ask these oil crooks why they've been refusing to build more refineries?
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and-justice-for-all Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:54 PM
Response to Original message
15. This is why natural resources should be nationalized...
Edited on Wed May-21-08 06:54 PM by and-justice-for-all
and NOT left in the hands of private cooperations. The lack of oversight does no help either.

We are being screwed and Mega-Corp is getting away with it, it is DISGUSTING!

I do hope that these Senators are being sincere and just putting on a show for us.
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Raster Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:56 PM
Response to Reply #15
17. I whole-heartedly agree. Natural resources that affect all of us--ESPECIALLY the petroleum
industry should be nationalized. And yes, I do want government to intercede.
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meow2u3 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:14 PM
Response to Reply #15
23. At the very least, oil companies should be regulated as utilities
on a national scale. And oil should be immediately taken off the commodities market. No consumer should be at the mercy of compulsive corporate gamblers betting with taxpayer money.
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Zorra Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 10:28 PM
Response to Reply #15
62. Yep. It's a matter of national security.
"People's Petroleum" has a nice ring to it.
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BigDaddy44 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 07:25 AM
Response to Reply #15
100. Do you consider food (crops) a natural resource?
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global1 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:56 PM
Response to Original message
18. The Saudi's Told Bush That They Increased Supply But Demand Is Not There....
so they refused to put more barrels out in the market. The Saudi's blamed the problem on the sinking Dollar and put it back squarely on the U.S. This morning I heard that the price spiked over the $130 per barrel because of supply problems in this country.

I'm thinking at $4/gal that demand is kind of down in this country. So who is telling the truth here?

I don't think the oil companies are putting the profits back in maintenance of their refineries and supply chain. We know that when they consolidated companies they closed some refineries. We know no new refineries have been for a long time or are being contemplated. We hear that the environmentalists are to blame.

Give me a break - we're being hosed - and being hosed big time. I drove into the city (Chicago)today and had to go through what I would consider some poor areas. I saw gas stations in those communities with the price of Regular at $4.19/gal.

What I do is go to the gas station that has the gallon price the cheapest. If it's $3.99 at one station and $3.97 at the station across the street - I'll go to the one across the street. I'm not suggesting that we boycott gas stations because that can't work - but if everybody would go across the street and buy at $3.97 - at sometime the guy at $3.99 will begin to lower his price to get back customers. If everybody would just buy where gas is at its cheapest - perhaps we can create some mini price wars and get the price down that way. I know that that would probably squeeze the station owner - but - he's in a better position to put pressure on the oil company than we are. So be it.
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uberllama42 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 10:57 PM
Response to Reply #18
70. I have read that from 1975 to 2000 there was only one permit application to build a refinery
And why should these companies build more refineries? If they increased capacity and lowered prices, the return on their investment would almost certainly be negative. If they are going to make less money by selling us more, they have no incentive to do it. It's called capitalism. If you ever hear someone whine as much about gas prices as they do about socialism, they are contradicting themselves.

I don't think putting pressure on gas station owners would do anything to lower prices. They make a pittance on each gallon of gasoline, and most of their profits come from the edible food substitutes in their little gas-station-marts. Station owners are price takers and don't really have any influence on their suppliers. If oil companies respond this way to senators, imagine what they will say to some shmuck who owns a gas station.
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truedelphi Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 06:58 PM
Response to Original message
20. And then, just before the Senators got very very grumpy, a rotund man in a white and red suit
Edited on Wed May-21-08 06:58 PM by truedelphi
Stood before them.

He reached into his sack, and while chortling a whole bunch of Ho Ho Ho's, he began tossing money and stock certificates at the Senators' feet.

They suddenly realized that it was people's own faults for insisting on commuting places. After all, in some third world countries, people are willing to sleep under their desks at night.
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bbgrunt Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 11:44 PM
Response to Reply #20
75. yes, this will all be blamed on consumers in the end.
.....and as long as we import a large percentage of our oil, price controls will only create shortages and perhaps rationing.

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FunMe Donating Member (184 posts) Send PM | Profile | Ignore Wed May-21-08 07:02 PM
Response to Original message
22. And what about that meeting with CHENEY?
BASIC economics tells us that NO taxes are needed for the oil companies when they are raping American's pocketbooks with high prices.

Why was that meeting so secretive with Cheney?

If this is what it is going to take for the lazy Americans who don't pay attention like we do, then hey so be it. Let the Americans finally get angry enough and vote these bastards out of OUR government so they stop with this bs the oil executives are spilling out for the unnecessary high oil prices.
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lark Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 01:59 PM
Response to Reply #22
111. It was all about how they could take control of Iraq's oil
after Cheney and puppet declared a war and "destroyed" the oil infrastructure in Iraq so huge price increases could be foisted on unsuspecting Americans. I read that maps of Iraqui oilfields were part of the meeting. I think that's why Cheney fought so hard to keep this secret. Couldn't let the cat out of the bag that we'd be in Iraq until the oil companies got what they wanted - almost complete control and profits from the Iraqui oilfields for the next 30 years.
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madmom Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:15 PM
Response to Original message
24. but they are not investing or we would have more refineries
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Pastiche423 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:17 PM
Response to Original message
25. "I urge you to resist these punitive policies," said Hofmeister
For all that is good and right, punish those bastards NOW!
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annabanana Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:39 PM
Response to Original message
26. Did anyone do Colbert's bit.. (the non-profit dollar ad?)
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truedelphi Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 11:37 AM
Response to Reply #26
108. I forgot to thank you!!
I watched and enjoyed and emailed to others. And then forgot where the link came from.

'Twas nice to have a little laughter in amongst the grief of the spiking fuel prices.
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pleah Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:44 PM
Response to Original message
27. Well, it is just fine and dandy that they are all acting pissed
at the oil companies, but I want them to actually do something!
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Postman Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:48 PM
Response to Reply #27
29. It's a frickin' charade for our benefit....
line up the corporate profiteers and throw darts at them, then close the meeting and we all meet at Sweeneys for a round of drinks....

What a joke.
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pleah Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:08 PM
Response to Reply #29
36. I think you are right.
And the show goes on. sigh
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skooooo Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:46 PM
Response to Original message
28. Forget Congress, if this keeps up....

...the big oilmen are going to have the peasants w/pitchforks ON THEIR DOORSTEP. Then we'll see how their explanations work for them.
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frylock Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:13 PM
Response to Reply #28
38. shhhhh! i'm trying to watch american idles..
that pitchfork thing ain't ever gonna happen, what with the bread and circuses and whutnots.
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lifesbeautifulmagic Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:51 PM
Response to Original message
31. Its not just the oil execs, executive pay is out of control all over the board
I'm sorry, I just do not understand why an Admin Assist gets $35,000 a year, and an executive makes 500,000 and up. And please, it has nothing to do with "the market". These people are crazy if they think they couldn't get just as good and better for much much less.

I don't see why increasing wages for regular people is not even discussed as a solution to our economic woes. Executive pay could be reduced to decent levels and pay for working folk could be increased at least 15%. Why is my salary subject to market conditions, so I am told, but my bosses boss is a gift from the old boys (and girls) club? And let's not even get started about executive pay being tied to (bad) performance.
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1monster Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 07:52 PM
Response to Original message
32. Oh, sooooo sincere!
"Is there anybody here that has any concerns about what you're doing to this country with the prices that you're charging and the profits that you're taking?" Durbin asked.

The titans of America's oil industry sat quietly for a moment.

"Senator," replied Exxon's Simon, "We have a lot of concern about that. And we're doing all we can to put downward pressure on prices."


Oh, and by the way Senators. A grateful gas buying working person recently left me a piece of real estate in New York. It has the potential to be a huge income generator.

Can I interest you in shares of the Brooklyn Bridge? And since it's you guys, I let you in on the deal for a rock bottom price....
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Pierre.Suave Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:02 PM
Response to Original message
33. This really is a simple problem to solve...
get some real economists together, figure out how much it costs to produce gasoline and get it to the pump, and leave a small bit extra for the companies to make a profit, and tax the shit out of them if they charge more than that.
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Angleae Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 07:04 PM
Response to Reply #33
117. What would you define as "a small bit extra"?
What, 1%, 2%, 5%, 10%, how much.
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toadzilla Donating Member (814 posts) Send PM | Profile | Ignore Wed May-21-08 08:02 PM
Response to Original message
34. gas prices cant come down
we need to use far less of it, and the only thing thats going to get people to use less gas is if its hitting them hard in their wallets.

we need to hit them with a windfall profits tax and then invest some of it into working public transportation.
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lib2DaBone Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:06 PM
Response to Original message
35. Of COURSE they deny it....
What's anyone in our criminal govt going to do about it? Bush/Cheney is the Nixon Whitehouse on Steroids. Reminds me of Al Capone back in the 30's...
"Nyaa... I'm clean I tell ya... lay off copper"


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tabasco Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:08 PM
Response to Original message
37. Ohhhhhhkay. Did anybody expect them to offer up a rebate?
Edited on Wed May-21-08 08:08 PM by tabasco
These fuckers will lie, cheat and steal every penny they can get and I don't believe a goddamn word they say.



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Raster Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 10:35 PM
Response to Reply #37
65. This ugly bastard departed exxon/mobile with a $400 million bonus.
Yes, $400 million dollar bonus. And just a little tidbit of info: guess how much money exxon has paid on the judgment for the damage caused by the Exxon Valdez and the oil spill in Prince William Sound? Not a fucking thing. exxon put on a brave show for the world media, once they left, so did exxon. exxon has spent millions ensuring they won't have to pay a dime. exxon is at the very heart and center of the Texas Petroleum Mafia. exxon is also the company that had a hired gun on the cheney*/bush* White House payroll to "edit" all the reports of global warming.

Wake up America!:kick:

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Broadslidin Donating Member (949 posts) Send PM | Profile | Ignore Wed May-21-08 08:21 PM
Response to Original message
39. Congressional Kabuki Dancers as Germany's Strength Lies in "Old Economy"....
Today,
the manufacturing sector in Germany is growing
as a proportion of the country's total economic output,

and Germany looks set to out pace far larger economies
like China and the U._.of A.
as the world's largest merchandise exporter
for the fourth year running!

Ref: International Herald Tribune (Paris)
http://www.iht.com/articles/2008/05/20/business/tools.php

As the European Union laughs at us,
tis finally about time
we :nopity: amurikans experienced 8.50+ gasoline.
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whistle Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:31 PM
Response to Original message
40. Collusion which began in the secret meeting VP Cheney had with these folks
...back in February 2001 where the entire plan to defraud the American people began

Definition

A secret activity undertaken by two or more people for the purpose of fraud.
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:33 PM
Response to Original message
43. Americans are so hard done by with the current gas prices of ~$4.00.
They are still well below what Europeans paid even a few years ago when oil was cheap and were about the level that Canadians were paying at that time. Oil is a scarce resource and most of the cost increases are due to factors which America (including American oil companies) have no control over. America hasn't produced enough oil to have a major influence in the domestic price for about 30 years. You can keep blaming your senators and the Bush administration for the high prices but it is a fruitless task. Instead you should be blaming pretty much every politician, Democrat and Republican, for maintaining an institutional structure which is not capable of functioning effectively when oil prices are high.
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bulloney Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 08:43 PM
Response to Reply #43
45. You're forgetting that much of the European and Canadian gas prices are taxes for social programs
like health care.

We're climbing closer to European-level prices at the pump and we're not seeing anything in the form of universal health care and other programs.
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:03 AM
Response to Reply #45
77. Military spending and a lack of general tax revenue are a greater factor in
the social programs in the mentioned countries. Actual competence in developing social programs is another reason. It seems that any form of social spending has to be disguised in a fashion such that they are "socialist". The majority of effort seems to be devoted to making policies look good rather then making them work.

In Canada and Europe the prices have increased. In Canada the change has been by a non-trivial amount, around 30% over the last year. In Europe the taxes are higher so the prices have not changed by much. It is one of the "benefits" of having a good that is taxed high. Price increases don't increase the cost of the good by much. In America the prices have increased by a greater percentage due to lower taxation and a falling dollar. It would be interesting to see what the changes in price amount to after changes in the exchange rates are taken into account. They could be higher in Canada and Europe.

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mitchleary Donating Member (271 posts) Send PM | Profile | Ignore Wed May-21-08 08:53 PM
Response to Reply #43
46. UHHHHHHHHHHHH...
This argument is complete bullshit. Much of Europe's is taxes and ours goes into pockets of people like lee Raymond. Give me healthcare and roads that do not suck, free education and I will pay the 7 bucks a gallon europe pays.
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:26 AM
Response to Reply #46
83. What argument? The argument that Americans are so hard done by when they,
through the subsidization of roads, are paying less then the economic cost associated driving. These hearings are nothing more then a sham so that the politicians can pretend they are doing something about the issue. Depending on who is in office next year you might get a windfall profit tax or perhaps a gas tax holiday. In either case prices are not going to go down and such policies just delay the inevitable realization that current methods are not sustainable. The money that Lee Raymond is making is for all intense and purpose irrelevant. It is only relevant so long as it distracts the attention from those who should be blamed for the problem.
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mitchleary Donating Member (271 posts) Send PM | Profile | Ignore Thu May-22-08 12:32 PM
Response to Reply #83
110. no
that Europe has it worse off because they pay more for a gallon of gas. They get perks with those taxes.

Most people in the US would save hundreds if not thousands a month on health care if we had a system like the UK. College would be free and more is saved by the family.


The money we pay goes into Lee Raymond's pocket.
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-23-08 11:11 PM
Response to Reply #110
124. I never said that Europe was worse off because of the prices. The underlying
theme in those hearings and in many of the responses to the topic was how unthinkable it is that gas reaches those prices.

Europe has the systems they do because they have a commitment to implement systems that create the outcomes they desire. Europe has spent a substantial amount of time developing the systems they have in place and have looked to the wisdom of other countries in developing these policies. Even if the political will ever arises for these programs I would not expect the same results with the current politicians America has. There policies are good because they consider the goals not benchmarks such as how much money goes to executives.
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Yavin4 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 09:04 PM
Response to Reply #43
47. Our Taxes Are Paying For An Unjust War in Iraq...
which, not so coincidentally, keeps the second largest oil reserves off the market.
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Raster Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 10:36 PM
Response to Reply #47
66. which keeps the world's second largest oil reserves off the market....
...and keeps the Saudi oil managed by the Texas Petroleum Mafia at top dollar.
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txwhitedove Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 11:09 PM
Response to Reply #47
72. A query on "World's 2nd largest oil reserve" shows both Canada
and Iraq with that label. If you meant Iraq, I know for a fact we import Iraq crude = it's not off the market, but who gets the profit there now?


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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:11 AM
Response to Reply #72
80. Canada is 2nd largest if you consider the oilsands which traditionally
have not been included in estimates because up until recently they were not economical to produce.
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Yavin4 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 04:49 AM
Response to Reply #72
93. Iraqi Oil Production Is No Where Near Pre War Levels
We intentionally crippled their infrastructure for this very purpose.
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Gman Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 09:10 PM
Response to Original message
48. Four words: Cheney Energy Task Force
Edited on Wed May-21-08 09:10 PM by Gman
You want to know what's really going on? Get the records of the task force meetings... but the SCOTUS says we're not entitled to them. The task force records is wehre answers can be found to all of this. This is illegal felonious collusion that goes right to the Oval Office and the office of the VP.
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ebt12 Donating Member (22 posts) Send PM | Profile | Ignore Wed May-21-08 09:12 PM
Response to Original message
49. I'm not surprised
The nature of the replies these oil execs blasted out of their two mouths (they sit on one of them) were totally predictable. Yeah right, "And we're doing all we can to put downward pressure on prices."

I wonder, what is the percentage of the revenue that is the profit these companies are making? If the percentage has risen as prices have risen then I think it would be harder for execs to explain away or excuse away the huge profits they are making as people everywhere hurt.

Eventually the greed of these people will come to bite them in the butt as people need to stop cut down more and more on how often they travel, how far they travel, and what they buy.
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EV_Ares Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 09:14 PM
Response to Original message
50. Let the execs try to live on just average salaries for a month and buy their
frigging gas and drive to work and other necessary runs to get a feel of what the average American is going through.

Take away some of their extravagant pay and extravagant corporate profits and earnings and use it for something of a good cause.
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bdamomma Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 09:28 PM
Response to Original message
52. I just caught a little bit of it on C Span 2
those oil guys can go to hell, I wouldn't put it pass them they all met with Cheney, and manipulated this whole thing.
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:40 AM
Response to Reply #52
86. Market power, to the extent that it is an issue, is the result of implicit agreements.
Explicit agreements have the possibility of jail time and are easier to catch.
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penguin7 Donating Member (962 posts) Send PM | Profile | Ignore Wed May-21-08 09:32 PM
Response to Original message
53. Congress would have done better to hang up a large mirror
and blame the real culprits.
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truedelphi Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 09:49 PM
Response to Reply #53
57. Love that image. n/t
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:08 AM
Response to Reply #53
79. You are definitely right. I curious what your reasons are though.
Where do you believe that they have fallen short?
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Dreamer Tatum Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 09:37 PM
Response to Original message
54. If it's supply and demand, and they're saving their nuts and berries for later
then they DON'T need subsidies of any sort. By their own definition.

I'd set up a draconian windfall tax, part of which is escrowed for them to borrow against
if things are ever actually bad for them.
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freeradicalm Donating Member (88 posts) Send PM | Profile | Ignore Wed May-21-08 10:16 PM
Response to Original message
59. corporate conscience??
Now THERE is an oxymoron for ya!!
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prolesunited Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 10:26 PM
Response to Reply #59
61. Same thing I was thinking
That's the whole problem with giving corporations the same rights as a person -- they have no conscience.

Good first post. Welcome to DU! :hi:
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Aragorn Donating Member (784 posts) Send PM | Profile | Ignore Wed May-21-08 10:28 PM
Response to Original message
63. OK, so...
What position do Mccain, Clinton, and Obama have on this? Anyone? Class? Anyone?
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jwirr Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 10:38 PM
Response to Original message
67. And Big Oil should understand something big - if our congresspersons
are angry then just imagine how angry we the people are.
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Gonnuts Donating Member (525 posts) Send PM | Profile | Ignore Wed May-21-08 10:44 PM
Response to Original message
68. The real price of oil should be around $30 a barrel
Most of the cost of oil now is due to the "fear factor" because bush&co have destabilized the region so much. They have achieved exactly what they were after and anyone that thinks they didn't invade Iraq to STOP the flow of oil I'd like to talk to. I have a Timeshare in beautiful downtown Baghdad I'd like to sell them.
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:07 AM
Response to Reply #68
78. I know for certain that offshore and tarsand production require a far greater price to
be economical. Even disregarding scarcity rents the price should probably be higher.
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PinkyisBlue Donating Member (617 posts) Send PM | Profile | Ignore Thu May-22-08 02:00 AM
Response to Reply #68
91. Is the timeshare in the Green Zone?
I'm only interested in buying if it's in the Green Zone.
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Aragorn Donating Member (784 posts) Send PM | Profile | Ignore Wed May-21-08 10:45 PM
Response to Original message
69. candidates
Well, nothing on Obama's or McCain's websites aside from claiming to plan a decrease dependence on foreign oil, without anything about oil windfall taxes or anything else similar. On Clinton's there was only this:

"A $50 billion Strategic Energy Fund, paid for in part by oil companies, to fund investments in alternative energy. The SEF will finance one-third of the $150 billion ten-year investment in a new energy future contained in this plan;"

(The original seems to contain a spelling error which has been corrected.)

To which one should ask "How MUCH of a part would oil companies fund?"

None of them address the ongoing rising cost of gasoline and diesel, and the domino effect it is having.

At least as far as I could find...
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dweller Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 11:06 PM
Response to Original message
71. "If every car in the US were placed end to end
then it must be Memorial Day" ...

(i forget who said it)

so, where are you guys headed this weekend?? :eyes:

We are but one side of the 'supply and demand' equation. I say let them drown in their own yellow liquid supply for a while.
dp
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leftcoastie Donating Member (84 posts) Send PM | Profile | Ignore Wed May-21-08 11:21 PM
Response to Original message
73. I was going to fill up
my tank this morning, but had to get the dog to the vet for surgery then go to work. Gas at my local station went up 10 cents in 8 hours. Sonoma County, CA.
You can't tell me they're not raping the country with their obscene profits. This IS A CULTURE WAR between the haves and have-nots.
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DUlover2909 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-21-08 11:27 PM
Response to Original message
74. If you don't like it, use less gas. Move closer to work.
I am tired of people bitching about high gas prices. I live 2 miles from my job. I ride my bike to work or drive my Honda Civic when it's too hot, too cold, or raining. People in Britain pay twice what we pay. The oil companies profit from our laziness and stupidity. Stop being lazy and stupid. Make sacrifices if you don't like it. Use less and the price goes down.
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:27 AM
Response to Reply #74
84. Well said.
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The_Casual_Observer Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 01:47 AM
Response to Reply #74
90. Price would go up & sold to china or india instead.
Local conservation is meaningless post globalization, that's old school thinking.
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 09:36 AM
Response to Reply #90
104. Prices would go down. People buy less when the price is high so there would be excess
supply if that was their pricing strategy.
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verdalaven Donating Member (495 posts) Send PM | Profile | Ignore Thu May-22-08 05:59 AM
Response to Reply #74
95. Sounds really easy
Try selling a house in this market so that you can move closer to work.

Sometimes life is not simple or black and white. And I personally do not believe that the gas prices will go down even if the entire country stops using gas. Peak Oil+Greed=High Gas Prices.

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Zorra Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 08:11 AM
Response to Reply #74
102. Do you have any evidence that the price of gas will go down if
there is significantly less consumption?

I use a bike and drive a Honda Civic, too. I'm all for conservation and protecting the environment.

But it seems like oil companies are engaging in price gouging, given the fact that they post consistent record or near record profits every quarter.

If the upper level executives were not making multi-million dollar annual salaries, it would be a lot easier to believe that rising oil prices were the result of supply and demand.
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DUlover2909 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 05:58 PM
Response to Reply #102
113. Not to be too oversimplistic, but..
If consumption dropped to zero then the value of gasoline would also be zero. Imagine a curve of value vs consumption. They would be directly proportional and would both decrease together, rather than the price remaining constant and dropping to zero only when the consumption reaches zero.
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lutefisk Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-23-08 09:40 AM
Response to Reply #113
120. So you're saying the "market" will price commodities fairly if left alone?
I don't trust corporate monopolies. There has been a free-for-all money grab going on since Bush took power. It's more complicated than you imply.

:hi:
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DUlover2909 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-24-08 01:43 AM
Response to Reply #120
126. I kinda do think the market would regulate itself in this instance.
I'm not an economist, but it seems like even if only a single company controlled the price they would have to lower prices just to stay in business if consumption dropped significantly. We'll never know what would happen since huge reductions in consumption aren't very likely.
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nodehopper Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-24-08 04:58 PM
Response to Reply #74
128. my privilege...let me show it to you
depending on the area and in what ways the recession/unemployment has hit it, not everyone has the option to find another job. other people are beholden to their current jobs because of f*cked=up retirement policies. And not everyone can move closer to where they work, because, guess what, a lot of people can't afford the cost of living closer to workplace. Many people combine their commute with dropping off and picking up children at daycare. Other people live in climates where biking is an option for a fraction of the year. you bike? Good for you--I mean it sincerely--but that's not a solution that works for everyone, and you are pointing fingers at the wrong person.

as someone up the thread already pointed out, the British pay twice what we pay and have gas taxes subsidizing free healthcare and education. If I wasn't in a situation right now where I can either pay $540/month for COBRA (well, theoretically--I can't actually pay that) or go without health insurance--because my boyfriend makes $22,000/year, which is apparently $1,000 above the cut-off line for a family of three (me, him, and our one-year old) to be eligible for Medicaid--I wouldn't bitch about the gas prices.
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orleans Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 12:59 AM
Response to Original message
87. k&r n/t
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The_Casual_Observer Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 01:42 AM
Response to Original message
88. The senators proceed to do nothing but feign outrage.
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GreenTea Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 02:21 AM
Response to Original message
92. "The five largest U.S. oil companies"=Collusion-They are so full of shit!
Edited on Thu May-22-08 02:33 AM by GreenTea
With deregulation, no real over sight they charge as they please....greedy fucks, huge profits will continue...the only five oil companies (that control it all) have a monopoly with little over sight which can only amount to collusion....and were paying for it....They can and will go as high as their greed can accomplish. These huge multi-nationals certainly don't give a shit about the American people.
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Betty Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 05:42 AM
Response to Original message
94. they held hearings when it was $98 a barrel
and now they hold more when it's $134... and they'll hold them again when it's $200. So effective, so proactive. Our congress works for US!
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moondust Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 06:38 AM
Response to Original message
97. Liars.
Edited on Thu May-22-08 06:45 AM by Xap
"Producer" generally means the country that owns the oil - companies like Exxon and Shell and Conoco must purchase much of the oil they refine and market, more or less at the going price of crude on the world market. Long-term contracts may reduce their cost by a bit, but when the price of oil is $60, Exxon is probably buying such oil from Saudi Arabia for something like $58 or more.

http://www.gravmag.com/oil.html

Oil companies blame the rising cost of crude. But when the price of crude rises the additional profit on every barrel would go to the "producers"--the Saudis, the Russians, etc.--the people who own the oil fields. That rise in the cost of "raw materials" would eat into the profits of the refiners/marketers and obviously NOT boost U.S. oil company profits to record highs.
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ohio2007 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 06:55 AM
Response to Reply #97
98. Big oil, they fund polar bear research don't they ?
No drilling for oil in the US because......global warming/save da bears...or

the taps are not dry over seas.
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Nihil Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-23-08 07:00 AM
Response to Reply #98
119. Funny how all the trolls come out to encourage more despoiling of the planet.
(Not accusing of course, just a coincidence that this was
posted as a reply to you)
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fascisthunter Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 08:55 AM
Response to Original message
103. NATIONALIZE OIL
Funny how this inavsion/occupation of Iraq is benefiting oil giants.....


Time to take back what they have taken from our country as a whole.
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redqueen Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 10:16 AM
Response to Original message
105. Nationalize it. (nt)
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gaspee Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 11:48 AM
Response to Original message
109. And the morons who voted for BUsh
Seems to be half this board these days - anyway I digress... the FUCKING MORONS who voted for BUsh and Cheney thought putting two oil men in charge would *lower* the price of oil.

Nice to know that we're all paying for the fucking idiots who voted for those criminals stupidity.

And hey, they're about to do it again. Go morons!
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meow2u3 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 09:39 PM
Response to Original message
118. It's supply and demand, all right
"It's all about economics, came the reply. Supply and demand. The company leaders tried to shift attention from motorists' anger over $4-a-gallon gasoline to a debate over new areas for drilling."-- Big Oil execs



Translation: You supply us so much of your hard-earned money because we demand more and more record profits.
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Dr Fate Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-23-08 12:08 PM
Response to Original message
122. Does anyone know if they were placed under oath?
???
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-23-08 11:14 PM
Response to Reply #122
125. Most of what they said was factually correct anyway. Anything that wasn't they
probably believed. As usual, it is what is not said that is important.
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Name removed Donating Member (0 posts) Send PM | Profile | Ignore Fri May-23-08 06:34 PM
Response to Original message
123. Deleted message
Message removed by moderator. Click here to review the message board rules.
 
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