On Sat, 13 Sep 2008 22:47:01 -0500, Tim Daneliuk
wrote:

Paul Franklin wrote:
On Sat, 13 Sep 2008 09:02:07 -0500, Tim Daneliuk
wrote:

snip

As (gas) prices
rose, the greatest "windfall" was experienced by government
taxation entities.

snip

The federal gasoline tax and most if not all state gas taxes are per
gallon, not percentage. Gas tax revenue has declined since prices
have risen dramatically because folks are using less gasoline and
diesel.

We are foolish to consider using whatever reserves of US oil we have
now. Far better to wait until we've used up all the rest of the
world's oil, and then we will have some left. Why it's the strategic
reserve in grand style! (Not really my point of view, but makes more
sense than most of the opinions being floated out there.)

Of course the oil companies want more offshore leases now, even though
they aren't drilling the ones they have now and don't have the crews
and equipment to drill them all anyway. They can get the leases for a
song now, compared to what they will cost them in 10 or 20 years when
they will start to get serious about using them.

Paul F.

What about the local and state taxing bodies? The sales taxes in various
flavors that are levied are certainly not per gallon, but a percentage.
The government has gotten far more out of this blip in gas prices
than have the eeeeeevil oil companies. Oh, and if those aforementioned
oil companies are not profitable, just who do you propose will:

a) Get new oil for consumption (The TSA, perhaps?)
b) Repair the consequent damage done to institutional investments
like 401Ks and union retirements funds -funds that depend in part
to a solvent and profitable oil industry.

State taxes are also levied per gallon, and sales taxes are not levied
on gasoline or other fuels. Government has not gotten any increased
revenue out of the rise in fuel prices. On the contrary, their cost
for fuel for government vehicles, and especially for the military
fighting in Iraq and elsewhere has gone up just nearly as much (some
cases more) than that of ordinary US citizens.

Most people, myself included, do not begrudge the oil companies a
healthy profit. It is the American way and the companies and their
investors deserve it provided the companies are well run. If they were
to take the lead and plow a significant portion of their increased
revenue back into their business by supporting R&D for alternative
fuels, they would be demonstrating good business savvy. They would be
doing the right thing to grow their business long term and thus ensure
their stockholders good long term value, And they would gain the
respect and support of US citizens who understand they are acting to
advance both corporate and US interests.

But they haven't done this to any real degree. Now, no one expects
the local pizza shop to worry about what's right for the US when they
make their business plans and decide what to do with their profits.
But Oil is a natural resource and of fundamental national importance.
The failure (so far) of the oil business to acknowledge this and take
action is why there is appropriate outrage from many citizens at their
failure to demonstrate leadership.

Certainly there is no really short term replacement for Oil as a
transportation fuel. But failing to actively and aggressively seek
alternatives for the future is (IMO) a worse failing than drilling
everywhere we can right now in an attempt to increase supply for a
short while to temper prices.

Paul F.