i also just looked up the number of oil companies in the united states
That list is far from complete and many on that list have been purchased by other companies. I know this because a large portion of that list are our clients. We drill where ever we can. We have gone to Romania and Egypt for a company that isn't on your list. This list also excludes foreign owned companies that have large drilling operations in the US.
Light Sweet Crude in May 2006 was in the Low $70 per barrel range. Today it is in the mid $65 per barrel range. Gas is about $.40 per gallon HIGHER. Thus gas price increases are NOT due to the higher margin on higher cost crude. Crude is LOWER and we should be seeing LOWER gas prices. As I said this is the OIL Companies controlling the SUPPLY of refined product relative to demand.
Incorrect. I admit that production is not the same as it was last year at this time but we are still running the same amount of rigs. They are still moving from site to site. We just have to drill harder and deeper to reach our product.
The real problem is that demand exceeds the refineries capacity. Maintenance has to be done. If they do not shut down portions for maintenance they will fail and repair is more costly and time consuming than maintenance. When the proper maintenance is not done the risk of serious accidents and explosions is increased exponentially. Surely you aren't suggesting that we risk human lives so that you can save a few pennies?
I know first hand what a refinery explosion is like. I have been inside several refineries in South Louisiana. I have been to the rig floor. I work in the oil and gas exploration/production business. Gene you are just wrong.
Big oil has no incentive to build more refineries and a tax increase will not change that fact. If you increase the tax, the American public pays the price. They tried it back in the 80's and gas prices shot up never to be lowered again.
The little guy has no chance of building a refinery because they don't have the political clout that it would take to pull that off.
There are billions of barrels of oil that sit idle in pipelines waiting to be processed. The cure for this itch is our ability to refine the product. The government could step in and fix that but they really have no incentive to do that either because just like in the 80's Americans will adapt.
Bush also refused to require higher auto mileage which could have lowered the Demand.
This is a sham argument. If they set new standards for automakers it would take, at a minimum, two years to apply the standard. If they pulled it off in two years then, those cars would have to filter down to the road. I just recently sold my 1994 Explorer. I drive a 2002 vehicle and it's paid for. I have no plans to go out and strap myself with a car note and interest to save on gas. The cost of fuel would have to be free to offset the cost of another vehicle. (that will never happen) It would take 10 years or more for this to have any effect on the price of gas at the pump.
The greatest way to have a positive effect on gas prices is for the American public to reduce its consumption. Why isn't that part of your demands Gene? You like to lambaste the government and big oil but the solution isn't going to happen from either source because there is no real reason to change. Give me a good catalyst for change other than it costs you more if you can. I just don't see one.
