Where are the calls for a Windfall Tax?

[CPA]

Oil is headed to $120 faster than a caffeine-laden jackrabbit. Dems are in power, even if they don't have the House. The cause of the spike surely has nothing to do with Libya (they only supply one half of one percent of US oil). It must be the oil speculators and Exxon, that evil, evil Exxon. Yet there is ABSOLUTE SILENCE from the left on a oil-based Windfall Tax; something we heard constantly during Bush's years.

Hell, there's not even a peep about ethanol.

What gives?

 

[spidey07]

Oil is headed to $120 faster than a caffeine-laden jackrabbit. Dems are in power, even if they don't have the House. The cause of the spike surely has nothing to do with Libya (they only supply one half of one percent of US oil). It must be the oil speculators and Exxon, that evil, evil Exxon. Yet there is ABSOLUTE SILENCE from the left on a oil-based Windfall Tax; something we heard constantly during Bush's years.

Hell, there's not even a peep about ethanol.

What gives?

They WANT energy prices to skyrocket. Remember Obama saying his clean energy plan would add thousands of dollars per household? But make no mistake, Obama will not rest until his boot is on the necks of the oil companies. And by proxy, Americans.

 

[ProfJohn]

Oil is a world wide commodity and thus is effected by any event world wide.

Libya is the 13th largest producer in the world and produces 1.6 million barrels a day.

Take that oil of the market and the countries that are buying it have to find oil someplace else which drives the cost up for everyone.

 

[khon]

Windfall taxes are a terrible idea, especially if they're decided on a per case basis.

 

[tk149]

Oil is headed to $120 faster than a caffeine-laden jackrabbit. Dems are in power, even if they don't have the House. The cause of the spike surely has nothing to do with Libya (they only supply one half of one percent of US oil). It must be the oil speculators and Exxon, that evil, evil Exxon. Yet there is ABSOLUTE SILENCE from the left on a oil-based Windfall Tax; something we heard constantly during Bush's years.

Hell, there's not even a peep about ethanol.

What gives?

New boss same as the old boss.

 

[blackangst1]

So...you want to impose an excess tax on a company that provides a commodity of which it has no price control on?

 

[Gonad the Barbarian]

They control supply with an inelastic demand. They have price control.

 

[CPA]

So...you want to impose an excess tax on a company that provides a commodity of which it has no price control on?

Who me? Hell no. I'm just asking where the consistency is from the left on the subject.

 

[Linflas]

New boss same as the old boss.

If that were the case then there would be the same outcry as there was during the last price spike.

 

[WackyDan]

Windfall taxes are a terrible idea, especially if they're decided on a per case basis.

Considering that their margin remains at 7% to 8%, their profit margin is similar to many companies and far less than others...

Perhaps we should tax Apple, or Microsoft at a higher level due to their profit margins alone? MS is north of 30% margin.

The question is - where do you draw the line?

Now look at the oil company's books and look at the obscene cost to just explore for oil, buy leases, drill and actually produce... and that will put things in perspective.

 

[Thump553]

I'd much rather have a decent set of regs in the futures market to prevent this sort of wild gyrations. As a practical matter the Saudis have promised to make up any shortfall so there is no shortfall in the market. This wild price boost in the past two weeks is purely the result of speculation.

It is interesting though that retail oil and gas prices always seem to rise much, much faster than they fall. That's most likely a result of imperfect competition and I blame decades of poor antitrust law enforcement and deregulation. But I suppose that's just my imagination, right?

FYI, the so-called conservative's boogie man, a windfall profits tax, is probably one of the least effective ways to solve and more importantly prevent this sort of travesty.

 

[IGBT]

as long as the eco-KOOKS have control look for >5.00 gal gas and on the horizon quadrupling of home gas/electricity bills. Go back to your obama's campaign. This was his promise to YOU.

 

[drebo]

I think it's outrageous that speculation can drive prices up so high so fast.

It's insanity, to be sure.

There hasn't been any change in ACTUAL supply of oil yet, and prices have skyrocketed.

What's worse, though, is that retail prices seem to be going up for no reason. They change daily, but I know the supply in the tanks didn't magically change in price overnight...they'd already bought it. And neighborhoods always seem to go up at about the same time for about the same amount, despite being wholly different companies. Isn't that called price fixing or price gouging? Wasn't there a massive lawsuit about that in the DRAM market 10 years go?

 

[boomerang]

When gas prices were skyrocketing under Bush we were entertained endlessly about oil companies, their profits, Bush this, Bush that, ad nauseum.

But now, under Obama, it all just makes so much sense.

We'll survive it. We'll cut back on our driving the same as we did before and as demand falls, prices will drop. You can be pretty certain under Obama that strategic oil reserves will not be tapped and drilling will not be allowed to resume so the process will take much longer. Right through the end of November of 2012 would suit me just fine.

Good thing the economy is strong right now.

 

[Nebor]

They WANT energy prices to skyrocket. Remember Obama saying his clean energy plan would add thousands of dollars per household? But make no mistake, Obama will not rest until his boot is on the necks of the oil companies. And by proxy, Americans.

As if Obama has ever worn a pair of boots in his life.

 

[Londo_Jowo]

As if Obama has ever worn a pair of boots in his life.

He has Community Organizer boots, you know the one's with cute tassels.

 

[boomerang]

He has Community Organizer boots, you know the one's with cute tassels.

Oh yeah, the ones that Rahm liked so much.

 

[WHAMPOM]

I think it's outrageous that speculation can drive prices up so high so fast.

It's insanity, to be sure.

There hasn't been any change in ACTUAL supply of oil yet, and prices have skyrocketed.

What's worse, though, is that retail prices seem to be going up for no reason. They change daily, but I know the supply in the tanks didn't magically change in price overnight...they'd already bought it. And neighborhoods always seem to go up at about the same time for about the same amount, despite being wholly different companies. Isn't that called price fixing or price gouging? Wasn't there a massive lawsuit about that in the DRAM market 10 years go?

No, I don't think that fuel in the storage tank is paid for at delivery. More likely it is made in installments funded by revenue from sales. Gas delivered, signed for, $sales, $payment made.

 

[piasabird]

It is obvious that the OIL industry needs some kind of intelligent pricing model. However, I dont think their prices are that outrageous. At work I can buy an item like a small package of chocolate doughnuts for like $1.00. However, when I was at Quick Trip the other day they were selling the same thing for $1.49. Now that is price gouging. A %50 markup. Imagine what would happen if they did that for Gasoline?

 

[Darwin333]

I'd much rather have a decent set of regs in the futures market to prevent this sort of wild gyrations. As a practical matter the Saudis have promised to make up any shortfall so there is no shortfall in the market. This wild price boost in the past two weeks is purely the result of speculation.

It is interesting though that retail oil and gas prices always seem to rise much, much faster than they fall. That's most likely a result of imperfect competition and I blame decades of poor antitrust law enforcement and deregulation. But I suppose that's just my imagination, right?

FYI, the so-called conservative's boogie man, a windfall profits tax, is probably one of the least effective ways to solve and more importantly prevent this sort of travesty.

How do you go about regulating other nations future markets? I don't see how it would be possible to regulate global commodity markets especially when the bulk of said commodity is not produced within our borders.

 

[Darwin333]

No, I don't think that fuel in the storage tank is paid for at delivery. More likely it is made in installments funded by revenue from sales. Gas delivered, signed for, $sales, $payment made.

It is priced at delivery regardless of what the payment terms are. Payment terms are likely dependent upon credit worthiness of the owner/company but I would wager most stations have terms similar to net 30.

Gas stations raise the prices, even though they still have "cheaper" gas in the tanks, because it will cost more to refill the tank. They sometimes get caught on the other side of that deal too (prices dropped with more expensive gas in the tanks).

Its rather irrelevant though, for the vast majority of gas stations "gas" is nowhere close to what pays the bills. A lot of them barely make a profit on the gas they sell after overhead and other associated costs.

 

[shiner]

Oil is a world wide commodity and thus is effected by any event world wide.

Libya is the 13th largest producer in the world and produces 1.6 million barrels a day.

Take that oil of the market and the countries that are buying it have to find oil someplace else which drives the cost up for everyone.

Try 18th....right below that oil producing powerhouse Angola and right above Kazakhstan.


According to the CIA World Factbook.

 

[Thump553]

How do you go about regulating other nations future markets? I don't see how it would be possible to regulate global commodity markets especially when the bulk of said commodity is not produced within our borders.

US passes rules against no naked futures speculation and persuades England to go along with it-it's in both countries' general interest to reign this in (but Wall Streeters will absolute hate it). That's the lion's share of the world market right there. If speculators want to play on the Dubai market there's not much we can do about that.

 

[Siddhartha]

Oil is headed to $120 faster than a caffeine-laden jackrabbit. Dems are in power, even if they don't have the House. The cause of the spike surely has nothing to do with Libya (they only supply one half of one percent of US oil). It must be the oil speculators and Exxon, that evil, evil Exxon. Yet there is ABSOLUTE SILENCE from the left on a oil-based Windfall Tax; something we heard constantly during Bush's years.

Hell, there's not even a peep about ethanol.

What gives?

Are you still beating your wife?

 

[CPA]

Are you still beating your wife?