Diesel UP feb2012

[silvertramp]

We only have 2.2% of the world's oil reserves. Kinda hard to step up production with #'s like that. That being said our #1 export now is refined fuel. There are tax advantages to exporting our fuel. Demand is down, yet prices continue to rise.... Surprise- Surprise. Our govt. has been completely bought off by our corporate buddies.
Here's a link.. Gas, other fuels are top U.S. export ? USATODAY.com

 

[BeeferMan]

We only have 2.2% of the world's oil reserves. Kinda hard to step up production with #'s like that. That being said our #1 export now is refined fuel. There are tax advantages to exporting our fuel. Demand is down, yet prices continue to rise.... Surprise- Surprise. Our govt. has been completely bought off by our corporate buddies.
Here's a link.. Gas, other fuels are top U.S. export ? USATODAY.com

Why do you think the oil companies are pushing for the Keystone pipeline? It's certainly not to lower prices fuel in this country. It's to get the oil to a good location so they can ship it overseas.

 

[countryboycansurvive]

It doesn't matter where the oil is shipped. Oil is a global commodity so any increase in supply drives down prices globally.

What a lot of people don't realize is that the Federal government, via taxes, makes far, far more on a gallon of fuel than the companies who produced it.

Where was all of the concern for the oil companies in the 1980's when they were going broke?

If you don't think the benefits of fossil fuels are worth the price you pay then quit buying them, it really is that simple.

 

[BeeferMan]

It doesn't matter where the oil is shipped. Oil is a global commodity so any increase in supply drives down prices globally.

Exactly. Except that a reduction in prices assumes a truly free market with regards to supply, which is in reality manipulated constantly - think OPEC.

Where was all of the concern for the oil companies in the 1980's when they were going broke?

The concern when the oil companies were crying poverty resulted in tax breaks. Now that they're making record profits, where is the concern for the taxpayer?

 

[countryboycansurvive]

Oil companies receive no tax breaks that aren't allowed other companies. If you want concern for taxpayers, then vote for people who will lower your taxes, quit printing money out of thin air, and stop deficit spending. Don't vilify the people who enable you to have an easy life by risking their own fortunes to discover and produce fossil fuels. If you want to go out and discover and produce oil, build a refinery to make diesel and gas and then give it away then I say go for it, I'll be the first in line at the pump.

 

[BeeferMan]

Yes, you're right of course, he he... any company can get a depletion deduction for oil and natural gas wells.

I am not vilifying anyone, just saying that as a tax payer I don't like to see my tax dollars going where they clearly aren't needed. That applies equally to oil companies making record profits and welfare recipients that are able to work. I don't mind paying my taxes, I just want to see that money spent well.

 

[RaydaKub]

Yes, you're right of course, he he... any company can get a depletion deduction for oil and natural gas wells.

I am not vilifying anyone, just saying that as a tax payer I don't like to see my tax dollars going where they clearly aren't needed. That applies equally to oil companies making record profits and welfare recipients that are able to work. I don't mind paying my taxes, I just want to see that money spent well.

I don't disagree with your thoughts that we want to see our tax dollars spent properly.

The fact is that a well that has pumped out 20M barrels of oil is certainly not worth the same amount it used to be. Is any capital equipment worth the same value after it has been used for 5 years?

In any case, the depletion deduction that they are allowed to take is NOT equivalent to your tax "money well spent". The politicians will claim that this is an unjust expenditure, but money that is not collected in the first place is certainly not the same as spending it somewhere. A deduction is not the same as sending out a check to them. A dollar deduction on EM's balance sheet does not automatically cost you another dollar.

 

[BeeferMan]

I don't disagree with your thoughts that we want to see our tax dollars spent properly.

Glad we agree there, as that's really the point.

The fact is that a well that has pumped out 20M barrels of oil is certainly not worth the same amount it used to be. Is any capital equipment worth the same value after it has been used for 5 years?

A resource in the ground is not capital equipment, as far as I know. Does this depreciation apply to a coal mine or a gravel pit? (I really do not know the answer to that, but I suspect not.)

In any case, the depletion deduction that they are allowed to take is NOT equivalent to your tax "money well spent". The politicians will claim that this is an unjust expenditure, but money that is not collected in the first place is certainly not the same as spending it somewhere. A deduction is not the same as sending out a check to them. A dollar deduction on EM's balance sheet does not automatically cost you another dollar.

That depends on how you look at it. If the revenue required to fund expenses is fixed, one person/corporation paying less means another pays more. And (let's keep it simple) for a any person/corporation the black on their balance sheet is their income minus their expenses. If you lower their expenses, such as their taxes, you increase the black on their balance sheet. Just like sending them a check. Some will argue that taxes are "taking their money", but to any business taxes are an expense, just like payroll...

 

[countryboycansurvive]

A depletion deduction can be claimed on any resource extraction, be it stone, oil, gas, coal, other minerals or even timber. Maybe we should eliminate all of those and we can start buying our coal from China and our timber from South America.

 

[BeeferMan]

A depletion deduction can be claimed on any resource extraction, be it stone, oil, gas, coal, other minerals or even timber. Maybe we should eliminate all of those and we can start buying our coal from China and our timber from South America.

Interesting info.

Not sure about coal from China, but we certainly get timber from outside our borders already. And could you could ever allow enough deduction on oil so we wouldn't buy it for foreign sources? Odd conclusion.