Higher fuel prices? Here's why: MARS oil rig

While subsidies to oil companies (which are granted to other industries) make for nice political rethoric, I fail to see how increasing taxes will affect prices at the pump. It s economic 101... Increase cost of doing business and price go up

Unfortunately, the community organizer in chief missed that part of the course, along with basic constitutional law it seems ...

Funny how it s ok to throw or burn billions into the wind and sun, and into corn fields...

The question of oil subsidies is nothing more than a smoke screen

Oil

Pascal your 100% correct!Why did the chief give George Soros the 400 million for Brazil oil drilling??

In first place this is NOT a tax increase, but rather eliminating a subsidy to an industry that is no longer required. Did you listen to all 5 major CEO's of the oil companies telling Congress that these subsidies were no longer required??

Did you listen to the anaylsis afterward that spoke to the cost of 'mining' that oil verses what they charge it out as. The oil companies don't want the price of oil to come down,...even while at the present time there is a surplus supply in the country right at the moment. Many of the state governments don't want the price to come down either, nor for us to go off onto alternative energies as they derive a lot of their operating budgets from the taxes on oil products.

There are many 'start up' industries that need our subsidy help to get started and work on developing new energy sources. A company that is in the top ten most profitable companies IN THE WORLD does not need public subsidy !!! Yes there will be a few failures in this start-up routine, they're always are. But lets not condem them to failure before they get a chance to succeed.

We really do need to get off the oil standard as much as possible. That source is not going to last forever...very likely not enough for the children of your children. So plan ahead in stead of being so short-sighted.

I would like to see some of that subsidy to big oil be put into new technology for SAFELY getting that natural gas out of shale rock.

We actual need to see the prices we Americans pay for fuel go up,...to encourage the development of alternates. We have had pretty low prices historically compared to a lot of the world. Ask around the globe.

We also need to be conserving some of that remaining oil for all the other products it gives us, rather than foolishly burning it up in automobiles.

We need some conservation measures in an Energy Bill. Imagine if every home in America could do a little 'soul searching' and insulation, and conservation, they might be able to lower their fuel consumption by 15 to 25 percent. WOW, what would that do for our oil import needs.!!

We simply do not need to continue to give these VERY PROFITABLE businesses a subsidy. I had 3 companies of my own over a lifetime, and I've ask about 6 other friends who had companies of their own,....did you ever get a government subsidy for your business??....hell no, was most of the answers....except for a few who were still trying to shelter there income from the repeal of those Bush tax cuts.

Ireally wish people would get it straight instead of trying to torture facts into something they are not.

There are NO subsidies to the oil Co's. now, go ahead, torture it more so it meets your political bent.

No I didn't watch the videos... I was anchored in Norman s cay exumas and wasn't going to ruin my day watching an MSNBC clip!!

I think we can all agree that moving away from oil may be good in the long run but the urgency is not what some want us to believe. New technology is giving us access to far greater reserves of oil, and most importantly natural gas.

Developping alternative sources (wind solar or biofuel) is fine WHEN we can afford it not when we are running $1T+ deficits.

But again, eliminate tax subsidies and cash strapped average folks will Pay the price.

Price Building in Europe / Austria

Looking from an European perspective, US gas prices are soooo nice:

€1,5 per liter Diesel, including €0,48 tax on oil/gas and 20% VAT (in Austria)

Means: 49% of the gas price are taxes!!! Oil company charges €0,77, taxes are €0,73.

And Autria is the second cheapest country on avg Diesel prices in western Europe....

Map of Worldwide Diesel Prices

This map shows worldwide retail prices of petroleum diesel (in US cents per litre) in more than 185 countries. Petroleum diesel, also called petrodiesel, or fossil diesel is produced from the fractional distillation of crude oil.

Worldwide Retail Prices of Diesel (US cents per litre)

Interestingly it notes a price of 51 cents per liter in mid-Noc 2010....and then 84 cents now.

These are 'retail prices'. I'd be willing to bet the wholesale price of crude oil didn't go up that same percentage in that time period...in fact MUCH less percentage wise

"But again, eliminate tax subsidies and cash strapped average folks will Pay the price." Huh ?? !! You cannot be serious ? I think somebody needs to turn off Fix News, I mean Fux News, oops sorry, I meant Fox News.

Brian ... did you not think/understand that your post would result in a nasty political discussion? If you did and still posted it - shame on you. If you did not then God help you and help us if you vote in the USA.

I was assistant dockmaster of a marina over a decade ago. We ran a margin of .50 per gallon. We took the price we paid for the gas, +taxes, + .50= PRICE of GAS. We did offer a .10 a gallon discount over 500 gallons. So yes, the higher the taxes, the more the consumer pays.

Subsidies & CRUDE

I was not trying to make a political statement with my posting, but rather seek to get people (and politicians) to give serious INTELLIGENT considerations as to why and how we hand out tax payer credits (subsidies) to major businesses that are operating for a profit, and making HUGE profits. As I noted I have owned my own businesses and other friends of mine also. We were 'for profit' businesses that never got subsidies, although there were a few times I would have liked them (particuarly when I had over a million dollars of floor planned small boat inventory and the government decided to raise the the prime interest rate to sky high numbers (my floor plan was tied to 1.5 % above prime).

'For profit businesses' that are no longer struggling to get started, AND are making huge profits, should NOT be blessed with tax cedits/subsidies.

If you take a little time to read, I think you will find I have been concerned with these 'oil problems' for a long time. I've contributed quite a number of postings on this subject thread:
http://www.yachtforums.com/forums/y...8587-crude-oil-absolute-must-see-program.html

And yes I do consider myself an informed and intelligent voter in this country.

Politicial influence

Yes and if there is one good thing to come out of this 24 hour news cycle is that some of this 'money driven voting' by our representatives gets greater exposure than it has in the past. I hope it continues to get close scrutiny so we can sort out this lobby crap that prevents these representatives from voting for the American people rather than who has the most bills in their pockets to spread around Wash DC.

Does it seem feasible that there might be a movement to CNG powered boats/yachts? In order for this to work there would have to be infrastructure in place though. Given CNG's current price per gallon at about $2.00 and some of the projections for future diesel prices what do some of you in the business think?

Yeah that's what we need ... a government program to pick the winners and losers ... How's that been working out for ya?

Brian, I hope you are kidding us...

Major Gas Leak in North Sea Oil Field

Gas leak at Elgin?Franklin offshore field ? the story as it unfolds - Offshore Technology

Now imagine something like this or a Deepwater Horizon event happening in the artic reserve. What if that huge spill of crude in the Gulf of Mexico had occured under the winter ice cap (trapped so to say)....and in a remote area where there are no ships to help with clean up, and there is lacking many other pieces of heavy equipment to assist i a clean up??

Yes they tout that their surface area of influence is very small, but that only mask a much bigger potential problem. That why I say these matters of new development must be approached in an intelligent manner.

....from a posting of mine on the subject thread CRUDE

There are a number of other 'ocean management' questions most offshore boaters should become better acquainted with. Last year while visiting a friend in Lunenburg NS, I took a tour thru a very very nice marine museum they have there. Oh, but to view the wonderful and bountiful harvest of COD, etc, that once was the Grand Banks fishery !! It's FISHED OUT now!!

I also spent some time in SE Asia, and I've seen what once was a bountiful supply of ocean food from Vietnam and Thailand. They are getting fished out as well.

Boaters need to help with conservation of our oceans and our fuel resources.

If you take the time to view that film 'CRUDE' I referenced at the start of this discussion, I believe you will find a VERY important link between crude oil initial formations, extractions, and the carbon molecule's loop back to the destruction of our ocean system currents. With that destruction there is likely the end of human life on the earth.

Anoxic Events,....Ocean Stagnation

...from another posting of mine on that 'CRUDE' subject thread.

Imagine an under ice oil spill that could kill off that huge 'food factory' up there that represents the micro-biology of the food chain that feeds many of the ocean species ....


I might make the suggestion that you review some portions of this film 'CRUDE'

...a you tube presentation of the film
http://video.google.com/videoplay?do...40072407639740
(I just found a video of this film on a Google site. The sound is screwed up for the first couple of minutes, but then it seems to straighten out)

...now fast forward to minute 59:00 to the discussion of this 'carbon loop' that produced the very conditions that resulted in the formation of the crude oil in the first place.

Imagine an ocean that is losing much of its sea-life, and then an anoxic event that pushes it into greater stagnation....Ocean Stagnation, it has occurred before. (1hr:02 minutes of the film)

Then have a look at 'the engine of ocean circulation' (1hr:8min:30sec)

Questioning anoxic events?? Take a look at some lakes in upstate New York (1:10:30)

If we allow our oceans to die, and some of this related to our fuel (carbon molecule) managements, we may well severely challenge man's survivability on this planet.

Don't worry too much about that, Brian.
By all accounts, we (human civilization) will run out of oil/gas, which will cause us to... "downsize" like 100x (approximate population sustainable by this planet without extensive use of finite energy sources) far before we manage to do any irreversible harm to the ecosphere

Brian,

There is another threat to ocean life, ocean acidification. It hasn't got the press that global warming has gotten, but it may be a bigger threat. In our area, the Chesapeake Bay may be impacted a bit more than an open ocean. Apparently the oyster growth is being negatively affected by it.

Ocean Acidification