This is off topic but commenting on the recent discussion. The Wall Street Journal had an interesting article on where the high price of gasoline comes from. They said about $.38 of the $1.00 increase in prices comes from OPEC increasing crude oil prices from $50 to $64 a barrel by limiting production. There is no shortage of crude oil. The U. S. imports 65 percent of it crude oil. The U.S. Oil companies only own about 5 percent of the world's supply. The rest is owned primarily by OPEC (Arab states, Iran, Nigeria and Venezuela); Russia; England/Norway and Canada. Right now because of refinery shut-downs (regular maintenance or conspiracy) and less gasoline available from Europe we have a shortage of unleaded gasoline. We normally import about 14 percent of our gasoline from Europe but tight supplies in Europe have limited our imports. The result is refiners are making a pre-tax profit of $30 on each barrel, about $.78 per gallon instead of there historical $.18 a gallon profit. The actual price of unleaded gasoline is primarily set by the New York Commodities Exchange and can be greatly influenced by speculators, mainly large hedge funds. Oil companies only account for 20 percent of the trades. The independent retailer is barely breaking even, often making as little as $.15 per gallon before operating costs. When you factor in credit card costs of 2 percent or $.07 a gallon they are left with about $.08 gross profit on a gallon of gasoline. Finally, I attended a tax conference where UDOT asked us which of two alternative choices they favored to fund their efforts to maintain and build more highways: 1. A $.56 per gallon increase in gasoline taxes or 2. Toll roads on several proposed new highways as well as I-15. The Utah Truckers Association was adamant they wanted the gasoline tax instead of tolls. Which do you favor? Food for thought. -----Original Message----- From: utah-astronomy-bounces+djcolton=piol.com@mailman.xmission.com [mailto:utah-astronomy-bounces+djcolton=piol.com@mailman.xmission.com] On Behalf Of Bob Moore Sent: Tuesday, May 22, 2007 4:50 PM To: Utah Astronomy Subject: RE: [Utah-astronomy] Response to Seth Jarvis "laughing until I fell out of my chair" Bob Moore Commerce CRG - Salt Lake City office 175 East 400 South, Suite 700 Salt Lake City, Utah 84111 Direct: 801-303-5418 Main: 801-322-2000 Fax: 801-322-2040 BMoore@commercecrg.com www.commercecrg.com -----Original Message----- From: utah-astronomy-bounces+bmoore=commercecrg.com@mailman.xmission.com [mailto:utah-astronomy-bounces+bmoore=commercecrg.com@mailman.xmission.c om] On Behalf Of diveboss@xmission.com Sent: Tuesday, May 22, 2007 11:03 AM To: utah-astronomy@mailman.xmission.com Subject: Re: [Utah-astronomy] Response to Seth Jarvis THIS IS AN AUTOMATED MESSAGE: THE PARTY YOU ARE TRYING TO REACH TO WILL BE OUT OF THE SHOP TILL AFTER CHRISTMAS. HE IS CURRENTLY HITCH HIKING TO WYOMING TO SEEK EMPLOYMENT AT AN OIL RIG. TRY BACK AFTER THE HOLIDAYS. THANK YOU... Quoting Chuck Hards <chuck.hards@gmail.com>:
There's no such thing as a disgruntled oil company employee. Listening to Doug Wright the other day, a caller mentioned that his son was working the rigs in Wyoming, and in addition to a terrific wage, was bringing-home $30K and $40K Christmas bonuses. If the guys on the rigs are getting bonuses like that, imagine what the managers and executives are getting. That's where your $3+ a gallon goes.
Time to nationalize the energy industry at large, or at least regulate it more closely, like other utilities. Consumer costs are "astronomical".
On 5/22/07, diveboss@xmission.com <diveboss@xmission.com> wrote:
Gee, you sound like a disgruntled oil company employee.
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