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September 14, 2005
Gregoire: Blame Greedy Oil Companies
Gov. Gregoire, during a news conference today in Vancouver, WA, said that we should blame the evil oil companies for high gas prices, and not her recent tax increases.
"Oil barons are making $200 million a day in profits," Gregoire said. "There is absolutely no reason for gas to go up in Washington as the result of a hurricane."
Those blasted oil barons! I can't believe they're making so much profit!
But, wait a second, how much money are they really making? $200 million a day is a lot of money. But the oil companies are selling a lot of gas. They sell gas to you. Businesses have to buy gas. Airlines use a ridiculous amount of jet fuel. The bottom line is that oil companies sell A LOT of gas every day in this country. How much profit are they really taking?
In a study ending in September 1999, the American Petroleum Institute found that oil companies were making 7.3 cents of profit for every gallon of gas sold, on an average price of $1.20 a gallon. And according to the Department of Energy, the difference between the cost of crude oil and the gas you pump into your car was only 26% last month. That includes refining, distribution, marketing and finally, profits. Even if half of that number were profits (and I doubt it's that high), profits would only amount to 13%, or around 37 cents per gallon (based on prices in Washington State.) The Washington State gas tax is 31 cents a gallon, plus 18.4 cents per gallon in federal taxes.
Keep in mind that by profits, we mean profits to both the big oil companies, and the little guys who own the franchise gas stations.
Christine Gregoire is clearly an expert economist who understands the oil industry backwards and forwards, because she says there's NO reason for gas prices to increase in Washington after a disastrous hurricane in New Orleans. In her reality, gas prices and the cost of crude oil and refinement have no relation whatsoever to the cost of gas. It's just those capitalist pigs, and their PROFITS!
It's about time we put a stop to the outrageous profits that oil companies are making. A lot of people have tried to solve this situation by boycotting gas stations on a certain day, or protesting, or blaming everything on George Bush. These ideas are ineffective. I have the solution.
Oil companies should stop selling gasoline. Then they won't be able to make any profits. What's that? How should I know? Well, they're not OBLIGATED to sell you gasoline. They only do it to make money... to make profits.
Comments, as always, are open.
Posted by March at September 14, 2005 02:10 PM