Future is NOW
Politics & Rhetoric
The other day, I took the time to watch most of the US Senate sub-committee hearings pertaining
to the price of petrol & oil. There are several factors that I do feel most of the general public have
overlooked.
In the one line of questioning by Sen. Coles, he asked all 5 of the Oil company executives about the
Record 40B in profits for the 1st quarter 2008. When asked about their percentage of profits per gallon
All 5 stated between 2.5- 4%. It is not so curious in reference to the percentage but a point that was
Mentioned in the same breath was the US Federal Governments percentage on the cost per gallon being
At 15%. Now lets put this in perspective the Oil Companies made a profit of 40B for the 1st quarter, so
Going by a rough of the high 4% that equates 1 trillion in sales for the 1st quarter. To put this into true
Reality, during that same 1st quarter the US Government collected 150B from the sales. Couple this with
The fact that State & local governments excised an additional 12% to equate to another 120B during that
Same period. Something is a bit amiss.
Another factor that can not be overlooked is that unlike what has been portrayed the division of oil currently
Stand as was portrayed by the oil companies as 60% of the oil is imported from the OPEC nations with the other
40% coming from Domestic / North American sources. What does this mean, is quite simple 60% of the oil is purchased
At $135 per barrel whereas 40% is as was stated purchased at a cost of between $35 – 50 per barrel. (This was stated
By one of the Sen. and agreed by the oil execs. That plainly equates to the “real” cost per barrel used in the US/ NA at
Approximately between $85-95 per barrel. On top of that it was also noted that Domestic/NA drilling was averaging roughly
45-60% capacity as well as 55% being exported.
The last factor to look at is that the oil companies currently lease for drilling from the US Government 42M acres of which
They are in actuality only 12M acres. Of course here the rhetoric comes into play by the oil companies stating that much of the
Additional 30M acres are non viable. The question also is the money that is paid to the US Government for those leases. The cost
Of those are then factored into the cost of “production” and also roughly equates to 15 – 20% of the cost… I will note, however,
as a business, I do not know of any company that would use only 25% of what It is paying for.
In closing, we all need to face facts. First is that oil companies are a business and as a business need to turn a profit. As businesses
They are scrutinized and must transparently show their costs & profits. The real concern is with our own government since they likewise
Are not under the same constraints as a business and are not obligated to show the revenues & profits. The American public is brainwashed
In assuming that the government is “for the people” , the only thing that our government is out for is the government. Many people as well
As the media assume that this is directly cause by the executive office “the President” as well as likewise blame the “Republicans” for the
Rising costs. This is far from the complete truth, since our government is run not strictly by the executive office, but run by the House & the Senate,
If you take that into consideration, then the House and Senate are more rightly to lay blame on for their inefficiency. And by the way, both are controlled
By the Democratic Party.
(Also note, that people that state that the years under the Clinton administration were so wonderful… well during both of his terms, the House & Senate
Were controlled by the Republican Party, so do the math…) Both groups are thieves… or rather as the true definition Politician (Poli from the Greek meaning
Many / Tic also from the Greek meaning blood sucker)…
to the price of petrol & oil. There are several factors that I do feel most of the general public have
overlooked.
In the one line of questioning by Sen. Coles, he asked all 5 of the Oil company executives about the
Record 40B in profits for the 1st quarter 2008. When asked about their percentage of profits per gallon
All 5 stated between 2.5- 4%. It is not so curious in reference to the percentage but a point that was
Mentioned in the same breath was the US Federal Governments percentage on the cost per gallon being
At 15%. Now lets put this in perspective the Oil Companies made a profit of 40B for the 1st quarter, so
Going by a rough of the high 4% that equates 1 trillion in sales for the 1st quarter. To put this into true
Reality, during that same 1st quarter the US Government collected 150B from the sales. Couple this with
The fact that State & local governments excised an additional 12% to equate to another 120B during that
Same period. Something is a bit amiss.
Another factor that can not be overlooked is that unlike what has been portrayed the division of oil currently
Stand as was portrayed by the oil companies as 60% of the oil is imported from the OPEC nations with the other
40% coming from Domestic / North American sources. What does this mean, is quite simple 60% of the oil is purchased
At $135 per barrel whereas 40% is as was stated purchased at a cost of between $35 – 50 per barrel. (This was stated
By one of the Sen. and agreed by the oil execs. That plainly equates to the “real” cost per barrel used in the US/ NA at
Approximately between $85-95 per barrel. On top of that it was also noted that Domestic/NA drilling was averaging roughly
45-60% capacity as well as 55% being exported.
The last factor to look at is that the oil companies currently lease for drilling from the US Government 42M acres of which
They are in actuality only 12M acres. Of course here the rhetoric comes into play by the oil companies stating that much of the
Additional 30M acres are non viable. The question also is the money that is paid to the US Government for those leases. The cost
Of those are then factored into the cost of “production” and also roughly equates to 15 – 20% of the cost… I will note, however,
as a business, I do not know of any company that would use only 25% of what It is paying for.
In closing, we all need to face facts. First is that oil companies are a business and as a business need to turn a profit. As businesses
They are scrutinized and must transparently show their costs & profits. The real concern is with our own government since they likewise
Are not under the same constraints as a business and are not obligated to show the revenues & profits. The American public is brainwashed
In assuming that the government is “for the people” , the only thing that our government is out for is the government. Many people as well
As the media assume that this is directly cause by the executive office “the President” as well as likewise blame the “Republicans” for the
Rising costs. This is far from the complete truth, since our government is run not strictly by the executive office, but run by the House & the Senate,
If you take that into consideration, then the House and Senate are more rightly to lay blame on for their inefficiency. And by the way, both are controlled
By the Democratic Party.
(Also note, that people that state that the years under the Clinton administration were so wonderful… well during both of his terms, the House & Senate
Were controlled by the Republican Party, so do the math…) Both groups are thieves… or rather as the true definition Politician (Poli from the Greek meaning
Many / Tic also from the Greek meaning blood sucker)…
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