The Political Voices of Women

Pain At The Pump & Record Profits For Exxon/Mobil

More record profits for the oil companies. Shocking! While everyday people can’t even afford the gas it takes to get to their jobs, Big Oil continues to celebrate high prices at the pump, with record profits.

From The New York Times – Rising Oil Prices Swell Profits at Exxon and Shell…

Exxon Mobil, the world’s largest publicly traded oil company, reported on Thursday that second-quarter income rose 14 percent, to $11.68 billion, the highest-ever for an American company.

Net income of $2.22 a share compared with $10.26 billion, or $1.83 a share, in the quarter a year ago.

Revenue rose 40 percent, to $138.1 billion, from $98.4 billion in the quarter a year ago.

Excluding an after-tax charge of $290 million tied to an Exxon Valdez court settlement, earnings were $11.97 billion, or $2.27 a share.

From ABC News – Money Beat…

For big oil, 2008 has been a very good year. How good? Well, it’s even better than last year, when the combined sales of the top five oil companies added up to $1.5 trillion — that’s greater than the GDP of Canada.

Since then, the price of crude has soared by as much as 50 percent while the price of natural gas has also taken off. And though oil has had a significant drop from its high of above $140 a barrel for the second quarter, the benefits of high oil are clearly noted in balance sheets of the world’s largest oil companies.

And if that doesn’t make your blood boil…

Massive Profits, High Gas Prices and $33 billion in Taxpayer Giveaways to Big Oil…

Over the next 5 years oil companies will receive $33 billion in taxpayer funded giveaways.According to the report set to be released tomorrow morning by the Friends of the Earth, (pdf) the $33 billion in taxpayer dollars will come to Big Oil through tax loopholes, royalty rollbacks and research and development subsidies.

I wrote a post a few months ago about Gas Prices, it also included tips on saving money at the pump. My friend and Contributing Editor to The Political Voices of Women, Pamela Lyn, wrote a very popular post on What is the Real Reason Gas Prices Are So High?

What do you think about Big Oil reporting record profits? It seems to me, there is really no reason for oil companies to do anything to help lower gas prices. Let me know what you think in comments.

Can McCain Balance The Budget In Four Years?

It’s not a joke. John McCain is now promising he can balance the budget in four years. What do you think? Here is an interesting clip addressing McCain’s plans for the economy…

—
He doesn’t seem to be convincing many people on this latest plan for the economy…

Read more »

Could Gas Prices Drop To $2 a Gallon In 30 Days???

Also See:

Close Loopholes For Speculators and Gas Prices Will Go Down

So…What do you think? It seems crazy to me, that speculators only have to put 5 to 7% down on these oil deals, when at least 50% is required for stock transactions. It’s no wonder this is happening, with such a small investment bringing in huge profits.

If speculators are stopped, could gas prices get back to $2.00 a gallon? Do we need to get the speculators out of the oil business? It seems to me it a great place to start.

Sign a petition to stop off-shore drilling.

Roundup: Election Politics of Offshore Oil Drilling — by Catherine Morgan (cross-posted at The Care2 Election Blog)

Yesterday was my first post in a series on the gas crisis and offshore drilling. For that reason, I decided today’s political blog roundup will focus on the different opinions and reactions from around the blogosphere on this issue. We have some for drilling, and some against it. Let me know what you think in comments.

I’ll start with my personal opinion/theory regarding the relationship between high gas prices and the recent announcement by Bush/McCain to lift a ban on offshore drilling…

With regards to the gas & oil crisis — Does anyone else get the feeling we have been manipulated and duped AGAIN by the Bush administration? It’s all starting to feel really familiar.

1. Scare the American people (in this case with increasing gas prices).
2. Appear to be doing everything you can to get to the bottom of the crisis (go to OPEC, hold hearings, etc.)
3. Just when there appears to be nothing anyone can do…The Bush administration comes to the rescue and announces a plan to lift the ban on offshore oil drilling, because it’s the only way to help the American people and lower the price of gas.

Sound familiar?

What came first? The crisis or the solution?

I think with closer inspection (most likely after there is nothing anyone can do to change the outcome) – Revelations will come to light, that the Bush administration manipulated the “speculators” to cause an unnecessary but dramatic rise in gas/oil prices…For the ultimate purpose of lifting the ban on offshore drilling, and giving the brass ring to the oil companies.

Additionally, this is going to be the GOP “ace” in the hole, and “the perfect storm” for facilitating a third Bush presidency. I imagine it will go something like this…

The Democrats want to continue making you pay high gas prices during a weak economy…But the Republicans want to help you keep more of your hard earned money….bla, bla, bla.

The trouble is…there is no evidence that offshore drilling will help in the short or even long term. But that is not the “spin” you will be hearing from Bush/McCain. What at first appeared to me as a campaign killer for McCain, could actually be part of a carefully orchestrated campaign winner. Give McCain the experience, the Iraq war, and now the illusion of helping the economy (the number one issue of the American people). I shutter to think.

So, that’s what I think. However, not everyone agrees with me.

Shocking!

Well, not really.

But, I do want to take a look at all sides of this issue. Admittedly, mine is a very visceral reaction to the news of possible offshore drilling.

Let’s take a look at what other bloggers are saying about this. We’ll start with my good friend, Kay B. Day, from Covering Florida and Right Commentary, who has a totally different opinion from mine.

Earlier in the week I reached out to a couple of people to see what their take was on offshore drilling, and she was kind enough to send me her thoughts in an email. Although I don’t completely agree with her on this one…I must admit, she has a much more thought-out response to it. Here it is…

Read more »

Will Offshore Drilling Lower Gas Prices? – by Catherine Morgan (cross-posted at The Care2 Election Blog)

This will be part one in a series of posts I will be doing on gas prices and offshore drilling. I want to take a look at the facts, and attempt to separate the truth from the fiction. Would offshore drilling lower gas prices? Why do the oil companies need more places to drill, if they aren’t even using all of what they have now? How would more offshore drilling effect the environment? Does this have more to do with politics than the people? These are just a few of the many question we will try to answer here.

Let’s start with an article in today’s New York Times. Here are a few excepts from that article, I really recommend you read the full piece.


READ FULL POST AT THE CARE2 ELECTION BLOG

Economy: Housing Crisis and a Sharp Increase in your Utility Bill — by Catherine Morgan (cross-posted at The Care2 Election Blog)

It’s costing American’s more and more money just to get by these days. The dollar is down, gas prices are up, and the cost of just about everything we buy is increasing. How did we get here? What’s next? When will it end? I wish I had the answers and I could predict that all would be well very soon. Unfortunately, I cant.

How did we get here? For many people it was the housing bubble that pulled the rug out from under them. Here is an interesting clip I found on CNN today…

What Caused the Housing Bubble?

What’s next? Here is more troubling economic news…

Read more »

Here is a guest post from Frances at Frances Ellen Speaks.

(If you would like to be a guest blogger on this site, please join our community)

Have you noticed whether your gas station is putting ethanol in their gas? Have you noticed that your gas mileage has decreased?

I get my gas at a Shell station and right there on the front of the pump is a sticker that says, Contains 10% Ethanol. My gas consumption has been rising by leaps and bounds lately, but I’m not driving any more than usual. Actually, because of the gas prices, I’m more selective about where I go and how I get there.

While I was pumping, I looked up at the sign to see if the price had come down since my gas was now being spiked with ethanol. What a joke! What made me think a gas company would dream of giving the consumer a break.

It appears I’m not the only person that’s miffed. Here’s an excerpt from Slow Food Waltz

Ethanol, isn’t it’s use supposed to lower gas prices? Huh??

Help me out someone, what am I missing here. I just noticed this Shell gas station uses 10 percent ethanol, but the gas prices are exactly the same as they are at other places. Will ethanol ever translate to a cost savings for the consumer??

Okay, so the price hasn’t come down. It’s still up there at $3.90 a gallon in my neck of the woods. To top that off, I recently purchased a fuel economy car, but now I’m getting less gas mileage. That’s a fact and I’m not the only one who’s noticed. See information from Punny Money.

It lowers fuel economy. That 10% ethanol being mixed into your gasoline might be helping to keep it 10 cents a gallon cheaper, but you’re probably getting 10-30% fewer miles per gallon because of it. Since all the gas stations around here switched to a 10% ethanol blend, my gas mileage has dropped by about 15%!

What is going on? I understand it’s imperative that we cultivate some type of alternative fuel, but why am I suffering while the gas companies are reporting record-breaking profits? Oh yeah, I forgot–I don’t have a lobbyist. Drat!

So, it appears that you and I will be at the pumps more often, paying the same ridiculous prices. And I don’t expect to hear too much squawking from anyone because the change is couched in “alternative fuel” rhetoric. I suppose the media will somehow find a way to make it sound unpatriotic if anyone speaks out against it, too. What a racket!

READ MORE BY FRANCES AT FRANCES ELLEN SPEAKS

Also See:

How High Will Gas Prices Go?

Taxes on Big Oil

$4+ Gas Prices

McCain Booed Giving a Speech on Economy- by Catherine Morgan (cross-posted at The Care2 Election Blog)

Yesterday Obama attacked McCain on the economy…Today McCain mounts a counter-attack.

From The LA Times…

Republican John McCain and Democrat Barack Obama traded charges on taxes and healthcare today, revving up a debate that is likely to dominate the fall election over how to fix the U.S. economy.

McCain gave a keynote speech at a small business conference here, charging that Obama’s opposition to extending Bush administration tax cuts would result in “the single largest tax increase” since World War II. In a speech before an event sponsored by the National Federation of Independent Business and eBay, McCain also advocated “an alternative tax system” that he said would include a simpler and flatter tax code.

Here is a quick comparison of the Obama and McCain plans for the economy…

Windfall Tax on Big Oil is Blocked By Senate Republicans — Posted by Catherine Morgan (cross-posted at The Care2 Election Blog)

From The Associated Press…

Senate Republicans blocked a proposal Tuesday to tax the windfall profits of the largest oil companies, despite pleas by Democratic leaders to use the measure to address America’s anger over $4 a gallon gasoline.

The Democratic energy package would have imposed a tax on any “unreasonable” profits of the five largest U.S. oil companies and given the federal government more power to address oil market speculation that the bill’s supporters argue has added to the crude oil price surge.

“Americans are furious about what’s going on,” declared Sen. Byron Dorgan, D-N.D., and want Congress to do something about oil company profits and “an orgy of speculation” on oil markets.

But Republicans argued the Democratic proposal focusing on new oil industry taxes is not the answer to the country’s energy problems.

“The American people are clamoring for relief at the pump,” said Sen. Pete Domenici, R-N.M., but if taxes are increased on the oil companies “they will get exactly what they don’t want. The bill will raise taxes, increase imports.”

The Democrats failed, 51-43, to get the 60 votes needed to overcome a GOP filibuster and bring the energy package up for consideration.

Separately, Democrats also failed to get Republican support for a proposal to extend tax breaks for wind, solar and other alternative energy development, and for the promotion of energy efficiency and conservation. The tax breaks have either expired or are scheduled to end this year.

The tax provisions were included in a broader $50 billion tax measure blocked by a GOP filibuster threat. A vote to take up the measure was 50-44, short of the 60 votes needed.

The windfall profits bill would have imposed a 25 percent tax on profits over what would be determined “reasonable” when compared to profits several years ago. The oil companies could have avoided the tax if they invested the money in alternative energy projects or refinery expansion. It also would have rescinded oil company tax breaks — worth $17 billion over the next 10 years — with the revenue to be used for tax incentives to producers of wind, solar and other alternative energy sources as well as for energy conservation.

The legislation also would:

Read more »

The Bush-McCain Challenge