Thursday, April 27, 2006

Hypocrisy Abounds

Watching Senator Chucky Schumer (D-NY) grandstand on the current gasoline prices is enough to turn my stomach. All across the country politicians - primarily Democrats - are staging events at gas stations to emphasize the pain American motorists are suffering, and the hypocrisy is neck deep. These phony baloneys then slink off to get into their SUV's to travel one block back to their offices.

They are demanding that the oil companies answer for the obscene profits they are realizing due to the current squeeze on localized supplies. The global supply is very tight as well but the problem we are experiencing now has more to do with politicians than with the oil business itself. Boutique fuels, as they are called, required in many parts of the country for air quality reasons have the effect of disrupting local supplies. This is especially true in the transistion period from winter to summer blends. Add to this the terrible energy bill passed last year and viola, a crisis to politicize.

Besides the usual refrain that it's all "Bush's fault" (everything is) they are screaming about the oil companies and their record profits. My research tells me that a maximum of 9% of a gallon gas is profit for the big bad oil companies. Historically for any enterprize a profit of 6% is considered a success. So, yessir indeed the oil companies are a success. My research also shows that the governement - state and local - realize at least a 14% profit from each gallon. In some states it can be as high as 20%. Of course these governmental entities do practically nothing for that money outside of regulatory and compliance tasks. Guess what? If the bottom fell out on prices and the oil companies profits dry up ( and it has happened before) the good 'ol government would still realize 14% + profits - taxes are a fixed component in the cost of a gallon of gas.

These lying political opportunists have not only stood in the way of increasing domestic drilling and refining that would at least marginally protect us from localized price flucuations thay have consistantly piled on the taxes as well.

So shut up Chucky! You make me sick.



Timothy Birdnow said...

It truly makes a man sick. What a bunch of gas-bags!

One thing I will say, though; oral flatulance aside, the Dems have made their first substantive proposal (temporary suspension of federal gas taxes) in decades, while the Reps have insulted us with a Kennedy-esque proposal to give $100 rebates (taxable, of course) available to ``low income`` people-what a joke!

Bush should make like a Bill (Clinton) and co-opt that proposal!