Author Login | Popular Articles | RSS Feeds | Sitemap

Home | Uncategorized


Lobbyists and the Gas Price Problem

By:

The high price of gas is on everyone’s mind. On May 10, 2006, the price of crude rose $1.19 to settle at $73.72 a barrel on the New York Mercantile Exchange. This has many people wondering how high gas prices will go and what is behind the continued rise.

The price of gas is linked to the price of oil. This cost can be determined by a ratio of 2.1 cents for every dollar a barrel of oil costs. With current refining and distribution costs and federal and state taxes, even if oil were free, gas would cost about $1.00 per gallon. Add that to the ratio calculated price of gas, which is $1.55 at the current price of oil, and you get $2.55 per gallon. This is an underestimate of the average national price of gas today, May 12, which is $2.93 per gallon.

Big business has a lot of buying power in Washington. The top ten oil companies reported spending $33,173,092 lobbying Congress and the Executive branches in 2005. Members of the Senate, Commerce and Transportation committee received the most money, $155,450. They were followed by the House Energy and Commerce Committee at $153,050. The Senate Energy and Natural Resources Committee received $139,600. The oil lobby has been buying policy in Washington for years. In 1999, the Senate voted to allow the oil industry to continue its policy of not paying royalties owed to American taxpayers for drilling on public and Native American lands. This allowed big oil companies to avoid paying $66 million in royalty payments annually.

Some consumer organizations refer to the oil companies as a cartel. Most products follow the law of supply and demand. Consumer groups accuse oil companies of reducing supply and demanding more money. Oil companies have an incentive to produce less. Only about 10% of gas retailers are independently owned and the rest are distributors for the oil companies. This allows them to easily manipulate the spot market for gasoline.

Big oil companies have shut down 25 refineries in California alone since 1983. They blame this on environmental groups and regulations. This is not the case. They don’t want to build new refineries because that would increase supply and lower the cost of gas. There are no plans to build more refineries and there will not be because of this. As an example, in April of 2005, President Bush announced a plan that would make closed military bases available for the construction of refineries. To date, not a single company has taken President Bush up on his offer.

Let’s talk about another lobby that pedals influence in Washington. The ethanol lobby has spent a lot of money. The owners of the 4 million flexible fuel trucks that could use 85% ethanol fuel (E85) know that their vehicles use 30% more fuel on E85 than gasoline, so most choose gasoline. Since 1978, the government has given many tax incentives and subsidies to promote the ethanol industry. Despite the lobbyists’ claims, ethanol has not reduced our dependence on foreign oil or helped reduce pollution. If an alternative energy source is competitive, it will not need subsidies. If it needs subsidies, it is not more affordable.

One company that learned a lesson about the power of lobbyists back in 1992 is Ethos, the manufacturer of Ethos Fuel Reformulator (Ethos FR). Mr. Enrique De Vilmorin, the president of Ethos, approached the EPA with the idea of using Ethos FR to reduce emissions. He got the cold shoulder. "We spent time chasing politicians down, but we found out they don't spend much money. All they want is your money," he said. He also stated that Archer Daniels Midland Co. spent more than $50 million getting bio-diesel approved for use. AMD just happens to be the largest producer of ethanol. Some researchers have even called ethanol’s value a hoax. Senator Dianne Feinstein has asked state and federal EPA’s to investigate the use of ethanol blended gasoline following the continued increase in smog in Los Angeles after the introduction of this fuel.

Tax breaks, incentives, and subsidies are not the answer to high gas prices. When the price of gas rises, industry will be motivated to research alternative fuels. Japanese cars are so fuel efficient because the price of gas in Japan has been close to $5 per gallon for a long time. Unfortunately, big business has done a lot to slow our progress toward better fuel efficiency and a solution to pollution problems.

Article Source: http://www.articlesnatch.com

About the Author:
Amy Hansen invites you to visit her blog for informative articles, gas saving tips, and information about the high price of gas at http://gas-price-too-high.blogspot.com

| Print | Ezine Ready | |

Please Rate this Article

Recent UnCategorized Articles

  • 3 Ways to Increase Fundraising Profits With Popcorn Machines By: Christine Harrell - Popcorn machines are a fantastic way to raise money for an event or non-profit organization. The tantalizing smell of fresh popcorn popping is fantastic advertising all on its own, attracting customers from a great distance. However, many other things can be done to bring people to the popcorn machine and increase the amount of donations to help meet fundraising goals and spread the word about your organization. Advertising Advertising before the start of the fundraiser works well for increasing the number of customers at your popcorn machine.
    Tags: popcorn machine
  • Drew Miles Reviews Ways to Save on Your Taxes By: drew miles - Hi, My name is Drew Miles, and I would like to share with you some ways your business can save money on taxes every year, just by following some simple steps. It’s that “Wonderful” time of year again! You ask, “What time is it?” IT’S TAX TIME! When operating your own business most of us are always busy building the company, and it’s the little things that get overlooked every year.
    Tags: tax, tax deductions, drew miles, deduction, tax write-offs
  • The Awesome Power Of Gratitude By: Jules Hawk - The expression of Gratitude has the capacity to transform your life, to develop the connection with Divinity, with your true inner self and the profound power within, to inspire, and to bring forth bounty and joy into your life. By establishing the habit of daily reflection on Gratitude for the blessings in your life, you will find you draw more and more of the positive and uplifting energy, emotion and events into your sphere.
    Tags: gratitude, grateful, manifestation, manifesting, prosperity
  • Choosing The Right Scooter Insurance By: Anna Stenning - Riding a scooter is the perfect way to start your path into riding a motorcycle, however, it is still useful to gain experience alongside someone who has had years of experience riding a motorcycle. The best way of learning is to learn from a proper qualified instructor who can teach you the correct ways of learning as opposed to teaching you bad habits that others may indirectly teach you.
    Tags: scooter insurance
  • Little Known Ways To Stop Foreclosure By: Ranju Kumar - If you are in the same predicament as many people are today, you may be waiting for the banker to show up and tell you he is foreclosing on your property. It does not literally happen that way but the results are the same. If you are facing the prospect of losing your home and are trying to figure out the best way to avoid foreclosure, there are options. You just have to spend a little time finding them.
    Tags: stop foreclosure, foreclosures, avoid foreclosure, stop short sales, prevent foreclosure
  • Internet Marketing Ideas for the Work at Home Mom By: Ranju Kumar - Many work at home Moms are consistently searching for internet marketing ideas that can assist them in making their business successful. While marketing by means of direct mail, telephone calls, business cards, fliers, and advertisements in local newspapers and magazines did seem at least a little appealing at one point in time, marketing on the internet is so much broader, easier, and overall, less expensive.
    Tags: abunza, affiliate marketing, internet marketing, business opportunity, work at home
  • Yeast Treatment - There Is Something You Can Do For An Effective Yeast Treatment By: Tom Moody - At any stage in a woman’s life there is a possibility that she will need to undergo some form of treatment to help deal with a yeast infection problem. What is important to note is that there are plenty of yeast treatment available for dealing with this type of infection and what one a woman uses will largely depend on the severity of theirs.
    Tags: yeast treatment, yeast infection treatment, yeast infection treatment, treatment for yeast infection
  • Why New Houses UK Schemes Can Help First Time Buyers By: Anna Stenning - As a UK citizen, I want to eventually be able to afford my own detached house with a garden and a lovely front lawn completed with white picket fences. However, in this day and age one cannot but dream and find that the dream will not come as a reality if the economy does not change, benefiting us working class individuals rather than making it virtually impossible to work our way out of debts. However, there is some light at end of the dark tunnel, which can open up doors to various possibilities.
    Tags: new houses uk
  • Mp3 Speakers Have Opened New Vistas For The Music Industry By: Theodore Cartman - Mp3 speakers are an integral part of the players. The speakers make your music listening experience a unique one. Mp3 speakers are absolutely essential for the music lovers and for the non-music lovers it is even more important since this experience would transform them into music lovers. There are several companies in the electronics market, which sell mp3 speakers with the mp3 players. The players these days come with stylish looking speakers with a striking sound quality. Originally mp3 players did not have speakers attached to them. In fact, it is a recent phenomenon.
    Tags: mp3 speakers, logitech speakers, portable speakers, speakers, mp3 players
  • Intricate Details of the In Wall Speakers By: Theodore Cartman - In wall speakers systems are really a very effective way in order to enjoy and experience remarkable music. This is because you can enjoy it just the same way as other speakers but amazingly while the speakers are not visible to the obvious eye. These special kind of speakers are also called as the in-ceiling speakers. This remarkable speaker system is most ideal in an environment for home theatre. There are a number of different speakers that are available in the market for you which are readily and conveniently available.
    Tags: in wall speakers, speakers, in wall speaker system

Today's Hot Articles

Search Ebay

Still can't find what you are looking for? Search for it!


Submit Your link to the Open Link Directory Project

Copyright 2005-2008 MJE Sales, LLC. All Rights Reserved.
Proud member of the ArticleCkr Search Network Search Network!
ArticleSnatch.com is free for both publishers and authors to use and is supported entirely from advertising revenue.
Use of our service is protected by our Privacy Policy and Terms of Service.