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Comments about ‘Plethora of problems at the pump; solutions harder to find’

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Published: Thursday, May 5 2011 6:13 p.m. MDT

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toosmartforyou
Farmington, UT

We've had this problem for several years. One reason we still have it is because we depend upon the US Congress to solve it. I suppose we want them to solve our challenges with education, immigration, health insurance, etc too. I expect similar results that they have produced in solving our energy problems. (Unfortunately)

CARL
South Salt Lake, UT

What is next will be Federal Regulatory guidelines with the blessing of Obama administration in required all pumps to register liters replacing gallons. This will read $1.10 per liter. (a gallon is about 3.86 liters)

Hutterite
American Fork, UT

Since president obama took office gas prices have risen..... So are we going to let that one sit there? Explain to us, O hideously unbiased heritage foundation, how you came to couch your statement in those terms? Is president obama directly responsible for the price increase, or did you just throw that out there to set the time frame? And oil companies are making large profits? How unamerican can you get? Surely reagan would have nationalised the industry by now rather than see it profit off citizens. Obama could use some lessons from gipper. And surely it is environmentalists only that prevent us from making our 2% of the worlds' proven reserves meet the demand of 25% of its' consumption. Problems at the pump? Yeah, the solutions are hard to find when you are only willing to accept the solution you want.

one day...
South Jordan, UT

From Deseret News archives, Published: Wednesday, July 23, 2008 12:11 a.m. MDT
Are Utahns being overcharged for gasoline? Comparing a list of what customers pay at the pump for gasoline only (minus the taxes) might make you think so.
Utah has the third-highest average regular gasoline price in the nation at $3.79 per gallon not counting taxes.

to Hutterite, Carl and toosmartforyou...I hope one day we can have politicians that will work FOR THE PEOPLE and not for the big companies, how do you do blame Obama for something that have been an issue for years...way back than 2009!!!
Don't be blind guys! this "oil" issue is about money, do you really think that all those politicians that one way or another get money from the oil industry will do something agaisnt them...show me have work to reduce or "regulate" oil prices....NOBODY.
Who regulate the oil price...nobody, so stop blaming and do something...speak...THE PEOPLE...deserves better!

geedub
Santee, CA

If the President was interesting in helping us he would lift the ban he imposed on drilling in the Gulf of Mexico, he would open ANWAR, and he would open drilling off the California coast. Instead he decides that we're not paying enough and now wants to study the fesiblity of basing the federal gasoline tax on how many miles we drive. I doubt that Obama wants to help us.

Howard Beal
Provo, UT

Is this good old fashion capitalism? the law of supply and demand at work? Social Darwinism?

The oil companies better get in check or they might see the people clamor to nationalize the oil industry. So generally I have faith that this won't happen or be needed so I hope some positive corporate responsibility by Exxon etc. and those oil speculators starts to happen...

My2Cents
Kearns, UT

Obama is talking like the US government is handing the oil company billions of dollars a year in cash but that is a lie. These subsidies are tax credits to encourage exploration and finding oil and has nothing to do with pump prices. Cities and states give billions of dollars tax credit subsidies all the time to lure and entice business/companies to open a store in their area.

Oil production in the United States is sold to foreign companies only. Congress passed a law telling oil companies they can sell and trade our oil in the form of hedge funding which means sell it to foreign companies before it is pumped out of the ground. How much oil the United States produces has nothing to do with pump prices.

The oil industry has its speculators and buyers in foreign country's from our oil producers, then our refineries and processors can only buy oil from foreign interest. Hence, higher foreign dependence on oil lies that is rightfully the property of the American citizens.

The real lie is the producer+markup, foreign speculator+markup, and refinery+markup are all an underground network of the same company.

101Ways
Kearns, UT

It's Obama's personal vendetta to force people in to electric cars so he has by omission to enforce fair trade laws to allow oil companies to set whatever price of gas they want, that profiteering and fraud is okay. That's why when ever Obama is confronted by the high cost of gas his only response is you drive the wrong vehicle.

Supply and demand has not been responsible for gas prices, its' been profit greed and Obama. Even if we protest prices of gas the oil companies have Obama's blessing to raise the price to cover any loss from civil unrest.

Corporate responsibility doesn't exist and how else will BP and others recover their billion dollar losses in cleanups if they don't gouge us at the pumps to pay for it our of their(our) pockets? Basically, any environmental damage or problems, we still pay the oil companies in recoverable pricing policies.

Liberal Ted
Salt Lake City, UT

Barack has a solution. Don't drill anymore and tax you more per mile that you drive!

YES WE CAN! This is change we need and change we can believe in.

Michelle for the second time in her life, is actually proud to call the United States home. Of course she doesn't care since she has a private jet to take her shopping and a convoy of SUV'S. But, for us peasants it's just something we need to get use to.

When Bush was president we didn't look at gas prices this high.

This is good old fashion socialism at work. Give everything to the government, and they'll make all of your problems disappear. Not that we have a choice to give, we're forced to give to the government or run the risk of being thrown in jail.

We need to drill here. It's a good idea to get green renewable energies going. But, for the short term drill baby drill. Use that revenue to pay for green research and production and renewable energy. Of course that is too hard for the smartest president in the history of the US.

SME
Kearns, UT

"Democrats are targeting subsidies for oil companies, while Republicans are pushing for more drilling."

Which of these efforts is more likely to decrease gas prices. The argeument was made several years ago that new drilling wouldn't produce more oil for 7-8 years. It would be nice if we could look forward to that increased oil coming online soon. We can't easing drilling permits was quashed. Yet the sooner we start, the sooner we will have more oil.

Lone Star Cougar
Plano, TX

Living in oil country and working with people that work in commodities, this article was one of the best I have ever seen and I believe it "hits the nail on the head".

Oil prices are controlled by the futures market. The futures market looks ahead to see what is coming in the future for that commodity. Also, there is an emotional part to the futures market so if the landscape for oil supply looks bearish, the prices will go up and speculators will pile on to ejoy the ride up on the futures market.

All we have to do is start drilling in earnest again and the price of oil will fall as the futures market will see down the road the increase in supply. Oil prices will come down.

Oppositely, taking revenue away from the oil companies will only make oil companies raise the prices to cover the deficit.

Also, the oil companies only make a profit of 2 cents per gallon while the government taxes the same oil between 30 cents to 60 cents per gallon.

Which one is being abusive? Oil companies or the government?

  • 8:00 a.m. May 6, 2011
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Mountanman
Hayden, ID

Well said Lone Star! Best comment I have read about this subject, ever!

KM
Cedar Hills, UT

"I will destroy the coal industry." "under MY plan energy prices would necessarily skyrocket!" This sounds like somebody who wants to see us suffer and fail. Our dear government makes more profit off the selling of gasoline than the oil companies. Now thats rich!

DeltaFoxtrot
West Valley, UT

High gas prices are a threat to our national security. The more people spend on necessities the less they have to spend on other goods and services... and consumer demand is still the #1 driving force behind our economy. We can't hope to recover with $5/gal average knocking on the door, and it's high time somebody took emergency action to do something about it.

Subsidies aren't the problem, speculators are. If speculation was eliminated prices would be cut in half. We need to put the brakes on people getting rich by taking money right out of our pockets.

toosmartforyou
Farmington, UT

Drill again! And to avoid the risks of deep-water drilling, which was pretty convenient for the anti-drilling sentiments after the BP disaster in the gulf, drill on LAND! We have the reserves in the Dakota's and Alaska. Too simple, I know. When gas hit $4 a gallon under Bush if we had sarted drilling on the land at that point, and started building a few new refineries, we'd have solved the problem by now.

But we're OK because Congress is there to solve the problem.......right?

worf
Mcallen, TX

Thomas Jefferson was correct when he stated:

"Commerce with all nations, alliance with none". (1799)

"Essential principles of our government to be peace, commerce, and honest friendship with all nations, entangling alliances with none..." (1801)

Oh what a web we weave!

Paul in MD
Montgomery Village, MD

Although our refineries in general aren't geared to refine the kind of oil we pump here, producing oil that other countries can use eases the demand for the kind of oil we CAN refine.

I have never understood how reducing the amount of money an oil company makes on its oil production, by reducing/eliminating its tax credit, translates into lower prices at the gas pump. If they are truly using the money they "get" from the tax credit for oil exploration and alternative energy technology research, reducing the tax credit will have a combination of two effects:

First, the amount they spend on exploration and research will drop, which means they will be putting less money back into local economies where the research and exploration is happening. Not a good outcome.

Second, they will likely pass at least some of the cost of losing the tax credits on to consumers of oil products, which will translate into higher prices at the pumps and in all oil derived goods - motor oil, plastics, etc. Also not good.

So, no matter what the oil companies do if the tax credit is cut/dropped, it will cost all of us.

xscribe
Colorado Springs, CO

@Liberal Ted: You really need to research how oil is traded on the commodities market, and that drilling here would not lower the price much, as oil is a global commodity traded on the global market. To sit there and blame Obama is just plain funny. Our administration has zero to do with the price of oil - which, by the way, was trading below $100 as of yesterday. Google a few pictures of who looked stressed over oil dropping $10 in the last couple of days, and you'll see it's the traders and big oil companies. If you can name me one solid piece of factual data, aside from your belief that we should be drilling more here in the US, as to how Obama or his administration has directly caused this current hike in gasoline prices, I'll be amazed! What you got?

DeltaFoxtrot
West Valley, UT

Drilling won't solve anything.

American refineries are already operating well below capacity. There is plenty of oil readily available, but supplies are being manipulated by petroleum cartels in order to keep prices artificially high.

one day...
South Jordan, UT

I cannot believe how blind people are about politics, the oils prices are manipulated by the producers, merchant and politicians, NO MATTER IF THEY ARE REPS OR DEMS!. like it or not

Drilling won't solve anything

Do you know how much these companies have made in the last 10 year...billions!!!

I think that when we stop using so much gas and buying the V8 cars prices will change...no demand...no high prices!

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