Monday, May 08, 2006

 

Gas-Ex

Over the last week, oil prices have come down roughly five dollars a barrel. Later this month, gas refineries in the process of refitting will come back on line. Together, the price of gas should drop back down to the $2.50 range or lower. However, demand will increase when summer driving starts, pushing prices back up slightly.

What does this mean for us in the long run? If we had drilled in the ANWR back in the early 1990's like many Republicans suggested, prices would be 50 cents to a dollar cheaper now. If we were drilling off of the coast of Florida, California, and Oregon, as many Republicans suggested in the early 1980's, we could knock another 50 cents off of the price. But the biggest problem is, and always will be, the taxes on gas and oil.

When all of the taxes are taken out(every tax from exploration to the gas pump, including employee taxes and transportation taxes)the cost of a gallon of gas drops dramatically. Factually, the highest profits on a barrel of oil, and ultimately on gas, goes to the federal and state governments. The oil companies make nine to ten cents a gallon on gas. The gas stations average even less than that. Their profits come in the quantity sold. But, that quantity also adds up for government coffers.

If our government leaders were serious about getting the cost of gas and oil under control they would cut all of the taxes on the processing of oil to gas, star drilling in ANWR and off the east and west coasts, and negotiate a deal with Russia to put them in direct competition with OPEC. The tax change would have an immediate impact, the Russia negotiations would make short term changes, and the domestic drilling would have long term effects. While we are at it, let's quit selling the oil drilled on the north slope of Alaska to Japan. That should be used domestically.

If we compound this with ecological changes and real research into alternative fuels and methods, we can get transportation back to affordable levels thereby strengthening our economy into the foreseeable future.

 

Random Thoughts

Is it just me or does House Minority Leader Nancy Pelosi (D - CA) look like the character on MADTV? She is certainly as frustrating to figure out.

I think those opposed to steroids in baseball would be better served if they found another scapegoat than Barry Bonds. While I believe Barry may have used some illegal substance to lengthen his career, any thing he may have used to give him added strength has mearly taken him from hitting homeruns out of the field to hitting them out of the satdium.

I read a headline on the Drudge Report (www.drudgereport.com) that says the real estate market is booming in New Orleans. Could it have anything to do with the land and homes Mayor Nagin condemned near the French Quarter and downtown?

The Lt. Governor's race in Arkansas looks like it may be coming down to Bill Halter (D) vs. Jim Holt (R). Banks is making a run at Holt late in the primary race, but it does not appear that he has closed enough ground, as yet.

When will the "Hometown" news stations in Fort Smith start covering the hometown National Champions (UA Fort Smith Lions). The day after the Razorbacks lost in the National Tournament the Lions won the right to play in the JUCO National Tournament. The local station spent a week talking about the Razorback loss before they mentioned that the Lions were going to that tourney.

The sports portion of the evening news in Houston covers the Astros, the Texans, the Rockets, and the hockey team plus they cover the University of Houston, Rice University, Texas A&M and the Horns. On top of that they cover the high school sports programs. In the same amount of time, the local sportscasters cover the Razorbacks, the Razorbacks, and the Razorbacks. If they have time left over they cover the high school winners and mention the St. Louis Cardinals score.

Have you noticed how Arkansas Attorney General Mike Beebe talks about fiscal responsibility, yet while in the Arkansas house and senate he voted for more pork and taxes than virtually anyone else?

You say "Asa Hutchinson was the US House of Representatives' prosecuting attorney during the Clinton impeachment" like it was a bad thing. Violating the law, whether murder or lying under oath (No it wasn't about sex.), is a bad thing. Prosecuting that violation is working for the American people.

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