Someone tell me how that is good?
If US oil refineries can't make enough profit to stay in business; the crude is processed elsewhere where it is cheaper to do ... for now. That costs US jobs while keeping the cost of gas down in the short term. A tax break to keep the jobs could be offset by the taxes paid by those employed people v. paying out $ for unemployment ... and re-training refinery workers to another type of employment since the refinery jobs would be gone.
In the long-term, however, we are at the mercy of those countries who are currently offering cheaper refining. What if they decide to raise their price? We would not be prepared to pick up the slack at home for a while, since you can put refineries on-line overnight.
Also, recall that when Katrina hit & knocked out the refineries in the Gulf of Mexico, the panic on that caused gas prices to rise. Fear of shortage turned out to be worse than the reality, but the fear of shortage, alone, was enough to have prices shoot up.
The Oil companies made huge profits each quarter.
High gas prices may have cinched American consumers’ wallets in 2007, but they loaded the coffers of the big five oil companies: BP, Chevron, Conoco Phillips, ExxonMobil, and Shell. ExxonMobil, after record high profits in 2005 and 2006, smashed the record for highest profits ever made by a public U.S. company—previously held by Exxon—by posting a net profit of $40.6 billion in 2007.
To put these figures in perspective, Exxon’s $40.6 billion profit in 2007 is roughly equal to receiving “$30 for every person in China and $132 for every U.S. resident.” Another way of looking at it is that Exxon made $77,245 per minute in 2007—that’s more money generated per minute than 70 percent of Americans earned all year, according to the Census Bureau.
It costs oil companies less than $10 per barrel to extract and ship a barrel of oil. The “finding” costs to explore and develop an oil field range from $5 per barrel in the Middle East to $67 per barrel off of the U.S. coast. These are production costs. So when the market price jumps due to speculators, political unrest, supply disruption, or other similar events, it is a windfall for the oil company.
With the outragous profits the oil companies are making why would we have to give them another tax break?
By the way, I am a registered independent. So I do not know of which party you speak.
Why won't the current administration work toward lessening our dependence on fossil fuels? The price of gas affects ALL of us EVERY DAY....is our current leadership so myopic that they can only work on one major campaign promise at a time?
CURRENT administration, Roger...CURRENT....stay focused....