When is Biden and/or Congress going to do something about the price of gas?

[dugog55]

Republicans, who receive a huge amount of campaign donations from the Petro Industry are planning on running for Mid-Terms on our current inflation. A lot of that has to do with the price of gas. Everyone in the US buys gas regularly and people are getting tired of being gouged. Worse, they are blaming Biden and the Democrats.

Gas prices, according to a calculator on past prices, show that gas should be $3.50 a gallon at its current price of $104 for a barrel of oil. Some places are paying close to twice that. There are no shortages that I know of, so there must be ample supply. Big Oil has always been friendly with the GOP since they get such huge subsidies and tax breaks from their bribed politicians. Is it a stretch of the imagination that they are purposely killing the economy to make Biden look bad? Getting the GOP back in power means they can drill for oil in downtown New York City if they want.

Certainly there has to be some laws that prohibit price gouging. If there are, why aren't they being used? This has been going on for months now. and it is past time for something to be done about it. Some kind of action by the government is not only needed but warranted.

[leftstreet]

1. Nationalize it n/t

[Ocelot II]

3. Yeah, that worked so well for Harry Truman.

Youngstown Sheet & Tube Co. v. Sawyer, 343 U.S. 579 (1952) https://supreme.justia.com/cases/federal/us/343/579/

[Ocelot II]

2. What do you think they should be doing,

considering that the oil market is international and supplies are being threatened by the war in Ukraine?

[Mad_Machine76]

7. Didn't he say

that he was going to tap the Strategic Oil Reserves?

[Ocelot II]

9. The strategic oil reserves are just a drop in a huge international bucket

so releasing some reserves won't do very much to bring prices down.

[Mad_Machine76]

37. Oh ok. Just a drop in a barrel? ;-)

[PufPuf23]

41. Do not agree with tapping the Strategic Reserve.

There is only 60 days of USA oil consumption in the SR.

Sold at or at a discount to current market and likely to be more expensive to refill.

Likely large oil will maintain and increase profit margin.

Be more receptive if for actual emergency need rather than to maintain comfort.

https://en.wikipedia.org/wiki/Strategic_Petroleum_Reserve_(United_States)

[Tickle]

8. Drilling on our own land

should keep us from being threatened by any international war I would think.

[Ocelot II]

11. Won't make a difference because the supply and the demand are both international.

If we produce more oil domestically there will still be an international demand for it, and producers will continue to sell it on the international market.

[Tickle]

12. I'm trying to understand

Does this mean we would drill oil and then send it internationally only to buy it?

I'm not being sarcastic I'm just trying to understand

[Ocelot II]

16. A good explanation here:

Crude oil and petroleum product prices are the result of thousands of transactions taking place simultaneously around the world at all levels of the supply chain, from the crude oil producer to the individual consumer. Oil markets are essentially a global auction—the highest bidder will win the available supply.

Like any auction, the bidder doesn't want to pay too much. When markets are tight (when demand is high and/or available supply is low), the bidder must be willing to pay a higher premium. When markets are loose (demand is low and/or available supply is high), a bidder may choose not to outbid competitors, waiting instead for lower-priced supplies.

A whole lot more at https://www.eia.gov/energyexplained/oil-and-petroleum-products/prices-and-outlook.php#:~:text=Crude%20oil%20is%20traded%20in,selling%20a%20futures%20contract%20today.

[Demsrule86]

21. That is untrue.

[MineralMan]

29. How long do you suppose it would take for new wells

to start delivering crude oil to refineries?

It's not about drilling new wells.

[kelly1mm]

47. New wells are like trees. When was the best time to plant a tree? 40 years ago. When is the

2nd best time to plant a tree? Tomorrow. While a new well will not immediately decrease gas prices, increasing domestic supply will give the US more options going forward.

[In It to Win It]

38. The economy of oil is a little more complicated than that. Oil and gas in the USA is fragmented

Last edited Thu May 12, 2022, 06:36 PM - Edit history (1)

and decentralized. Our oil market is, largely or entirely, run and operated by private sector actors. The private market tends to not care or think about international war and its effects unless their assets are directly in the conflict.

From my experience in project finance, drilling more on our own land may not solve anything. The destination of oil and gas many times depends on where its drilled domestically. Oil is difficult and expensive to move. In certain areas, the infrastructure available is solely for exporting. In other areas, the only infrastructure available is for domestic distribution. Many times, it depends on where you drill. When I was in project finance, I had a client with a oil and gas exploration project and the only way to move his production that would have eventually been drilled was to a single domestic midstream oil and gas company that had pipelines in the area. If he wanted to sell to an exporter, the only option was trucking it, which was not practical.

The USA could drill enough for our own consumption and export the rest. The oil landscape as it currently exist is just not built that way. Some oil will be exported because that's the most cost effective option of getting it to market (maybe because the infrastructure is already in place for example). Some areas of the country will need to import oil because it's the most cost effective method of getting it rather than getting it from a domestic producer.

For example, I live in a part of the country where some of our petroleum products are imported. The local port has tank farm to hold gasoline. There are no pipeline that deliver petroleum products here. In some areas, it's more practical to import.

[Tickle]

39. thank you for taking the time

to write this. It was much appreciated

[RobinA]

40. So, You're A Palin

fan-person? Drill baby, drill!

[Wednesdays]

56. I will never forget that despicable moment in 2008

when Ghouliani shouted that phrase from the RNC podium.

[jimfields33]

25. That seem more hurt then good.

We can’t revoke overseas companies licenses which is helping the problem big time.

[jimfields33]

28. It costs a lot to drill. With the price right now. It's not practical.

If we didn’t have to deal with the price of gas overseas, we’d be able to do what you mentioned.

[jimfields33]

32. I don't know the answer to the license question except

that maybe they asked for them in 2021 when gas was reasonable. President Biden is releasing a million barrels a day. Perhaps he’ll raise it sometime soon.

[jimfields33]

34. Got it. I'm don't giving them benefits of doubt.

[VMA131Marine]

5. The price of oil, gasoline, and other products

is set on the commodities trading markets.

https://www.nasdaq.com/market-activity/commodities/rb:nmx

It’s not just supply and demand that factors into the wholesale price but perceptions about future risks and trends in supply and demand. There’s very little the US government can do to influence this market directly.

[uponit7771]

23. Nope, naked greed ... Big Oil profit ***MARGINS*** are up past pre pandemic

Big Oils net burden of production has ***NOT*** gone up relative to history they're just charging more money ... cause they can.

https://www.usatoday.com/story/money/economy/2022/05/07/oil-company-record-profits-2022/9686761002/

The net profit margin of S&P 500 companies, which include energy giants such as Chevron and Exxon Mobil, in the first quarter has been running at 12.3% based on estimates and earnings reported so far, according to FactSet. That’s down from a peak of 13.1% in the second quarter of last year, but above the pre-COVID-19 level of about 11%.

“Profit margins should be coming down,” Lindsay Owens, executive director of Groundwork Collaborative, a progressive economic policy research group, previously told USA TODAY.

Instead, she noted, “they’re actually growing.”

[jimfields33]

26. We have very little to do with the price of gas.

Overseas is where the action happens. We sell what the purchase price is. We have control of the taxes. That’s it.

[kelly1mm]

48. That article references net profit margins of the S&P 500, which includes major oil companies

but the VAST majority of the S&P 500 is not oil companies. What is the net profit margin of the oil companies themselves and how does that compare to other sectors?

[Meowmee]

6. It is not just gas

Our heating oil is going per gallon up by $3.50! Price gauging. My doctor copays and rx copays have gone up hugely as well. It costs me $50 to visit a doc now and much of the time they do nothing for me. My insulin copay has doubled which I am now fighting. The US is awful.

[Tickle]

10. heating oil is a killer

I kept my heat on 60 degrees all winter long. I bought an electric heater and carried it room to room.

[Meowmee]

13. Yes we did that too

And since my father passed we used a lot less because he needed the heat higher but even I felt sick and have to wear a robe or coat all the time at home. But they are still coming all the time to fill it, and charging more. Something is wrong. It must be pouring into the ground from the tank or something. If there were a better way to heat I would do it but we don’t have natural gas available in our area and we don’t have enough sun for solar panels that often damages your roof and you have to redo the roof. It costs a fortune and takes years to recoup in any savings.

[Tickle]

17. sorry about your father

as I know that's a tuff passing to get over. I owe money to my oil company and I just give them a $100 at every paycheck. I owe over $1000.00 but I have between now and November to pay it off.

[Meowmee]

19. Ty

I will not get over it ever but I hope there will be some justice.

That is good they let you do that. I am sure ours would just turn off the supply and send to collections. It is warmer now so lets see how it is, prolly worse because of the increase and no competition. They have all set the same prices.

[SoonerPride]

14. President nor congress can control the price of anything.

That's not how any of this works

[Tickle]

20. they can by producing more nt

[Demsrule86]

22. That is a right wing talking point and bullshit.

[SoonerPride]

24. The president doesn't run oil drilling rigs.

You are sadly mistaken.

[PSPS]

42. If we produced more, other countries would just produce less to keep the price high.

It's an international commodity pool.

[Kaleva]

30. Isn't higher gas prices good for the environment? Less consumption and thus less green house gases?

[Carlitos Brigante]

36. In theory. But the way so much of this country is designed. If you wanna to get to work. You

gotta drive.

[Voltaire2]

51. Perhaps demanding everyone go back to the office

was not a good idea.

[Carlitos Brigante]

55. You must be some kind of "snowflake". This is 'Murica, baby!! Where

we give the virus 12 hours to get out of town. Or else we shoot it. Seems to be working out great.......

[AngryOldDem]

53. We need to start weaning ourselves off of gas.

Mass transit options need to be given much more serious consideration in some parts of the country — light rail, passenger rail travel in general, expanding bus service more broadly….but that won’t happen, and we’ll remain hostage to the pump.

As usual, it takes change in state legislatures to do that. I live in a northern suburb of Indianapolis and at one time both rail and bus service were discussed. There was actually a good, unused track that went into the city. But the state government made it ILLEGAL to fund light rail, and also killed funding that would have expanded bus service. There was a commuter bus service funded by two cities and some grants, but the grants ran out and that died. The rails were torn up for a greenway. So, I still have an hour’s commute twice a day and I hate it. COVID aside, working from home in 2020 was the best damn time of my working life. Filled up my car maybe once a month rather than once or twice a week.

We need to start looking at other options rather than yelling about stuff that’s just about beyond anyone’s control. Yes, there’s a lot of work to do to fix 50+ years of poor urban planning, but it will be worth it in the long run.

[Magoo48]

43. Want the price of the nasty shit to go down. Get everyone to quit using it for pleasure.

[Dial H For Hero]

49. How?

[Magoo48]

54. Beats the hell outta me.

[dugog55]

44. Yes, don't get me wrong, if we suddenly quit using gas I would be pleased.

However, my point is, historically when a barrel of oil cost $104, the price of gas was $3.50. Period. Why is it so high now? There are no shortages, that I know of, so why the high price. BP tripled first quarter profit., from $3 billion to $9 billion in 2022 compared to 2021. That does not raise a red flag?

I don't want more drilling, I would like to see less actually. Whatever drives the price of gas, is not correlating with what is occurring right now. The price is way higher than it should be. That is all most Americans see, what is happening now in their face.

The supposed "free market" is supple and demand, Uncle Ronnie took care of that in the "80's and now it is just gouge and gouge until something breaks. People need fuel for their houses and cars, that is not going to stop in the near future. My concern is how the Republicans are going to turn this against Democrats in the mid-terms and pry the House and Senate back. The GOP has never done a damn thing for the Average American, but they talk a good lie and people will vote for them. I don't think our country can withstand another two years or more of GOP rule.

We constantly hear from the GOP how Obama rammed better health care coverage down our throats, but not a peep about the $2 trillion tax cut the rich people got And that tax cut is something that we have to pay for in the long run.

[moonshinegnomie]

45. the heritage foundation has a survey about it if you want to screw with them....

TFG filled it out.....

https://secured.heritage.org/energy-independence-survey/

[MichMan]

46. Declare it a national emergency, institute rationing and order the oil companies to drop the price.

Tell them all they can charge is $3.25. If they won't do it, just nationalize them. Rationing will ensure that people just won't start driving more and wasting it.

[Dial H For Hero]

50. Shortly thereafter, Republicans gain the White House and veto proof majorities in Congress

[AngryOldDem]

52. Better, more immediate answer is states suspending gas taxes.

But if they’re GOP led, as mine is, good luck with that.

Federal regulation, like what you want, has never worked out well.

I feel your pain, though. I really do.