David Price on Oil Drilling and Audit the Fed

David Price (D) is North Carolina’s representative in the U.S. House for the fourth district. Mr. Price has no knowledge of legislation for auditing the Federal Reserve which over 23% of his colleagues have co-sponsored. Mr. Price’s comments concerning the oil industry and the administration’s mandate to close oil exploration in the Gulf of Mexico are not based in reality.

httpv://www.youtube.com/watch?v=LLTL69vvPNI

 I have to ask why Mr. Price has no knowledge of the Petrobras deep water wells approved by our government:

On March 17, the Bureau of Ocean Energy Management and Enforcement at the Department of the Interior granted Petrobras a license to drill for oil and gas in their Cascade and Chinook wells.

Let’s compare the “profits” on a gallon of gasoline sold in North Carolina starting with the following excerpt:

Dr. Mark J. Perry, an economist at the University of Michigan, notes that:

After crude oil costs, gasoline taxes are the second largest contributor to the price paid at the pump. Together Federal and State excise taxes on fuel account for an average cost of approximately 62 cents per gallon. That’s a combined tax of about 20% per gallon of gas.

The federal tax per gallon is 18.4 cents per gallon, see the history of federal gasoline taxes here, and the state tax per gallon varies by state, see the complete list of state gasoline taxes here.

Average profit per gallon of gas for oil companies: 10 cents according to the EIA.

Perry concludes by citing a question posed by Thomas Sowell, that if Democrats really consider oil companies’ profits unconscionable, what do they have to say about the taxes they impose, which add a far greater burden to the costs paid by American drivers than those “obscene” oil company profits?

Profit per gallon of gasoline:

Oil Company: 10 cents
Federal Taxes: 18.4 cents
North Carolina Taxes: 32.5 cents (second only to Rhode Island at 33 cents)

Based on Mr. Price’s comments concerning oil company profits, it appears that the government’s taxes on the people for producing nothing are more important than providing new sources of energy. Should we tell Mr. Price the fable concerning the Golden Goose?

David DeGerolamo

Related articles:

http://blog.energytomorrow.org/2011/02/the-economics-of-oil-company-earnings.html?gclid=CLaRo9iM4qcCFZNd7Aod_Ex9AA

https://ncrenegade.com//editorial/why-is-obama-going-to-brazil/

http://uk.finance.yahoo.com/news/Petrobras-seeks-allay-Gulf-tele-1403934006.html?x=0&.v=1

    
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randysright
13 years ago

You asked very simple and direct questions David. Price appeared very nervous and shaken. Nor did he even say anything of content. I believe he really didn’t know anything and this guy is on the national security council, ugg!