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Oil Subsidies

Ore_Ele
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4/26/2011 2:10:02 PM
Posted: 5 years ago
The US is expected to burn through 9.12 million barrels of oil a day for 2011 [1]. This means that we are going to go through about 3.329 billion barrels this year. The federal government also provides $3.4 billion in subsidies a year to "big oil" [2]. Now you can find anti-oil blogs that claim that it is as high as $20 billion a year, but they include things that are not "big oil" specific (like depreciation tax deduction, which every company is entitled to, so don't call it a big oil thing).

So we see that the subsidies are really only about $1.02 per barrel, which comes out to less than 3 pennies per gallon of fuel.

Based on the laws of supply and demand, and how taxes and subsidies effect cost, the removal of these subsidies should effect the cost of gas somewhere between 0 and 3 pennies per gallon at the pump (of course, that is assuming an open competition between a number of companies).

We obviously know that this is not the case, so there must not be a lot of competition between oil companies. If we want oil prices to really drop, we need to ensure that competition comes back to oil. And one big thing for this would be to open up drilling off our coasts (with particular safety and evironmental protection guidelines) and on our lands.

I personally think that the government should keep those subsidies going, but redo them so that they focus on smaller companies and help them grow and expand (and new ones start) so that there actually is competition, rather than trust agreements.

Anyway, just my thoughts.

[1] http://www.nacsonline.com...
[2] http://www.energy.gov...
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lewis20
Posts: 5,093
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4/26/2011 2:17:02 PM
Posted: 5 years ago
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
Ore_Ele
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4/26/2011 2:23:03 PM
Posted: 5 years ago
At 4/26/2011 2:17:02 PM, lewis20 wrote:
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.

Yeah, it is messed up (though it is only 18 cents of federal tax on fuel, 24.4 on diesel, then states vary).

Really, the oil companies are suppose to be using the subsidies for R&D. However, their profit margin is enough that they don't need it.

Personally, I'd love to see a government owned (privately run) oil company pop up to force competition. It drills and refines oil with a set profit goal (of say, 10% rather than simply "maximum"), and that oil is then available for us to buy at a station for our cars.
"Wanting Red Rhino Pill to have gender"
lewis20
Posts: 5,093
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4/26/2011 2:50:11 PM
Posted: 5 years ago
At 4/26/2011 2:23:03 PM, OreEle wrote:
At 4/26/2011 2:17:02 PM, lewis20 wrote:
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.

Yeah, it is messed up (though it is only 18 cents of federal tax on fuel, 24.4 on diesel, then states vary).

50 cents is the average Federal+state tax on fuel
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
Ore_Ele
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4/26/2011 3:00:41 PM
Posted: 5 years ago
At 4/26/2011 2:50:11 PM, lewis20 wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:
At 4/26/2011 2:17:02 PM, lewis20 wrote:
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.

Yeah, it is messed up (though it is only 18 cents of federal tax on fuel, 24.4 on diesel, then states vary).

50 cents is the average Federal+state tax on fuel

I'd doubt that, since the fed tax is 18.4, that would mean that the average state tax would be 31.6 cents per gallon and only 3 of the 50 states make that mark (WV-32.2, RI-33, and WA-37.5)

http://www.oregongasprices.com...
"Wanting Red Rhino Pill to have gender"
mongeese
Posts: 5,387
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4/26/2011 3:12:12 PM
Posted: 5 years ago
At 4/26/2011 2:23:03 PM, OreEle wrote:

Personally, I'd love to see a government owned (privately run) oil company pop up to force competition. It drills and refines oil with a set profit goal (of say, 10% rather than simply "maximum"), and that oil is then available for us to buy at a station for our cars.

How would you get a government-owned, yet privately run business? The incentive to do well would be too weak to produce an efficient organization. The CEO of such a company would have to be paid much less than the CEO of a company without a profit ceiling, meaning that the best executives will all go to the regular oil companies, and the government-owned one will collapse in inefficiency.
J.Kenyon
Posts: 4,194
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4/26/2011 3:14:18 PM
Posted: 5 years ago
At 4/26/2011 2:23:03 PM, OreEle wrote:
At 4/26/2011 2:17:02 PM, lewis20 wrote:
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.

Yeah, it is messed up (though it is only 18 cents of federal tax on fuel, 24.4 on diesel, then states vary).

That's retarded. Diesel motors are much more efficient, the fuel burns cleaner, and it requires less refining. Good job, government!
Ore_Ele
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4/26/2011 3:37:29 PM
Posted: 5 years ago
At 4/26/2011 3:12:12 PM, mongeese wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:

Personally, I'd love to see a government owned (privately run) oil company pop up to force competition. It drills and refines oil with a set profit goal (of say, 10% rather than simply "maximum"), and that oil is then available for us to buy at a station for our cars.

How would you get a government-owned, yet privately run business? The incentive to do well would be too weak to produce an efficient organization. The CEO of such a company would have to be paid much less than the CEO of a company without a profit ceiling, meaning that the best executives will all go to the regular oil companies, and the government-owned one will collapse in inefficiency.

The pay of the CEO is not really dependent, since wages are taken out before taxes anyway.

A government owned, privately run company is just like any other company in structure. From the worker's wages and benefits to the management and so on. The only difference is that the shareholds are 100% government. So when the board of directors is determining how much of their profits should be re-invested, given as bonuses, or given as dividends to the shareholders, those dividends basically go to the government (and so mean less taxes needed from individuals).

Prices, wages, expenses, etc, just like with any company, are not determined by the shareholders (in this case government). The government would have no more power than the collective shareholders of any company.
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innomen
Posts: 10,052
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4/26/2011 3:42:30 PM
Posted: 5 years ago
At 4/26/2011 2:10:02 PM, OreEle wrote:
The US is expected to burn through 9.12 million barrels of oil a day for 2011 [1]. This means that we are going to go through about 3.329 billion barrels this year. The federal government also provides $3.4 billion in subsidies a year to "big oil" [2]. Now you can find anti-oil blogs that claim that it is as high as $20 billion a year, but they include things that are not "big oil" specific (like depreciation tax deduction, which every company is entitled to, so don't call it a big oil thing).

So we see that the subsidies are really only about $1.02 per barrel, which comes out to less than 3 pennies per gallon of fuel.

Based on the laws of supply and demand, and how taxes and subsidies effect cost, the removal of these subsidies should effect the cost of gas somewhere between 0 and 3 pennies per gallon at the pump (of course, that is assuming an open competition between a number of companies).

We obviously know that this is not the case, so there must not be a lot of competition between oil companies. If we want oil prices to really drop, we need to ensure that competition comes back to oil. And one big thing for this would be to open up drilling off our coasts (with particular safety and evironmental protection guidelines) and on our lands.

I personally think that the government should keep those subsidies going, but redo them so that they focus on smaller companies and help them grow and expand (and new ones start) so that there actually is competition, rather than trust agreements.

Anyway, just my thoughts.

[1] http://www.nacsonline.com...
[2] http://www.energy.gov...

I question your definition of subsidy here.
Ore_Ele
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4/26/2011 3:45:56 PM
Posted: 5 years ago
At 4/26/2011 3:42:30 PM, innomen wrote:
At 4/26/2011 2:10:02 PM, OreEle wrote:
The US is expected to burn through 9.12 million barrels of oil a day for 2011 [1]. This means that we are going to go through about 3.329 billion barrels this year. The federal government also provides $3.4 billion in subsidies a year to "big oil" [2]. Now you can find anti-oil blogs that claim that it is as high as $20 billion a year, but they include things that are not "big oil" specific (like depreciation tax deduction, which every company is entitled to, so don't call it a big oil thing).

So we see that the subsidies are really only about $1.02 per barrel, which comes out to less than 3 pennies per gallon of fuel.

Based on the laws of supply and demand, and how taxes and subsidies effect cost, the removal of these subsidies should effect the cost of gas somewhere between 0 and 3 pennies per gallon at the pump (of course, that is assuming an open competition between a number of companies).

We obviously know that this is not the case, so there must not be a lot of competition between oil companies. If we want oil prices to really drop, we need to ensure that competition comes back to oil. And one big thing for this would be to open up drilling off our coasts (with particular safety and evironmental protection guidelines) and on our lands.

I personally think that the government should keep those subsidies going, but redo them so that they focus on smaller companies and help them grow and expand (and new ones start) so that there actually is competition, rather than trust agreements.

Anyway, just my thoughts.

[1] http://www.nacsonline.com...
[2] http://www.energy.gov...

I question your definition of subsidy here.

"a grant paid by a government to an enterprise that benefits the public"
princeton dictionary

However an "oil subsidy" is a subsidy that is unique to the oil industry. I also only included federal subsidies, since right now the federal government is talking about ending them (that does not apply to state subsidies).
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J.Kenyon
Posts: 4,194
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4/26/2011 3:47:08 PM
Posted: 5 years ago
At 4/26/2011 2:23:03 PM, OreEle wrote:
Really, the oil companies are suppose to be using the subsidies for R&D. However, their profit margin is enough that they don't need it.

Personally, I'd love to see a government owned (privately run) oil company pop up to force competition. It drills and refines oil with a set profit goal (of say, 10% rather than simply "maximum"), and that oil is then available for us to buy at a station for our cars.

If you hate oil companies making huge profits, just invest in them. That's what I do. The average energy company already makes less than 10% profit. It typically ranges from 7.6-9.7%. The government makes more money in taxes from a gallon of gas than the oil companies do. Google currently has a profit margin of 25%, should we create a new windfall profit tax on online advertising?
Ore_Ele
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4/26/2011 3:52:28 PM
Posted: 5 years ago
At 4/26/2011 3:47:08 PM, J.Kenyon wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:
Really, the oil companies are suppose to be using the subsidies for R&D. However, their profit margin is enough that they don't need it.

Personally, I'd love to see a government owned (privately run) oil company pop up to force competition. It drills and refines oil with a set profit goal (of say, 10% rather than simply "maximum"), and that oil is then available for us to buy at a station for our cars.

If you hate oil companies making huge profits, just invest in them. That's what I do. The average energy company already makes less than 10% profit. It typically ranges from 7.6-9.7%. The government makes more money in taxes from a gallon of gas than the oil companies do. Google currently has a profit margin of 25%, should we create a new windfall profit tax on online advertising?

Do you want to talk about Net or Gross income? Because the governments "net" income is in the red (it is loosing money, not making it).
"Wanting Red Rhino Pill to have gender"
mongeese
Posts: 5,387
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4/26/2011 4:12:06 PM
Posted: 5 years ago
At 4/26/2011 3:52:28 PM, OreEle wrote:
At 4/26/2011 3:47:08 PM, J.Kenyon wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:
Really, the oil companies are suppose to be using the subsidies for R&D. However, their profit margin is enough that they don't need it.

Personally, I'd love to see a government owned (privately run) oil company pop up to force competition. It drills and refines oil with a set profit goal (of say, 10% rather than simply "maximum"), and that oil is then available for us to buy at a station for our cars.

If you hate oil companies making huge profits, just invest in them. That's what I do. The average energy company already makes less than 10% profit. It typically ranges from 7.6-9.7%. The government makes more money in taxes from a gallon of gas than the oil companies do. Google currently has a profit margin of 25%, should we create a new windfall profit tax on online advertising?

Do you want to talk about Net or Gross income? Because the governments "net" income is in the red (it is loosing money, not making it).

Why does government income matter? The point is that the government tax on a gallon of gas is higher than the profit that an oil company makes on that gallon of gas.
lewis20
Posts: 5,093
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4/26/2011 4:37:45 PM
Posted: 5 years ago
At 4/26/2011 3:00:41 PM, OreEle wrote:
At 4/26/2011 2:50:11 PM, lewis20 wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:
At 4/26/2011 2:17:02 PM, lewis20 wrote:
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.

Yeah, it is messed up (though it is only 18 cents of federal tax on fuel, 24.4 on diesel, then states vary).

50 cents is the average Federal+state tax on fuel

I'd doubt that, since the fed tax is 18.4, that would mean that the average state tax would be 31.6 cents per gallon and only 3 of the 50 states make that mark (WV-32.2, RI-33, and WA-37.5)

http://www.oregongasprices.com...

" In January 2011, motor gasoline taxes averaged 48.1 cents per gallon and diesel fuel taxes averaged 53.1 cents per gallon"
http://en.wikipedia.org...
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
Ore_Ele
Posts: 25,980
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4/26/2011 4:45:56 PM
Posted: 5 years ago
At 4/26/2011 4:12:06 PM, mongeese wrote:
At 4/26/2011 3:52:28 PM, OreEle wrote:
At 4/26/2011 3:47:08 PM, J.Kenyon wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:
Really, the oil companies are suppose to be using the subsidies for R&D. However, their profit margin is enough that they don't need it.

Personally, I'd love to see a government owned (privately run) oil company pop up to force competition. It drills and refines oil with a set profit goal (of say, 10% rather than simply "maximum"), and that oil is then available for us to buy at a station for our cars.

If you hate oil companies making huge profits, just invest in them. That's what I do. The average energy company already makes less than 10% profit. It typically ranges from 7.6-9.7%. The government makes more money in taxes from a gallon of gas than the oil companies do. Google currently has a profit margin of 25%, should we create a new windfall profit tax on online advertising?

Do you want to talk about Net or Gross income? Because the governments "net" income is in the red (it is loosing money, not making it).

Why does government income matter? The point is that the government tax on a gallon of gas is higher than the profit that an oil company makes on that gallon of gas.

Actually, it is not. 18.4 cents on $3.79 gallon of gas is 4.85% of gross income per gallon. Exxon is making 39.00% gross income. They are also making 7.95% net income, while the US government is lossing money net.

Chevron makes 31.93% gross, and 9.55% net.
Conoco makes 26.31% gross, and 5.72% net.

All of that is greater than how much the federal government makes off of the gas tax as a percentage. However, none of that really matters, since it is not really relavent to the OP, which is about subsidies.

http://finance.yahoo.com...
http://finance.yahoo.com...
http://finance.yahoo.com...
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Ore_Ele
Posts: 25,980
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4/26/2011 4:49:33 PM
Posted: 5 years ago
At 4/26/2011 4:37:45 PM, lewis20 wrote:
At 4/26/2011 3:00:41 PM, OreEle wrote:
At 4/26/2011 2:50:11 PM, lewis20 wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:
At 4/26/2011 2:17:02 PM, lewis20 wrote:
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.

Yeah, it is messed up (though it is only 18 cents of federal tax on fuel, 24.4 on diesel, then states vary).

50 cents is the average Federal+state tax on fuel

I'd doubt that, since the fed tax is 18.4, that would mean that the average state tax would be 31.6 cents per gallon and only 3 of the 50 states make that mark (WV-32.2, RI-33, and WA-37.5)

http://www.oregongasprices.com...

" In January 2011, motor gasoline taxes averaged 48.1 cents per gallon and diesel fuel taxes averaged 53.1 cents per gallon"
http://en.wikipedia.org...

And it references http://www.nacsonline.com..., which does not provide a reference for it's claim.

Again, only 3 out of the 50 states have a state gas tax high enough to make it into that range.
"Wanting Red Rhino Pill to have gender"
lewis20
Posts: 5,093
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4/26/2011 4:54:11 PM
Posted: 5 years ago
At 4/26/2011 4:49:33 PM, OreEle wrote:
At 4/26/2011 4:37:45 PM, lewis20 wrote:
At 4/26/2011 3:00:41 PM, OreEle wrote:
At 4/26/2011 2:50:11 PM, lewis20 wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:
At 4/26/2011 2:17:02 PM, lewis20 wrote:
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.

Yeah, it is messed up (though it is only 18 cents of federal tax on fuel, 24.4 on diesel, then states vary).

50 cents is the average Federal+state tax on fuel

I'd doubt that, since the fed tax is 18.4, that would mean that the average state tax would be 31.6 cents per gallon and only 3 of the 50 states make that mark (WV-32.2, RI-33, and WA-37.5)

http://www.oregongasprices.com...

" In January 2011, motor gasoline taxes averaged 48.1 cents per gallon and diesel fuel taxes averaged 53.1 cents per gallon"
http://en.wikipedia.org...

And it references http://www.nacsonline.com..., which does not provide a reference for it's claim.

Again, only 3 out of the 50 states have a state gas tax high enough to make it into that range.

Hahah your source references, and I quote
"Source: Compiled by GasBuddy Organization from various sources."
Come on now.
Wikipedia cites:
http://www.api.org...

Still want to argue reliability of sources?
You didn't even take into account sales tax on gasoline by state, which adds to the total tax on gasoline.
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
Ore_Ele
Posts: 25,980
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4/26/2011 5:03:54 PM
Posted: 5 years ago
At 4/26/2011 4:54:11 PM, lewis20 wrote:
At 4/26/2011 4:49:33 PM, OreEle wrote:
At 4/26/2011 4:37:45 PM, lewis20 wrote:
At 4/26/2011 3:00:41 PM, OreEle wrote:
At 4/26/2011 2:50:11 PM, lewis20 wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:
At 4/26/2011 2:17:02 PM, lewis20 wrote:
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.

Yeah, it is messed up (though it is only 18 cents of federal tax on fuel, 24.4 on diesel, then states vary).

50 cents is the average Federal+state tax on fuel

I'd doubt that, since the fed tax is 18.4, that would mean that the average state tax would be 31.6 cents per gallon and only 3 of the 50 states make that mark (WV-32.2, RI-33, and WA-37.5)

http://www.oregongasprices.com...

" In January 2011, motor gasoline taxes averaged 48.1 cents per gallon and diesel fuel taxes averaged 53.1 cents per gallon"
http://en.wikipedia.org...

And it references http://www.nacsonline.com..., which does not provide a reference for it's claim.

Again, only 3 out of the 50 states have a state gas tax high enough to make it into that range.

Hahah your source references, and I quote
"Source: Compiled by GasBuddy Organization from various sources."
Come on now.
Wikipedia cites:
http://www.api.org...

dude, really?

http://www.eia.doe.gov...


Still want to argue reliability of sources?
You didn't even take into account sales tax on gasoline by state, which adds to the total tax on gasoline.

sales tax is not a gas tax, it is not put into the price at the pump, but added on later. How about we factor in income tax into everything too?
"Wanting Red Rhino Pill to have gender"
Ore_Ele
Posts: 25,980
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4/26/2011 5:05:35 PM
Posted: 5 years ago
give me just a moment.

I'm going to work off of these.

http://www.eia.doe.gov...

http://www.statemaster.com...

To get the real average, which is weighted by how much each state uses (it would be more accurate if I could get the amount "sold" rather than "used" in each state, but it is the best that can be done in 10 minutes).
"Wanting Red Rhino Pill to have gender"
lewis20
Posts: 5,093
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4/26/2011 5:10:47 PM
Posted: 5 years ago
At 4/26/2011 5:03:54 PM, OreEle wrote:
At 4/26/2011 4:54:11 PM, lewis20 wrote:
At 4/26/2011 4:49:33 PM, OreEle wrote:
At 4/26/2011 4:37:45 PM, lewis20 wrote:
At 4/26/2011 3:00:41 PM, OreEle wrote:
At 4/26/2011 2:50:11 PM, lewis20 wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:
At 4/26/2011 2:17:02 PM, lewis20 wrote:
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.

Yeah, it is messed up (though it is only 18 cents of federal tax on fuel, 24.4 on diesel, then states vary).

50 cents is the average Federal+state tax on fuel

I'd doubt that, since the fed tax is 18.4, that would mean that the average state tax would be 31.6 cents per gallon and only 3 of the 50 states make that mark (WV-32.2, RI-33, and WA-37.5)

http://www.oregongasprices.com...

" In January 2011, motor gasoline taxes averaged 48.1 cents per gallon and diesel fuel taxes averaged 53.1 cents per gallon"
http://en.wikipedia.org...

And it references http://www.nacsonline.com..., which does not provide a reference for it's claim.

Again, only 3 out of the 50 states have a state gas tax high enough to make it into that range.

Hahah your source references, and I quote
"Source: Compiled by GasBuddy Organization from various sources."
Come on now.
Wikipedia cites:
http://www.api.org...

dude, really?

http://www.eia.doe.gov...

Completely new source, your original information had no cited sources.
And look at your new source, add the federal tax to your numbers and take the average, you will get 48cents per gallon on gasoline.

That makes 3 sources that back up my claim that average tax on gasoline and diesel fuel is 50 cents per gallon.
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
lewis20
Posts: 5,093
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4/26/2011 5:12:20 PM
Posted: 5 years ago
be sure you add the footnote amounts for additional state taxes.
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
Ore_Ele
Posts: 25,980
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4/26/2011 5:21:45 PM
Posted: 5 years ago
At 4/26/2011 5:10:47 PM, lewis20 wrote:
At 4/26/2011 5:03:54 PM, OreEle wrote:
At 4/26/2011 4:54:11 PM, lewis20 wrote:
At 4/26/2011 4:49:33 PM, OreEle wrote:
At 4/26/2011 4:37:45 PM, lewis20 wrote:
At 4/26/2011 3:00:41 PM, OreEle wrote:
At 4/26/2011 2:50:11 PM, lewis20 wrote:
At 4/26/2011 2:23:03 PM, OreEle wrote:
At 4/26/2011 2:17:02 PM, lewis20 wrote:
How do the subsidies work?
I don't see how we have subsidies on oil, but at the same time we have 50 cent fuel tax on every gallon of gas and diesel we consume.

Yeah, it is messed up (though it is only 18 cents of federal tax on fuel, 24.4 on diesel, then states vary).

50 cents is the average Federal+state tax on fuel

I'd doubt that, since the fed tax is 18.4, that would mean that the average state tax would be 31.6 cents per gallon and only 3 of the 50 states make that mark (WV-32.2, RI-33, and WA-37.5)

http://www.oregongasprices.com...

" In January 2011, motor gasoline taxes averaged 48.1 cents per gallon and diesel fuel taxes averaged 53.1 cents per gallon"
http://en.wikipedia.org...

And it references http://www.nacsonline.com..., which does not provide a reference for it's claim.

Again, only 3 out of the 50 states have a state gas tax high enough to make it into that range.

Hahah your source references, and I quote
"Source: Compiled by GasBuddy Organization from various sources."
Come on now.
Wikipedia cites:
http://www.api.org...

dude, really?

http://www.eia.doe.gov...

Completely new source, your original information had no cited sources.
And look at your new source, add the federal tax to your numbers and take the average, you will get 48cents per gallon on gasoline.

That makes 3 sources that back up my claim that average tax on gasoline and diesel fuel is 50 cents per gallon.

no, it doesn't. It says right in the source that the average state gas tax is 22.6 per gallon (so that plus the fed is 41 cents per gallon, not 48).

When I ran the numbers I got 22.2(0831) cents per gallon for average state (that is likely because my calculations are based off of 2001 actual consumed, while the report used 2011 estimated consumed, so there is going to be wiggle room).
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lewis20
Posts: 5,093
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4/26/2011 5:30:35 PM
Posted: 5 years ago
Is that with the footnote for additional state taxes which are included in the price at the pump?
"If you are a racist I will attack you with the north"- Abraham Lincoln

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Ore_Ele
Posts: 25,980
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4/26/2011 5:41:07 PM
Posted: 5 years ago
At 4/26/2011 5:30:35 PM, lewis20 wrote:
Is that with the footnote for additional state taxes which are included in the price at the pump?

That is included with everything that is incorporated into the price at the pump except for any local (non-state and non-federal) taxes.

However, I'll point out again, that that is not related to the OP, which is oil subsidies.
"Wanting Red Rhino Pill to have gender"
TheAtheistAllegiance
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4/26/2011 9:36:29 PM
Posted: 5 years ago
I think the barriers to entry for oil drilling are pretty high, so I'd imagine that the loans would have to be pretty hefty in order to really get competition into the game. The government owned company sounds like a pretty good idea, and it could help to bring prices down. However, I think the ultimate problem is that demand in China and India are pushing prices up, and regardless of how much oil profit margins fall, or how much the US drills for, I think prices are going to continue rising unless some breakthrough technology that's able to drill and refine oil more efficiently is discovered.
Greyparrot
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4/26/2011 9:54:00 PM
Posted: 5 years ago
For quite a good many years, Oil companies get tax breaks as a way of channeling funds through overseas taxes to Middle East nations without the usual public display of foreign aid.

I don't know if America still does this practice, but I suspect so.