[Rhodes22-list] Fuel Question

[John Shulick]

John,

We keep hearing about those "subsidies" to Big Oil but no one seems to be
able to find them in the tax code. As I sit here, I'm staring at a whole
shelf of books on oil & gas accounting and I sure as hell can't find them,
unless 'they' are referring to the immediate write-offs associated with
bringing a well on line (don't ask how I know the tax rules for "dry
holes").  The idea of subsidies for Big Oil is a myth.  In fact, the whole
idea of Big Oil is a myth.  Exxon/Mobil, the largest of the American oil
companies, is number 14 on the list worldwide, and the top five American oil
companies control only 6% of the worlds reserves.  As for their "excess
profits", their net return is less than 10% versus some software companies
with returns of around 25%.  If some dumbass in Congress (let me restate
that) if any single dumbass among the majority in Congress wants to go
hunting for an "excess profits" target, it wouldn't be an oil company.  As
to your numbers regarding donations, I don't have time to check them but
they sound about right.  The Dems have voted about 80% of the time against
drilling on US land and sea so who do you think the oil companies would
support.  What we are suffering from right now with gas prices is Economics
101, which explains why the majority in Congress don't "get it".  They
either didn't study economics, they don't understand economics, or deep down
they really don't like capitalism.

Brad

Brad

      What price did those companies pay for access to public lands (I
believe the phrase is drilling leases) verses the value of the product they
produce? If that doesn't qualify as a subsidy I'll buy that bridge in Iraq
you're selling. When I bought my house, the minerals under it had been given
away 150 or so years ago for pennies and should the owners of those rights
decide to they can destroy may home to get to them and all I can do is
accept what THEY decide is a fair market value. As for the rules of
accounting all I have to say is "Enron". It may not be the case for you in
your life experiences but for me "Trickle down economics" means some rich
s.o.b. is urinating down my back and then telling me 
its raining. 

John Shulick
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