On Tuesday, September 25, 2001, at 07:48 AM, Harmon Seaver wrote:
David Honig wrote:
The market is fair: just let the price of gas be established by a free market. Then everyone can decide whether they want a 1000 lb, 300 hp car or a 3000 lb, 100 hp car, or something in between.
Exactly -- if we get rid of all the gov't subsidies for oil, we find that gas is about $10 @ gallon here and now. And that there is absolutely no need for dependence on foreign oil, since we can easily, and profitably, grow all the fuel we need.
You have this backwards. The world spot market price for light crude is something like $25 a bbl. Refineries receiving no subsidies can produce a gallon of gasoline and sell it profitably for about $0.60. Then taxes are added, and added. In Europe, even more taxes are added to a gallon/liter of gas/petrol. Where are the subsidies you think are being given to those who import oil they buy for $25/bbl and then refine in refineries receiving no subsidies? (I hope you don't say things like "oil depletion allowance." That affects _some_ producers, and should of course be ended as all taxes are rolled way back, but this does not affect the refiner who buys Saudi light sweet, hauls it to refineries in the Caribbean, outside the U.S., and then sells it in the U.S. Or do you think Royal Dutch Shell is being subsidized by the U.S. Government? Gonna be news to them.) As I said, you have it all backwards. --Tim May