Why is it that gas prices shoot up when Congress is on recess?

[CatWoman]

If I recall correctly, the last time we saw these huge increases, Congress threatened an investigation.

The threat of investigation was followed by rapid price increases.

Am I reading too much into this? Or is this a coincidence?

I know it's summer -- the peak driving season and that demand is high. But I have yet to see anything to convince me that supply is low enough to warrant these huge increases.

[dogday]

1. It happens every year

why are they not storing for times like this to keep gas prices down? All of it is crap, but this higher demand for Gas excuse is a crock...

[johnaries]

2. An investigation is EXACTLY what we need!

US oil reserves are up 4%. OPEC is already pumping a million barrels per day OVER what they project will be needed for 2006. There is no problem with supply. However, Oil companies are making record profits! Exxon/Mobil made $21 billion last year, and are predicted to make $31 billion this year.

Price fixing, plain and simple. Remember the 2000 CA "energy crisis" created by Enron?

edit: because I'm so upset I can't spell! That's my story, anyway...

[DJ MEW]

4. refinery production limits

I hear a lot of talk about how oil refineries don't have the capacity to keep up with the demand, which is what causes the prices to keep going up.

Does anyone know if there is any truth to this argument? Or if it just sounds like a believable reason so they use it.

[johnaries]

8. they used the same BS excuse for the CA "energy crisis". n/t

[LaPera]

15. What a joke...

Republicans investigating themselves? Don't make me fucking laugh!

That's who's in power or haven't you looked? That's why they are getting away with what they are, they don't care because the corporate Republicans are in power...

What a typical do no nothing approach...'We need an Investigation".

Of course we do...when and how...Investigation...is just a word the republicans laugh at and its gone with the breeze...We live in a corporate fascist one-party system, now and for many years to come.

Yes, we need an investigations on 9-11. WMD, Downing Street Memo, Harken Oil, Hallibuton fraud, Cheney's energy task force, child rape in Abu Ghraib, abuse in Guantanamo, electronic voting machine fraud, billions of dollars missing in Iraq, etc. etc. etc...

Get real!

[CatWoman]

17. which is why it's so important for us to take at least one branch

of Congress.

did you read today's Paul Krugman?

http://www.nytimes.com/2005/08/19/opinion/19krugman.html?pagewanted=print

2006 is going to be a bloodbath, and from what I've seen, the Democrats are not equipped to win it.

As long as they capitulate, as long as they "go along to get along", as long as they feed on each other, we won't win anything.

Biden royally pissed me off when he dissed Howard Dean. We need Howard Dean to show us how to win.

In absence of that, We are simply fucked.

[LaPera]

3. Keep the bullshit smokescreens going...

while the corporate media keeps enough of us dumb and stupid believing their bullshit!

Rising Gas Prices and Big Oil's Agenda

Washington, D.C. - Institute for Public Accuracy - infoZine - Wenonah Hauter is director of Public Citizen's Critical Mass Energy and Environment Program; Hauter said yesterday: "Since Bush became president, the largest five oil companies operating in the U.S. -- ExxonMobil, ChevronTexaco, ConocoPhillips, BP and Shell -- have enjoyed profits of $254 billion, with ExxonMobil leading the way with profits of $89 billion.

"Clearly, there is a direct correlation between record prices paid by consumers and record profits enjoyed by oil companies. For example, the profit margin for U.S. oil refiners has shot up 79 percent from 1999 (the year Exxon and Mobil merged) to 2004. But rather than hold these price-gougers responsible, the energy bill signed by Bush this month gives $6 billion in tax breaks and subsidies to oil companies."

James Paul, executive director of the Global Policy Forum, has written several reports about oil including "Oil in Iraq: The Heart of the Crisis." He said yesterday: "Exxon, as the world's biggest and most profitable company, wields enormous power in Washington and in most other capitals as well. The company has plenty of lobby funds, as it enjoys more revenue than 185 national governments. Exxon has blocked a U.S. national policy on climate change and fought against environmental laws. Oil company interests are not only crucial in the war in Iraq, but also other conflicts, such as Iran. As world oil supplies begin to diminish, big oil dreams of ever-higher profits, and more oil wars to seize new and lucrative concessions."

http://www.infozine.com/news/stories/op/storiesView/sid... /

Record Prices Mean Record Profits for Oil Companies

As American consumers increasingly feel the pinch at the pump, oil companies have watched their profits soar.

The newest numbers from the second quarter of this year show Exxon Mobil with a 32 percent increase in earnings over this time last year — that's more than $7.6 billion.

BP saw a profit increase of 38 percent, totaling $6.7 billion, while Conoco Phillips — the third largest oil company in the country — recorded a 56 percent increase in profit, more than $3 billion.

"The huge profits are enormous because the public is drastically overpaying what it costs to produce," said Joan Claybrook, president of the consumer advocacy group Public Citizen.

Many of these companies long ago bought oil reserves at prices of $10 to $25 a barrel. With prices peaking near the $67 mark, the profit margin has been enormous.

Even more eye-opening is the profit in Saudi Arabia. Saudis are making an average of $208 million more each day since the increase in crude oil prices first began in December 2003.

Will Profits Lead to Solutions?

"The answer is yes, but the impact of those is not immediate," said Mike Rothman, the head of integrated oil research for the International Strategy & Investment Group.

Consumer advocates say Congress is doing nothing to speed up the process, instead passing an energy bill that gives tax breaks to the oil industry.

"They got $6 billion in the energy bill over 10 years. That's a huge, huge amount of money," said Claybrook. "And you'd think with the price of oil at $65 a barrel, they didn't need any new incentives."

http://abcnews.go.com/WNT/story?id=1029991

[supernova]

5. China is also buying up oil

their economy is redhot, or so I understand. So they are driving the prices up too.

[johnaries]

7. Again, US oil reserves are UP 4%! China has nothing to do with it!

And OPEC is already pumping 1 million bpd more than they expect will be needed to meet 2006 demands, INCLUDING CHINA!

Drop the kool-aid and step away. :hi:

[supernova]

9. Not drinking kool aid

:hi:

[RaleighNCDUer]

6. THIS is Cheney's energy policy.

Never mind what was published and discussed in the senate. THIS is what his meetings were about that they will not reveal to us.

The kleptocracy at work.

[dweller]

10. perhaps when they get back in session

Gas Price Spike Act of 2005
H.R.2070
37 co-sponsors to date
http://thomas.loc.gov/cgi-bin/bdquery/z?d109:HR02070:@@@L&summ2=m&


dp

[Tyranny_R_US]

11. Duhhhh.... "Supply and demand"... duhhhh

"Summer driving season" duhhhhh.... "Thanks to those damn liberals in california we have to switch aditives every season!" duhhhh... "there was a fire at a refinery"... depending on which station you watch today you will probably hear one of these excuses, the stock brokers and the big wigs at these oil companies are never investigated or looked at in fact you never see them being interview on TV when the oil prices skyrocket.

[CatWoman]

12. It's too late for me to edit this

but instead of The threat of investigation was followed by rapid price increases, I meant The threat of investigation was followed by rapid price decreases.

[Double T]

13. Congress is in the flaccid state and as usual does not perform.....

their appointed duties. The phones are ringing off the hook in D.C., with high energy price complaints, but no one is there to take the heat from the public and do anything about it. I am certain they planned it that way. The campaign contribution checks will be in the mail September 1 from Exxon Mobil.

[CatWoman]

14. I heard on the news this morning

that the cost of heating your home (via either natural gas or heating oil) will increase this winter by as much as 16%.

[LaPera]

16. Your absolutely correct!

Rising Gas Prices and Big Oil's Agenda

Washington, D.C. - Institute for Public Accuracy - infoZine - Wenonah Hauter is director of Public Citizen's Critical Mass Energy and Environment Program; Hauter said yesterday: "Since Bush became president, the largest five oil companies operating in the U.S. -- ExxonMobil, ChevronTexaco, ConocoPhillips, BP and Shell -- have enjoyed profits of $254 billion, with ExxonMobil leading the way with profits of $89 billion.

"Clearly, there is a direct correlation between record prices paid by consumers and record profits enjoyed by oil companies. For example, the profit margin for U.S. oil refiners has shot up 79 percent from 1999 (the year Exxon and Mobil merged) to 2004. But rather than hold these price-gougers responsible, the energy bill signed by Bush this month gives $6 billion in tax breaks and subsidies to oil companies."

James Paul, executive director of the Global Policy Forum, has written several reports about oil including "Oil in Iraq: The Heart of the Crisis." He said yesterday: "Exxon, as the world's biggest and most profitable company, wields enormous power in Washington and in most other capitals as well. The company has plenty of lobby funds, as it enjoys more revenue than 185 national governments. Exxon has blocked a U.S. national policy on climate change and fought against environmental laws. Oil company interests are not only crucial in the war in Iraq, but also other conflicts, such as Iran. As world oil supplies begin to diminish, big oil dreams of ever-higher profits, and more oil wars to seize new and lucrative concessions."

http://www.infozine.com/news/stories/op/storiesView/sid ... /

Record Prices Mean Record Profits for Oil Companies

As American consumers increasingly feel the pinch at the pump, oil companies have watched their profits soar.

The newest numbers from the second quarter of this year show Exxon Mobil with a 32 percent increase in earnings over this time last year — that's more than $7.6 billion.

BP saw a profit increase of 38 percent, totaling $6.7 billion, while Conoco Phillips — the third largest oil company in the country — recorded a 56 percent increase in profit, more than $3 billion.

"The huge profits are enormous because the public is drastically overpaying what it costs to produce," said Joan Claybrook, president of the consumer advocacy group Public Citizen.

Many of these companies long ago bought oil reserves at prices of $10 to $25 a barrel. With prices peaking near the $67 mark, the profit margin has been enormous.

Even more eye-opening is the profit in Saudi Arabia. Saudis are making an average of $208 million more each day since the increase in crude oil prices first began in December 2003.

Will Profits Lead to Solutions?

"The answer is yes, but the impact of those is not immediate," said Mike Rothman, the head of integrated oil research for the International Strategy & Investment Group.

Consumer advocates say Congress is doing nothing to speed up the process, instead passing an energy bill that gives tax breaks to the oil industry.

"They got $6 billion in the energy bill over 10 years. That's a huge, huge amount of money," said Claybrook. "And you'd think with the price of oil at $65 a barrel, they didn't need any new incentives."

http://abcnews.go.com/WNT/story?id=1029991