https://www.usnews.com/news/busines...den-to-float-windfall-tax-on-energy-producers I know this is just noise to blame others for inflation and would never pass, but it’s still an idiotic idea. The market dropped on the news and has since rebounded after realizing it is noise. Price gouging is a problem in pharmaceuticals. However, American oil companies are not price gouging us as the price of oil is set on the global market place. The government might as well takeover oil production if they were to do this.
As shown in the pandemic the main driver of oil prices is OPEC production levels. The price is driven by supply and demand. So the solution is to tax the suppliers? This is just stupid economics and why every Democrat should vote for me in the 2024 primaries.
Cuddles is a Biden apologist, and not likely to look at this with an open mind. Taxing the "windfall" only leads to future capacity constraints as CAPEX spending occurs in windfall years. But Biden is an idiot and likely doesn't understand this, or more likely, does understand it yet hopes the public won't.
If your argument is price is driven by supply and demand, why is price above pre-COVID levels since we've basically matched demand? Why are revenues above pre-COVID levels? You're also ignoring the crack gap in your pricing argument.
LOL...the "crack gap". Talking points memorized without any idea how shit actually works. The crack spread has always been around. The issue with diesel (the really abnormal spread right now) has nothing to do with energy companies having "excess prices".
Do you remember when oil went negative, because there was so much on the market that they couldn’t find anybody to store it? Demand plummeted in 2020 when businesses shutdown and nobody was going anywhere. The price is set by the financial markets. The break even price to get oil was like $55-$60/barrel back then. Not sure what it is today. However, the oil companies have to keep the oil coming even when it’s temporarily at $20/barrel, because it’s too expensive to shutdown/restart. What we want to do is encourage as much drilling in free market countries (such as the U.S. and Canada) as possible to counter the OPEC cartel, because the reality is that world relies on oil and no green fantasy is changing that reality in the near future. A windfall tax does the opposite of that objective.
After 5 decades in Washington politics he’s gotta know this. However, we got an election coming up, inflation is the top issue on the minds of voters, and he needs to find somebody to blame. Is he going to go after the main culprit of long-term inflation (the Fed by printing way too much money) after reappointing the chair to another 4 year term? No.
I don’t know about a windfall tax but yes energy prices should be investigated at this point. There is an actual squeeze on the consumer and the market is not working as it would be expected to.
good lord man: As to the rest, fine, open up N.America production. One barrel increase for every barrel barred from Saudi/Qatari/antidemocratic shithole import