I don’t know who disgusts me more — Sen. Graham, or the oil companies.
Senators consider gasoline tax as part of climate bill
Estimates put it in the range of 15 cents a gallon. Some oil companies are on board with the plan because it would cost them far less than other proposals to cut greenhouse gas emissions.
Leading voices in the Senate are considering a new tax on gasoline as part of an effort to win Republican and oil industry support for the energy and climate bill now idling in Congress.
The tax, which according to early estimates would be in the range of 15 cents a gallon, was conceived with the input of several oil companies, including Shell, BP and ConocoPhillips, and is being championed by Republican Sen. Lindsey Graham of South Carolina.
[Emphasis added.]
Disgusted, but not surprised. Last June, you may recall, Shell and BP were tied for #6 on my list of The Top 10 Green Energy Whores.
I’ve spent plenty of time and killed plenty of electrons pointing out the hypocritical players in the ongoing energy/climate change/Cap and Trade circus on Capitol Hill. GE and the coal-burning utilities are the easy targets for ridicule; they’ve long since signed on to the Statists’ game, deciding it’s safer and more profitable in the long run to sell out “to be part of the solution”, as they would euphemistically put it.
There are oil companies, and then there are oil companies. I work for an independent company which is involved in exploration and production. We are small and non-integrated, meaning we don’t own refineries, tankers or gas stations. And very often, our interests are at odds with the “Majors”, who are integrated international behemoths. The Majors are “Big Oil”.
In this case, Big Oil has decided that it’s better to join than fight. This suggested action — an additional 15 cents or so per gallon carbon tax, on top of the state and federal taxes already levied at the pump, suits them just fine. It’s small enough (for now) that it won’t curtail demand much, and they won’t even have to be involved in figuring, assessing or collecting the tax. That works much better for them than the earlier Cap and Trade proposal to collect the tax at the refinery.
(Note that two of the companies mentioned in the article, BP and Shell, aren’t even American companies, but their support is considered meaningful in crafting a deal.)
As the article points out, the American Petroleum Institute has yet to take a position on the new tax. API is the industry’s trade group, and the bigger companies have a dominant voice. Interestingly, 90% of America’s wells are drilled by independent companies who are members of the Independent Petroleum Association of America (IPAA), a separate trade group.
It’s not uncommon that, as in this case, the interests of the Majors and the Independents are at odds. Capitalists being capitalists, it’s not surprising that the Majors would try to cut a palatable deal that left their business model (and long-term survivability) intact.
Just don’t blame me.
Disclaimer: I worked for Shell, about 30 years ago. I admire them and some of the other big oil companies for their leadership and technology and science. But a gasoline tax is not needed as a carbon tax, and is not in the best interest of the country.
Cross-posted at VladEnBlog.
Steve Maley
KnightsofMalta
Senator Graham is as Senator Graham is..
nivlem (Diary) Thursday, April 15th at 12:04AM EST (link)I always said…South Carolina sealed McCain in the 2008 election, and Sen. Graham and McCain are who they are.
Check where Graham and McCain money is coming from. They are two peas in a pod.
My guess is he is reading the “tea leaves”, and buttering his “toast”. …..Put
pressure on him big time…he “flows” with the wind. If not, follow the money. He no longer has integrity.
He thinks he is protected because he is a “jag” attorney.
That would be great, but he behaves like a “loss leader”. In McCains campaign he came out with all kinds of self-condensending jokes but little substance.
Every once in a while he embelishes us with his intelligence on defense issues…
Whatever you believe about McCain…Graham is with him…
Graham just needs to go Specter already
jsanzone (Diary) Thursday, April 15th at 12:14AM EST (link)It would be less surprising than even Specter’s defecting. He embraces the “RINO” tag with the fullness of his weasely spirit.
If this weren’t an election year for McCain, it’s more than obvious he’d be right there with Graham on all these “ideas”.
http://www.2010blog.net
20/10 Blog
Lindsay's in there for awhile
nivlem (Diary) Thursday, April 15th at 1:21AM EST (link)he just got reelected in 08 on the coattails of McCain.
You cannot get rid of him.. All we can do is minimize him. I suggest the Alinsky
way…..Target him, point out his failings, make him seem like he is out of the
mainstream
He still has to live in South Carolina. They are not liking this….the only way to
contain him his to marginalize him…
The guy is a joke… have you ever watched and seen him??
He as only as big as he is…which isn’t much…
With a 5 cent and then a 9 cent
hickorystick (Diary) Thursday, April 15th at 12:22AM EST (link)gasoline tax, we have been doing hundreds of road projects in out state. Some major projects are coming like a mile long 4 lane tunnel under a hill, and a six lane floating bridge that spans a mile of water. What is the fed going to get for it’s 15 cent tax?. Who is really going to pay for this? The working poor are going to turn into the walking poor.
.15*1000 gallons a year=$150 per car/year non deductible. These people are regressives.
Absolutely correct
indyjohn Thursday, April 15th at 9:45AM EST (link)Gasoline taxes hurt the working poor more than any other group. But then, we all know that Democrats don’t really care about those with lower incomes. What the Left really cares about is getting irresponsible and ignorant consumers out of the large cars that they enjoy and into the ‘green’ cars that the Left finds acceptable. Ideology trumps compassion every time.
Can the working poor afford to buy ‘green’ vehicles? Who cares? We all need to make sacrifices for the common good, right? If the Left makes the working poor a little bit poorer, then that is a price they are willing to vicariously pay. After all, being poorer will benefit the working poor and their descendents, because it will help to save the planet.
But what is liberty without wisdom, and without virtue? It is the greatest of all possible evils; for it is folly, vice, and madness, without tuition or restraint.
Edmund Burke
Yes, that 'last wildebeest' thing really worked well for big auto
E Pluribus Unum (Diary) Thursday, April 15th at 12:29AM EST (link)And big bank, and big airline….
Cowardly corporations will end up undoing us all.
Kill the Terrorists
Protect the Borders
Punch the Hippies h/t IMAO
EPU, could you explain or link
qixlqatl (Diary) Thursday, April 15th at 1:01AM EST (link)your “last wildebeest” reference? I don’t get it…
“Yet, Freedom! yet thy banner, torn, but flying,
Streams like the thunderstorm against the wind.”
George Gordon Noel Byron
It's the wildebeest at the back of the pack
E Pluribus Unum (Diary) Thursday, April 15th at 2:19AM EST (link)who does not mind pushing the ones in front of him into the water to be eaten by the crocodiles. His premise is that he’ll survive as long as the crocodiles have somebody else to feed on.
That the premise behind all these big businesses that support, cater to, and make big donations to the Democrat Party. It’s short-term survival that actually ruins everybody.
If they showed some moral courage and supported true free markets and anti-regulation, anti-tax, anti-global warming hysteria, anti-union, anti-takeover, then they (and everybody else) would have a chance to survive.
Kill the Terrorists
Protect the Borders
Punch the Hippies h/t IMAO
5
qixlqatl (Diary) Thursday, April 15th at 8:03AM EST (link)good analogy, and now that you explain it, I think I heard that before
“Yet, Freedom! yet thy banner, torn, but flying,
Streams like the thunderstorm against the wind.”
George Gordon Noel Byron
Their behavior captures
DerKrieger (Diary) Thursday, April 15th at 12:55AM EST (link)…in a nutshell why I loathe BIG business. Once they’ve achieved critical mass they seek to exit the competitive market and seek protection in the cold embrace of government because they can afford punitive taxes and regulations while their smaller competitors cannot. What I really hate is that a few executives represent thousands to hundreds of thousands of employees, shareholders, and customers of the company who probably hold views opposite the official company representatives and often times actively work against them.
Case in point. Walmart is HQ’d in very conservative Bentonville AR and most of the HQ staff are conservatives, Republicans, or independents that lean to the GOP yet our CEO Mike Duke signed a joint letter with Andy Stern, the despicable head of the SEIU, supporting Obamacare.
It doesn’t matter to Duke apparently that his employees don’t want anything to do with Obamacare, nor probably do the shareholders, many of whom are Walmart employees.
I’m a free market capitalist and believe competition is the only way to keep businesses honest but also believe when that critical mass is reached the former fierce competitors head for the exit.
How do we stop this? They have the money to buy OUR representatives who then vote against OUR interests.
In Walmart’s case I have to believe that Duke has fallen under the influence of former Democrat strategist, Kennedy staffer, and vice chairman of Lefty Edelman Wordwide and now EVP of Walmart corporate (government ) affairs, Leslie Dach.
http://www.campaignmoney.com/political/contributions/leslie-dach.asp?cycle=08
http://www.nlpc.org/category/people/leslie-dach
http://www.treehugger.com/files/2008/01/walmart_leslie_dach.php
http://www.theatlantic.com/international/archive/2008/08/leslie-dach-wal-mart-democrat/8624/
http://www.wri.org/about/board/leslie-dach
“In questions of power, let no more be heard of confidence in man, but bind him down from mischief by the chains of the Constitution.” – Thomas Jefferson
“I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents.” – James Madison
Whenever the legislators endeavor to take away and destroy the property of the people, or to reduce them to slavery under arbitrary power, they put themselves into a state of war with the people, who are thereupon absolved from any further obedience.” — John Locke, 1690
Wow...which comes first...the chicken or the egg.
nivlem (Diary) Thursday, April 15th at 1:27AM EST (link)Who is buying who….
Corporations or congressmen….
Let’s see..in order for corporations to play, they must pay Congressmen.
In order for Congressmen to remain in office, they must appese corporations.
My bet is on the corruption of the congressman….they were the fist to cave.
appease
nivlem (Diary) Thursday, April 15th at 1:30AM EST (link)first.
And forgive me for all others…
I can spell….simply have not patience.
Well...
zroxx (Diary) Thursday, April 15th at 8:30AM EST (link)Once they’ve achieved critical mass they seek to exit the competitive market and seek protection in the cold embrace of government because they can afford punitive taxes and regulations while their smaller competitors cannot.
Businesses, particularly publicly traded, have an obligation to their owners, shareholders to take every (legal) opportunity to be more successful. You’re criticizing “big business” for doing exactly what they should be doing. If their playing field includes a chance to win government favoritism, then they should and will attempt to leverage that.
This isn’t a flaw of “big business” nor of capitalism. It is an expected outcome of heavy government intervention, centralization of power at the federal level, and a willingness by legislators more interested in enriching themselves through deals with lobbyists than in being focused and disciplined stewards of taxpayer funds.
The problem is with the players inside the government. Not with “big business”.
Look what happens when a CEO speaks out. Whole foods CEO got demonized over Maobama health care opposition.
Common_Cents (Diary) Thursday, April 15th at 2:02PM EST (link)“At Whole Foods’ annual shareholders meeting in March, CtW Investment Group, a shareholder activist group that works with union pension funds, unsuccessfully proposed that the CEO and chairman roles be separated. The grocer said it has been receiving these proposals for three years.
But in August, CtW raised the stakes by calling for the CEO’s removal. The activist group said an editorial by Mackey opposing President Obama’s health care plan damaged the company’s reputation, especially among its left-leaning customers”
I believe he did step down from chairman and remain CEO to separate the roles but the pro union CTW investor tried to get him ousted as CEO.
It isn’t “bad” enough for big companies to fight back in a substantial way. Especially the public ones. Execs will float along and do the best they can for themselves to meet expectations every 90 days. Public companies aren’t going to fight back for some time even if at all.
Obama=Golfer in Chief, Leading from,
behind, the Back Nine.Leaders don’t create movements. Movements create leaders. Get involved. Your future depends on it.
Govt “invests” YOUR tax money for POLITICAL return rather than economic return.
Not following...
zroxx (Diary) Thursday, April 15th at 4:01PM EST (link)I’m not sure what you’re trying to point out here. It’s a shareholder’s right to petition the company’s management/board. If a substantial number of shareholders want a CEO removed, they can make that case to the board. The ironic thing is, the CEO’s statement probably did cause some of their left leaning customers to think less of the company, or maybe just less of the CEO.
It’s in a company’s best interests to mitigate risk and maximize opportunity. If they see an opportunity to do that by way of government lobbying – because their government’s legislators allow themselves to be lobbied and swayed and bargained with – then it is no surprise that they pursue that course of action. In fact, it would be surprising, and objectionable to shareholders, if they didn’t! They exist to make a profit and return value to the shareholders, not to be public advocacy organizations.
To pull this back around to the OP: “Big Oil” isn’t ‘selling out’. They’re doing whatever their management thinks they need to in order to maximize profit and shareholder return.
It was in reply to people asking why CEOs don't stand up to govt.
Common_Cents (Diary) Thursday, April 15th at 5:03PM EST (link)This is what happens.
Secondly, CtW was reported to be a union activist fund on behalf of union pensions, indicating it has more of an agenda that maximizing profit, no?
Obama=Golfer in Chief, Leading from,
behind, the Back Nine.Leaders don’t create movements. Movements create leaders. Get involved. Your future depends on it.
Govt “invests” YOUR tax money for POLITICAL return rather than economic return.
Lindsey Graham is a feckless D-Bag
WarEagle01 (Diary) Thursday, April 15th at 1:07AM EST (link)I thought the Obamacare cram down put an end to all this bipartisanship nonsense. Why in the world would Grahamnesty even think of doing any favors for the Dems at this point? They just got their holy grail. That’s it. They get nothing else.
“A wise, doughy leg with rich tingly experiences will always reach better conclusions than will a more tanned, muscular leg that hasn’t felt those thrills.” –Chris Matthews’ Leg
“The alternative to the awful extremity of abortion is the indispensable joy of introducing this flawed world to someone who might make it better.”–John Hayward (AKA Dr. Zero)
As gasoline rises towards $4.00 a gallon expect...
DONTREADONME (Diary) Thursday, April 15th at 1:29AM EST (link)economic conditions to deteriorate, unemployment to rise, and inflation to worsen. You can not have energy prices rise like this again with out consequences, of course if the media continues with this bogus storyline of the recovery is on its way who knows, what you don’t know won’t hurt you right? No, what you experience will hurt you.
Do they think voters won't notice?
Menlo (Diary) Thursday, April 15th at 1:44AM EST (link)I don’t think voters are going to be concerned with “bipartisanship” when they see the tax at the pump. big or small, I think this would hurt Democrats more than ObamaCare.
I doubt Graham is going anywhere without a serious primary challenger.
“The ultimate touchstone of constitutionality is the Constitution itself and not what we have said about it.” -Felix Frankfurter
Is there no end to the damage
texasgalt (Diary) Thursday, April 15th at 1:54AM EST (link)these people intend to inflict?
No
hunter (Diary) Thursday, April 15th at 8:59AM EST (link)There is no real limit to the damage out of control irrational social movements like AGW can inflict.
hunter
Shell and BP: Here's an Alternative Explanation:
reaganiterepublicanresistance Thursday, April 15th at 3:55AM EST (link)These two are THE major players in the almost-unlimited oilsands of western Canada- where production is very expensive as they steam, seperate, process, desulfurize, and dilute for piplelines this product.
These two don’t just want, but NEED $100+ oil… if it went to $50 they’d probably have to shut down up there, where the sands have reserves rivaling Saudi Arabia. And Big Oil is most long-term in their thinking… don’t rule out they’re just playing games with Obama and buying time until his political neutering this fall.
http://reaganiterepublicanresistance.blogspot.com/
The Reaganite Republican
A gasoline tax does nothing to raise crude oil prices. nt
Steve Maley (Diary) Thursday, April 15th at 8:30AM EST (link)The blogger formerly known as ‘Vladimir’.
Those oil sands are the only thing that gives life
Achance (Diary) Thursday, April 15th at 9:07AM EST (link)to the mega gas line from Alaska; they need the NG to process the oil sands, not for gas sales on the US market. “Open season” on shipping oil in the still vaporous line is coming up soon, we’ll see just how interested the North Slope leaseholders really are.
In Vino Veritas
Graham will be hard to dislodge, ever
Adjoran (Diary) Thursday, April 15th at 3:59AM EST (link)In SC, we tend to elect Senators once. After that, the question at reelection becomes “Oh, he’s still around? Okay!”
This was never more apparent than in Fritz Hollings’ last two races. Once a much-admired figure in SC, after his abortive attempts to position himself as a Presidential candidate (and I do believe he would have been a much better President than Carter), he veered left, more in lockstep with the national party and generating a great deal of scorn from his constituents.
Yet, in his last two races, he managed to win against solid Republican challengers, sitting Representatives Tommy Hartnett and Bob Inglis. If we’d keep Fritz over those two men who were light years closer to the SC electorate on the issues, there was no way to beat the guy.
Former LA Governor Edwards, he of the long and corrupt history, once bragged he would carry the state as long as he “isn’t caught in bed with a live girl or a dead boy.”
It’s about the same for Graham now – he attracts enough out of state money to scare off serious primary challenges, and no Democrat can ever beat him. And, NO, I will not speculate as to which side of the Edwards postulate is more likely in his case.
I am not sure about that
Jack_Savage (Diary) Thursday, April 15th at 7:17AM EST (link)The times are a changin’. Just ask McCain, who faces strong opposition from a very, very weak challenger in the primary.
I believe the Edwards' quote was
hunter (Diary) Thursday, April 15th at 8:58AM EST (link)“As long as I am not caught in bed with a dead girl or a live boy”.
http://www.brainyquote.com/quotes/authors/e/edwin_edwards.html
hunter
Yeah, *John* Edwards got caught with a "live girl", but on videotape. nt
Steve Maley (Diary) Thursday, April 15th at 9:51AM EST (link)The blogger formerly known as ‘Vladimir’.
Vladimir let me play devils advocate
kyle8 (Diary) Thursday, April 15th at 6:54AM EST (link)I don’t give two shakes for Graham, but from the point of view of the Oil Companies, It makes sense to support something that is not as destructive as cap and trade.
After all, they just saw the Democrats push a wildly unpopular legislation through, and they have to hedge their bets. A gasoline tax is probably one of the least onerous of all the taxes we are going to get thrust upon us in the near future.
“Nothing works like freedom, Nothing succeeds like liberty”
Kyle
unfortunately
xJesterx (Diary) Thursday, April 15th at 8:04AM EST (link)you forget how self defeating this is. you get in bed with snakes, and you’re going to get bitten. Remember the health insurance companies who “signed on” early on with obama’s health care? By the end they were STILL the villains.
This is just stupidity. What will happen is they will get their gas tax….on TOP of cap and trade…AND they will still be trashed as villains. Stand up like freaking men for your business and country in the first place.
But this gasoline tax *is* Cap and Trade.
Steve Maley (Diary) Thursday, April 15th at 8:33AM EST (link)The article indicates that it would be indexed to the cost of carbon in other sectors.
So it would escalate as the cost of carbon goes up.
The blogger formerly known as ‘Vladimir’.
You could go one step further
JamesSmith130 Thursday, April 15th at 9:20AM EST (link)and consider the possibility that Obama may just unilaterally sic the EPA on oil and coal companies if cap and trade fails.
You are absolutely right, the oil companies are trying to get the best deal for themselves under the circumstances. Unfortunately it still is pretty bad.
This is not a good time to knife yourself in the foot to avoid a bullet in the chest
JSobieski (Diary) Thursday, April 15th at 10:07AM EST (link)Particularly after the HCR debacle, companies need to realize that “buying in” to a bad idea for the purposes of “moderating” its implementation is doomed to failure.
Companies like Walmart, Big Pharma, and others have alread shown a lack of forsight when it comes to DC, but I hope that Big Oil can do better.
My rules of the road for primary season.
Rule #1: Vote for YOUR first choice in the primaries
Rule #2: Vote for the R in the general.
Rule #3: Don’t let anyone convince you to violate Rule #1 or Rule #2
Rule #4: When in a center-right argument, reaffirm Rules #1-#3–it will help us all to get along better.
Rule #5: If you are using the language of the left, you probably aren’t furthering conservativism
Rule #6: The priority is issues first, candidates second, and supporters third. Nobody is bigger than the issues. Conversely, if you spend your time focusing on supporters, you are wasting everyone’s time.
STOP THE MADNESS!
A reduction in the rate of spending increases is NOT a cut!
In-state tuition for illegals is NOT amnesty!
Requiring someone to pay their medical bills is NOT an individual mandate!
Reducing tax rates is NOT a tax increase!
Since the AGW movement is very strong
hunter (Diary) Thursday, April 15th at 8:56AM EST (link)And has many believers on both sides of the aisle, damage control is probably the best that can be done right now.
Until the movement falls apart, it is dangerous to resist it.
Showing that the science is fraudulent, as in climategate, was not enough to wake people up. Showing that the IPCC is run by people with massive conflicts of interests made basically 0 impact in the public square. Showing people graphs that demonstrate clearly today’s temps are no big deal makes no real difference to majority.
So do we get really really bad bills or do we get something less bad?
hunter
Don't blame Exxon
rfpzzzzz Thursday, April 15th at 1:33PM EST (link)I don’t know about other oil companies but Exxon is not a foe regarding cap and trade etc. They have a giant target on them and they do have an enviro shareholder group (Rockefellers etc) that make things pretty tough on them from all sides. They are fact based on their take of things. They were one of the first to say Obama’s view of a renewable paradise was a pipe dream. Obama himself later attested to the same outlook. They have stated that nat gas will not be the auto fuel of the future and oil will be the dominant trans fuel for many years. They have said that the “new” technology that will transform the future is not here yet. They deal in a world of difficulties in discovery , political tensions, and hostile enviros . They have been burned with this stuff in the past (70s) and try to do things that really work. They pay enormous taxes of around 50% to governments who threaten their existence. They are trying to be environmentally sound and still provide needed fuel and chemicals while making a profit for shareholders ,help communities through taxes , provide good jobs and survive the politics and then deal with just the complications of exploration and production. I think they should be defended not demonized.