TBO.com - TBO is Tampa Bay Online

Letters To The Editor

ADVERTISEMENT

The Tampa Tribune

Published: August 11, 2008

No Incentive To Produce

Regarding "Obama Calls For Economic Stimulus" (front page, Aug. 2):

Does Barack Obama, who seeks the highest office in the land, think that the oil companies will sit still? To compensate for their tax on "excess profit," all they need to do is produce less fuel. Less fuel, less profit.

What is Obama's answer to that?

I. J. KARPAY

Land O' Lakes

A Drilling Threshold

Drilling for oil off our coasts seems to be in vogue these days. I hear people talking about it everywhere. I see it on the news. I hear it on the radio. It almost feels like some kind of ad campaign for a new product. But I haven't heard or read any of a few simple questions I have about this "idea."

Do oil companies really want the price of oil to go down? Would oil companies rather make a $140 per barrel of oil vs. say $60? Do oil companies really want us to use more oil at a lower profit margin? More for less? Or Less for more? Do the politicians who receive millions in contributions from oil companies care more for the environment, financial welfare of Americans or the profits of their largest contributors?

I think we know the answer to all those questions. But here is another question you should be thinking of. Why is it that American automakers and others making some of the same exact autos in Europe and other places that have far better fuel economy ratings than the ones they sell us?

FREDERICK PITTMAN

Tampa

The Truth Behind Profit

Once again I read with displeasure the media reporting that Exxon Mobil posts historic profit. Not only is this a half-truth, it also is an attempt to affect our thinking that the company is unfairly contributing to and benefiting financially from high gasoline prices and, as a liberal presidential candidate said, they should be taxed.

I'm not defending big oil because I lack all the facts. But I do feel talking only about the profits is only a half-truth, an attempt by the biased media to affect out viewpoints.

As a past financial officer, I feel we should know the other part of the story. Profit is often referred to as net-income. What they don't tell us is about the rate-of-return on invested capital.

I can assure you it takes a great amount of investor capital for an oil company to explore, drill, build new refineries and distribute gasoline. In that respect, according to available facts, the average profit margin or rate-of return for oil companies is just 7.6 percent compared with 9.2 percent for most manufacturers.

For a $4 gas price, the oil-producer's share is $2.96, state government 22 cents, distributors and marketers 28 cents and federal government 18 cents. Media should tell us the whole truth instead of influencing our thinking by their ideological beliefs.

GLENN A. CLEPPER, SR.

Tampa

Need Reason To Drill

You know what they say: If it sounds too good to be true, then it's not true.

Well, our Republican representatives are saying to open our coast to drilling and the price of oil will go down, just like that. This sounds too good to be true.

Here is the scam. Oil companies have the politicians change legislation to allow drilling and give them the leases for the land. Then they say it's too expensive to drill. The scam is to get the lease.

I have watched the hearings on oil drilling, and every oil expert agrees that the oil companies will not drill for oil unless the price is around $65 a barrel. If and when the price of oil drops around $65 a barrel ($1.91 per gallon at the pump), then it is cost effective for them to drill. Until then they don't have a reason to drill.

From a business stand point, if you pay oil companies $125 a barrel ($3.82 per gallon at the pump), why would oil companies spend money to drill to lower the price per barrel?

ALBERT PALODE

Tampa

Plan Favors Oil Companies
Many years ago while I was visiting Valdez, Alaska, the seaport at the end of the Alaskan pipeline, I was told that the majority of the oil that is loaded there is shipped overseas. When I asked why this was, I was told it was because of a lack of oil refineries on our West Coast.

With politicians asking for more drilling in ANWR, the Alaskan arctic, does this make sense? If they had a plan for building more oil refineries on the West Coast, I would say yes.

If they were to double the production in Alaska, this would mean every new drop of oil would be shipped overseas. This plan sounds like it designed for oil companies, not for the people of the United States.

BOB GEARSBECK

Zephyrhills

Invest In Wind Power

With oil rigs in the Gulf we have a high risk of spills and debris; the benefits don't become available for 10 years. And what we get is still non-renewable fossil fuel that expands our carbon footprint.

With wind turbines in the gulf - or elsewhere - we have no risk of spill or debris; the power comes online as soon as it plugs into the system - and we reduce our carbon footprint.

Turbines off the coast? Sounds like a change we can believe in.

GEORGE MEYER

Tampa

Share this:

Loading Comments...

Email Print

ADVERTISEMENT