How Does $5.00 Per Gallon Sound?

 The former president of Shell Oil, John Hofmeister, says Americans could be paying $5 for a gallon of gasoline by 2012.  CNN 12/28/2010.  When will we decide to drill for our own oil?  We are the only developed nation in the world that refuses to drill for new oil on its own soil.

In an interview with Platt’s Energy Week television, Hofmeister predicted gasoline prices will spike as the global demand for oil increases.

“I’m predicting actually the worst outcome over the next two years which takes us to 2012 with higher gasoline prices,” he said.

Tom Kloza, chief oil analyst with Oil Price Information Service says Americans will see gasoline prices hit the $5 a gallon mark in the next decade, but not by 2012.

Regardless on who you believe, gas prices are going up and it will hurt the U.S. economy.

A leaked copy of the Kerry-Lieberman energy tax confirms that Senators are planning to impose a new gasoline tax on American motorists.  Don’t you love leaks?

The document, which is actually a section-by-section summary draft of the legislation, shows that the method for taxing carbon differs between utilities and transportation fuel providers. Utilities will be placed under a cap and trade system, while oil companies will have to pay a separate fee. Oh-oh… I hear the word “FEE”  which is code word for a hidden tax!

On page 7, the draft reads:

Section 729: Compliance for Transportation Fuels and Refined Petroleum Products: Establishes the process for how each refined product provider shall pay an amount to the Administrator to demonstrate compliance with Section 722 with respect to refined products.

The provision has received frequent attention in early reports about the legislation, with Senator Kerry pushing back repeatedly against claims that the fee constitutes a new gas tax.  Oh… so sorry to call a tax a TAX!

But Senator Lindsey Graham (R-SC), who helped craft that specific provision, did not help Senator Kerry when he said that the fee “will be passed on” to motorists at the pump. Do you think?  The measure does not increase the existing federal excise tax on gasoline, currently set at 18.4 cents per gallon, but it will instead impose a new cost on motorists at the pump.  Who is lining up for this one… raise  your hand!

It is unclear how much the new gas tax will be, particularly with a lack of specifics about how the tax will be structured. Researchers at Harvard’s Belfer Center, however, determined that President Obama’s ideal emissions reduction target of 14% by 2020 could translate to $7 per gallon gasoline. That will shut down this economy in a week!

The Kerry-Lieberman bill is actually more stringent, requiring a 17% reduction by 2020.  Even worse!

I hope the new Congress decides to drill for oil.  Our economy can’t take another hit like $5.00 a gallon!

Paul Smith

Former Republican Candidate for the 5th Congressional District (Sacramento)

Delegate- California Republican Party

Owner:  WWW.SmithHeggumreport.com

Short URL: http://www.smithheggumreport.com/?p=300

Posted by on Dec 28 2010. Filed under Current, Energy, Paul Smith, Political, Samantha Heggum, United States. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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