Tuesday, June 10, 2008

Bill Foster befuddled by Gas Prices

Foster quoted from Kane County Chronicle's Foster, Durbin cry foul over gas prices
The lawmakers said they supported stepping up efforts in Congress and by the Federal Trade Commission to investigate whether fuel suppliers are “gouging” customers or colluding to fix prices artificially high.

Foster noted that while crude oil – the raw material needed to create gasoline, diesel and other forms of fuel – costs more than ever, the companies that manufacture the fuel are reporting record profits.

“As a businessman, this mystifies me,” Foster said.

He said this mystery furthers his suspicion that the marketplace for petroleum and its byproducts is not functioning.

Restore the market, he said, and prices should drop.
Foster should start demystifying the market by checking Durbin's Website for the joint letter signed by Durbin and Obama protesting cheap ethanol from Brazil. Then Foster should have paid attention to Conoco Phillips's VP John Lowe as quoted by Miss Kelly blog,
The executive vp of Conoco Phillips John Lowe advanced some novel (sic) ideas for Congress to consider in addition to lifting the ban on drilling, like how about adopting a balanced energy policy? Do more to encourage alternative energy sources (offshore wind farms, for example), promote energy conservation, cut regulations that are preventing the construction of refineries -- and, oh yes, remove the tariff on ethanol. Congress slapped a 54 cents-per-gallon tariff on imported ethanol, thus blocking the import of low price ethanol from Brazil that would help lower gas prices for America’s beleaguered drivers. Dropping the tariff is one action that could provide some near-term relief.

To end this courageous presentation by the energy companies, ConocoPhillips’ Lowe calmly concluded, "U.S. oil companies should be viewed not as scapegoats, but as assets. We must work together to find a real solution."
American industry as an asset for the American People a notion beyond Scientist and Businessman Foster.

He's just another Illinois Rezko-Democrat milking the politics while the citzens of Illinois get milked for the ethanol lobby.

Ken Silverstein back in Harpers in 2006, Barack Obama Inc.:
The birth of a Washington machine

And indeed Obama has delivered for his constituents—for social activists, but also for business groups whose demands are invariably more costly. Although this is not the place to review the full history of ethanol, it’s beyond dispute that it survives only because members of Congress from farm states, whether liberal or conservative, have for decades managed to win billions of dollars in federal subsidies to underwrite its production. It is not, of course, family farmers who primarily benefit from the program but rather the agribusiness giants such as Illinois-based Aventine Renewable Energy and Archer Daniels Midland (for which ethanol accounts for just 5 percent of its sales but an estimated 23 percent of its profits). Ethanol production, as Tad Patzek of UC Berkeley’s Department of Civil and Environmental Engineering wrote in a report this year, is based on “the massive transfer of money from the collective pocket of the U.S. taxpayers to the transnational agricultural cartel.”
That should clear the mystry for you Bill. If Congress will only restore the market prices will drop.

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