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Originally posted by peck420
Originally posted by jtma508
reply to post by MsAphrodite
Gee. Well I must be stupid then. As must my employer. They just keep expanding and hiring quarter-on-quarter. I don't know how we're managing to stay in business. Our CFO must be a fool.
Yup, because the single enterprise you work for is indicative of the market as a whole.
Every industry is different, and, currently, most industries are not doing well.
Originally posted by ninjamikec
reply to post by Koros
I didn't vote so I didn't affect anything. But when was the last time you saw a CEO take a pay cut to save jobs? It goes both ways....instead of laying people off maybe they should regulate pay. That's what ford is doing now and they are bouncing back nicely ...and don't twist my words into thinking I want socialism but it's a businesses choice to lay people off. But if the president/owner/CEO really cared about their employees he would make some sacrifices first before he fires people
Originally posted by MegaMind
You guys have it all wrong. It's not the BIG companies that will suffer under Obama. They are in bed with the government. It's small to medium size businesses that will suffer under the new ObamaCare etc.
The plan is simple. Everyone will work for some major corporation and no one will have a small business or be independent. Government regulations and unfair competition with the corporate giants that drive those regulations destroy small to medium businesses.
Enjoy the new Amerika
------
Oh and go team Obama! He is for the little guy /sarcasmedit on 8-11-2012 by MegaMind because: (no reason given)edit on 8-11-2012 by MegaMind because: (no reason given)
Originally posted by Indigo5
reply to post by NavyDoc
No offense, but you are just saying things...not backing any of it up with specifics, details, links...nothing. I just broke down to the penny the factors that effect gas prices and provided links...not really worth having a conversation with someone whose best argument is "cuz I say so".edit on 8-11-2012 by Indigo5 because: (no reason given)
While crude oil is traded in a global market, gasoline is part of a regional market. Crude oil prices are important in determining gasoline prices because crude is the primary raw material used to produce gasoline. The price of crude oil may account for over half the price of a gallon of gasoline.
Transitions in supply can also affect the short-term availability of gasoline. Going into the peak summer driving season, refineries are adjusting their gasoline formulas to help protect the air quality in warmer weather. And, because of changes to federal energy legislation passed in 2007, many states are switching to ethanol-blended gasoline.
Many states require specific formulations of gasoline — there are currently 18 separate gasoline formulas for different regions of the country-and it is often difficult to import gasoline supplies from one region to another.
Each gallon of gasoline also is subject to numerous taxes and fees, which vary by state. In California, the price of gasoline includes a federal motor fuel excise tax, a California motor fuel excise tax, state and local sales taxes as well as other state and local fees totaling more than 66 cents a gallon. View state tax chart.
After the crude oil is processed through the refinery, the finished gasoline product is transported to a terminal, where it may be sold to a wholesaler for distribution to the wholesaler's retail network or delivered to the retail location. There the retailer sets the "street price," which includes a margin to account for the retailer's cost of doing business at that particular location and the retailer's profit.
Regulatory steps to reduce air pollution have also influenced gasoline markets. Many states require the use of various blends of cleaner-burning gasoline, often called "boutique fuels," that are specially formulated to meet federal and state emissions regulations. Gasoline sold in California is not the same as gasoline sold in Arizona or Las Vegas. Creating these different fuels results in "island" markets and inhibits the ability of refiners and marketers to move supplies from one region to another to meet local or regional demand. There are currently 18 separate formulas of gasoline mandated for different regions.
Another significant influence on gasoline prices are taxes, which can vary dramatically across different markets. Differences in state and local sales and excise taxes can add as much as 40 cents per gallon (cpg) in certain areas. The American Petroleum Institute reports the national average for gasoline taxes is 45 cpg. Alaska has the lowest gasoline taxes in the country at 18.4 cpg, while New York and California have the highest, at 60.9 cpg and 58.3 cpg, respectively. Washington is third highest at 55.9 cpg.
Permitting requirements for petroleum infrastructure can also affect gasoline markets. Although demand for gasoline in the United States has grown over the years, no new refineries have been constructed since the 1970s. In order to meet demand, the U.S. must import large volumes of gasoline and other petroleum products.
Environmental Regulatory Burdens
As noted a moment ago, the refining business is not a particularly profitable one. Its profit margins, in fact, are smaller than the industrial average and no new refinery has been built in over thirty years. Refining capacity is shrinking annually due to plant shutdowns despite continually increasing demand.
The lack of profitability within this industry can be easily traced to several causes.
First, air pollution and hazardous waste regulations hit this particular industry harder than almost most any other. While such regulatory burdens might be justified as the price society must pay for a cleaner environment, that is unfortunately not the case. A 1990 joint study by the U.S. EPA and Amoco found that a typical refinery could meet all of EPA's emission mandates at only 20 percent of the cost if only the federal government would allow the plant managers flexibility in how they go about controlling emissions.
Environmental Regulatory Burdens
As noted a moment ago, the refining business is not a particularly profitable one. Its profit margins, in fact, are smaller than the industrial average and no new refinery has been built in over thirty years. Refining capacity is shrinking annually due to plant shutdowns despite continually increasing demand.
The lack of profitability within this industry can be easily traced to several causes.
First, air pollution and hazardous waste regulations hit this particular industry harder than almost most any other. While such regulatory burdens might be justified as the price society must pay for a cleaner environment, that is unfortunately not the case. A 1990 joint study by the U.S. EPA and Amoco found that a typical refinery could meet all of EPA's emission mandates at only 20 percent of the cost if only the federal government would allow the plant managers flexibility in how they go about controlling emissions.
Second, delays in permit review and issuance seriously constrain a refiner's ability to react to profitable market opportunities such as the one presented today by high prices in the Milwaukee/Chicago area. Retooling a plant to produce a different gasoline blend requires federal permits to ensure that no additional air pollutants would result from the change. Often, these permit reviews take so long that windows of market opportunity close before refiners are capable of taking advantage of them.
Third, the federal government is constantly issuing new orders regarding how gasoline can be made. Those orders, which require constant retooling and reinvestment in facilities, not only impose steep up-front costs but curtail a plant's ability to capture profits from previous mandated retoolings and reinvestments. The refining industry is today facing 12 major regulatory actions over the next 10 years, all of which will require major capital investments. Many of those regulatory actions concern additional mandated changes in gasoline blends such as the reduction of sulfur in gasoline and diesel fuel, total elimination of MTBE from reformulated gasoline, and the reduction of various toxic substances. These changes alone will cost between $1.8 billion and $5 billion depending upon how the regulations are promulgated by EPA.
As long as government is insensitive to the regulatory costs it's imposing on this industry, it cannot legitimately complain when the industry occasionally stumbles under the weight of its regulatory burdens. In short, the government has made certain that there is little profit to be made in the business of refining gasoline, capacity is naturally dwindling, and the industry's ability to quickly and efficiently adjust to dislocations caused by new mandates is disappearing.
Reformulated Gasoline Mandate
As a consequence of the Clean Air Act Amendments of 1990, areas that violated federal air quality standards were required to sell only specially reformulated gasoline beginning June 1, 2000. This new gasoline is blended with various oxygenates (primarily methyl tertiary butyl ether - MTBE, or ethanol) in order to reduce the emission of carbon monoxide, a significant contributor to wintertime smog, and to reduce the amount of toxic chemicals, such as benzene, in the fuel. This reformulated gasoline now serves 30 percent of the country.
While today's reformulated gasoline (known in the regulated community as "Phase II" reformulated gasoline, or RFG-2) is 1-2 cents more expensive per gallon than last year's "Phase I" reformulated gasoline and 5-8 cents more expensive than conventional gasoline, the real consumer impact of reformulated gasoline is related to the rigidity it imposes on national gasoline markets.
The accompanying map of the United States shows the different federal requirements for retail gasoline. As of October 1999, there were essentially seven separate gasoline markets. As of today, there are eight; gasoline is reformulated with ethanol in Milwaukee and Chicago but with MTBE elsewhere.
This is a crucial point. As noted earlier, gasoline intended for ethanol reformulation requires a unique blendstock known in the trade as "RBOB." That's because ethanol evaporates easily and unburned evaporated fuel is a major contributor to smog. Gasoline intended for ethanol blending must, accordingly, be specially made in order to minimize ethanol evaporation rates.
Because of RBOB's unique characteristics, it must be segregated from other gasoline all the way up the transportation system until the point just before it is mingled with ethanol and delivered to the service station. Accordingly, it cannot move through normal distribution channels and requires an entirely separate, dedicated transportation network.
This congressionally mandated balkanization of the gasoline market has seriously hampered the flexibility that refiners would otherwise have to react to spot shortages
Originally posted by Indigo5
Originally posted by primus2012
Invest in the consumer class by increasing their payroll taxes? That is happening as well in 2013. People will have less to spend.
No...it could happen and whether or not it does or not is dependant on the GOP dominated house. After the GOP's losing steak ever since the 2010 mid-terms, the likelyhood that they will "hostage take" the middle class again is pretty slim, but regardless not sure how rebuts the fact that the middle class, not the "wealthy" drive the economy?
Originally posted by primus2012
Originally posted by PLASIFISK
How is Obama making businesses lay off it's employees? Where is the connection?
Uhm...2013 tax code maybe? It will really be felt in 2014 after filings are complete, but businesses already know and need to prepare.
How is it that hard to understand?
Originally posted by NavyDoc
LOL. Your charts did not mention any sepcifics.
Originally posted by kawika
reply to post by ararisq
Same at my company.
Boss was out in the parking lot noting down which cars had Obummer stickers on em...
Originally posted by AmenStop
I think the USA should tax the rest of the world. A 20% tax on the other countries in the world for us being the police force. Then our debt would be gone. Tax the rest of the world for the USA. Thats a 20% tax that goes to the people of the USA not the privately owned federal reserve cartel.edit on 8-11-2012 by AmenStop because: (no reason given)
Originally posted by TDawgRex
reply to post by ararisq
Two hours after the election was called, my boss came into the break room and announced that gas has gone up .45 cents.
I work at a logistics company and fuel is our lifeblood. I'm seeing layoffs in my future as well.
For those that do not get it...
When the cost of transporting food, commodities or what have you, goes up...so does everything else.
Everybody had best tighten their belts...again.
Originally posted by kawika
reply to post by ararisq
Same at my company.
Boss was out in the parking lot noting down which cars had Obummer stickers on em...