The roundtable segment of Tuesday's The Situation Room offered CNN viewers opposite takes on the Bush administration's culpability in the rise of oil prices with Jack Cafferty and David Gergen on opposite ends. Cafferty, who has a history of blaming high oil prices on President Bush, argued that the administration's "idea of an energy policy is to put Dick Cheney in a closed, locked room out of sight of the public with some guys from Enron and some oil company guys, hammer out some kind of a deal, and then sit back and watch oil prices go from $28 when Bush was inaugurated to $111 now."
But Gergen later jumped into the discussion to explain the true origin of oil prices: "I think it's wrong to argue or suggest that somehow the oil companies have been manipulating these prices upward. These prices have not been, you know, rising sky high because of the Bush administration. They've been rising sky high because world demand is up so significantly."
Below is a transcript of the relevant portion of the Tuesday April 1 The Situation Room on CNN:
JOHN KING: So what can the candidates do, if anything, as President, about skyrocketing oil and gas prices? ... Jack, Obama, at the end of Suzanne's piece there, being honest, saying there's a lot we can debate, a lot we can think about and talk about, but not much I could do today, tomorrow, or next week or month for you.
JACK CAFFERTY: Well, you know, it's refreshing to hear an honest comment out of a politician's mouth. These hearings are a periodic public display bordering on a carnival, where these hypocritical members of the United States government drag these oil executives in front of them and castigate them for their obscene profits. I'm not defending their profits, but this country hasn't had a coherent energy policy probably since before the Arab oil embargo in 1973. These days, the idea of an energy policy is to put Dick Cheney in a closed, locked room out of sight of the public with some guys from Enron and some oil company guys, hammer out some kind of a deal, and then sit back and watch oil prices go from $28 when Bush was inaugurated to $111 now. Twice in the last year, the House has voted to roll back those tax breaks for the oil companies and use the money to develop alternative forms of energy. Twice that bill has failed to get through the Senate because the Republicans in the Senate are blocking it, because they don't want to offend their buddies in the oil industry. This is disingenuous, at the least, and highly hypocritical at the most, for these, for these people to pose at these hearings and pretend with all this hand-wringing to be so concerned. They've done nothing.
..DAVID GERGEN: But if I may just add one coda to the conversation about oil. Look, I think there have been some huge profits that the oil companies have experienced and that need to be, you know, they need to pay their taxes and to pay their fair share. But I think it's wrong to argue or suggest that somehow the oil companies have been manipulating these prices upward. These prices have not been, you know, rising sky high because of the Bush administration. They've been rising sky high because world demand is up so significantly. It's skyrocketing in places like China and India. And we're living in a new world. And it's one in which, if we're going to be realistic about our place as a superpower, we've got to do some very tough things. And I have to tell you, none of the candidates is yet facing up in a realistic way to the kind of tough choices we face ahead, whether we're going to do nuclear power or whether we're going to put prices on gasoline and carbon, whether we're going to do some things that are going to really pinch.
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My theory on why oil and
April 2, 2008 - 04:00 ET by fitzfongMy theory on why oil and gasoline prices are so high? For starters, "The Wisdom of" Jack Cafferty creates an unnaturally high demand for fuel every time he floors it after running over bicyclists.
Hey!
April 2, 2008 - 10:32 ET by WhoIsJohnGaltI'm a cyclist...is there something about Cafferty hitting a cyclist that I hadn't heard about? Or what is your reference to...I don't get it.
...been saying that a lot lately :^(
http://www.nytimes.com/2003/
April 2, 2008 - 14:33 ET by fitzfonghttp://www.nytimes.com/2003/08/06/nyregion/06MBRF1.html?ex=1207281600&en=252738290adc4a67&ei=5070
The paragraph on the Cafferty incident appears at the bottom of the page. In other accounts, Cafferty was said to have been dragging the bike under his Cadillac through several red lights.
And...with resident Ted Baxter (Rick Sanchez), CNN actually has at least two hit-and-run drivers...the guy Sanchez hit was paralyzed and eventually died.
I believe...
April 2, 2008 - 15:55 ET by okiehawk44I don't think you are correct about Rick Sanchez. I believe the man he drove over survived but with severe brain damage. But this can all be verified by the victim, Ted Turner.
No refineries built in the
April 2, 2008 - 13:02 ET by mattmNo refineries built in the U.S. for 25 years. Formula regulations that reduce the shelf-life of refined gasoline. Ethanol mandates. High taxes and high demand. These are the causes...
Only the ignorant, or the politically motivated demagogues blame high gas prices on Bush and /or "Big Oil"...
32...
April 2, 2008 - 13:12 ET by vrwc131976 was the last one...been in the biz since 1974.
http://www.reason.or...
"Consider the example of Arizona Clean Fuels, which has been trying to build a small refinery outside Yuma for almost 10 years. It took five years just to get air-quality permits. Now they hope to be operational in 2010, 15 years after they started the project."
v
The future has a way of arriving unannounced. - George Will
You are 100% correct, mattm.
April 2, 2008 - 14:09 ET by fitzfongYou are 100% correct, mattm.
The Truth about Gas Prices
April 3, 2008 - 00:53 ET by PopularTechGive me a break - Oil Prices (Video) (5min) (John Stossel, 20/20)
- Gas Prices must be adjusted for inflation (EIA)
- The average amount of tax on gasoline in the United States is 47.0 cents per gallon (API)
- The average amount of tax on diesel in the United States is 53.6 cents per gallon (API)
- The average amount of net profit an oil company makes on gasoline is 5 cents per gallon (Source)
- The largest supplier of oil to the United States is Canada (EIA)
- The second largest supplier of oil to the United States is Mexico (EIA)
- 60% of United States oil imports come from non-OPEC countries (EIA)
- No new refineries have been built in the United States since 1976
- China is the world’s second-largest consumer of oil behind the United States (EIA)
- China's oil consumption is increasing nearly a half million barrels per day (EIA)
The Anti 'Man-Made' Global Warming Resource
It's an Odd World...
April 2, 2008 - 05:54 ET by on-the-rockswhen David Gergen is forced into the role of defending the free-market system and the dreaded oil companies.
I know he is not as much of a Moonbat as some Dems, but I am sure that the far-Left wing of the Democrat party is not happy with his words.
It would have been worth a month's cable bill to see David Gergen shout "Jack, you ignorant slut!".
these freakin' idiots
April 2, 2008 - 07:16 ET by sentforth5I wish one of 'em would just say what we all know....CALIFORNIA! It's the damn sierra club and all the tariffs and different gas types and emission regs.
War for oil? Fine. Gimme the free oil we went to war for! We get our oil predominately from MEXICO and CANADA. We have PLENTY of our own oil, but the worthless SIERRA club won't let us get it out of the ground.
If ya ask me we need to put a big bow on california and give it as a gift to mexico.
Take 'er away, muchachos!
If ya ask me we need to put
April 2, 2008 - 08:48 ET by DontFeedTheTrollsIf ya ask me we need to put a big bow on california and give it as a gift to mexico.
Now there's an idea! We can make Puerto Rico the new 50th state just so we won't need new flags.
D
Keep the ILLEGALS out, join NumbersUSA to send free faxes to your reps.
DFTT,
April 2, 2008 - 20:14 ET by R D HelmDon't worry, when the Big One hits, most of California is going to be our gift to the Pacific Ocean.
Theme for Election '08: I want my mommy!
"pay...taxes and to pay their fair share."
April 2, 2008 - 07:23 ET by sarcasmoI only have to pay the taxes-part, but for some reason it always feels like at least my fair share, if not more...
JMR
A corruption-story the TV media will-not cover.
consumption tax
April 2, 2008 - 14:00 ET by LionKingWelcome to freedom of choice.
If you do not want to pay taxes on gasoline, don't buy gasoline. Use an alternative mode of transportation.
This is what I love about consumption tax. You can choose to be taxed or not to be taxed. Its lile toll roads...if you do not want to be tolled (taxed), use a different road.
And I have to tell you, none
April 2, 2008 - 07:29 ET by motherbeltAnd I have to tell you, none of the candidates is yet facing up in a
realistic way to the kind of tough choices we face ahead,whether we're
going to do nuclear power or whether we're going to put prices on
gasoline and carbon, whether we're going to do some things that are
going to really pinch. -Gergen
He is right; no one wants to step into that minefield. I'm
surprised he suggested nuclear, and I notice he didn't have the nerve
to even mention drilling in ANWR or the Gulf of Mexico.
Energy is getting to be just about as politically correct as race in
this country. The only energy solutions permissible to mention are
solar and wind. Oh, and carbon taxes or more gas taxes are always
acceptable.
BIG OIL...
April 2, 2008 - 08:20 ET by danybhoyYou are on the right track, here is a little list I have...
1st off, the price we pay when we pump gas has some things built into that price, like state & federal taxes. 45-65 cents a gallon depending on what state your in...Refining capacity, we have not built a refinary in about 30 YEARS, & because of MASSIVE gov't regulations & all of the red tape required to build these things, it's not a profitable venture. When 1 or more go offline for repair or during hurricane season, gas goes up about 25 cents a gallon ASAP...That does'nt include the carbon taxes coming or the "Cap & Trade" redistribution of wealth through taxes.
2nd thing, we cannot drill for oil anywhere at all here in America, why? Well, we all know why, green(Comrade, is green the new red? )groups like the Sierra Club & Freinds of the Earth are always filing suit against exploiting any oil fields we are not tapping. Yeah, we need to get off of foreign oil, but the same morons who say that are the same ones who will not let us drill. Nice...Besides, since BIG OIL will be the ones to profit from drilling in America, that is bad in the eyes of the greens. They would rather push the nation down the crapper rather then let BIG OIL do their job. If BIG OIL was allowed to their job, we would all be better for it.
3rd, the environmentalist movement must be destroyed to save the USA as we know it. Al Whore & the rest of the greens are hellbent on using the Global Warming scam to impose socialism on us all, they need to be destroyed. These are many of the same people who oppose BIG OIL, but love to push biofuels, ETHANOL. Not to be negative about all the hype, but Ethanol is not as efficiant as regular gas, it requires plenty of energy to produce, & don't even ask why people are paying waaaaay more for meat & dairy products. Corn is used to feed the livestock, that also produces the milk & cheese, so even the dimmest amongst us that are not in Congress can figure this out...HENRY WAXMAN, CALL YOUR OFFICE, you DUMB A$$.
You will never get the truth from the MSM about fuel prices & the causes of it, never. The story that BIG OIL sucks & that there a bunch of greedy bastards. They may be greedy bastards, but the gov't has never helped the situation, & it will be a long time before that ever happens in the current political climate. It's kinda sad that us schlubs can figure it out, but those who represent the people can't, NICE...
"Some of us are wise, some of us are otherwise" Mark Levin
...from Enron and some oil
April 2, 2008 - 07:45 ET by PeskyDane...from Enron and some oil company guys, hammer out some kind of a deal...
Enron did their monkey business during the Clinton Administration. This remark is criminally irresponsible, but then, what do expect from a libtard?
What I find interesting is
April 2, 2008 - 08:04 ET by ckc1227What I find interesting is how libtards like cafferty fall back to the same old same old by blaming it on Cheney and the oil companies hammering out secret deals, but yet, for some reason, they are never able to point to anything in particular that they agreed to in those secret meetings that have caused gas and oil prices to increase. I wonder why that is?
At a 42% tax rate, and with Exxon paying more in taxes over the past 5 years than they have made in profits, I'd say they're paying more than their fair share in taxes. So much more that it ought to be illegal.
So in 2004 the Lefts
April 2, 2008 - 08:31 ET by DaBirdSo in 2004 the Lefts arguement was "the Republicans are lowering oil prices to get elected in November." Is it safe to assume that in 2008, with a Democrat controlled congress, that Democrats "are raising oil prices to get elected in November?"
Help me understand
April 2, 2008 - 08:52 ET by kdizzydazeThe government collects anywhere from $.50 - $.65 per gallon in taxes (depending on state taxes. etc.). The oil companies make a profit of roughly $.08 per gallon. That is taxed as well?, correct? And if so, would it not be at a rate of roughly 40%? In even more defense of the oil companies, I must reiterate to everyone the wideheld understanding that they are publicly traded and thus accountable to shareholders. And what do these shareholders want? Mo money, Mo money, Mo money. I mean, out of all of this, who is really the guilty group here?
Someone needs to beat these libtard knuckleheads about the neck and chest with this information? Confront them, don't ask them, about these numbers. Make them squirm.
As for informing the general public about these items, this is what I propose:
When you pump gas, there is a digital readout that tells you how many gallons you have pumped and your total price. Here is what should be added to that digital readout to ensure that consumers are informed:
amount in taxes paid to the Federal government
amount in taxes paid to your State/Local government
profit paid to the oil company
taxes collected on that profit paid to the federal government
taxes collected on that profit paid to State/Local government
and lastly, profit made by the gas station/convenience store operator.
The breakdown can be by gallon and total purchase. Hey, it's just an idea.
Hannity keeps distorting this
April 2, 2008 - 10:31 ET by pbanks7It's not 8 cents per gallon like Hannity says; it's 8 cents on the dollar. But even that's low too. In 2007, Exxon made $39.5B net profit on $377.6B in revenues - that's 11% after taxes. That's not exorbitant.
That works out to 36 cents with gas at $3.25, but that's retail, not wholesale price, so they probably make less than 30 cents per gallon.Now, what did the gummint make? US oil consumption is about 9.1 million barrels a day. That's 382 billion gallons, 365 days, $0.184 Federal Excise Tax = $25.7 Billion (with a B). Talk about a windfall profit!
Now working backwards on net profit, 34% corporate tax rate, income before tax was $59.9B, and the tax was $20.4B. So not even counting any of the other oil companies, the government made waaaaayyyyy more than any oil company.
MSM - shaping all the perceptions you need to believe.
I've heard Hannity say that,
April 2, 2008 - 10:40 ET by WhoIsJohnGaltI've heard Hannity say that, but he has also said 8 percent, so I think he means 8 percent all the time, but misspeaks. Sometimes he's not as careful with words like that as he should be.
8 cents on the dollar, and
April 2, 2008 - 10:50 ET by Jack Bauer8 cents on the dollar, and 8% of the total cost add up to the same figure.
So it doesn't really matter, does it?
No,
April 2, 2008 - 13:02 ET by WhoIsJohnGaltthe comparison I was making was the first line of pbanks7's post; between Hannity's 8 cents per GALLON reference and 8 cents on the dollar/8 percent.
Thanks for keeping my back WJG
May 6, 2008 - 10:03 ET by pbanks7I simply went straight to their numbers - net profit divided by gross revenue. At $3.50 per gallon, the profit is 30-35 cents per gallon. Not knowing the wholesale price of gas, I can't get it much closer. 25 cents IS three times as much as 8 cents, so let's keep it real.
I'm trying to remember Hannity saying percent, and I can't. I just don't like to see our side distort things like libs tend to do -- A homeless person dies every minute, people are starving in America, etc.
Disorganized people call me anal. ;-)
MSM - shaping all the perceptions you need to believe.
In reality, oil companies
April 2, 2008 - 10:48 ET by bassndudeIn reality, oil companies make 3 cents per gallon, "profit". Gas is a low profit, high demand product. The 8 cents includes R&D and other costs, i.e. refinery shut-downs, (about 8 weeks every year for every refinery), and other expenses.
Save a SeAL, club a liberal!!
What???????
April 2, 2008 - 09:25 ET by HypocriteHaterTwice that bill has failed to get through the Senate because the Republicans in the Senate are blocking it, because they don't want to offend their buddies in the oil industry.
Hey Jack, you idiot, who has been the majority party in the Senate for the past year, again? Come on, I know you know this one. Think hard!
I'm so sorry your Democrat buddies don't have the veto proof majority, but hey, that's the system.
Old Grumbles is at it again!
April 2, 2008 - 15:10 ET by Captain KirockJack finds the corporate/GOP conspiracy behind every story. Why hasn't this mental midget gotten his own hysterical conspiracy show on CNN yet? At MSNBC, Old Grumbles would be a lead anchor.
I'm going to LMAO when the oil companies pack-up and move
April 2, 2008 - 20:20 ET by R D HelmI'm going to LMAO when the oil companies pack-up and move their headquarters off shore.
Two or three more episodes of being dragged before the idiot congress-critters, who are the ones truly responsible for this mess, should just about do it.
Theme for Election '08: I want my mommy!