North Dakota’s House Majority Leader Promises Cheaper Gas

That’s what liberal blogger Chad Nodland at Bismarck Dems thinks, posting this quote from Rep. Berg speaking on the House floor today:

There is only one way to turn the price of gasoline at the pump down. It’s not by government regulation. It’s not by doing less drilling in North Dakota or less drilling in America. The way we turn the price around at the pump is we increase our domestic supply.

Audio here.
Berg is exactly right. Gas prices are set by the rules of supply and demand. If we facilitate the expansion of our oil supplies by allowing more oil exploration and protecting oil companies from undue regulation and taxation gas prices will go lower. Or, at least, stay lower than they would be if we increased taxes and regulation. But Nodland doesn’t seem to understand things like “supply and demand” or lowering the burden of government of private industry.

Berg urged legislators to vote for SB2397 because by not making oil barons pay their fair share, it will increase our domestic oil supply.
I’m paying $2.70 for a gallon of gas today. I’m looking forward to the lower gas prices promised by Berg.

One wonders if Nodland flunked basic economics in school or was simply absent that day. Regardless, if he’s so worried about gas prices being high then why does he want to tax the oil companies? That will only make gasoline prices higher than they are now. When you tax private companies those companies must turn around and charge higher prices for their goods and services to compensate. You cannot want lower gas prices and support higher taxes on oil companies at the same time. That’s illogical.
But then again, “liberalism” and “logic” oft seem to go together like oil and water.
Besides, oil companies are already paying their “fair share” and more in taxes. Here’s what Exxon Mobil paid in state and federal taxes in the third quarter of 2006 alone:
Income taxes: $7.68 billion
Excise taxes: $7.76 billion
All other taxes: $10.79 billion
Total taxes remitted/paid: $26.24 billion
You know how much Exxon/Mobile made, net, in the third quarter? $10.49 billion. Which means they paid about 2.5 times more in taxes than they made in profit. Can you imagine how much cheaper your gas would be if companies like Exxon Mobil didn’t have to pay $26 billion in taxes every quarter? Or even just had to pay half of it? Quite a bit cheaper.
But don’t expect Nodland to get on board with lower taxes on oil companies. He’s either not intelligent enough for that, or not intellectually honest enough.