Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Blood of Tyrants
Please, somebody like Bill Oriely, take their money and go to the floor of the CME or NY Merc and bid $50 a bbl for oil and see how much they get. Ask the people that are bidding $72 who they work for and where the orders come from.

To drill for oil and get half of what the going rate is would get you thrown off the company's BOD, or sued for fiduciary incompetence. The BOD of an oil company must try to make as much as they can for the company or resign. Conscience has nothing to do with capitalism. If XOM said they were going to cut their profits on purpose, there would be a stockholder revolt.

The only place gouging is possible, IMHO, is at the retail pump. The retail owner could decide to mark up 10 cents a gallon or $2.00 a gallon. All the rest of the system is a bidding situation. The refiner could mark it up if their weren't other refiners that would under cut him. It is bid on the Merc exchange also. I can buy unleaded gas for the same price the local station does if I want delivery.

Another myth is there is only 5 major oil companies. There are literally thousands. If XOM wanted to control the price, Murphy, Anadarko, Apache, etc, would have something to say about it, not to mention the foreign companies. The ignorance on this subject is embarrassing for a capitalist country.

97 posted on 04/26/2006 7:38:05 PM PDT by chuckles
[ Post Reply | Private Reply | To 1 | View Replies ]


To: chuckles

ping - well put.


225 posted on 04/26/2006 9:18:04 PM PDT by xjcsa (Bill Clinton: A pile of crap between two Bushes)
[ Post Reply | Private Reply | To 97 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson