About Those "Skyrocketing" Gas Prices

Creators Syndicate ^ | Thursday, May 31, 2007 | Larry Elder

[AFPhys]

There are only three ways I can think of to “crack a cartel”.

1. Legislate and punish offending companies/ organizations.
2. Stop using the product, eg. switch to some other product.
3. Raise production sufficiently to end the cartel’s dominance.

In this case, OPEC and the rest of the suppliers are pretty invulnerable to #1 due to the international scope of the markets.

The second and third often take a lot of time and perseverence -— and by Congress’ and states’ actions, the US has pretty much abandoned #3.

[thackney]

In 2006 the world oil production was 84.51 MMBPD.

http://www.eia.doe.gov/emeu/ipsr/t14.xls

In 2006 those majors produced the following:

ExxonMobil = 2.68 MMBPD
BP = 2.48 MMBPD
Shell = 1.95 MMBPD

http://exxonmobil.com/Corporate/Files/Corporate/fo_2006.pdf

http://www.shell.com/static/investor-en/downloads/publications/2007/2006_annual_review.pdf

http://www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/downloads/F/FOI_2002_2006_full_book.pdf

A total of 7.11 MMBPD or 8% of the global market. These numbers includes all of the subsidiaries and their percentage share of partnership ventures.

I’m not sure which others you think combined with these three "own" the market. But it is going to be a rather long list to get to the controlling share.

[AFPhys]

IM: that IS a GREAT graphical display you have in Post#96.

Now, I’m wondering where the disparity between that and the table in Post#64 comes from?

Specifically, I see NY listed as 60.8 on the map, but 48.7 on the table. More like 60.8 is what I’ve heard in the past... but the 20% difference between the two disturbs me.

Wondering if anyone can clear up why the diff?

[thackney]

gasbuddy keeps these pretty current and gives a description of taxes that are percentage based. Those are going to change when measured by cents.

http://www.newyorkgasprices.com/tax_info.aspx

[Clam Digger]

I understand fully, thanks, but like I said, these are lifestyle CHOICES. I’m not sure what you aren’t understanding. If you really had to go without gasoline, you COULD, bt it’s certainly not desirable. Yes, some stuff would have to change, but it could be done. I sure the hell don’t want to.

[Clam Digger]

“I don’t understand the claim “

Willful ignorance

[AFPhys]

AHHH... I see... The “gas buddy” prices pretty nearly match the Post#64 table. The Post#96 “map” appears to include more of the “miscellaneous taxes” mentioned in the gasbuddy “comments” column.

Therefore, the Post#96 “MAP” seems a more accurate representation ... and it appears that NYState hides about $0.16/gal more tax in their “miscellaneous” gas taxes.

So, for NY... 60.8/gallon - seems about right when I compare with the prices in PA and NJ, which are about 10 & 20 lower.

[Dan Evans]

If only a few companies made aspirin and they took the price to $2 a pill, I can only hope you would have a problem with that.

Some companies make pills that cost over $100 dollars each. I have no problem with that. If the medication can save a life, it's worth it.

And gas and oil is run by an OLIGOPOLY, not a true free market where anyone can come and sell their wares

That's nonsense. What have you been reading?. Gas and oil is sold by hundreds of private companies and nations from Russia to Venezuela. It is a very competitive market. Even OPEC has a hard time enforcing supply restrictions among their member states.

[mysterio]

If you really had to go without gasoline, you COULD, bt it’s certainly not desirable. Yes, some stuff would have to change

Stuff like buying groceries or anything else transported. I could hunt my own food with homemade arrows, grow vegetables, and live on welfare off of your tax dollars.

I stand by my argument that it's impossible for many Americans to not buy oil based fuels.

[CPT Clay]

We go through this every year starting in March when the refineries start shutting down to switch from winter gas to summer gas and throw a little maintainance in there as well. Investigations start as the refineries get up to full speed and the price starts comming down in June.

Happens every year.

[Tarpon]

You are right as far as you went, the new low sulfur diesel fuel is giving refineries fits ... efficiency is down at what few refineries are operating. It's not easy to procure the exact diesel blend the U.S. requires by law, from other country's refineries. The libs are quite now because they don’t want anyone to realize that government is one of the main causes for ____ Gas prices.

[thackney]

Willful ignorance

LOL!!!

I see quite clearly the competition between the different companies. A couple decades of them hiring the companies I work at has provided a lot of education and experience into how competitive the market is. The fact that so many small operation remain competitive and few grow large like Anadarko shows the falseness of your claim.

[Dan Evans]

I stand by my argument that it's impossible for many Americans to not buy oil based fuels.

The fact that the petroleum industry is so important to our economy is all the more reason for it to remain a free market.

[mysterio]

I don’t believe it’s a “free” market, but other than that I agree with you. I don’t want the government doing anything about it. I just want the high prices to give a competing technology a real foothold so the oil monopoly gets some real competition.

[Dan Evans]

We go through this every year starting in March when the refineries start shutting down to switch from winter gas to summer gas and throw a little maintainance in there as well.

Maybe it should be like a national holiday or something.

[ClaireSolt]

I don’t know what they are doing. I do know that others have strategic reserves and we coordinated with them after Katrina.

[ClaireSolt]

I have no use for anyone who sides with chavez. UGH

[ClaireSolt]

They are the result of your choices, and you have many options to adjust your realities.

[Clam Digger]

That’s a fine argument, too, but not the one I made.

[Clam Digger]

I didn’t mean willful ignorance on YOUR part, I agree with you! Sorry, I was not very clear on that at all.