Posted on 05/31/2007 3:41:52 AM PDT by IrishMike
What to do about — choose the adjective — "spiraling," "skyrocketing," "out-of-control" gas prices? .................... A national morning show interviewer practically high-fived the governor of Florida for urging an investigation into "gouging." Meanwhile, over at one of the cable news networks, the "newsman" beat his desk, his chest and anything he could find to express his concern, outrage and downright indignation.
The California speaker of the State Assembly said that while he lacked evidence that oil companies engage in cheating, he still felt they did. Why? His gut told him so. In fact, over the last 20 years, 30 federal investigations seeking evidence of price manipulation or collusion came up with, uh, well, a dry hole.
But the conspiracy theorists press on. Sen. Chuck Schumer, D-N.Y., asked the Government Accountability Office to conduct an investigation. A year ago, he asked the Federal Trade Commission to investigate. By then, the FTC had already conducted two investigations, uncovering no evidence of unfair business practices. But, who knows? Maybe the oil company CEOs pulled a Sandy Berger, and stuffed damning evidence in their pants. So, by all means, let's look harder.
The mainscream media reports on the "outrageous," "unacceptable," "unjustifiable" "record profits." Never mind that following price peaks in 1981, low crude and gas prices during the '80s and '90s bankrupted some oil companies. But that was then. Today, Exxon Mobil, Chevron and ConocoPhillips earn tens of billions of dollars annually in profits that "defy common sense."
Why bother reporting that, with Big Oil profits at eight to 10 cents on the dollar, other companies and industry sectors earn more — including, for example, Internet giant Google and the banking industry. In California, the state "earns" about 40 cents per gallon, with the feds' cut coming in at almost 19 cents.
(Excerpt) Read more at creators.com ...
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.
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
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.
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?
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.
“I don’t understand the claim “
Willful ignorance
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.
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.
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.
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.
The fact that the petroleum industry is so important to our economy is all the more reason for it to remain a free market.
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.
Maybe it should be like a national holiday or something.
I don’t know what they are doing. I do know that others have strategic reserves and we coordinated with them after Katrina.
I have no use for anyone who sides with chavez. UGH
They are the result of your choices, and you have many options to adjust your realities.
That’s a fine argument, too, but not the one I made.
I didn’t mean willful ignorance on YOUR part, I agree with you! Sorry, I was not very clear on that at all.
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