For those idiots (liberals) who think that taking from private companies doesn’t effect consumers.
I am totally in favor of the free enterprise system, without government interference. However, this week we are once again being told that “down time” at several refineries are resulting in a shortage of supply, and our prices are jumping up again. When will this finally stop? Why can’t the oil companies schedule regular maintenance and build additional or even backup facilities to prevent this from happening on a weekly basis? The Alaska oil pipeline was shut down for a leak, then after the public outcry, they suddenly fixed it quickly. Do the oil companies think everyone else is as stupid as the politicians?
Incidentally, Congress should decide whether it’s good to consume lots of oil, or to conserve. If consumption is good, then “gouging” should be punished - but if conservation is good, then companies right down to mom-and-pop gas stations that charge excessive prices should be rewarded with Medals of Honor for discouraging consumption, through high prices. Congress is schizophrenic, just like with tobacco - subsidize, and tax.
If oil companies are gouging by making an 8 to 10% margin, then jewelry retailers should drawn and quartered over their 2000 to 5000% markups.
PING!
My dad is a Vice President and Chief Economist for Tesoro, a refining company based in San Antonio. He’s been doing a lot of PR stuff lately trying to explain to everyone why prices are so high. Here is a link to an interview he did for E&E Daily. I think it will answer some of your questions. I just wish more people would realize what he’s saying.
http://www.eenews.net/tv/video_guide/643
Excellent article.
By the way, it’s not the oil companies who raise prices and gouge the consumer. It’s the schools who do that. But the politicians and press choose not to notice.
review
Exxon-Mobil doesn’t seem too badly gouged. They recently reported one of the biggest quarterly profits in their company’s history. I don’t weep much for them...
Perhaps there are some people who can get by in this country while rejecting the costs of gasoline, but not many. When the oil companies control supply and demand and have limited the number of oil companies in existence (to reduce or eliminate competition), then they do have some control over the pricing of their product. That does not mean that the Government is not complicit in this process.