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Oil companies artificially created shortage
http://releases.usnewswire.com...52755
Contact: Jamie Court, 310-392-0522 ext 327; Tim Hamilton, 360- 495-4941, both of the Foundation for Taxpayer and Consumer Rights; Web: http://www.consumerwatchdog.org
SANTA MONICA, Calif., Sept. 7 /U.S. Newswire/ -- The Foundation for Taxpayer and Consumer Rights (FTCR) today exposed internal oil company memos that show how the industry intentionally reduced domestic refining capacity to drive up profits. The exposure comes in the wake of Hurricane Katrina as the oil industry blames environmental regulation for limiting number of U.S. refineries.
The three internal memos from Mobil, Chevron, and Texaco (available at http://www.consumerwatchdog.org/energy/fs/ show different ways the oil giants closed down refining capacity and drove independent refiners out of business. The confidential memos demonstrate a nationwide effort by American Petroleum Institute, the lobbying and research arm of the oil industry, to encourage the major refiners to close their refineries in the mid-1990s in order to raise the price at the pump.
"Large oil companies have for a decade artificially shorted the gasoline market to drive up prices," said FTCR president Jamie Court, who successfully fought to keep Shell Oil from needlessly closing its Bakersfield, California refinery this year. "Oil companies know they can make more money by making less gasoline. Katrina should be a wakeup call to America that the refiners profit widely when they keep the system running on empty."
"It's now obvious to most Americans that we have a refinery shortage," said petroleum consultant Tim Hamilton, who authored a recent report about oil company price gouging for FTCR. (Read the report at http://www.consumerwatchdog.org/energy/rp/ ) "To point to the environmental laws as the cause simply misses the fact that it was the major oil companies, not the environmental groups, that used the regulatory process to create artificial shortages and limit competition."

Thoughts?
 

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Re: Oil companies artificially created shortage (Sporin)

Newsflash: big corporations use underhanded tactics to destroy competition. Film at 11.
 

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Re: Oil companies artificially created shortage (rpaller)

NO S**T
 

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Re: Oil companies artificially created shortage (axe)

Quote, originally posted by axe »
NO S**T

The difference between an educated guess and evidence-supported fact is that you can prosecute on facts.
So the question is, are there grounds for penalties? Is this unfair trade or monopolism?
 

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Re: Oil companies artificially created shortage (Sunil)

Quote, originally posted by Sunil »
The difference between an educated guess and evidence-supported fact is that you can prosecute on facts.
So the question is, are there grounds for penalties? Is this unfair trade or monopolism?

Exactly, I tremendously doubt anyone is going to hold them accountable for this, hell I doubt you'll even hear about it from the main news outlets. http://****************.com/smile/emthdown.gif
I'd say it's collusion, at the very least.
 

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Re: Oil companies artificially created shortage (Sunil)

Quote, originally posted by Sunil »

The difference between an educated guess and evidence-supported fact is that you can prosecute on facts.
So the question is, are there grounds for penalties? Is this unfair trade or monopolism?

Let's see. What business was Bush in? Hummm, yep. Oil. What about say, Cheney? Dang. Oil too. The prosecutions will be overflowing any time now.
Yes, I am beeing a smart axx but if anyone thinks the big boys of oil are going down for this. It won't happen any soon ... if at all.
My $.02
 

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Re: Oil companies artificially created shortage (Sunil)

Quote, originally posted by Sunil »
The difference between an educated guess and evidence-supported fact is that you can prosecute on facts.
So the question is, are there grounds for penalties? Is this unfair trade or monopolism?

As any lawyer can tell you, there is a line between the unethical and the illegal. You can either a) not cross that line or b) hire some lobbyists to convince some politicians to pass legislation to move the line.
 

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Re: Oil companies artificially created shortage (Sledge)

Considering the record profits in the past several quarters by the big oil giants and the current administration, this would be absolutely no surprise. The sad thing is, no one is going to do a damn thing about it. http://****************.com/smile/emthdown.gif
 

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Re: Oil companies artificially created shortage (dcomiskey)

Quote, originally posted by dcomiskey »
Considering the record profits in the past several quarters by the big oil giants and the current administration, this would be absolutely no surprise. The sad thing is, no one is going to do a damn thing about it. http://****************.com/smile/emthdown.gif

Eeeeexactly. So you can kick back and enjoy the inaction. Politics drive me up the wall

http://****************.com/smile/emthdown.gif http://****************.com/smile/emthdown.gif
 

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Re: Oil companies artificially created shortage (dcomiskey)

Consumer can do something about it.
I've reduced my fuel consumption by 50% in the previous weeks. I'll keep it up as long as needed.
That's all I can do really. Too bad we can't all just reduce how much we use. There is always going to be a big demand for gas, so even if millions reduced their useage by 50% it wouldn't have much of an impact.
 

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Re: Oil companies artificially created shortage (SnowGTI2003)

Quote, originally posted by SnowGTI2003 »
Consumer can do something about it.
I've reduced my fuel consumption by 50% in the previous weeks. I'll keep it up as long as needed.
That's all I can do really. Too bad we can't all just reduce how much we use. There is always going to be a big demand for gas, so even if millions reduced their useage by 50% it wouldn't have much of an impact.

This has nothing to do with consumption, it has to do with the oil companies creating an artificial bottleneck on supply to inflate prices.
Say I were the only Lettuce farmer in town and I grew 1000 plants a summer, but I only sold 50 and told people I was having "supply problems" and inflated the price on those 50 plants because they're "all I had". Wouldn't you be a bit pissed when you found out I still had 950 plants in my backyard?
 

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Re: Oil companies artificially created shortage (axe)

Quote, originally posted by axe »
This has nothing to do with consumption, it has to do with the oil companies creating an artificial bottleneck on supply to inflate prices.
Say I were the only Lettuce farmer in town and I grew 1000 plants a summer, but I only sold 50 and told people I was having "supply problems" and inflated the price on those 50 plants because they're "all I had". Wouldn't you be a bit pissed when you found out I still had 950 plants in my backyard?

It has everything to do with consumption. There would be no bottle neck if consumers used less.
The demand is currently fixed. We need to change that.
 

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Re: Oil companies artificially created shortage (SnowGTI2003)

Quote, originally posted by SnowGTI2003 »
It has everything to do with consumption. There would be no bottle neck if consumers used less.
The demand is currently fixed. We need to change that.

There is no consumer-created bottleneck (or, at the very least, it isn't entirely to blame), the article pretty well establishes that a large portion of the bottleneck was a deliberate action by Chevron, Texaco, et. al.
 

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Re: Oil companies artificially created shortage (axe)

Quote, originally posted by axe »
Say I were the only Lettuce farmer in town and I grew 1000 plants a summer, but I only sold 50 and told people I was having "supply problems" and inflated the price on those 50 plants because they're "all I had". Wouldn't you be a bit pissed when you found out I still had 950 plants in my backyard?

Not really an apt analogy, as plants are perishable, and this happens quite a lot anyway in ALL farming industry, financed by your government (i.e. taxpayers), mainly because if you have massive oversupply, no one would choose to be a farmer, and then you'd suddenly have undersupply, which would make for a REAL increase in prices, which you would not be able to easily control.
Ever buy a diamond? I probably paid 10% profit to the dealer, and 88% profit to DeBeers due to the artificial scarcity they impose on the diamond market for my fiancee's pretty rock.
Argh. But watcha gonna do? I guess I could stick a lump of coal up Cameron's butt and wait a couple weeks.
Still...oil is different. Oil has a tremendous impact in nearly every area of the economy.
 

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Re: Oil companies artificially created shortage (axe)

Quote, originally posted by axe »
There is no consumer-created bottleneck (or, at the very least, it isn't entirely to blame), the article pretty well establishes that a large portion of the bottleneck was a deliberate action by Chevron, Texaco, et. al.

And if consumers were not so thirsty for oil, it would be much harder to create such a supply bottleneck (they'd have to close a lot more refineries or whatever).
But until perhaps these last few months, Americans have generally disregarded fuel economy when choosing cars. So it is no surprise that Americans' wallets are easily reamed by oil companies and OPEC countries (regardless of whether such actions are unethical and/or illegal).
 

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Re: Oil companies artificially created shortage (tjl)

Bush said that those that drove up the prices or overcharged would be dealt with.......SOOOO is he going to be dealing with himself?
Doubt any of this will ever be escilated....or these companys punished. Now the gas stations on the other hand....the ones that had the LEAST influance on this....are DEAD, better hide NOW.
BTW, Exxon reported 10% profits past week.....over 1 billion dollars. Correct me if Im wrong.
Thats why when I say bend over and take it....I mean it. BTW, "Iraq" is the same story. Prices have been rising since the day of invasion.
Bottom line, people....companys...can NEVER get enough of money. And our Politics and Companys are doing a great job of covering up....and NOT many Americans can see right thru the BS either.
SAD
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Modified by VdubChaos at 7:08 AM 9-9-2005
 

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Re: Oil companies artificially created shortage (q2bruiser)

Quote, originally posted by q2bruiser »
Let's see. What business was Bush in? Hummm, yep. Oil. What about say, Cheney? Dang. Oil too. The prosecutions will be overflowing any time now.
Yes, I am beeing a smart axx but if anyone thinks the big boys of oil are going down for this. It won't happen any soon ... if at all.
My $.02

Hallitburton is an oil services company. They get paid to find and mine and service oil fields. It's actually in Halliburtons best interests to have cheaper gas so more of it gets used and hence more oil is needed... I guess one could make a link between Bush and his failed oil company, however it's an old and long forgotten enterprise. The real connection you should be making is who BANK ROLLED Bush's campaigns. Now you have a link. Of course this memo was written in the 90's, and I don't recall Bush being President back then..
-John
 

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Re: Oil companies artificially created shortage (phlipski)

Quote, originally posted by phlipski »
Of course this memo was written in the 90's, and I don't recall Bush being President back then..

That's funny because the 90's are marked as an era of accounting scandals and corporate corruption already, so to have yet ANOTHER piece of evidence of corruption borne from the 90's is just hillarious. It's like absolutely all responsibility was abandoned in the 90's.
 
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