Jobber Drill
20 July 2011
When Libs refer to the “gas companies” or “oil companies” what do they mean?
Assuming they mean gasoline rather than natural gas, do they mean:
The retailer who probably owns just that one station, maybe 2-3?
The jobber who brings the gasoline from the wholesaler/terminal operator to the retailer?
The wholesaler/terminal operator?
The pipeline or barge operator?
The refiner?
The crude oil E+P company?
The oil services companies that lease drilling equipment and/or perform drilling services for the E+P company?
Do they realize that while some companies are much larger than their competitors, when you take the industry as a whole it is less vertically integrated than most mature industries?
Do they even know what vertically integrated means?
So….. the ability to name off a few E+P companies, that is enough to support in your mind these conspiracy theories? Wow, that’s alarming.
By oil companies Libs are referring to the large companies such as Conoco, Amoco, Chevron, Phillips, Mobil, and Texaco.
“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.”
The fact is there is no competitive market in this industry. The price per barrel is currently hovering around $60 which is less then last year, but we’re still paying more then we were then. Why? Because American Petroleum Institute can. Their latest profit levels are at record highs.
And another reason perhaps Libs are so intrigued by these large oil companies is there history of backing the GOP, particularly GWB, giving his campaign 90% of there contributions. And oddly enough, during election years (00, 02, 04, 06) oil prices would mysteriously drop in October, actually rather dramatically in 2006, which was strange considering that was a period of time when prices were rising rather quickly. And each year, immediately following the election prices would rise again. And of course during non-confederal election years (01, 03, 05) the oil prices wouldn’t budge.—-Coincidental? Who knows–but the fact is, I think most people, not just liberals, want to pay a reasonable price for oil. And to discover that these companies are just charging more, because…well…they can, and the fact that no one is attempting to stop them is disheartening.
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