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20th-May-2007 11:55 pm - Grab Your Ankles, Kids...
Scrat
Everybody good and lubed up? Oh good, because the big oil companies would like to let us know that gas prices are on the rise again. A nationwide survey conducted by Lundberg that was released on Sunday showed that the cost per gallon has risen more than 11 cents over the last two weeks. The national average, estimated by surveying more than 7,000 gas stations across the country, currently stands at $3.18/gallon. A mere two weeks ago, the national average sat at $3.07/gallon. Of course, here in California because of our alleged tougher emissions standards, we're paying among the highest prices in the country, well above the national average. It was a hair under $3.50/gallon the last time I filled up. I might believe those tougher emissions standards were doing some good if I could actually see LA or Catalina with any regularity.

According to the survey, the $3.07/gallon figure two weeks ago was the highest gas prices have been since the previous high of $3.03/gallon set back in August of '06. Adjusted for inflation, today's cost per gallon exceeds the previous record of $3.15/gallon set back in 1981. And there appears to be no relief in sight.

So here we are, all bent way over a barrel by the big oil companies and there isn't a damn thing any of us can do about it. Here in Southern California, our public transportation systems are a joke so we have no choice but to drive to where we need to go. How soon is it going to be before we're only going to be able to afford the gas to drive to and from work? How many people already have to choose between paying for gas and paying for medication, food or other necessities?

Can somebody please, please, please answer me a question? How is it that while we are getting screwed at the pump, the big oil companies continue making record profits quarter after quarter? Exxon-Mobil reported a $39.5 billion profit for the year 2006, making it the single largest profit margin of any corporation in US history. The $39.5 billion in profit eclipsed the previous record of $36.1 billion that was set in 2005. And if you can guess who held the record in '05, I'll give you a brownie point. Anybody? Anybody? Bueller? Bueller? *cue Jeopardy theme* That's right, the record in '05 was held by the same Exxon-Mobil corporation. Chevron, the country's second largest oil company posted a profit of $17.1 billion in '06 and Conoco-Phillips had the third largest haul in '06 of $15.55 billion.

The problem is that we've essentially got 5 companies that control the supply of gasoline in this country. Exxon-Mobil, Chevron, Conoco-Phillips, British Petroleum (BP) and Royal Dutch-Shell Corporation. And when you have all of the power invested in such a small group, it makes it that much easier to game the system. It's called collusion and it's absolutely illegal. Rather, it was before Bush and his vehemently pro-corporation Administration came to power. Since then though, the corporations have carte blanche to screw us any way they see fit and don't have to fear the repercussions.

The big oil companies, in collusion with eachother, are running a really simple scam on all of us. Because the crude oil has to be refined before it can be sold as gasoline, the companies are regularly shutting down some of their refineries for "unexpected maintenance" and restricting the amount of oil that gets refined. In the meantime, the oil companies are not building any new refineries to keep up with a rising public demand. This creates an artificial "crisis" of short supplies, thus driving prices up, up and up. The companies also purchased huge reserves of crude back when the prices were still low, so people that tell you it's the rising price of crude that is dictating the price of gasoline is full of horsepucky. From a report on MSNBC:

Many of these companies long ago bought oil reserves at prices of $10 to $25 a barrel. With prices peaking near the $75 mark, the profit margin has been enormous.


Back in 1890, the Sherman Anti-Trust Act was passed making the sort of collusion that the oil companies are engaged in highly illegal. From the text of the Sherman Anti-Trust Act:

"Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal." The Act also provides: "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony."


How long is it going to be before the price of a gallon of gas gets so costly that it will begin infringing on our freedom of movement? For some, it already has. And in the meantime, the big oil companies continue making money hand over fist.

We all complain about the price of gasoline. It's past time to do something about it. It's time to write and call our Congressfolk and our Senators demanding a real investigation into violations of the Sherman Anti-Trust Act and the corporate conspiracy to keep gas supplies low and gas prices high, to keep us paying through the nose while they make billions. How much longer are we going to tolerate the big oil companies giving us the Deliverance treatment?

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