August 30, 2007
Big Oil Collusion
Are you sure about that?
Big oil companies did not conspire to raise U.S. gasoline prices last summer, as it was high crude oil costs and supply problems that caused the spike in pump prices, government investigators said on Thursday.The Federal Trade Commission said that about 75 percent of the rise in gasoline prices was due to a seasonal increase in summer driving, higher oil costs and more expensive ethanol that was blended into gasoline.
The other 25 percent of the price increase stemmed from lower gasoline production as refiners moved to using ethanol as the main clean-burning fuel additive and lingering damage from hurricanes Katrina and Rita that reduced refining capacity.
So what they're saying is that fluctuations in supply and demand cause prices to go up (and down?) Not some cabal of evil white men?
Get outta here.
Oil and Energy Posted by AlexC at August 30, 2007 3:33 PM
They buried the lede: 25% was caused by ethanol mandates (government intrusion). It was evil white men, ac -- Sen Harkin, Sen Grassley, Sen Lugar, Sen Durbin...
Posted by: jk at August 30, 2007 4:09 PMOK, I'll be your conspiracy theorist. Ever notice how gasoline prices rise quickly and fall slowly? My hypothesis is that the retail price rises immediately whenever the wholesale price goes up, but when the wholesale price drops the retailers only lower their price as much as they have to as dictated by their nearby competition.
Not everyone plays this game, however. While 91 octane premium still commands 3.13 to 3.35 per gallon (north Denver metro) Costco gasoline has been selling their Sinclair wholesaled 91 octane for 2.99 for at least a month.
Posted by: johngalt at August 30, 2007 11:55 PMJK,..I direct you to this piece on ethanol:
http://www.philly.com/inquirer/opinion/pa/20070828_Kudos_to_kudzu_as_source_of_energy.html
Posted by: TrekMedic251 at September 1, 2007 1:05 PMI liked it just fine until they suggested genetically modified kudzu. I'm no Luddite, but one can easily see GMK taking over and destroying all life on Earth.
I'm actually very keen on biomass energy and have long been intrigued with generating power from poultry offal and by-products. Just as long as it's neither subsidized nor mandated, sign me up.
Posted by: jk at September 1, 2007 5:36 PM | What do you think? [4]