Here we go again...
So I read (once again, the skimming news articles thing) that Congress has, once again, called the major oil companies in for an inquiry regarding their continued record profit margins in a world with 'diminished supplies', and also to confront them about their recent mergers. Personally, if it were not for the recent furor about Abrahamoff(sp?) and Delay and others, I'd hold little hope for any results (of course, the FIRST Congressional inquiry didn't happen until after that, anyway). As it is, I'm still hesitant to put any hope behind any real, LASTING results coming from this. I mean, right after the last inquiry, the price of gas dropped almost a dollar a gallon--but it's creeping back up again (now, they're claiming it's increased demand due to the summer driving season coming up...never mind the fact that the winter heating-oil demand season is winding down...)
I was amazed at the double-talk I read in the article, from the oil execs. This time, they weren't trying to sell us on their 'we're not making any extra profit' BS--this was all about how the petrochem giants were securing the world's oil supply by swallowing up smaller companies and combining in a series of mergers. I wish I'd cut some of it out of the article to paste here...but it was so OBVIOUSLY propaganda that I was amazed anyone would even think of believing it. The Senator in charge of the hearings made some mention of the possibility of the government regulating mergers between petroleum companies...
Once again, I doubt it will happen. Too much money involved, too many chances to lose 'anonymous' campaign donations. I don't think they'd resort to outright bribery, but I have an unfortunate amount of faith in the corruption of both our government representatives and the executives of the oil companies. Let's face it...neither one has a particularly sterling track record, as of late.
So, I suspect the cycle will continue. Congressional inquiries will result in a drop in gas prices, from unbelievable back down to ridiculous. For a while, those prices will hold...and then begin creeping back up. After the oil companies have padded their profit margin again and the execs have re-lined their pockets and paid for their luxury vacations, Congress will call them to task again, and they will repentantly drop prices...
I hope I'm wrong, that this doesn't become an annual (or bi-annual) event. But I don't see that situation, from a realistic standpoint. I'm not sure what the 'breaking point' is, where the greed and deception becomes so great that the backlash strikes...but I kind of hope I'm not there to see it. It's not going to be pretty.
So I read (once again, the skimming news articles thing) that Congress has, once again, called the major oil companies in for an inquiry regarding their continued record profit margins in a world with 'diminished supplies', and also to confront them about their recent mergers. Personally, if it were not for the recent furor about Abrahamoff(sp?) and Delay and others, I'd hold little hope for any results (of course, the FIRST Congressional inquiry didn't happen until after that, anyway). As it is, I'm still hesitant to put any hope behind any real, LASTING results coming from this. I mean, right after the last inquiry, the price of gas dropped almost a dollar a gallon--but it's creeping back up again (now, they're claiming it's increased demand due to the summer driving season coming up...never mind the fact that the winter heating-oil demand season is winding down...)
I was amazed at the double-talk I read in the article, from the oil execs. This time, they weren't trying to sell us on their 'we're not making any extra profit' BS--this was all about how the petrochem giants were securing the world's oil supply by swallowing up smaller companies and combining in a series of mergers. I wish I'd cut some of it out of the article to paste here...but it was so OBVIOUSLY propaganda that I was amazed anyone would even think of believing it. The Senator in charge of the hearings made some mention of the possibility of the government regulating mergers between petroleum companies...
Once again, I doubt it will happen. Too much money involved, too many chances to lose 'anonymous' campaign donations. I don't think they'd resort to outright bribery, but I have an unfortunate amount of faith in the corruption of both our government representatives and the executives of the oil companies. Let's face it...neither one has a particularly sterling track record, as of late.
So, I suspect the cycle will continue. Congressional inquiries will result in a drop in gas prices, from unbelievable back down to ridiculous. For a while, those prices will hold...and then begin creeping back up. After the oil companies have padded their profit margin again and the execs have re-lined their pockets and paid for their luxury vacations, Congress will call them to task again, and they will repentantly drop prices...
I hope I'm wrong, that this doesn't become an annual (or bi-annual) event. But I don't see that situation, from a realistic standpoint. I'm not sure what the 'breaking point' is, where the greed and deception becomes so great that the backlash strikes...but I kind of hope I'm not there to see it. It's not going to be pretty.
posted by Curtis at 9:14 AM
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