Todd Hirsch – …conspiracy theorists are quick to accuse big oil companies, claiming they’re in collusion and setting prices. However, the federal Competition Bureau has looked into this claimsix times in the past, and has never found a shred of evidence of collusion. To buy into this conspiracy, you’d also have to believe that the federal government’s independent Competition Bureau is in on the scheme to gouge consumers. If you’re prepared to go down that conspiracy road, you’re also likely to believe that man landing on the moon was a big hoax, too. …
via There is no conspiracy around high gas prices | Troy Media Corporation.
Forget about Enron, Todd? Down below you in the USA , there was a proven oil company conspiracy in our remembered past.
Kenneth L. Lay and Jeffrey K. Skilling, the chief executives whoguided Enron through its spectacular rise and even more stunning fall, were found guilty today of fraud and conspiracy. They are among the most prominent corporate leaders to emerge from a wave of scandals that marked the get-rich-quick excesses and management failures of the 1990′s.
via New York Times
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy in late 2001, Enron employed approximately 22,000 staff and was one of the world’s leading electricity, natural gas, communications, and pulp and paper companies, with claimed revenues of nearly $101 billion in 2000. Fortune named Enron “America’s Most Innovative Company” for six consecutive years. – wiki
How independent is the Canadian Competition Bureau?
In 2005, Canada’s Competition Bureau conducted an empirical study to test whether the large gasoline price increases observed in the spring and summer of 2004 were the results of anti-competitive acts.
“…there is no unusual pricing behaviour in the Canadian gasoline industry that would support a claim of anti-competitive behaviour,” the bureau concluded.
Here’s how they came to that conclusion:
In case you are wondering, “D” stands for dummy. I joke not.
Shell Canada Limited explains the appearance of collusion as merely a well-functioning free market on their website.
“We take this matter very seriously and Shell complies with all federal competition laws. The explanation is simple. At Shell, we are competitive on price at the local level, so what may look like unlawful collusion from a consumer perspective is really a highly competitive market working well,” explains Shell. – jjlocke
The FTC is being asked to look at gas price conspiracy here in the US. One conspiracy claim is that they create artificial shortages by purposely producing less than they are able to produce.
Several U.S. senators will ask the Federal Trade Commission Tuesday to investigate oil refiners for failing to produce gasoline at their full potential, consequently keeping gas prices high.
Senate Majority Leader Harry Reid (D-Nev.) is among the senators who plan to send a letter to the FTC Chair Jon Leibowitz seeking the investigation. The group of senators, however, are not targeting specific oil refining companies, but instead have focused on the entire refining industry, a congressional aide said according to Reuters.
Energy Department data show that American refiners are only operating at 82 percent of their full capacity, but Valero Energy Corp. spokesman Bill Day said this is normal for this time of year. According to Day, oil refining plants are functioning at a lower capacity because of scheduled annual maintenance to refiners in preparation for the high-demand summer driving season.
Day also argued that purposefully producing less gasoline is ill advised considering the status of current profit margins.
Don’t forget “Get Shorty”, “Death Star” and “Fat Boy”…
The Bush administration and the rightwing GOP leadership on Capitol Hill have quietly shelved any tough legislation to curb Enron-style corporate abuses, yet new disclosures keep popping up. The latest was a 44-page document, a step-by-step guide to “gaming” the California electricity market, prepared by Perot Systems, a software firm owned by Dallas millionaire Ross Perot. The document was found in a box of materials turned over to a California Senate Committee by Reliant Energy.
Perot Systems, Inc., was in a unique position to instruct energy traders on how to swindle California ratepayers because it designed the computer software for the California Independent Systems Operator as well as the now defunct Power Exchange, both of which controlled the flow of electricity through California’s enormous power grid. Perot Systems had an intimate knowledge of the flaws in California’s deregulated electricity market and could instruct Reliant, Enron, Dynegy, Duke Power and other energy traders on how to create “phantom” shortages that would drive up electricity prices, how to divert electricity across state borders and then reimport it at prices four or five times higher than California’s capped prices. – peoplesworld
With gas at over $4 per gallon right now in California, I’d like some proof that we are not being ripped off.