Bob, if you’re trying to argue a point try to at least bring some facts to the table.
Bob comment: “And yes Paul, I do have degrees, no not in Economics. But my post-grad degree in Business is from a pretty good school, the Univ. of WA.”
Well, as a supposedly highly educated individual, you should know to do adequate research and the requisite homework about topics you know nothing about before spouting off and placing foot in mouth!!
For you or anyone else with an interest, here’s a link to some historical data and information on crude oil pricing and the “boom & bust” cycles. Scroll down for more detail on the 1986 price collapse…
http://www.wtrg.com/prices.htm Bob comment: “The Oil Companies here in the US did get subsidies, which they still collect even now.”
Totally false. The only thing major oil companies ever get remotely close to a subsidy is accelerated tax depreciation for capital expenditures. And of course, most other industries also use the available tax law and some pay no taxes at all!! Major oil companies pay income taxes at approx. 37%. Do your homework.
Bob comment: “In the 1970's OPEC flexed it's collected muscle and caused a false fluctuation in the marketplace. Big Oil was able to do this again in the 1990's and it continues to this day.”
So, are you talking about OPEC or “big oil”?? OPEC proved that cartels can only work for short periods of time but will eventually fail. Witness the collapse of crude oil prices in the late 1980’s through the 1990’s. Still don’t believe prices collapsed and stayed low?? Heavy crude oil in California fell to $6.00 per barrel in 1998 and many producers LOST money and some failed. Again, do your homework.
Bob comment: “Oil is not and has never been a real "free market commondity (sic)", it has been and is manipulated by cartels.”
Yeah? News to me. Crude oil and natural gas have been totally free market commodities since Ronald Reagan deregulated the oil & gas markets in the early 1980’s. Prior to that, crude oil and natural gas were both regulated by U.S. agencies with poor results. With no price incentives, the drilling rig count dropped and production declined. Paradoxically, when controls were lifted production increased and within a few years prices collapsed before finding equilibrium. Of course, the educated economist could have predicted that the free market would work much more efficiently than a regulated market. Again, do your homework.
Bob comment: “Now as a driver I complain about rising prices along with everyone else, as a stockholder in 4 different Oil Corporations I very much enjoy the dividends. I guess I am a hypocrite when it comes to fuel costs.”
Yes, you ARE a hypocrite!!
Wake up and smell the coffee. The price at the pump WILL rise and fall with supply and demand. I can assure you that it will rise more than it falls in your remaining lifetime. The American love affair with cheap gasoline is over. Get used to it.
