Big Blue Machin
Member
I think the energy bill that Congress passed is a good one, although it should have pushed for more fuel efficient cars.
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Mr. P said:Sure I understand that and agree for the most part.
However, even if mass transit became a reality, I as an oil company
CEO with close ties to the other few CEOs would simply agree to cut production and keep prices high to maintain that profit. Call it collusion or price leader, it doesn't matter nothing changes. This helps no one. So what we truly need is MORE competition..Be it alternative fuel
or new wells from different companies. IMO
Sure they can coordinate..a penny here and there..But in the end, they are the "little guy" and looking for their own profit, insignificant compared to the BIG 5 or so which set the stage..elephant said:....
Finally, you might be surprised to know that gas price coordination is much easier and more common at the retail level. It turns out the "little guy" is often just as likely to take advantage of the consumer's situation.
This is happening and must continue.Another possible reaction would be the development of alternative fuels or engines by new companies. I believe some of this currently happening.
Here's the rub.. the market can't bear it..it's not just Joe Blow consumer out there buying gas....Until that happens prices will increase because the market will bear it. Oil companies only profit if consumers are willing to buy.
Mr. P said:Sure they can coordinate..a penny here and there..But in the end, they are the "little guy" and looking for their own profit, insignificant compared to the BIG 5 or so which set the stage..
This is happening and must continue.
Here's the rub.. the market can't bear it..it's not just Joe Blow consumer out there buying gas.
All the companies that transport a product or use fuel for manufacturing must buy fuel too, and lots of it..those extra costs are passed back to the manufacture which then pass them back to the consumer with a price increase. So, how high does it go before that straw that breaks the camels back?
IMO this is an economic issue in need of immediate attention..it's what law prohibiting a monopoly is all about..Utilities due to their near monopoly and importance to the economy are price regulated by public service commissions, perhaps if the oil companies can't get a grip on reasonable profit they should be too. Until we get alternatives.