Bush's FTC finds no evidence high gas prices caused by gouging.

[flpoljunkie]

Who'd a thunk it!

http://www.nytimes.com/2006/05/22/business/22cnd-gas.html?
ei=5094&en=0fb05ad631cd42c6&hp=&ex=1148356800&partner=homepage&pagewanted=print

May 22, 2006
High Gas Prices Not Caused by Gouging, Report Says

By STEPHEN LABATON
WASHINGTON, May 22 — A federal investigation concluded today that rapidly rising gasoline prices over the last year have not been the result of unlawful price manipulation by the industry.

In a report that Congress ordered last summer after price spikes following the hurricanes that struck the Gulf Coast, the Federal Trade Commission said that the sharp jump at the pump was attributable to market forces — namely big drops in supply and production as well as runs on inventories after major damage to refineries, ports and pipelines. The commission found no evidence of price collusion, or improper reductions of inventory or supplies to increase company profits.

"The evidence collected in this investigation indicated that firms behaved competitively," the commission said.

Unable to find an industry villain in the sharp increase in prices, the report is certain to add political pressure on Congress to take steps to lower prices or reduce the record earnings of some oil companies. While the agency had been expected to reach the conclusions that it formally announced today, senior commission officials said they expected the agency would come under criticism when the five commissioners appear before the Senate Commerce Committee on Tuesday.

[Fire Walk With Me]

1. Foxes report: Henhouse in good hands, nothing to worry about

[ThomCat]

2. Key work "unlawful"

It has all been Legal gouging. Republicans have been working hard for an entire generation to make it possible for people to get ripped off over and over and over again.

[flpoljunkie]

4. Exactly, Thomcat!

[MikeNearMcChord]

3. I guess if you gave me a suitcase full of cash

I would say there was no evidence of price manipulation either, but then I would have to repent somehow.

[Fire Walk With Me]

5. Key phrase: "record earnings".

No price gouging, but record earnings. If only every business could figure that one out. Or individual.

[Cyrano]

6. So the fucking tooth fairy is ripping us off. Can't trust anyone today.

[Rosemary2205]

7. Actually they are telling the truth

Big oil did not manipulate the price of gas, they manipulated the SUPPLY by playing games with refinery production.

[flpoljunkie]

8. You are right, and this proves the FTC investigation is worthless. Will

the Senate Commerce Committee ask the FTC this question when they meet tomorrow or will they roll over and play dead?

[DBoon]

9. might be true

in the sense that a vulture's appetite does not cause the death of a large animal.

High prices having other primary causes (declining dollar, chaos in Iraq, etc.) are certainly being exploited by "vultures"

[NoAmericanTaliban]

10. Glad there is no wrong doing found - was going to setup a defense fund for

the poor oil companies :sarcasm: It's like this every time

1. Energy prices go up

2. People complain & Fed investigation is started

3. Prices go down

4. Investigation reveals no wrong doing

5. Prices go back up

same thing happened when energy companies were investigated by the feds over the west cost energy issues years ago.

[lindisfarne]

11. Unfortunately, they're right. Supply isn't meeting demand. That drives

up prices. It does mean that the big oil companies are making more profit per unit of oil/gasoline, but that doesn't equate gouging. (Look at the amount of money big music stars make on an album - it's quite disproportionate to the cost of producing the album).

I wish the money was going to tax coffers rather than the oil companies. But until we, the public, makes up our mind to lower the demand for gasoline (by walking, biking, and using public transport), the price won't go down - it will only keep going up. Even a decrease of 5% in demand could make a significant difference.

What will make the biggest difference is finding non-petroleum alternatives which will greatly reduce demand (world demand for petroleum is only going to go up and up as 3rd world countries increase their demand - although Americans use such a disproportionate share of the resource, if Americans greatly changed their habits, it could have a big impact on prices.).

[flpoljunkie]

12. Read Rosemary's post. Big Oil manipulated the supply.

"Big oil did not manipulate the price of gas, they manipulated the SUPPLY by playing games with refinery production."

[lindisfarne]

13. Some of the refinery production issues were caused by federal requirements

Not that I would put it beyond the oil companies to do what would benefit them, but I do believe the majority of the price increases are due to supply and demand.

Prices are going to keep going up as long as supply is just barely meeting demand. This makes the market very jittery. As it's unlikely large new oil fields will be found in the future, and as it's quite certain that the major oil fields are going to be unable to continue producing at the levels they have been, and as demand from the 3rd world is growing quite rapidly, supply will almost certainly not keep up with demand. High prices decrease demand for petroleum-based products (and decrease the relative cost of other forms of energy, which provide alternatives to petroleum-based products, thereby also decreasing the demand for pet. products).

I still stand by my statement that the only way we will see oil prices decrease on average in the future is to come up with alternatives which decrease the demand for oil. These alternatives include biking, walking, public transit, and alternative energy sources.