I guess my point is that OPEC represents lack of competition on the wholesale side, Western Retail Oil (Gasoline) companies also have a lack of competition. Check out these numbers for California. They clearly show smaller independants being edged out while a small group of large companies take over.
http://www.energy.ca.gov/gasoline/statistics/gasoline_market_share.html Without a healthy competitive market, market forces do not exist. Supply/demand and market price do not exist. OPEC is a wholesale cartel and Western Gas companies are a Retail cartel. The number of companies is decreasing as the remaining companies have expanded to control more and more of the vertical markets - owning wells, supply chains, refineries, and gas stations. There is definitely less competition on all levels and it's not good for the consumer. Just my opinion of course. -Cameron PS: IMHO - The same thing is about to happen (or happening) to the wireless phone market. On 11/8/05, Robert Munn <[EMAIL PROTECTED]> wrote: > The base price of the commodity (crude oil) is set by a world-wide market > that has fluctuated hugely in the last ten years- something like > $12-70/barrel. Take a look at this chart: > > http://futures.tradingcharts.com/chart/CO/M > > The last three years have seen steadily rising prices for crude. Is lack of > competition to blame? Consider that OPEC alone controls the lion's share of > crude, yes, I think that's fair to say, but that is reality. > > What interests me is gasonline prices, not crude prices. Check out this chart > of U.S. gasoline prices, both in real and inflation-adjusted dollars: > > http://inflationdata.com/Inflation/images/charts/InfAdjGas1918_2005.gif > > Apart from the OPEC embargo-induced gas crisis of the 70's and the price bump > in the 30's we've been on a downward trend in inflation-adjusted gas prices > since cars were invented. Only in this period of the last three years with > rising crude prices have we seen rising gasoline prices (in > inflation-adjusted terms). That's a remarkable track record for an industry > that is constantly inventing more complicated and expensive ways to extract > oil from places we previously could not get it (e.g. the Gulf of Mexico). > > The good news- it looks to me like the $3.00 spike is gone and things will > return to the previous slow growth in prices of the last three years. The bad > news- continued booming Asian economies will create a bigger and bigger > demand for oil, and prices will continue to rise. The only ways out of the > cycle are for us to use less energy or find alternate sources for our needs. > > > >On 11/8/05, Robert Munn <[EMAIL PROTECTED]> wrote: > >> The price of crude oil has gone up because of increased worldwide demand, > >> but > >> that is only part of the story. The price of gasoline has gone up because > >> of a > >> worlwide shortage of refining capacity. The hurricanes in the Gulf did a > >> lot of > >> damage to refineries in the region, further limiting capacity and causing > >> a very > >> large short-term spike in gasoline prices. > > > >Personally, I only buy this argument after acnowledging that the root > >cause of these problems (refining shortages, supply/demand issues) is > >lack of competition. I think that there are too few companies in > >control of too much supply. They really have no incintive to adjust > >prices or be competitive simply because they don't have to. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Purchase RoboHelp from House of Fusion, a Macromedia Authorized Affiliate and support the CF community. http://www.houseoffusion.com/banners/view.cfm?bannerid=59 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:180481 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
