..."But the free market is not exactly in a textbook place right now when it comes to oil. Rather than having a multitude of ice cream parlors to choose from, the consumer can select from only a few oil companies, and they own not only the parlor but the cows and the dairies, too.And later...
Plus, there's another big difference between ice cream and oil. The choice of having an ice cream cone is a luxury. Driving a car, for many of us, is a necessity."
"The real problem is legal manipulation of prices, says Tyson Slocum, acting director of Public Citizens Critical Mass Energy and Environment Program. The oil companies have gotten so big they don't need to collude anymore. Advances in computer modeling have really aided the ability of the big companies to game the market."Still later, there's a reference to Arizona Clean Fuels as an example of a small company able to get permits to build a refinery in the face of stringent environmental regulations that "Big Oil" says prevents them from doing. Here's a little story that demonstrates the "friendly" environment even Arizona Clean Fuels must navigate through - before they spend $2.5 Billion (if they can raise it)!
Let's all face reality. This is not a FREE market, anyway you look at it. Big US oil companies don't only compete against each other. There are global competitors which have as much of an impact on the price of oil and gasoline as the "Big 5" (TotalFinaElf, Yukos, Lukoil, etc). There are also corrupt and greedy governments that control large sources of oil - not just in the Middle East - Venezuela and Russia for instance. Environmental and governmental regulation and internationaltarifff and quotas limit the free market. Add the appeal of rising options in the futures markets where institutional investment dollars have increased five-fold since 1999 and you've added a whole new dimension.
Blaming and penalizing the "Big 5" oil companies will make some FEEL better, but it won't lower anyone's bill at the pump.
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