Sunday, November 26, 2006

Oil Price Manipulation?

An AP study concludes that the oil companies are manipulating prices by limiting supplies:

_During the 1999-2006 price boom, the industry drilled an average of 7 percent fewer new ells monthly than in the seven preceding years of low, stable prices.
_The national supply of unrefined oil, including imports, grew an average of only 6 percent uring the high-priced years, down from 14 percent during the previous span.
_The gasoline supply expanded by only 10 percent from 1999 to 2006, down from 15 percent in he earlier period.

The findings support a conclusion already reached by many motorists. Fifty-five percent of Americans believe gas prices are high because oil companies manipulate them, a Pew Research Center poll found in October.

I would not be suprised if this were true. But proving that it's true, and taking action to remedy it, will probably be quite difficult.

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