Chevron Memo: Are the oil prices the result of.......?

Sunday, May 07, 2006 at 06:30 AM

Uh-oh. Not good. Seems someone got hold of an old 1995 memo sent around by Chevron....


"A Chevron memo is raising suspicion that oil executives intentionally reduced refining capacity in an effort to boost profits. The 1995 memo, obtained by Consumers Union, reads:

'If the U.S. petroleum industry doesn't reduce it's refining capacity, it will never see any substantial increase in refinery profits.'

In the last 20 years, 18 of California's 32 refineries have shut down. The industry is now seeing record prices and profits at the pump."

18 out of 32 shut down? Whatever for?

Simple, kids, back to Basic Biz 101: Costing and profits are determined a great deal by supply versus demand, and if demand exceeds supply, why, prices just go up, true?

I can't begin to defend the oil companies on this one: This has "smoking AK-47" all over it. Agreed, companies have to make profits to survive, but this does tend to add a pointed clue as to crap like Lee Raymond's salary, and his nice $400 megadollar retirement package.

Let us continue?

" On Friday, former oil and gas executive Joe Sparano spoke with KCRA 3 and made no apologies for continued rise in gas prices. In fact, he explained that prices are a direct result of driver demand far exceeding gas supply.

'You don't have to like me or believe me, that's everyone's right, but listen to the facts and you might feel different about what you're seeing at the pump," Sparano said. "I understand people's frustration. Geez, I can't imagine them telling me the inflation-adjusted price of gas was higher in 1981 during the Iranian hostage crisis than it is today. People don't want to hear that.'"

Hold it right there, Joe. We also didn't have most of our jobs overseas then! We also didn't have a government pandering as hard for the wealthy as today. You want a cookie to go with that joint? You must have the munchies by now!

Oh, and Joe? We didn't invade anyone because of it, just a reminder, there.


"He also stressed that he is telling the truth when he said that oil companies are simply charging the price the market will pay and is not ruling out the possibility that gas could someday drop below $2 a gallon again."

The timing of the release of such a story, for our Rethug pals, comes at a time that cannot be described as truly awful:

  1. Too many citizens think that the real reason we went to take over Iraq is exclusively to benefit the oil companies and related industries. Where kids die, and money is tossed into the fire, the man-on-the-street thinks it's all for Bush, Cheney, Halliburton and Exxon-Mobil's benefit.

  2. At a time when dopey laws have been passed that allow jobs to further go overseas, to make filing bankruptcy a real bitch, allowing credit card firms to royally rape anyone they wish, and tax cuts for the rich folk....well, think about what that tells the voters.

  3. And let's face it, and this is for Lee, too: We watch, each week, a game show called "How Much More Fucked-Up Can We Make It Get?", starring George W Dipshit and his cast of stooges. Every week now, has anyone noticed this but me? Every week! Disaster, disaster, disaster. Irwin Allen is spinning in his grave!

  4. And, the best candidate for president, who swears he's not running, but we wish he was, is running around the nation, doing a pro-environmental kind of show. Talking about global warming stuff. So far, Al Gore has the buzz all around him, and many think he'd clean the plate as opposed to Mdm "Democrat-in-name-only" Hillary.

Point here to my raving?

It's bad enough to suspect someone of doing something bad, worse, far worse, than to lift the veil and expose an AK-47 with the stench of primer all over it. It is public record that these refineries were shut down, but why? Simple, kids, to drive profits up, and we are just dumb enough to buy $3 gas, that's why.

Just a minor detail to such a concept: Read the polls, Big Oil, read them very closely. You are not liked anymore. Your buddies in power are also not liked, and you think that's gonna go over really well come fall? Come 2008?

Funny, we talked back in the 1970's about nationalizing oil. Funny, I'm hearing it again, and gee, from those you'd call....conservatives!

Imagine that. A world without the influence of Big Oil? Coming soon to a planet near you.....!!