I always get a kick when people think oil companies can charge whatever they want. It's great rhetoric but not true.
I watched petroleum traders stress out daily trying to both keep refineries fed (or shunt oil away from them somewhere else when a unit broke down) and get a decent price for it, when I worked for the now destroyed Texaco. They had to buy crude at whatever price they could get, keep tanks at expected levels to keep the refinery operating, and what the refinery wanted for crude type changes regularly. All oil is not the same. Pipelines break, tank farms have problems or need to be taken offline for cleaning, etc etc etc.
If you want reasonable fuel prices, you also have to let them actually build refineries. There haven't been new refinery permits issued since the 70s. Many have added units and upped capacity, but not much in the way of new ones. They're hated more than airports even.
And don't get me started on the SEC denying the Texaco/Chevron merger, forcing the company to sell one of the best brands in the world, to the idiots at Shell... and into British control.
Did the SEC really protect anyone from loss of "competition" in the long run, or just shove ownership overseas?
During the Gulf fiasco, all I could think was, "Yep, sounds like the BP we all knew in the industry. Texaco had rules against the crap BP pulled down there."
Consumers are getting exactly what they asked their politicians for, just like many other industries. "Don't let big bad Texaco and Chevron merge Mr. Government man! Save us from their evil ways!"
You got it. Enjoy lining BP's execs pockets and their cowboy operating pricedures. This stuff has consequences and sometimes it takes decades to see it.
The bad decision being made today is that political football about the pipeline in the Bakken. Warren Buffett is getting every bit of payback he deserves from the Administration blocking it to keep his train cars full, headed for refineries elsewhere. There's a reason he bought a railroad and it wasn't for freight. He's the only way out of the Bakken except for Tessoro's refinery which is there by dumb luck, mostly.
I'd say "paging Clark" for more insight, but no one in the biz is going to bad mouth any other company's operations because tomorrow another merger happens and they now have to work for the idiots.
You don't pre-burn your bridges in the oil biz. It's a small world. Especially pipeline management.
I feel for anyone who ended up at BP or a subsidiary. They're the epitome of a "numbers company" above all else. Even safety.
Texaco was un-safe on golf courses. That was what we were known for... Getting kicked off of golf courses.
There may still be some golf carts at the bottom of some water hazards somewhere, but I'm not telling.
Operations had a huge safety culture. It was generally lost in the merger. Leadership left, from the top down. Lots of early retirement packages.
I can say stuff like the above, because I got out and have no plans to go back. No one in the industry was surprised when BP made a mess in the Gulf. Guess who DOI is still handing drilling rights to, down there? BP and Petrobras. (Gotta keep Soros happy in the latter case.)
Government isn't regulating as much as they are handing out political favors in the industry these days. The great PR campaign to demonize petroleum companies makes it easy -- really easy -- for there to be no questions asked by the Press or Public when they say "no" to worthy companies and projects.