We Are Being Raped by the Oil Companies (Monopolies); It is Finally Time to Do Something About it Now!

California Attorney Norman Gregory Fernandez speaks out on high gas prices

Does everyone remember how the price of Gasoline decreased substantially before the last congressional elections? I wonder why that was. Does anybody think that maybe the Oil Companies were trying to influence the elections? If the price of gasoline and oil are truly market driven, how was it that gasoline prices managed to substantially fall close to the elections?

Since the last congressional elections Gasoline has gone up here in California about 80 cents a gallon. Regular unleaded gas is going for over $3.00 per gallon now, and premium is at about $3.20 per gallon. My Oldsmobile Aurora and Harley Davidson Electra Glide take Premium gasoline. I wonder why it is that I am paying 80 cents more per gallon than I was just a few months ago.

The past couple of years the oil companies have been raking in record profits at the expense of all Americans. Big Oil’s greed is ruining our economy at all levels. We are an energy driven economy. The price of oil and gasoline is directly proportional to the price of everything else we buy. We can expect the price for everything to go up, people to lose their jobs, and a potential recession to spring up due to the cost of gas in our nation.

I have read the same bullshit excuses for the price increases that the Oil companies always use i.e. some refining plants are down for maintenance; summer is coming so demand is up, etc. It is not even spring yet!

Oil companies are in fact monopolies. A monopoly is a company or market where there is not true competition because only one or a few companies control the market.

I am not going to make the article boring by writing about what the history of the laws that have been enacted to break up monopolies such as the John D. Rockefeller “Standard Oil” monopoly on the early 1900’s, or the “AT&T” (ma bells) breakup in the 1980’s, or even the monopoly charges involving Microsoft. Monopolies are the bane of capitalism.

Capitalism is a supposed free market system that runs our economy. The theory is that private people or companies can buy and sell goods and services for a profit. The gist of capitalism is that competition for profit will keep prices in check because one competitor will lower prices and keep the cost of producing a product down so that they can beat out their competitors. You may wonder what I mean by “supposed” free market. When there is no real competition in a particular market, then there is no capitalism, there is a monopoly. There is no competition in the oil business; it is a monopoly. A monopoly in its simplest form is the absence of choice.
We have no real choice when it comes to buying gas.

It has been shown that unregulated capitalism has time and time again wreaked havoc on our economy and nation. Have you heard of the Great Depression in the 1930’s, or the Savings & Loan collapses in the 1980’s, etc.?

I am not knocking capitalism by any means, other economic systems are much worse. I am saying that sometimes regulations need to be put in place to protect our economy and our people from monopolies and illegal practices.

There is no true competition in the oil market. A very few companies control the entire market. We are basically slaves to these companies. If they decide to charge us $3.20 per gallon, than we have to pay and that is it. It is not like we can drive down the street and get a better price and they know it.

I am proposing that it is time to regulate the oil market in America just like the utility companies. In California if a utility wants to increase the cost of electricity than that increase has to be justified to the California Public Utility Commission. A company has to make a presentation as to why an increase is necessary and the increase must be approved before it goes into effect.

I think that it is now time to force the 3 or 4 oil companies that control all of the gas in this nation to have to go through a similar system before they can just willy nilly increase gas prices on a whim. I have heard all of the hoopla about how the market controls the oil prices, bla bla bla. The reality is that there is no free market in oil. There is a false appearance of a free market for gas and we are all suckers.

We are all being duped. The President and his Vice President are all oil men, backed by the oil companies. Why do you think that the gas prices dropped during the recent elections? The oil companies were trying to ensure that the government was being controlled by people that would let them continue raping us all. Do you honestly think that the gas prices substantially fell before the elections by coincidence? If you do than I have a very big ocean called the Pacific for sell!

If something is not done now to put checks and balances on the less than a handful of oil companies that control all of the gas in our nation, we are in for a serious world or hurt. Sometimes it is necessary to enact laws in our nation to protect us citizens from what the oil companies are doing to us right now. A very few are becoming super rich at the cost of our nation’s economy and well being.

What will be the effect of regulation? Maybe these poor oil companies might have to give up a few of their tens of billions of profit each fiscal quarter to ensure that our economy remains strong.

I still believe that the will of the people controls our nation. It is time for all of us to ask our government for help here. If they will not help us than we need to elect people that will before it is too late. I am tired of bending over at the gas pumps so that a few maynerds can get rich.

By Norman Gregory Fernandez, Esq., © 2007

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15 Comments

  1. Stephen Freeman

    Even though I live in Australia many of your articles are applicable on the other side of the Pacific. We have exactly the same problem with the oil companies here. The only difference is the price. We are paying AUD $1.20 per litre for 91 octane, $1.26 for 95 octane and $1.34 for 98 octane fuel. (BTW a US gallon is about 3.8 litres) The excuses are similar, the world price of oil, China is using more oil and the problems in the middle east.

    We love your site down under so keep up the good work.

    Reply
  2. Anonymous

    Norm: I agree with you again. Who ever thought that it would take $13.00 and some change at $2.59.9 a gallon of 87 octane to fill up a motorcycle? Now it is like I work a half a day to pay for gasoline to drive to work five days a week. Soon it will be $3.00 again in Florida….or so, our State Senators predict.

    Reply
  3. Steven

    Then don’t fill it with premium. Harleys don’t need high octane unless your engine has a compression ratio of 10:1 or higher. You only need to use it if your engine is pinging. Harley tells you to use 91/92 octane because they get so many people wanting warrantee work just because the engine is “making a wierd noise”.

    As for higher gas prices, I don’t agree that it’s a greed issue with the big oil companies. First, these companies don’t own the oil that’s in the ground. They buy it from Arab countries, and those countries control how much oil is getting into the market. Point your finger at the Arabs.

    Second, the market is based on demand. If the price of gasoline goes up to $3.00 a gallon, and everyone still buys it, then technically, it’s not “too” expensive. It only becomes too expensive when people stop buying it. As long as the demand is there, the price will always rise. That’s a basic premise of “Supply vs Demand”.

    As for people having no other choice but to buy gasoline, that’s not entirely true. We have all kinds of options, running from carpools, bicycles, buses, trains, motorcycles, and even telecommuting. But people still prefer to commute solo in their cars, even at $3.00 a gallon. Proof that people are not suffering from the price increase.

    So, as long as the market can withstand a price $3.00 a gallon, there’s no problem with it. There’s nothing wrong about making billions of dollars in profit. That’s what companies are supposed to do.

    Reply
  4. Anonymous

    Went straight to my owners manuel for a Fatboy. It recommends you use 87 octane. It iells you not to use 92 or 93 octane. It is hard to believe that gasoline has gone up 100% in Bush Presidency. I know that you want no politics. My Dad told me the same thing your Dad told you. But, as a citizen of the United States, we all need to vote. People who do not vote should not say anything. We are lucky to have the ability to vote. The folks are still reeling from the Enron scam. For example Len Lay’s multi-million dollar fortune went to his wifw and kids. Jeff Skilling was a smart one, his is in other people’s names. By the way is Skilling serving his sentence yet??? Or is his money keeping him out of prison till his lawyers run out of appeals? For sure he has time to put his affairs in order.

    Reply
  5. Steven

    Unfortunately there is more to this story than just supply and demand. It is about no-competition, and no regulation whatsoever. We in California were the victims of the Enron scam whereby a company using the same arguments as you turned California into a 3rd world country during one summer a few years ago i.e. rolling blackouts, etc. to illegally line their pockets.

    I don’t disagree that oil companies are raising their prices irrespective of current demand. What I’m arguing is that this is NOT price gouging because consumers are still willing to bear the price increase for the luxury of driving solo in their cars. I think it’s totally ethical for companies to sell their product at whatever price the market is willing to bear.

    To put it in another way, the oil companies didn’t force you to buy gasoline. You made that decision.

    Reply
  6. Sandie

    We think the price of gasoline is bad! I am shocked by the amount of foreclosures in our country. A lot of hard working people are one paycheck from the street. How can all this be, I ask you as a business major?? It is scary…….we have to have gasoline to get to work. There is no mass transit here. I hate to say it…..but I am going too…..seems like Bill Clinton did some things some folks say were wrong as far as his personal life, but we were not the most hated country in the world and we did not owe billions of dollars to other countries. It seemed like people were better off. I look around and I see a lot of people suffering, worried sick, jobless, no health insurance, old people unable to buy needed medicine and food, I can go on. I liked Reagan, everyone liked “Ronnie”.Even Russia!! What has happened to our country? I took Economics At University of Kentucky. The supply and demand really has nothing to do with us “having” to buy gasoline to get to our jobs, the grocery store, our lawyer, our doctor etc. If we do not buy gasoline, our only choice is to walk or pedal a bike. Maybe it is time to use corn oil for fuel!!!! I love history. Some of the things going on were happening in the “Hoover” days. Something must be done. If we do not have jobs…..we sure will not be buying gasoline.

    Reply
  7. sandie [ Member]

    You are right “OUR GOVERNMENT” must take control of this gasoline problem. Yes, history does repeat. We should learn something. The “DONALD” is 100% correct. There is a lot of old and very rich “OIL” money in Texas. I ask you……Why are there so many uncapped oil fields in Texas between Dallas and Abeline? What about all the millions of dollars that went to build the Alaska pipeline? My daughter, in her third year of college has asked me…..I do not know what to tell her. We had a city election last Tuesday. The City of Sebastian, Florida has 20,000 legal residents. Our city council election had a turnout of approximately 3,300 people. Citizens, you must vote. When you vote, your voice is heard. Maybe not in Florida, as this GREAT STATE can not count votes. We are still questioning the First Gore/Bush Election. In college history, my daughter’s professor said that election will always be in history as being questionable. We had a Governor who was a brother, putting pressure on Katherine Harris, the person who is Republican and wanting Bush backing when she ran for Senator two years later. Then the vote was certified. I often wonder what our founding fathers would say about the electoral college votes now?????If it smells fishy……it probably is fishy. I hate to see people lose their jobs and then homes. It could be any of us.

    Reply
  8. sandie [ Member]

    Jeff Skilling of the ENRON mess is indeed in prison in MN. He started serving his 25 year sentence a couple week before Christmas. It is a really nice place. Too nice for what happened to many good people. It is best to be a federal criminal, they have really nice places to stay while being punished.

    Reply
  9. sandie [ Member]

    It is not polite to discuss politics, religion, money or sex. Last semester my daughter had to write a thesis on the 2000 Election. She embarassed me by asking everyone she knew and some she did not know who they voted for and then asked me if I thought people where embarassed and did not want to admit they voted for Bush 2. Her conclusion is that the Electoral College is out of date and should be changed to popular voting as that is the true way the voices of American Citizens are heard. Also, Amanda concluded, as you did that President Bush was given the election by his brother Jeb the Governor of Florida. That Jeb will go down in history as giving a election away. Okay, my printer is out of ink. Amanda printed 55 copies of your article on the oil companies raping us. Everyone brought in Mom and Dad’s phone bill, cable bill, electric bill and were asked to go to a gas station and ask for how the gasoline was taxed. Besides city. state and many other taxes…….there is a fuel cost for the delivery of the gasoline. The Professor agreed with you and one kid said his Dad would like to see Donald Trump run for President and if he ran for President he would place 100 signs in his yard for support. Many people in Florida are worried about having jobs and not losing their homes. The State of Florida is at a all time record high for foreclosures. Our lawmakers want computers for voting. Guess what, last Presidential Election of Bush 2 there was a computer glitch in Palm Beach County…..AGAIN. The older people want the paper ballots. My 90 year old great aunt who lives in Cincinnati, Ohio will only vote abstentee due to the fact it is on paper. Paper workrd before computers…..I agree with her. The Professor said as far as Florida History, Jeb Bush will go daown as the Governor who gave away the election. One kid said you were very smart and wondered your age, he said you remembered the Hoover years well and you knew lawyers were paid in chickens, canned food or possibly a meal for services rendered. Remember “Little House on the Prarie”? The oldest daughter of Charles Ingall’s, Mary was married to a lawyer and that was how he was paid if he got paid at all. Things do trickle down. College Economics is discussing the fall of the American dollar. Folks that have money are putting some in Swiss Banks………..things are bleak to say the least. The United States owe many countries a lot of money. Now, when our Military contractors fly abroad, they are not allowed to wear their ID and Credential tags around their neck. I speak of Lockheed Martin, Boeing, Allied Space Alliance, Harris, Northrup Grummun for fear of terrorists on planes attacking them because of our nations Homeland Security. The Space Coast area has many Military Contractors most of the people living in Brevard County have jobs in communication and SATCOM for the government. Guess what research is now being done??? Where are the weapons of mass destruction and why we went to war??? Amanda said to tell you this is not politics……it is History and being recorded. I feel so old!!!!!! We went up to World War 2 in high School History.

    Reply
  10. Norman Gregory Fernandez

    Believe it or not it is probably the same oil companies on both sides of the Pacific hiding under different names.

    Norm

    Reply
  11. Norman Gregory Fernandez

    $2.59 a gallon is a dream come true. It takes me about 20 bucks to fill up my Harley with premium.

    We are getting raped and everyone knows it. As I told you before, I try to stay out of politics on my Blog, but we have been pretty much getting raped since 2000! I was looking at some old pictures that we took at the gas station before Bush. The price was $1.50 per gallon.

    There is no possible excuse for gas going up 100% in 7 years unless something or someone is playing games. The oil companies know that they can get away with it so they are raping us. It is just like a kid with a cookie jar, they will eat all of the cookies unless mommy stops them.

    In this case mommy is not stopping them! The people need to regain control of the government.

    Norm

    Reply
  12. Norman Gregory Fernandez

    Steven what is the difference between demand now as opposed to the elections a few months ago? None! It’s a big scam. I does not take rocket science to see that we are all being screwed right now.

    My major was Business in College; I know the principles you are arguing full well.

    Unfortunately there is more to this story than just supply and demand. It is about no-competition, and no regulation whatsoever. We in California were the victims of the Enron scam whereby a company using the same arguments as you turned California into a 3rd world country during one summer a few years ago i.e. rolling blackouts, etc. to illegally line their pockets.

    I do not disagree with you that companies are not supposed to make profits, however I do disagree with you that these same companies should also receive special tax credits while gouging the public which is what they are presently getting and doing with no real accountability to anyone.

    I am quite positive that if we were to regulate oil prices, the big oil companies would still be there with their product. Monopolies have been broken up before, and hopefully we will continue to break them up in the future when the need arises.

    The problem here is that unless something is done very fast, we will be headed into a very bad recession. Who in our government has the balls to do a real investigation to see what is really going on?

    As far as my Harley, it runs better on premium. I would not even think about putting regular unleaded in it.

    Norm

    Reply
  13. Norman Gregory Fernandez

    Steven the same can be said for any product that is controlled by a monopoly. The simple reality is that there is no real choice. What are you going to do if you do not buy gas for your car? Here in California there is no viable mass transit option. The oil companies have us by the balls.

    Even if I did not drive, I would be the victim of the increase in prices of all retail, food, and other goods and that are the necessities of life in this country. All of their prices are either directly or indirectly driven by the cost of energy. The entire economy depends on energy and oil for everything from generating electricity to the transport of goods.

    You are right I not forced to buy gas; but I really have no choice. Either do the many other hundreds of millions in this nation. The oil companies know this, and they know that we will pay whatever they charge unless someone stops them. This is why utilities are regulated in California.

    It is not in this nations best interest to allow the oil companies to control our nation with unfettered discretion to do whatever they want to do. I hope my doomsday prediction does not come to pass, but it appears to me that the energy cost being what they are will be directly responsible for a major recession in our nation. Our nation has a symbiotic relationship with oil. I say regulate the price that companies can charge, and the mode and method by which they can increase prices. I am quite sure the companies will still produce product for the market, even if their profits are not so high. It is in the national interest to do so. This may even be a national security issue!

    Norm

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  14. Norman Gregory Fernandez

    History seems to repeat itself does it not? It was proven during Reagan/Bush 1 that trickle down economics do not work. During Reagan we had the same exact problem with foreclosure and the housing market crashing.

    It turns out that the money does not really trickle down to the folks that need it.

    Donald Trump said that Bush II is probably the worst President in our nation’s history. Donald Trump is a very rich guy! I don’t really want to go into Politics in this Blog, but I will just say this; Bush is an oil man. The prices have been sky high ever since he took office. It is like the chicken guarding the hen house.

    Norm

    Reply
  15. Norman Gregory Fernandez

    Sandie don’t get me started on Politics! 2000 was the year that our nation had their choice for President stolen from them by a guy named Jeb.

    Norm

    Reply

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