[T]he American Petroleum Institute — that's big oil's main lobbying group — is launching a public relations offensive. Complete with Congressional oil patch tours, and contributions to friendly think tanks. It's trying to convince people rising energy prices are simply the result of higher demand and shrinking supply.
That is from the NPR American Public Media radio program Marketplace, today. Does the business-friendly show buy into this? For the answer, look below the fold . . .
MP commentator Jamie Court gives a definitive answer:
[I]n the run-up to the election, oil companies cut gasoline prices 500 percent more than their raw material cost fell.
Note that there is no 'Some might think . . .' or 'There are those who say . . .' about this. (See theyrereal's incisive diary on this phenomenon.) The evidence, to Court, is just too clear. His source? Department of Energy data.
Oil companies simply took less profit from their refineries for a short period of time. Could it have been to influence a political outcome?
Well, right after election day, the price of gas suddenly rose after two months of sharp decline. Post-election, refineries have slowed down, inventories are shrinking, and gas prices are climbing.
Now, I do not mean to suggest that this is going to be news to anybody here. Hell, in the run-up to the election, I had a little fun with a diary on the subject Just filled my tank down the BP - WHOOEY!!! But how often - or how infrequently - do we see confirmation of our educated intuitions in the MSM?
Will Big OIL succeed now?
It's back to business as usual, unless the new Congress starts to do business differently.
I take that as a call to action. What do you think?
UPDATE: Elwood Dowd takes exception to the title of this diary, noting that a commentary is not a report, and therefore 'Marketplace says YES' is misleading. He also objects to the characterization of Marketplace as 'business-friendly'. I think he is right on both points, and would have changed the title had I seen his critique a bit sooner. Thanks, ED.