For The Love of Oil

PRELUDE

PRELUDE TO CORRUPTION; THE POLITICS OF OIL

From 1995 to 2000 fourteen of the top fifteen oil companies merged in some fashion. Many have stated that the oil and gas company mergers of the late 1990’s simply put Standard Oil back together again. By allowing most of it’s former companies to merge into a handful of companies, they are now united in effort to manipulate the refining and distribution of oil products, much the same as Standard Oil once did. In one respect, the politicians have allowed a ‘corporate oil cartel’ to be created. One much more powerful than OPEC.

In May of 2001 Senator Carl Levin pointed out in a letter to the General Accounting Office (GAO) that oil and gas company mergers of the late 1990’s had had an adverse effect on consumers. He expressed his concern about price manipulation. The GAO in an earlier report had also concluded the oil company mergers had led to higher prices for the American consumer.

Yet the politicians we elect have done nothing about it. Unless you count the tens of millions of dollars they have taken from the oil companies ($52 million from 2001-2004, mostly to the Republicans), or from the Wallstreet investment and commodity firms ($26 million in 2005 alone, 52% to the Democrats), in order to do nothing about it.

The goal of this book is to educate and explain in basic terms how the oil and gas companies, and Wallstreet commodity firms, have driven up the cost of oil products and natural gas. It will also give the reader information to help bring about political and economic change.

Most notables were in 1999 when Exxon and Mobil merged. Both were originally Standard Oil companies. In 2000 Chevron acquired Texaco. Both were also formed from the breakup of Standard Oil. Also in 2000 British Petroleum (BP) merged with former Standard Oil companies Amoco, and Atlantic Richfield (ARCO).

All mergers and acquisitions sailed through congress. The FTC and the SEC requiring them to only sell off small portions of their companies refining capacity to other big oil companies not involved in the particular merger. It was nothing short of a shell game of oil refining ownership between the largest oil companies once it was all completed.

As some have stated, the oil and gas company mergers of the late 1990’s simply put Standard Oil back together again. By allowing most of its former companies to merge into a handful of companies, they have united in effort to become a powerful entity that controls oil and gas prices by manipulating the refining and distribution process, much the same as Standard Oil once did. In one respect, they have created a corporate cartel, much more powerful than OPEC, but one that OPEC members benefit from.

In May 2001 Senator Carl Levin of Michigan pointed out in a letter to the General Accounting Office, now the Government Accountability Office, (GAO) that the oil and gas company mergers of the late 1990’s had had an adverse effect for consumers. He expressed great concern that price manipulation was ongoing and had only been made easier by the mergers. The GAO in an earlier report had also concluded that oil and gas company mergers of the late 1990’s had led to higher prices.

And yet politicians have done nothing about it. Unless you count the tens of millions of dollars they have taken from the oil companies to do nothing about it.

The goal of this book is to educate and explain in basic terms how the oil companies and others have driven up the cost of oil products and natural gas. It will also give you the information needed to help bring about political change.