Internal oil company documents prove conspiracy to reduce refinery capacity in order to jack up prices
Paul Joseph Watson
Friday, April 16, 2010
Alex Jones appeared on Russia Today to expose how major oil companies are driving up the price of gasoline by reducing refinery capacity, a familiar ploy that was exposed by Senator Ron Wyden’s 2001 investigation which published leaked oil company documents proving collusion between oil cartels to manufacture artificial scarcity.
We were particularly amused by the woeful inaccuracy of a neo-con in the You Tube comments section who claimed the following.
“Jones is such a fraudster. Jim Tucker is an old conspiracy crackpot fart who make ridiculous crackpot conspiracy du jour claims repeatedly that never are true. It’s the environmentalists and their Democrats politicians that are blocking new refineries. Jones definitely doesn’t know anything about the oil business.”
In actual fact, Tucker has become renowned for making accurate predictions. He reported that the invasion of Iraq had been delayed by Bilderberg until 2003 when all the corporate media was reporting a 2002 attack date in unison.
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On the subject of major oil cartels artificially reducing refinery capacity in order to jack up profits, this was reported on as recently as last month by the L.A. Times.
“Energy companies are suffering huge losses from refining because of slumping gasoline use — a product of the economic downturn and changing consumer habits and preferences. Energy experts say refining cutbacks have begun and will accelerate as corporations strive for profits,” states the report.
Tyson Slocum, director of Public Citizen’s energy program, makes reference to the leaked documents Alex referred to in the interview, where oil companies conspired to create artificial scarcity.
“We know from internal documents from the last time we had a situation like this, in the 1990s, that there was an intentional strategy on the part of some companies to drive up profit margins by shuttering or closing refineries,” states Slocum.
A 2001 investigation led by Senator Ron Wyden found that, “Facing what they deemed inadequate profit margins in the mid-1990’s, oil companies readily recognized that the surest way to drive up profits was to drive down oil and gasoline supply. By restricting supply, they would be able to demand higher prices and reap higher margins for their product.”
The full report, as well as excerpts from the oil company internal documents proving collusion to reduce refinery capacity can be read here.
This article was posted: Friday, April 16, 2010 at 8:47 am