Dale; Not likely ! I have been an observer of the price fixing of petroleum since the early 1950s, since that is when I started driving. Prior to the 1960s we used to
see "gas wars" between brands. This was especially prevalent where the various suppliers competed directly. I recall a particular corner some 12-14 miles from where
I now live. There were 4 filling stations on that intersection.Mobil, Gulf, Texaco and my friend ran the Sunoco station.
A gas war started on that corner, at which point gasoline was .39 per gal..the "war" continued until the price war finally levelled off at .19 per gal. Yes; the oil companies
did used to compete..Older drivers can recall when stations were "full service", bragged about their "clean restrooms" and even provided free roadmaps ! The attendant
automatically checked your oil and cleaned your windshield while some with "super service" m,ay even check your tire inflation pressures !
The sea change came about just a bit later.....OPEC formed in 1960 with 5 (mid east) members; a start..but still not enough clout to affect the world oil market
in a severe way. In 1973, 9 more members joined..then they did have some clout ! Perhaps some will recall, it was 1973 when the first "oil embargo" started. This move by
OPEC was encouraged by the fact that the US had just elected a very weak President !
Since that time oil prices have risen or receded by the whim of OPEC ! Here's the pattern;
1) OPEC turns down the spigot, nations groan..but keep buying..
2) OPEC turns back the spigot a bit more..prices skyrocket..
3) Finally, the oil consuming nations decide to exploit their own natural resources, or develop alternate energy sources.
4) OPEC meets, doesn't want consumers developing their own resources..agree to crack the spiogot open just a tad more;
then sits back to listen....
5) If the consuming world breathes a sigh of relief, and a cautious "thank you", and start to decide "maybe drilling offshore,
developing nuclear energy or oil shale won't be necesary"..OPEC keeps spigot in place ..
6) If the consumer nations would say " %$#*@^* OPEC". We are going to break their stranglehold once and for all ! We will drill,
build nuclear, drive 40 mpg vehicles, drive less, live in smaller, more efficent houses and develop alternative energy sources..
OPEC would have to deal more HONESTLY (IMO).
...Until then Dale, we won't see $3 oil again..
7) The US and other food producing countries all say "we will not use food for a weapon"..that is hitting yourself with a "sucker punch "!
Food prices should be tied to energy prices..simply because they assuredly are ! Let the UN (useless nothing) furnish food grown by the
US, Australia & Canada to the starving of the world..which the food producers will sell to the UN..at prices tied to oil ! It would not be a
hard case to make that OPEC is the culprit !
9) Until we do that, we will be at the mercy of OPEC..and people like the Arab countries, Venezuela and Nigeria have none..
Gasoline prices will fluctuate up and down..always going to new highs..never going back to where the last price launch started from.
Below, see a couple charts by the Ontario corn producers..it shows how oil started to spike as soon as we had a weak administration and
OPEC had a virtual monopoly...