Comments on: Why Oil Jumped to $130 per Barrel http://www.jimbyrd.com/why-oil-jumped-to-130-per-barrel Thu, 02 Feb 2012 11:01:49 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Kyle http://www.jimbyrd.com/why-oil-jumped-to-130-per-barrel/comment-page-1#comment-912 Kyle Tue, 23 Sep 2008 21:53:39 +0000 http://www.jimbyrd.com/?p=482#comment-912 It might have something to do with Oil masquerading as a free market when in fact its not. The consumer doesn't have a viable method of voicing an acceptable price through alternatives or discontinuing use. Its a required part of life put in place by years of real estate trends promoting sprawl that was not just made possible but dependent on the ability to commute rather large distances and our auto industry that has never seen a need to realistically provide alternatives to oil burning cars. So you have cars, real estate and cars. The consumer demands prices on the first two, but the average consumer has almost no effect on the last. Because of that it now hurts to live 80 miles out of town and drive a suburban to work everyday. They got you where they want you. How is oil different than other utilities as view by the consumer? You have to have it, and nobody is breaking the curve on prices? If we have a Public Utility Commission, then why not a similar body for what is just another energy related matter, which should probably be under the public utility commission. From the Texas PUC- "electricity is not a monopoly warranting regulation of rates, operations and services ... However, because electric and telephone service are essential to Texas citizens, there are many situations where the normal forces of competition, when left to themselves, would not result in an outcome that would be considered good public policy or to benefit customers. For example, inefficient market rules or insufficient competitors may result in too few competitors to allow competition to set prices. At these times, to the extent that the PUC’s statutory authority allows it, the Commission must assert its regulatory powers to balance the needs of customers with the principles of competitive markets to attempt to optimize the overall outcome. This is one of the Commission’s most frequently faced and difficult challenges." It might have something to do with Oil masquerading as a free market when in fact its not. The consumer doesn’t have a viable method of voicing an acceptable price through alternatives or discontinuing use. Its a required part of life put in place by years of real estate trends promoting sprawl that was not just made possible but dependent on the ability to commute rather large distances and our auto industry that has never seen a need to realistically provide alternatives to oil burning cars. So you have cars, real estate and cars. The consumer demands prices on the first two, but the average consumer has almost no effect on the last. Because of that it now hurts to live 80 miles out of town and drive a suburban to work everyday. They got you where they want you.

How is oil different than other utilities as view by the consumer? You have to have it, and nobody is breaking the curve on prices? If we have a Public Utility Commission, then why not a similar body for what is just another energy related matter, which should probably be under the public utility commission.

From the Texas PUC-

“electricity is not a monopoly warranting regulation of rates, operations and services … However, because electric and telephone service are essential to Texas citizens, there are many situations where the normal forces of competition, when left to themselves, would not result in an outcome that would be considered good public policy or to benefit customers. For example, inefficient market rules or insufficient competitors may result in too few competitors to allow competition to set prices. At these times, to the extent that the PUC’s statutory authority allows it, the Commission must assert its regulatory powers to balance the needs of customers with the principles of competitive
markets to attempt to optimize the overall outcome. This is one of the Commission’s most frequently faced and difficult challenges.”

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