So BP has a leaky pipeline.

[Bluzmann57]

Why are all other oil companies raising their prices because one company has to repair one of their pipelines? This sounds like monopoly, collusion, something along those lines. And another thing, why can't BP take money out of their executive profits and try reinvesting in maintenance? The company I work for does just that. The top man makes plenty of money, but also isn't afraid to invest in the companies he owns if it helps him make more. BP and the other oil companies obviously just want more more more while we have less. Normally, I am not a big advocate for Governmental intrusion into private business, but this shit has to stop. C'mon Congress, do something! No reason why all oil companies should raise their prices because one is having problems. Seems Un-American to me.

[Dogmudgeon]

1. The Collectivism of the Market

Collectivism is only bad when it makes the little people better off.

When it makes the Big People better off, it's called Capitalism.

--p!
One of the little people.

[unpossibles]

2. I agree 100%

I don't understand how they can legally get away with this. Most businesses pay for their own infrastructure and maintenance, and if they have to raise prices to cover that, then they do so at the peril of losing business to their competition.

Oh wait - there is no competition in the oil industry. My bad.

[kurth]

4. Textbook example of oligarchy capitalism flourishing in a fascist regime

[tridim]

3. But BP is now "beyond petroleum"

Apparently they are now very concerned about the environment and developing clean, renewable energy sources. I guess oil spills are part of that plan.

Regardless, the TV tells me that BP is the good guy. So knock off all this stuff about collusion and other criminal business practices, the good guys would never screw their own customers.

Of course all this is moot, because our glorious leader will dip in to the strategic oil reserves and sell us that oil at about twice what WE paid for it, and then replenish the supply at an even higher price. * is always looking out for his poor oil executive friends who are apparently having problems putting food on their family.

[Robbien]

5. What is also strange about this article is that it doesn't mention the

previous spills which BP has had over the last year due to corrosion of the pipelines. This last spill is just the one which happened at a point which shutdown the distribution.

BP being the good guy is very good false advertising.

[Caution]

6. Oil is traded as a commodity. It isn't that the companies are raising

prices. Those who buy oil basically "bid" on it. The prices are going up because those who buy oil are basically betting that there will be a lower quantity of oil available for their use so they try to out-bid one another. This then gets passed on to the consumer in the form of higher end-product pricing (high gas prices, higher prices for plastic items, etc etc)

[mccoyn]

7. This article suggests it is a shared pipeline.

http://money.cnn.com/2006/08/07/news/international/oil_alaska/index.htm?cnn=yes

"Prudhoe Bay is operated by a BP-led group that includes ConocoPhillips (Charts) and Exxon Mobil Corp."

It sounds like maybe the pipeline was operated by BP, but other companies were pouring into it as well.

[slaveplanet]

8. It was BP that ignored maintenence

Gheit said the problems with the pipeline should not be a surprise, adding it's been well known that oil companies are not doing enough regular maintenance on their infrastructure.

When oil prices were low, they were reluctant to spend on that kind of maintenance, he said. But when prices soared in recent years, the cost of shutting down a pipeline or other facilities for maintenance would have meant too much lost production.

"This thing has been in operation for more than 30 years. Corrosion has to happen. Something has to give," Gheit said. "This is going to be a warning to other companies."


and look at what the problem is:

BP's statement said the latest problem was discovered when an inspection completed in late July revealed 16 "anomalies" in 12 locations in a pipeline on the eastern side of the oil field. The corrosion had caused a thinning of the pipeline walls, according to the company.

[Bluzmann57]

9. Oh. Ok. Thanks.

But I still don't understand why all three companies can't use their vast resources to fix the damn thing and not pass along the cost to us. I saw the post about how oilo is traded, but it still seems that the companies that own the oil should take some type of responsibility for their shoddy maintenance.

[unpossibles]

10. well, you can't really expect them to have to pay for something

out of pocket. How are they supposed to scrimp out a meager living on a measly few billion dollars?


damn socialist. ;)

[Junkdrawer]

11. Remember how all those CA powerplants were going offline during ENRON's...

heyday? :shrug:


Remember how it stopped when they went belly up? :shrug: