Pulling an Enron in the 1970s with Petroleum?

Delta Force

Banned
Enron and several other individuals and firms were involved in an extensive conspiracy to manipulate electricity prices on the West Coast of the United States through activities such as exporting electricity generated inside of California outside the state before reimporting it for greater profits, arranging for forced outages at power stations to restrict generating capacity, and generally manipulating the market. They took advantage of the fact that California was a partially deregulated market in which distribution utilities had a legal obligation to provide customers with electricity but were limited in their ability to pass through costs to consumers outside of a rate hearing. Meanwhile, generating prices were unregulated and could increase greatly, but the distributors would have to purchase the power to meet customer needs. Eventually several of California's major utilities went bankrupt due to the market manipulation or otherwise had to be bailed out by the state.

Could something similar have been done with petroleum in the 1970s given the circumstances of the time, especially around the time of the shortages that started in summer 1972 (well over a year before the unprecedented Arab petroleum embargo started in October 1973)? Could the major petroleum companies have manipulated the market to crush the independents and/or otherwise increase profits despite the market controls imposed on them?

This thread might be relevant regarding the energy shortages that started before October 1973.
 
. . . Could something similar have been done with petroleum in the 1970s given the circumstances of the time, especially around the time of the shortages that started in summer 1972 (well over a year before the unprecedented Arab petroleum embargo started in October 1973)? Could the major petroleum companies have manipulated the market to crush the independents and/or otherwise increase profits despite the market controls imposed on them? . . .
Good catch! :) Especially the part with summer '72. This is what I refer to as a Discovered POD, meaning it really did happen but it's not widely known about.

Now, what I'd like to happen is that unions strongly oppose these manipulated shortages, that combined with some solid journalism and consumers being very vocal, and the people might have a 50-50 chance vs. major oil corporations. Congress likely pass some half-measures with the effect of letting off steam and letting this period of public outrage pass. Although maybe some Congressional leaders stand tall and don't go along with the half-measures. Might make for some interesting history!

And oil companies have done this kind of stuff throughout. I mean, didn't Standard Oil gas stations at times sell below cost specifically to drive out independent stations? And on and on, including affecting U.S. foreign policy.
 
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https://www.washingtonpost.com/busi...ractices-act/2012/04/25/gIQAXbuVhT_story.html

"The Foreign Corrupt Practices Act is at its core an anti-bribery, anti-corruption measure enacted by Congress in 1977 to prohibit American companies from paying off foreign officials . . . "
So, there was some anti-corporate activity in the '70s.

If the oil companies are majorly exposed and embarrassed in 1972, there's likely to be a lot more.

And for people alienated from the entire political structure, movement conservatism may not be the only home. The Left may in fact provide a fair amount of competition!
 
Are you talking about gasoline or oil? With gasoline, refiners engage is analogous behavior from time to time when facilities are taken off line for "maintenance". Oil would be a little more difficult as there is so much information about production and supplies. I guess you could create a bottleneck in the transportation system via pipeline and rail somehow.

I think I am misunderstanding your question.
 
Could something similar have been done with petroleum in the 1970s given the circumstances of the time

Well, the Texas Railroad Committee pretty much set the rates that effected the Worlds price on a barrel of crude, from after WWI till 1971.
That's when the US Majors couldn't outpump Saudi anymore.

But it acted just like a Cartel, artificially reduced production to maintain higher market prices for crude oil.

So, was this a DBWI I wandered into?:winkytongue:
 
Well, the Texas Railroad Committee pretty much set the rates that effected the Worlds price on a barrel of crude, from after WWI till 1971.
That's when the US Majors couldn't outpump Saudi anymore.

But it acted just like a Cartel, artificially reduced production to maintain higher market prices for crude oil.
Wow. Is that really true and reasonably well-documented about the Texas Railroad Commission? Yes, I live in Texas. It's the Texas Railroad Commission.
 
Wow. Is that really true and reasonably well-documented about the Texas Railroad Commission? Yes, I live in Texas. It's the Texas Railroad Commission.

Oh yeah. They had more pull than most in the World realized. Google up on Regulatory Capture.

For extra fun, check into the monopoly that Howard Hughes had with his patented drilling bits. It's the reason he was the richest man in the World, even with the 90% taxes back then.

And no one n the Industry screwed with him, as he could even destroy one of the Seven Sisters, had push come to shove- let alone smaller companies.
 
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