The oil company mergers happened under Clinton, not that the Republicans have any problem with big business.
The main drivers of volitility in the US marketplace is a downstream refining and distribution system that has been pared to the bone in the past decade. In summer, it operates at 98 percent efficiency which -- when combined with a balkanized reformulated gasoline landscape of 17+ speciality blend clean fuels -- any major disruption (pipline break, refinery fire, etc.) and the system is strained and it's hard just to shif supply to make up a regional shortfall. We got to this point, because it was not efficient for the oil companies to maintain excess capacity downstream. Crude prices are high, but they mainly impact the base price and not the swings.
Back closer to the inheritance tax... there are a lot of small gasoline station dealers who would love for this to be an issue. They just won't be in business long enough. Smaller station operators (dealers), some in the industry for many decades -- $1 or $2 million or maybe in assets if they own the dirt -- the typical small business everyone in Wash. says is their friend.
Now, big oil (the only real money is in exploration and production, not nearly as much in refining and not at all in retailing) wants to shed it's traditional dealer network -- the franchisees that helped make the companies what they are since before WW2. So they offer crappy new contracts at renewal time, and if the dealer balks they mess with rents, adjust supply price (company store down the block selling on the street for less than their wholesale price), set minimum gallon limit clauses, etc. and drive them under, which doesn't take long. They then close the stations or convert them to company stores or sell them to branded jobbers or set up a highly restrictive commission agent system that changes the relationship entirely. And, even though there is some legal recourse, the cost is usually too high to make the stand. There are legislative solutions, but again, small business can't buy politicians nearly as easy as big business.
Next time someone in Washington says "It's for small business..." take a look at who else benefits. As often as not, small business will only benefit by coincidence
Of course, the same applies to "Its for the farmers..." since ADM is usuall at the top of the benefit chain in that sector.
Charon
