OPEC was created in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. It now includes nine other oil-producing nations – Algeria, Angola, Ecuador, Indonesia, Libya, Nigeria, Qatar, Saudi Arabia and the United Arab Emirates.

“In the period between World War II and the formation of OPEC, the inflation-adjusted price of oil fluctuated little,” he wrote. “From 1970-1980, however, the real price of oil rose by about 1,300 percent. Between 1980 and 1986, it dropped by about two-thirds. It was fairly steady between 1986-1997, fell farther in 1997-1998, and then nearly quadrupled after February 1999. This is stability?”

Taylor predicted in 2004 – when oil was around $31.50 a barrel – that “if OPEC disappeared tomorrow, oil prices would drop to somewhere around $8 a barrel and gasoline prices would almost certainly be south of $1 a gallon. A price collapse of that magnitude would do more for consumer welfare and the overall health of the American economy than President Bush...."

If you try to explain the economics of the situation, it is like trying to explain chess to a 3 year old.

It seems that market economy system is over their heads.

Since when is it a bad thing to make a profit, after
paying taxes and their shareholders dividends?

Whenever oil corporations makes profits, they rush to penalize them, (thereby increasing the costs to consumers) and hold hearings with companies CEO's, as though they're criminals.

Oil Chiefs Say High Prices Not Our Fault

While Democrats hammered the executives for their profits and demanded they do more to develop alternative energy sources such as wind, solar and biofuels, Republican lawmakers called for opening more areas for drilling to boost domestic production of oil and gas.

What would bring lower prices? asked Rep. James Sensenbrenner of Wisconsin, the committee's ranking Republican.

"We need access to all kinds of energy supply," replied Robert Malone, chairman of BP America, adding that 85 percent of the country's coastal waters are off limits to drilling.

http://apnews.myway.com/article/20080401/D8VPC1N00.html