Study: OPEC is Engaging in Price Fixing

Photo Credit: APThe president and chief executive officer of one of the world’s largest corporations called for reform of America’s role in global energy markets during a Thursday speech at the Cato Institute.

“[We] did some very careful analysis of the energy situation, and we came to the conclusion that the oil market is indeed not a free market,” said Fred Smith, the president and CEO of FedEx Corporation. “More importantly, the dependence of the United States on imported petroleum from unstable and in many cases unfriendly parts of the world had created, after nuclear proliferation and biological weapons, probably our largest single economic and national security risk.”

Speaking at the Cato Institute hosted event “Monopolistic Global Oil Market,” Smith recommended a three-pronged approach to shifting American use and production.

“First and by far the most important was to maximize United States and western hemisphere oil and gas production to reduce the dependency of our economy on oil from these unfriendly and unstable parts of the world,” Smith said. “The second recommendation … was to use less petroleum, to reduce the amount of petroleum as a percentage of our GDP. … The third recommendation was to the extent it was economically feasible to do so, try to develop cost effective alternative power systems to diversify the U.S. transport sector away from petroleum.”

His speech coincides with the release of the study “Competition in Global Oil Markets: A Meta-Analysis and Review.”

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