BP to pay hundreds of millions to end investigation into the manipulating of energy markets

CNN is reporting that BP will pay $373 million in fines and restitution to end an investigation into allegations that it manipulated energy markets and violated environmental laws. Four former employees have also been indicted for their roles in a price fixing scheme.

While BP is Europe's second biggest oil and gas company, its reach can arguably be described as world-wide. The way crude oil and gasoline world market prices are affected by the tiniest of incidents anywhere on the globe, their actions almost certainly have had an impact of sorts on North America - and most importantly, here in Canada.

Among other things, BP Products North America Inc. apparently bought huge stocks of propane in 2004 and essentially sat on them. Basic laws of supply and demand resulted in propane prices escalating in several US states. I don't buy propane very often so I don't remember any price spikes... but I know that if one "oil giant" isn't above scheming to pump up profits, others likely aren't above it either. Gas prices started their never-ending upwards trek right about then, didn't they?

News stories like this one make me think. Nobody can ever explain the ebb and flow of gas prices at the pump, nor can anyone explain the correlation between crude oil market prices and their effect on how much it costs for an average Ottawa to fill his tank. The Canadian government has concluded on more than one occasion that they could find no evidence of Canadian oil companies colluding (or working independently, I'd imagine) to keep prices artificially high.

Could it be that this BP story is the tip of the iceberg? Might it be the first of several investigations that are on the cusp of putting the spotlight on what governments haven't been able to prove while millions of individuals in all corners of the world have suspected?

I hope so - fear mongers were warning us earlier this week that we may be paying more than $1.50 per litre for gasoline next summer. I'd love to know how their crystal ball works - I want one for myself!!