The Market is Working in Oil...

@ParaTed2k (22981)
Sheboygan, Wisconsin
June 10, 2008 12:29am CST
Once again, the price of crude is breaking records. With that comes complaints to the government to "do something about it". Let's say Bush and Congress did "stand up" to the petroleum companies and passed a law capping the price US companies can pay for petroleum products. How many companies would sell any products to US companies when companies from other countries are willing to pay market prices? The fact is, if the price were artificially forced down all it would do is cause a worldwide shortages... which wouldn't help anyone.
1 person likes this
3 responses
• United States
10 Jun 08
Price controls cause shortages. Always. Many a third world country is hungry merely because the government sought to appease the populace by 'capping' the price farmers can charge. This drives farmers out of business resulting in almost no food and famine. The same will result if the price of oil is 'capped'. Want lower oil prices? Remove the taxes on foriegn owned oil brought into the USA. Currently, USA oil companies enjoy protection from foriegn competition because of these taxes. This results in higher prices for USA consumers because Mexicans, Venzeulains, and anybody else wanting to bring in oil to sell can't sell it as cheap as they otherwise could. Let American companies truely and fairly have to compete with foriegn companies for the USA market. The result? More drilling and lower prices almost immediately. BTW: Oil companies are too powerful for any politican to dare bring this subject up, except to maybe ridicule the idea. Also, oil companies are so powerful that the not drilling for oil is probably their idea as a scheme to increase profits. Does anyone really believe a bunch of eco-wienies could really successfully oppose the oil companies if the oil companies really wanted to drill? I don't believe it. Oil companies spread too much money around to not get their way. Remember, too, oil company profits are at all time highs. Why would they want to drill?
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@ParaTed2k (22981)
• Sheboygan, Wisconsin
10 Jun 08
What industry hasn't been prevented from production at some level because of eco-weenies? You can't tell me that oil is the ONLY industry that is somehow immune to the legal and legislative blackmail machine. Yes, oil companies are powerful and there might be some truth to what you said about them not drilling in the US... however, if we removed the completely insane laws preventing them from drilling, we'd know for sure, right?
2 people like this
• United States
10 Jun 08
I'm in complete agreement the laws preventing drilling in the USA should all be removed. What I'm saying is that covertly the oil companies are behind the current mess because it is the most profitable route possible for them. (Q: What company recently had the most profitable quarter of any USA company ever? A: Exxon) If we drill in the USA and increase production, USA oil companies will make less than they do now while producing more oil. They don't want that! I don't blame them, but we can not allow it to continue.
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• India
27 Jun 08
A lot of people won't agree with me some will frown at me for saying this but I find rising prices of oil as a blessing in disguise. why? You see this will compel automobile companies to produce more fuel efficient automobile and alternative energy sources for the automobile as that will what the customer want, and considering todays scenario i am pretty sure he new sources will be a lot cleaner.....which will in turn help reduce pollution, and in turn arm us against the future shortage of Oil, well sooner than later and also make a huge impact on the problem of global warming as that will help reduce level of CO2 in air.
@ParaTed2k (22981)
• Sheboygan, Wisconsin
27 Jun 08
First of all, why is it the responsibility of the petroleum companies to come up with alternatives? Do you demand that health food companies offer beef or high sugar products? Do you insist that automobile companies produce motorcycles? There are a lot of people who, like you, are excited about $4, $5 or even $10 per gallon gasoline. On the other hand, do you support nuclear power in the US? Or is that only something for France, North Korea and Iran?
• India
27 Jun 08
who says petroleum companies need to come up with the solution but isn't automobiles responsibility of automobile company.....And no i do not support nuclear of any country because a simple nuclear break down can cause damage beyond repair both to environment and to humans.
@ParaTed2k (22981)
• Sheboygan, Wisconsin
27 Jun 08
Nuclear power is the cleanest, most efficient source of energy we have. In the entire history of nuclear power, there have only been two incidences and only 1 caused fatalities. You can't even say that about AA batteries. Yes, there are downsides, but there are downsides to all the alternatives. The other alternatives are great supplements, but none have the effiency necessary to truly lead our energy future.
@gewcew23 (8011)
• United States
10 Jun 08
ParaTed what I do not understand is why Congress is up in arms about this? Actually I do, but I am going somewhere with this so hang on for a minute. Congress is wanting to try to stop you from destoring the enviroment. What is the biggest way that you, me and everyone else is destoring the enviroment, driving. Higher the gas prices go less you will be able to drive. Basicly saying, if we believe what the Dumbocrats are telling us, the oil companies are helping the enviroment by keeping the price of gas high. Europe has used high taxes to force its subjects to use mass transportation. Now after I have said all of that I am going to address your subject. Dumbocrats need a wimping boy for continual success. Right now it is the oil companies.
@ParaTed2k (22981)
• Sheboygan, Wisconsin
10 Jun 08
It is ironic that they want gas to cost $10/gal so we'll finally be motivated to use alternatives... but they whine and cry when gas hits $4/gal because it hurts the working man. lol
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