Hey Einstein, try reading my post again. I said the only way to get a price other than the MARKET PRICE. The speculators, as well as other factors determine the market price. I didn't say the oil companies set price, that was my whole point why drilling in Alaska will still not help prices much.
If we can develop enough oil, from all the various sources that are now considered off limits, we might alleviate the stranglehold that opec has and thus put pressure on world oil prices. We can either try producing from all the various ways we now know how to develop energy, or we can say, no, fogettaboutit, and put our hopes in a new and heretofore unknown type of energy supply. Which is more likely, and which borders on the miraculous? The funny part is, the ones who are for the miraculous option are the same ones who want to keep separate church and state.
I agree with the posters who said it doesn't work that way. But am I the only one that thinks we should wait until the world actually runs really low on oil to drill in Alaska? If the current crisis blows over and prices moderate, we get to keep our pristine wilderness with all the happy caribou while paying poorer countries bargain prices to trash their environments on our behalf. If it is for real, then we drill after everyone else runs out and get paid much more to trash our environment. If we are really running out of oil that stuff will be worth a lot more later than it is now, I say hold onto it.
Exactly. Venezuela is a complete mess because of it as well. Article last week about how Venezuelans are now making shopping trips across the border simply so they can get dollars! Chavez is crushing their currency through his policies, and even basic staples are in short supply. He's toast within a few years.
How is what I am saying socialism exactly? The U.S. would NOT be taking land away from oil companies llike in Venezuela! Maybe you didn't know this, but Venezuela actually took land from oil companies. That would be socialism. Newsflash, if the land belongs to the U.S. then the resources on that land also belong to the U.S., NOT oil companies unless oil companies bought that land. Otherwsie, U.S. should drill there and put that oil only for american use and NOT for $135/barrel. As far as I know, land with oil on it, doesnt automatically belong to oil companies. If a piece of land is mine, and I drill on it, is that also socialsm? IF oil companies want to drill there, then PAY for the LAND and OIL that is there!!! and not pennies on the dollar for it!
The US is in the biz of governing, not drilling. Get into the biz and compete with the oil companies? Would be expensive as hell to start from scratch, and I'm not sure the constitution allows for the gov to even do it. But if so, why stop there? Those damn farmers are making money hand over fist now. The US should grow crops and under cut farmers! See where I am going with this? The US has a hard enough time just governing. Let the open market set crude prices. If they stay too high for too long, guess what's going to happen? We will stop using it. We can power our cars via electricity derived from many sources (nuclear, NG, hydro, solar, wind, and yes, coal). Can run them on other fuels such as hydrogen, ethanol, etc., also. Its just going to take a lot of money to develop these markets to the point where they are affordable. We have the technology now, just not the will. Ridiculous crude prices will push us over the edge, and the Saudis know this. They are actually getting paranoid that prices are too high. There is a common saying that I agree with. A crappy free market is still better than any government controlled market.
Sounds great to me! I'm an American - let me know when & where I can signup to buy Alaskan oil for $40/barrel so I can turn around and sell it on the world market for $136/barrel. I'll take as many $40 barrels as I can. If not me then exactly who gets to buy this $40 oil and reap the $100/barrel windfall that it implies?
US government starting to drill and refine oil in order to protect "national interests" and dictating oil prices = socialism at work.