That's exactly what I believe. There seem to be a lot of people that keep saying that speculators are to blame for the high price of Crude, and that that market is 'obviously' being manipulated, and that the government needs to "do something". The idea that the government is going to step in and 'fix' the situation seems ludicrous to me. I haven't seen any concrete plan of government action that would fix the situation.
I love how no one actually reads most of the messages and just responds with "this is socialism!" or "crappy free market is better than gov. control" READ THE DAMN MESSAGES. I did not say gov. would CONTROL oil or the price of oil! Price of oil for world market will still be determined by cough-laugh-cough "supply and demand" I am simply saying let U.S. drill oil on American land! That ain't socialsm, and it "aint worse" than $135 oil. This will simply reduce price of oil for Americans. And NO you will not be able to "buy" this oil and sell it on the market, for the same reason you cannot melt U.S. coins and sell the metal just because it is worth more on the world market (prohibited by law). Oil companies can still drill and make money by selling on the world market. Lastly, for those who didn't know this, plasma TV's are not a national resource.
So how are the Americans going to get the gasoline? At government run gas stations for $1 a gallon? While private gas stations are asking for $4 a gallon? Maybe hand out gasoline stamps? "10 free gallons a month for all US citizens!"
The price of crude is determined by supply and demand. That said it is also determined by the threat to supply and that threat still remains in the Middle East with the war in Iraq and the Israel tension with Iran. All the North American oil supply that can possibly be brought on stream will help to contain price. Oil in the ground does not get to your tank quickly and the environmentally protected areas in the U.S. hold the potential of large reserves. If the American people want this oil they will have to get their governments to change policy. The quicker the better. http://tradingcrude.blogspot.com/
If you mean a conservative like Bush and the Repubs in the last 8 years, then you are definitely correct, I am not conservative. I guess definition of conservative has changed. Now, a conservative is someone who borrows money for everything and expects your children to pay for it. However, I do support cutting corporate taxes, for corporations that have not outsourced U.S. jobs. Cut them even lower than what McCain wants to cut them to. How does that sound? does that sound like a socialist? Yes I forgot, putting America and Americans first means you are socialist.
I have read every word of this post, and please tell me how this will drop the price in any way to Americans, vs having the oil companies do the drilling? The markets set the price as you say? There is zero benefit to having the gov do the drilling. In fact there is a big disadvantage as the gov does not do this now. They lack the expertise, and would not be able to do it nearly as efficiently as the oil companies. Probably wouldn't be able to get as much out of the ground either. Doesn't matter which group does it as far as the resulting price. its a dumb idea.
To the OP, Cost of labor is part of the cost of doing business. It makes no sense to tell a co they have to pay more for an hour of labor than they can pay in the open market. You sound like you get all your news from CNN, ABC, or NBC.
The oil drilled by U.S. will not be sold on the world market for $135/barrel. Does that answer your question? I agree with you though that they will lack the expertise, that is a problem. Three years ago oil was $20/barrel and yet oil companies were drilling and making money. How can this be??
You are clueless. Any idea what happened when silver hit $50 in 1980 (were you even born then?). Millions and millions of pre-1965 dimes, quarters and half dollars were melted for their 90% silver content, whether it was legal or not. Mandate that ANWR oil be sold for $40 a barrel only in the U.S., and you'll find that the only people who benefit will be the entrepreneurs who figure out how to buy it for $40 and sell it anywhere in the world for $120+. Any time the government tries to intervene in market mechanisms to benefit the "many", it always ends up benefitting just the "few" enterprising individuals who figure out how to game the system (or who have the right connections). I agree 100% that the ANWR resource should be opened up, but through market mechanisms which auction off the drilling rights to the highest bidders, and the proceeds go towards balancing our national budget and funding developmental work in alternative energy resources.