I think you misunderstood my comments on the role of the oil companies. They will do everything in their power to balance production and prices to optimize profit. That is what the free market is all about. The problem with Newt's comments is that he has no way of knowing if the free market will support $2 gas.
As for the government getting the hell out of the way, lets not forget that the oil industry receives major subsidies from the government:
“The United States government provides a large subsidy to oil companies, with major tax breaks at virtually every stage of oil exploration and extraction. Revenue attributable to capital investment, including the costs of oil field leases and drilling equipment, are taxed at an effective rate of nine percent, which is a much lower rate than the 25% rate for general business taxes and lower than the taxes of virtually any other industry, according to a 2005 study by the non-partisan Congressional Budget Office. For example, while the Deepwater Horizon oil rig was registered in the Marshall Islands, since registering off-shore lowered the U.S. tax liability, the U.S. government was giving the rig’s owner, British Petroleum (BP), a major tax break when BP leased the rig: 70% of the rent was written off in the form of a tax break used only by the oil industry, for a tax deduction of more than $225,000 per day from the day the lease began.”
http://en.wikipedia.org/wiki/Petroleum_industry
Think what would happen if those subsidies were removed and oil companies passed those costs on to the consumer. Government polices are presently acting to keep gas prices below market value.
A move to a true free market approach might actual increase the price of gas.
Subsidies!? This is talking about government controls in the form of government taxation, and government dictated breaks in government taxation. “Here I’ll take your arm, and your leg, and give you back a finger.” The finger they give back is Obama’s favorite. Such a deal.
That too has to all be reworked. Free Enterprise works best when it’s free to be enterprising.
I’m outta here probably for the rest of today until this evening. Have a nice day, and thanks for the interesting responses.