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To: cherry
it seems the general consensus around here that the Big Oil companies are all good, and should not be criticized for lessing the standard of living of so many millions and millions of people, why they bask in their billion dollar smug little profits....

Right. They should just give away their product at a price you set.

Or instead of that communist nonsense, you can come to grips with the fact that these oil companies sell their oil into a global market with many players. Why should they sell it to you for $30/bbl when they can get $75/bbl from a buyer in another country? Things cost what they cost and you have to pay what the market is willing to pay.

It is not the fault of the oil companies that the major reserves of the US are untouchable, thereby restricting supply. They would drill it in a heartbeat given the chance. It would reduce the price but they would make it up in volume.

73 posted on 08/06/2006 11:48:00 PM PDT by tortoise
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To: tortoise; cherry

In principle I agree with you. There's nothing wrong with bargaining in a market for the best price. In my mind, though, that assumes a free market.

Oil is not a free market. First, there is OPEC, a cartel. Cartels are not interested in free markets. Next, there is government intervention in many forms....corporate welfare, regulations, deals, taxes, etc.

I consider ownership of the chain from the refinery to the pump to be an invitation to monopoly, but many don't agree with me on that. It would be like owning everything in the chain from the farm to the cash register with food and marking up Frosted Flakes on the shelf at night if the market price of corn goes up or down.

In any case, though, I think free markets are a good thing. One could scarcely claim, in regard to oil, that there is a free market.


76 posted on 08/07/2006 4:30:42 AM PDT by xzins (Retired Army Chaplain and Proud of It! Supporting the troops means praying for them to WIN!)
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