Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: smokinleroy
In a perfect free market, over time producers would not be able to sell their products at prices much higher than what it costs to produce.

Since producers are making large profits it can only mean that supply is being artificially kept down so as not to keep up with demand.

Refineries not being built because of excessively high regulatory hurdles and new sources of oil not being accessed due to environmental prohibitions: these are the artifical barriers to supply.

People are right to be suspicious of oil companies being able to make such high profits for so long.

But they should not point the finger at the suppliers, but at the people, AKA gubmint, that is keeping the current suppliers and potential new suppliers from matching supply to demand and bringing prices more in line with what would be expected in a free market.

19 posted on 02/19/2008 5:45:59 PM PST by who_would_fardels_bear
[ Post Reply | Private Reply | To 1 | View Replies ]


To: who_would_fardels_bear

You nailed it dead on. Perhaps someday a strong will President and House will pass a resolution forbidding investments into the energy sector. It won’t happen until the U.S. middle class is literally screaming for blood and then perhaps we’ll vote people in that actually give a rats *ss about America. Till then, have a great MexAmeriSaudiChicom day!!!


25 posted on 02/19/2008 5:56:32 PM PST by quant5
[ Post Reply | Private Reply | To 19 | View Replies ]

To: who_would_fardels_bear
You make perfect sense. I only wish the gumbint would get it! Or perhaps they do, after all they are supposedly smart people.

If we cut off Opec, and stopped importing from the mideast all together, drilling our own of course to replace it, especially if we did it as a sanction, the mideast would look completely different at us. They believe they have us right where they want us.

62 posted on 02/19/2008 7:38:56 PM PST by gidget7 (Duncan Hunter-Valley Forge Republican!)
[ Post Reply | Private Reply | To 19 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson