The Saudis could flood the market again and drive oil to thirty bucks, and in two months U.S. exploration and production would dry up.
Prices at the pump would likely be lower, but not for long.
Once our producers are shut down, the Saudis and others would open the spigots again, as they have been doing for decades.
Keeping the price at $60 or so isn't the easiest on consumers, but it beats a dead domestic oil industry.
The stuff is cheap as it is, compared to other commodities. There are charts all over the web showing present prices to be only slightly above 1980 levels, using constant dollar values.
Of course there are charts on the web to show just about anything. But gasoline, with occasional interruptions, has been remarkably stable for over a century.
Credit the U.S. oil industry for that.
Well said. Gas is cheap after adjusting for inflation and taxes. Even cheaper if adjusted for government induced distortions for ethanol, boutique blends, onerous distribution regulations, environmental laws on refiners, and etc..
The US oil companies and gasoline distributors make far less money than the government. They all make less money than Apple. On some days there product is priced less than water.
Big ‘ole mean greedy oil companies jus killing it while the rest of us are raped and pillaged. Thats why so many Freepers are heavily invested on the sector the profits are just huge.