[infantrywhooah]

I am no fan of government getting involved in pricing but it seems like the petroleum industry could stand to see some regulation. Let’s face it, they have us over a barrel (pun intended)

[politicalwit]

Crude oil is sold on the world market. Exactly how can the US government regulate prices?

[Bommer]

I am no fan of government getting involved in pricing but it seems like the petroleum industry could stand to see some regulation.,p. Got nothing to do with them. It's a traded commodity. Impossible to do, but if you want lower prices, ke it off the commodity market. Its the damn short sellers that are screwing us!

[USMA '71]

The only thing more government regulation will get you is reduced supply and higher prices. This site is largely comprised of free marketeers - you may want to consider that as you log some time here.

[Shanty Shaker]

Obama is running ads in PA telling how windfall profits on oil companies will lower the price of oil and make us not need to rely on foreign oil. Sounds like the author of this piece has the same flaw in his logic.

[sionnsar]

I am no fan of government getting involved in pricing but it seems like the petroleum industry could stand to see some regulation.

Welcome to Free Republic

[Content Provider]

It is because of regulation (and taxes) that prices are what they are. If we could build power plants and refineries, and drill for the oil resources we know we have, the market price of oil would be half of what it is today.

[xjcsa]

I am no fan of government getting involved in pricing but it seems like the petroleum industry could stand to see some regulation. Let’s face it, they have us over a barrel (pun intended)

You're an idiot, newbs.

[Fabozz]

"I am no fan of government getting involved in pricing but it seems like the petroleum industry could stand to see some regulation."

Okay. You have two choices then:

1. The government could use taxpayer dollars to subsidize gas prices. That would increase demand and consumption, which would drive the total cost of fuel plus the subsidy higher than it would have been otherwise—even if because of the subsidy you personally might be paying a little less. Net result is that the country as a whole is poorer.
2. The government could set price caps. Whenever the market-set price of gas rose above the cap, suppliers would refuse to sell, resulting in hoarding, lines and massive disruption of the trucking industry. Net result is that the country as a whole is poorer.

Which of those sounds good to you?

[rwh]

What, and confiscate their profits and put them in a strategic fund? Or maybe we could go back to the failed policies of the 70’s? Screw that!

[Ethrane]

http://www.nola.com/news/index.ssf/2008/03/al_copeland_dies_in_germany.html

Yeah, that'll help.

NOT.

[Rembrandt]

“I am no fan of government getting involved in pricing but it seems like the petroleum industry could stand to see some regulation. Let’s face it, they have us over a barrel (pun intended)”
—
Do some research. Oil companies sell a LOT of barrels of oil. A little bit of profit multiplied by a lot of barrels equals a pretty hefty profit.

BUT, look at profit margin. Who makes the bigger margin? The oil company or the government. I’ll leave that to you to figure out.

The only thing that additional government intervention will do is force prices higher - is that your wish?

[Kickass Conservative]

Ok, let's talk profit margins, shall we?

Oil companies average a 10% to 12% profit margin on their products. If a gallon of gas sells for $2.00 before taxes are added, they make about .25 cents. The Gubmint makes about .50 cents on the same purchase made by the consumer.

Do the math when gas goes up over $4.00 per gallon. I guess we should regulate the Gubmint a little more as well.

[catfish1957]

Whoa..wait a minute, I am no fan of the oil companies either, but in their defense do the math.... At $110/barrell that equates to $2.61 a gallon, just to buy the crude from mostly overseas suppliers. Add incremental costs for refining, storage, transportation and distubution. Then add another 40 to 50 cents a gallon for federal and state taxes......well you get the picture