Why don't the government put up an oil company so that they can control oil prices? It will be funded by bonds that can be bought in small amounts so that the common people will be able to invest in such companies. The government will be able to raise more funds from its operations. It is a win-win situation for the government and the people for they can buy cheaper gasoline products, and the profits earned by the corporation will be added to government spending that will be used for the benefit of the citizens.
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There is basically two ways to match supply and demand;
1. Price - those who are willing to pay the highest prices gets the oil.
2. Rationing - People are entitled to buy a set amount of oil for a fixed price.
Unless the government can come up with vast reserves of new oil, everyone will still have to buy oil at market prices for excess consumption. To make the matter worse, there's not that big of a profit margin for the scheme to be really successful - Exxon reported 10% profits for the first quarter. While this is yummy for the stockholders it isn't an unreasonable margin. In other words, the best a govt company could do is 10% cheaper gas, and that would only be for a minor part of common need and would net no profits; probably a loss.
Lots of nations do this. See PetroBras, PeMex, PetaVeza, etc. Even Canada once tried to launch one with mixed reviews.
+ BNOC (defunct), Staatøl (Norway), Elf (France) etc.
Are you really advocating the US nationalise the oil industry?
The price of oil is too low. Oil consumption is too high and must be forced down for the benefit of us all. Current prices still do no reflect the true cost of the damage burning oils does. Prices should be inceased not decreased.
Most governments cannot run competitive companies.
Nationalization of oil is a no-no among conservatives. When a foreign leader wants to do that, we send in the CIA to get rid of him.
The problem is the skyrocketing human population, combined with the limited and decreasing amount of oil in the earth. The worst is yet to come, by all rational predictions.
The only solution is some serious conservation, and the best way to have that happen is naturally, with the free market determining the prices.
come on, do you seriously think the government doesn't already control oil prices? And trust me it wouldn't get cheaper if they openly admitted it. What is needed is alternative energies. Why don't we concern ourselves with finding a way to live the same lives with out oil? Then there is cheaper energy and no dependence on the middle east.