Posted on 03/13/2012 10:15:47 AM PDT by null and void
We should be able to drop the price here, develop it here and consume it here. Hell with the rest of the world.
The private oil companies don't "drop the price." They sell it for whatever the market will bare. Their costs associated with getting it to market would be cheaper if the production were closer to the end user. That makes the USA a more attractive customer.
Private companies will compete for the contracs regardless of what the drivitives/futures market says. These guys are not beholden to any international (OPEC) agreements. The free market will naturally gravitate to where the most money can be made.
As a side effect, the speculators and investors will sell and the price of a barrel of oil will come down as a result of the increased supply in the world market.
It's a complicated version of simple economic principles. The only thing that complicates it is government and regulatory interference. Let profit drive the market. It is always best for the consumers.
I never said they did, unless of course, you're an oil company. (I said "we".)
They sell it for whatever the market will bare.
No, they sell it for whatever the market will bear...not to be confused with a "bear market".
Their costs associated with getting it to market would be cheaper if the production were closer to the end user. That makes the USA a more attractive customer.
I know that...I know that.
As a side effect, the speculators and investors will sell and the price of a barrel of oil will come down
I don't like the way that works. They should have to, or be equipped to take possession of the oil. The "speculators" as it stands now, totally screw up and distort the free marketing of oil
. the price of a barrel of oil will come down as a result of the increased supply in the world market.
Screw the world market, they hate us and have never done us any favors. We should look out for the best interests of the American people.
The free market will naturally gravitate to where the most money can be made.
Which may be good for the speculators and but sounds like high prices at the pump...especially now that Americans are somewhat used to it.
It's a complicated version of simple economic principles. The only thing that complicates it is government and regulatory interference.
And the convoluted derivatives market, those gamblers with no skin in the game except for their investment money. Outlaw the practice or let them store it in their backyard. That would slow down those wild swings in the market and at the pump.
Let profit drive the market. It is always best for the consumers.
It would be if that was the case, however the normal supply and demand equation is not in play, or current supply conditions would dictate lower prices.
However it isn't the case, and the artificially high fuel costs are totally screwing up every aspect of the US economy.
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