Carol Platt Liebau: Reasons for the Gas Prices

Thursday, April 27, 2006

Reasons for the Gas Prices

The Indianpolis Star tries to offer a simple lesson on supply and demand. Too bad so few in Washington are listening.


Blogger dodger said...

If you live in the real world you long ago learned that you don't win in a fight with the water company. Or the electric company. I can still remember, vividly, screaming into a dead phone line, "You can't shut off my water!" Oh ya, I also screamed, "I'll sue." Ah, yas, why do we have to re-learn all of life's lessons. I sure don't want to sit in a gas line again, ever again.

10:31 AM  
Blogger Cliff said...

I believe that the environmentalist and their stooges in the US Senate are the real culprits. Don't drill for new oil, don't add refinery capacity, don't build nuclear power plants. All of the above would tend to increase supply driving down prices.

What the environmentalist want is less driving, more fuel efficient cars at whatever the cost, etc. This tends to drive up the cost of trasportation, whether in the crippling of the economy or the cost of vehicles.

When are the American People going to rise up and throw out these environmental stooges.

8:31 PM  
Blogger COPioneer said...

Exactly, the it's easy to talk from a position of ignorance when the entire Democratic party is on board. "It's the oil stupid", "Don't put that wind farm near my compound"...

Stupid is as stupid does.

8:10 AM  
Blogger COPioneer said...

As usual,
Spot On!

9:05 AM  
Blogger wrabkin said...

Just curious -- should oil companies pay royalties on oil they take from public lands, or should they be allowed to keep all the profits from something that belongs to the American people? Because the Republican congress gave them a $27 billion gift of royalty forgiveness a few years back, and forgot to include a clause that would bring back royalties once crude went above $55 a barrel.

10:45 AM  
Blogger dodger said...

Proposition: We should not regulate the oil industry.

POINT ONE: Prices and profits are rising.

Increased prices, in a free market, result in lower demand. Most usage is in the commercial sector of our economy, not as visible as cars and recreational vehicles. The commercial sectors are transportation of goods and people and products made from synthetics. In the early 70s I used to audit electric utilities and argue during coffe breaks that giving commercial users a price break for volume usage was the dumbest idea ever invented. And I was routinely laughed out of the place. We can't shut down commerce but we can provide incentives to shift to alternatives. Price, not taxes, is the best incentive. Price is currently at work.

POINT TWO: The huge climb in oil prices is directly impacting Americans. Seventy percent of adults responding to a survey said, "The recent increase in gas prices is causing them financial hardship."

Good. See point one.

POINT THREE: Democrats are seizing public sentiment and might make the dismantling of oil corporations a popular idea, creating a slippery slope of government interference with free markets.

One can never debate Democrats, one can only strive to assure they are never again entrusted with the reins of government.

PLAN: Create a national petroleum regulatory commission.

I approve of this plan but I do not apporve of the objectives proposed, at least in full. Rather I would want the commission to focus on paving the way for new refineries, pipelines, exploration, drilling, nuclear energy. I would leave the market place to developing alternative sources of energy.

2:41 PM  
Blogger wrabkin said...

Those noble oil companies have been busy "reinvesting" their profits into buying each other up. Now there are what, three of them?

This is a free market?

8:12 PM  
Blogger dodger said...

One can never debate Democrats, one can only strive to assure they are never again entrusted with the reins of government.

12:19 PM  

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