Originally posted by sasquatch672What's his proposed legislation?
This is from my congressman's website. Apparently, it's speculation on unregulated markets, not Iraq, Katrina, China, or SUV's, that's sent oil to $70 a barrel and generated record-breaking, historic profits for oil companies at our expense.
"Unfair energy trading is making your oil and gas prices skyrocket. Thanks to intensive lobbying efforts b ...[text shortened]... oil and gas markets, driving all of our prices even higher."
Anybody ready to riot yet?
Originally posted by sasquatch672There are many forms of regulating a market. I'm no fundamentalist in either way, but the oil market seems to me a less than competitive one.
I'll look for it, but he wants to re-regulate the energy futures markets, in broad strokes.
Much of the prospection of oil is regulated by a cartel (the OPEP) and not only that, then the distribution may seem competitive at a first glance, but the truth is that it is far from it. There are must be an unwritten (or unofficial) understanding between the great oil companies. How else would you expect a sector where the raw materials price skyrockets and that doesn't seriously damage the profits of the sector as a whole? I believe the market is not working and therefore I agree that regulation should be enforced if pro-competition laws are insufficient.
But in most cases, the how is as important as the why, so that's why I'd like to read what's his proposed solution because it can also do more harm than good, especially in the long run.
Originally posted by PalynkaLooks like it. Incidentally I thought it was OPEC that (nominally at least)controlled the oil production in certain countries.
Did I just waste my time?
Why not allow the price to rise? It would focus peoples minds on the huge energy consumption/head disparity across the world. Perhaps even stimulate thought on alternatives?
Originally posted by sasquatch672Anyone that believes anything that is on a politicians webpage is a fool.But it is clear that the oil companys have been sodomising the consumers for years.
This is from my congressman's website. Apparently, it's speculation on unregulated markets, not Iraq, Katrina, China, or SUV's, that's sent oil to $70 a barrel and generated record-breaking, historic profits for oil companies at our expense.
"Unfair energy trading is making your oil and gas prices skyrocket. Thanks to intensive lobbying efforts b ...[text shortened]... oil and gas markets, driving all of our prices even higher."
Anybody ready to riot yet?
Originally posted by snowinscotlandOf course it's OPEC, thank you for the correction. In my language we call it OPEP (Organização dos Países Exportadores de Petróleo), hence my mistake.
Looks like it. Incidentally I thought it was OPEC that (nominally at least)controlled the oil production in certain countries.
Why not allow the price to rise? It would focus peoples minds on the huge energy consumption/head disparity across the world. Perhaps even stimulate thought on alternatives?
Letting the price rise unchallenged would be perfectly justifiable if the market is deemed to be working properly. For now the prices have been rising, but consumption hasn't been that much affected by it, since the alternatives are not yet as viable as oil. The consumers (individual or companies) have been put into a trap were they cannot reduce their consumption that much, since most of their cars/generators/etc are made to run on oil. Changing to alternatives may involve a tough investment in fixed assets, which may not be possible.
So what you may be asking? Well, the thing is that this rigidity in the market has serious redistribution effects, since the trade-off for this cartel driven rise in prices at the pump has been almost completely dumped on the consumer's living standards. This is why I think waiting may not be the best scenario, especially since the effect on alternatives is debatable. (i.e. the big energy companies are not that interested in focusing heavilly on alternatives since they still have great profits)