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Originally Posted by Phillyfanfrombirth
...Again, the market works... a shortage and/or high prices in one commodity changes the acceptance and usage of that product as consumers look for alternatives. I just wish congress can get it through their skulls... Oil companies don't need tax incentives and tax breaks, they need access. Access to the continental shelf and access to ANWR...
Why it is so difficult for people and congress to understand markets and history is beyond me... they screw it up damn near every chance they get.
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Again. The market is broken because high prices are being set to stave off "possible" shortages. There is currently no reasonable alternative for gasoline or diesel fuel for Americans. Damn straight oil companies don't need tax incentives or breaks, but they do like their political purchases to yield some positive results.
The idea that access to the Arctic North Wildlife Refuge or the continental shelf would somehow change the situation we're in is absurd. The minimal economic impact of access to those resources in comparison to the potential ecological impact makes the tradeoff unwarranted. Crude oil is in no immediate danger of shortages, and quite frankly, encouraging the continued expansion and use of the resource is irresponsible. Now, refineries are another issue altogether. Approval to build a few would help, albeit only in the future since it will take years to get a new one running.
Congress and legislators respond to the demands of the people that put them in office, like they're supposed to. Since the Exxon-Mobil merger, gasoline prices have gone as high as triple what they were. Regardless of why prices were what they were, Americans want answers to why it's suddenly costing them $2000 more per year to get around. Such a change in price with a drop in competition absolutely invites the discussion of price gouging, especially when the oil companies respond to the questions with defiant and inflammatory statements. Obviously, anybody with a brain or knowledge of the situation can say oil prices have skyrocketed, leading to the increase in price of gasoline. That was a legitimate argument for most people until Exxon-Mobil started setting worldwide profit records. Now congress is listening to some very angry Americans that decide whether or not the representatives keep their jobs, and the defiant special interest groups that pay them.
The bottom line is that Americans are annoyed, they're leary of more corporate scandals, and the oil companies are antagonizing them.