My question to all "Free Marketers": When talking about manufacturers of consumer goods, it is perfectly acceptable for them to reduce their costs by relocating overseas, thereby allowing them to maintain or increase profit levels while reducing prices to the consumer as a natural result of competition. Prices here are dictated by the consumer, and companies are willing to undercut each other in order to maintain or increase market share. When talking about the oil industry, it is perfectly acceptable for them to maintain or increase profit levels by passing all cost increases on to the consumer, while making no effort to reduce production costs. Prices here are dictated by the producer, and there seems to be no effort at all to undercut each other in order to gain market share. If all "free markets" are created equal and operate on the same principles, why is there a difference?
Unlike other industries, I think the oil companies are colluding to keep the prices high. There was a similiar thread about this a few months back. As Rex says, there are alternatives, but none are practical. Not yet anyway. Then there are those that don't see anything wrong with collusion (martin). They believe that the market will eventually work it self out, but I disagree. Collusion is illegal and big oil should be investigated to see that it's following regulations.
At least 3 hearings that I'm aware of. Probably more since they have so many committees. Nov '05 March '06 May '07 They haven't found anything on the oil companies, yet. I guess it's possible that the oil companies are much smarter than Congress and are able to hide such evidence of collusion. Or maybe it's possible that every democrat, republican, and independent in Washington are bought and paid by the oil industry. Or maybe that haven't done anything illegal and their only sin is to be making too much money, which seems to be a really bad thing in our country these days.
Oil and gas industry is unlike other industries. WalMart products aren't traded on the open market, they get to set their own prices. They can even sell below costs. Oil and gasoline are commodities traded on the open market. Doesn't mean oil companies don't/can't affect the prices, but they don't have total control of the price. And our government won't allow them to undersell gasoline, not that they would anyway. But it is not a true free market system like the retail industry.
Try again. Electricity is not an energy source, just an energy conveyance. That power has to be generated in a world where fossil fuels are being depeleted quickly and will inevitable become more rare and expensive. Some sort of breakthrough in gravity/magnetics and zero-point technology must happen to make the generation of electrical power cheap and small enough for every vehicle and home to have one. Practical and affordable alternatives to petroleum fuels do not exist today. Here we can agree. There are some people who can benefit from hybrid cars right now--as well as scooters, bicycles, and Segways. Cities should do more to enable those of us with short commutes by making more bike lanes and bikeways But there are many others who cannot give up the bigger truck/SUV, due to long commutes, trailer pulling, big families, and recreational use. Not to mention all the heavy-duty commercial vehicles out there. When they make a mid-size SUV 4x4 V-8 with a Hybrid drive for in town driving . . . then I'll buy one, too. .
Different markets are inherently not equal. In the case of the oil industry, it is simply not like the fast food industry. National oil requirements are a vital national responsibility. Industry ambition cannot be allowed to hurt the best interests of the United States of America and its citizens.
What you really said was "I nor anyone else want to use this alternative because...." That = not wanting to change. Which = people should stop bitching.
Very few Americans want to be burdened with changing their lifestyle to reduce energy consumption. And most aren't willing to pay more for alternative energy, hybrid vehicles, etc. Let me give you an example. Entergy introduced a green program last year to some LA customers that would use renewable energy, a good thing, right? It would cost 2.25 cents per kilowatt more. Out of 350,000 customers, only 266 sign up for it. We're spoiled. We hold all the cards and they will give the American consumers pretty much anything we want. But it is much easier to blame all of this on the oil industry and the government instead of making some changes in our lives. The bottom line is don't ask me to change or pay more, just give me cheap energy. If the oil industry is doing something illegal, hammer them. But I'm willing to bet most of us aren't doing a damn thing in our lives to help the energy crisis.
Yea the only problem with that is , the other industries arent making any money, that is called a recession my friend. They are making record profits and its hurting Americans.
