Is it time for the government to step in and regulate oil prices?

Will private speculators be given free hand to destroy the economy under the rationale that ';That's capitalism at work';?





We have been determined to color within the lines and follow our nation's supposed philosophy on this one regarding free market, but it does seem that the present oil situation has shown that philosophy's weak link.





In broader terms, should government NEVER regulate something like this -- even when it is driving the cost of goods and services off the scale and threatening the country with depression?





Should government protect the majority, or a small handful of speculators?Is it time for the government to step in and regulate oil prices?
You guys (many of you) are missing what the original questioner's point was...








He's not advocating for the US Gov't to regulate the price of Crude Oil.





Duh.





He's saying the Us Gov't CAN and SHOULD regulate the price of processed and refined gasoline that charged from the refiners to the retailers (Gas Stations).





Simple Math.








If these companies each are making 100 BILLION Dollars in PROFIT - Not revenue - but PROFIT...then we KNOW..mathematically that they can cut their prices in HALF and STILL make 50 BILLION Dollars in PROFIT. (#'s used strictly for example)





Simple and plain.





The Price of CRUDE OIL would still be controlled by the global market.





But the price that these companies could charge for refining and processing it and producing gasoline would (and SHOULD) be regulated!!!Is it time for the government to step in and regulate oil prices?
Problem is, we don't control the full cycle of oil production. Therefore, we can't regulate prices to completely control that market. If we artificially lower price, we will only increase demand, which will only decrease supply, which will only force the price back up to a position where it won't be correctable.
Government should take over basic industries so that the profit motive is eliminated. Energy, health care, waging of war, mass transportation and the like should be available to all at reasonable rates. As we have seen with Enron, the oil industry, the health care industry, Americans get less for their money than people in other industrialized nations. Time for state ownership of these industries.
OK, let's say Washington decides to regulate oil prices. Washington puts its very best person on the job. Let's say Washington turns to Maxine Waters. At a time when the global price of oil is $130 per barrel, Oil Price Czarina Maxine puts her foot down and says, ';The price is $65.'; What happens next?
Just how is the US government,





Going to regulate what price Venezuela, Canada and Mexico sell thier oil for ?





Pleease explain that one to everyone.
The weakest link in our economy are the government regulations that repress capitalism... Jimmy Carter tried this same thing and the US oil production fell causing a gas shortage in the US.. While you attack ';big oil'; remember these few facts ;


Almost 43 percent of oil and natural gas company shares are owned by mutual funds and asset management companies that have mutual funds. Mutual funds manage accounts for 55 million U.S. households with a median income of $68,700.


Twenty seven percent of shares are owned by other institutional investors like pension funds. In 2004, more than 2,600 pension funds run by federal, state and local governments held almost $64 billion in shares of U.S. oil and natural gas companies. These funds represent the major retirement security for the nation's current and retired soldiers, teachers, and police and fire personnel at every level of government.


Fourteen percent of shares are held in IRA and other personal retirement accounts. Forty five million U.S. households have IRA and other personal retirement accounts, with an average account value of just over $22,000.


Also keep in mind the oil companies make 4-10cents a gallon our government takes 15% per gallon .... If you give control to the government, don't complain when your retirement doesn't turn out to be as sweet as you thought it would.





http://www.energytomorrow.org/media_cent鈥?/a>
No, it is government regulation over the supply of money and credit that is CAUSING the oil price spike.





Blaming ';the speculators'; is like blaming homeowners for making similarly leveraged investments in homes for the dramatic rise and then crash in real estate prices.





EDIT - no, you can put me down as ';capitalism being interfered with, which is the only reason it's not working.';





http://money.cnn.com/2007/10/29/markets/鈥?/a>





In order for the free market to work, you need stable prices. You can't have stable prices if the perceived cost of capital is dramatically altered by the Fed.





This is just another example of a problem mistakenly blamed upon free exchange and used as a pretext for more central control, when in fact the problem was caused by central control.





The stock market crash of '29, the Great Depression, the deep recessions of the late 1940s and 1950s, the stagflation of the 1970s, the stock market crash of '87, the NASDAQ bubble and burst, the metals, housing and energy bubbles of the 2000s...... are all examples.