Political Pistachio

Blog Home of the Writer and AM and FM Radio Host, Douglas V. Gibbs.
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Monday, June 02, 2008

Oil Prices is a Supply and Demand Problem, Warranting a Free Market Solution

Unbelievable. There are actually members of the liberal left out there entertaining the idea of Nationalizing our Oil Companies. . . allowing government to take over control as Hugo Chavez did in Venezuela. How insane is that?

Many conservatives are recommending to solve the problem we begin drilling domestically, including in ANWR (Arctic National Wildlife Reserve - Alaska). That's a fine idea, I suppose, but. . .

In both cases, the actions of nationalization or domestic drilling will not immediately solve the problem. The oil industry is a part of a Global Market, and as much as we would like to think that Oil Companies or Government would do the right thing, in the end, it will turn out to be either another opportunity for Government to milk more revenue out (and in a global market nationalizing fuel will not bring down the price - it's not like OPEC would suddenly drop the price per barrel because the government is the customer), or an yet another way for Big Oil to sell to the highest bidder - and then domestic oil would suddenly be a product being bought by China. . .

But, drilling domestically may be the answer in the long term - thanks to good ol' American Capitalism and the Free Market.

Curious?

Listen to my June 2nd edition of Political Pistachio Radio for my answer to the Oil Price Crisis.

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