Why is US oil not first used in the US and the 'extra' sold on the world market?
#33 | Posted by justagirl_idaho
Becuase we have a free market economy. Oil gets sold to the highest bidder, so if another country is willing to pay more for it, it will get sold to them, driving the price up locally.
The US is now a net exporter of oil. Though I am not sure we have the cross country infrastructure to actually transport all of the oil we have from the places it is produced to the places where it is needed.
The way to actually reduce the price in the way you are suggesting is to restrict or ban exports. You force an increase of supply in the US, driving down prices.
But, if you do allow the 'extra' to be sold on the world market, how do you choose? Which oil companies get screwed over selling on the local market with depressed prices, and how do you choose which ones are the 'winners' which get to reap the high profits the non-fascist/non-goverment controlled prices on the international market?
I guess the other thing he could do would be to put a high export tariff on oil. That should also force more oil supply to stay local, as well fixing the problem of picking winners and losers. The only winner would be the US government.
We have the US strike maps, and the school was actually one of the targets on the map.
#4 | Posted by Corky
Time to pull out the Sharpie!