Since we are the largets market in the world why not put it up for the best offer? For instance. kinda like tell the world that who ever can offer us oil cheaper than anyone else will get all of our bussiness regarding oil. Sort of force a monopoly on everything.
2007-01-02 12:39:00 · 3 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
Oil distribution is a 100+ year old complex matrix that can't be untwisted without disrupting the flow somewhere.
2007-01-02 12:46:45 · answer #1 · answered by Shaddup Libs 5 · 1⤊ 1⤋
because the government doesn't determine who the oil is bought from, oil companies do. they can determine who it isn't, via embargos and what not, but there are ways around that as well.
and since it is a commodity, the market price determines the price refineries pay for it, while the landowners recieving royalties are usually recieving the same contracted rate from oil companies.
the market price of oil is mostly governed by speculation of commodity traders, while gas prices are determined by the supply that refiners allow into the market.
2007-01-02 13:08:16 · answer #2 · answered by qncyguy21 6 · 0⤊ 1⤋
Because the world market determines the price of oil. It doesn't matter how much you stock pile the price doesn't change.
2007-01-02 12:54:35 · answer #3 · answered by Anonymous · 0⤊ 1⤋