The oil companies are making record profits because the price of their main product, crude oil, is currently trading at historic highs. The oil companies have NO part in setting the price for crude oil; it is set on the open market by willing buyers and sellers. Why blame international oil companies (like BP, Exxon, Chevron)? Why not the national oil companies like Saudi Aramco, Mexico’s PEMEX, Vensuela’s PVSDA, etc. who control over 90% of existing production? Oil is a global commodity, so all global sellers and buyers take part in setting the price. If you do not like the price of gasoline, flex your economic muscle and purchase less of their product. It is really that simple.
So why is oil currently so expensive? The is tremedously complex subject that cannot be simplified by blaming “price gouging” or saying that “oil is running out”. There is a fierce debate raging on just exactly how much oil we can ever reasonably expect to produce, but it is clear to me and many other observers that the era cheap energy is over. All the complaining about high gas prices will not stop us from making fundametal lifestyle changes over the next 10-20 years, whether we do so voluntarily or not.
One more thought: regulation, or price controls, is probably the worst thing we can do. Not only is it un-American, but it artificailly encourages consumption. There is simply not enough gasoline for everyone to have as much as they want at the price they want to pay.
I could recommend many books, but if you read just one, let this be it:
