Oil Policy (Policy Proposal #10)

Proposed Policy

A) Review breaking up the big oil companies.

B) Review loosening up regulations that hamper the development of additional refinery capacity.

C) Review how to expand refinery capacity & distribution.

What would this accomplish?

A) Competition needs to return to the marketplace. There is no incentive for big oil to increase capacity or grab market share.

B) Barriers must come down for refinery development to increase capacity & competition.

C) Independent companies outside of big oil need the capability to enter the refinery market to make gasoline production competitive.

Commentary

Who allowed all the big oil companies to merge? It should be Exxon versus Mobil, not Exxon/Mobil. Since big oil is purchasing significant offshore oil, their profits should be squeezed, not expanded. Recent studies have shown that we have adequate supplies at the present time. True ‘supply & demand’ fundamentals are not at work.

Yes, I have big concerns about future supplies with emerging economies developing and increasing their oil usage. There is no denying that this is a crisis coming. However, that crisis has not yet arrived. Pricing should reflect our present supply situation.