Eagle1
09-09-2005, 10:43 PM
in 1980 william simon wrote
"An increase in profits for the suppliers (and potential suppliers) of a suddenly scarce commodity should be welcomed. Only when profits rise can companies amassthe immense amounts of capital necessary for new exploration. Only then will outsiders be given the incentives to undertake the substancial costs of entering the oil business. So, the faster profits rise, the faster new oil will come into the market and the faster OPEC's stranglehold will be removed. A tax will hinder this beneficial process, either slowing down energy dependence or making the consimer pay more for it. In other words, it is Big Government which is ripping us off, not Big Oil."
The irreversible regulation the government has put on the oil indistry to make it their own monopoly is the only reason we are hurting in this department.
"An increase in profits for the suppliers (and potential suppliers) of a suddenly scarce commodity should be welcomed. Only when profits rise can companies amassthe immense amounts of capital necessary for new exploration. Only then will outsiders be given the incentives to undertake the substancial costs of entering the oil business. So, the faster profits rise, the faster new oil will come into the market and the faster OPEC's stranglehold will be removed. A tax will hinder this beneficial process, either slowing down energy dependence or making the consimer pay more for it. In other words, it is Big Government which is ripping us off, not Big Oil."
The irreversible regulation the government has put on the oil indistry to make it their own monopoly is the only reason we are hurting in this department.