Joe wrote:

> The solution is to let the price continue to be determined by supply
> and demand. If the price gets so high that people start actually
> curbing their use of fuel, the price will drop. It has probably
> already hit that point, and the price will likely settle around $3.75
> per gallon for regular unleaded.

This approach is extremely short-sighted.

Oil is needed for products other than just than gasoline and diesel
fuel. The supply and demand need to be managed carefully, as many
countries already do.

The actions of those not curbing their use of fuel, directly affect the
rest of us. These people need to be penalized.

> The oil companies have no responsibility to the customer other than to
> provide the product at whatever price people are willing to pay for
> it.

That's right. It's the government that needs to help set the pricing at
a level that is optimal for society as a whole.

The price at which they are able to sell all the oil they want
> for the most amount of cash. This is good for the stockholders, and
> therefore exactly what the executives should do.

The government is under no obligation to keep the taxes on fuel
artificially low in order to help the oil companies make more money, nor
are they required to institute policies that drive up the cost of oil.
This is what has happened under Bush, and it was not unintentional.

What the Obama administration should do:

1) Adjust the tax system on motor fuels to discourage consumption and
reward conservation

2) Raise CAFE standards significantly

3) Encourage the development of plug-in hybrids

4) Encourage the expansion of nuclear power for generating electricity

5) Work on the creation of high speed rail, powered by electricity,
powered by nuclear, to replace short hop air travel which is an
inefficient use of fossil fuel.


We just can't afford any more Republican presidents and their huge
deficits, lack of foreign policy expertise, and their ties to big oil.