Petroleum deposits have existed for millions of years. The price of oil fluctuating so dramatically over the past few decades is not due to the normal laws of supply and demand. Allowing oil prices to fluctuate in the free market instead of long-term negotiated contracts has allowed greedy oil companies to sell oil at a much more volatile and inflated rate.
The only real supply change comes when a supplier cuts or increases production, or production speculation changes based on region instability (political turmoil or war), or refinery or supply problems.
Either way, the commodity that has existed for millions of years has been manipulated to benefit energy companies and Wall Street. The cost to extract oil has usually been around $20/$25 per barrel. Long-term contracts would keep the price around there. Yet letting the free market manipulate the price has driven up the price near $120 before.
When industry can manipulate and steal so much money from consumers, the government should step in. Unfortunately there is too much money and influence in control by energy companies. Under Bill Clinton and George Bush's rules, more energy companies were allowed to merge (1998-2002) and the price of oil has never returned to where it should be.
Fedup — 2016-08-01 12:38:27
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