Pelosi and the Big Wind Boone-doggle

You do understand that the offshore leases would be sold at bid and that the winning bidder would own whatever they can find?

The SBC should form an LLC to bid on oil leases and then sell their oil at less than market price to American refiners. Or the Catholics can build a new refinery and the SBC LLC can sell the oil to them.

If this idea is rejected, please explain why anyone should sell oil at less than market price?

Why do you object to windmills? Are they Satanic or something? I would love to have one in my back yard but the lot is only 50 feet wide.

 

Apparently you have no grasp of economics. No one is suggesting that anyone is going to sell oil at less than market price. However, the reason why we are paying so much at the pump right now is because the oil market price is high due to an artificially short supply of oil with record demand (supply and demand). Now, if the US allows its oil companies to drill and produce more oil to offset the artificially low supply and meet the high world demand the market price will go down (law of supply and demand).

 

Supply and demand

There is no shortage of gasoline, diesel, or heating oil. Anyone who wants fuel of any kind (except nuke) can buy it at market price. There are no line at gas stations anywhere in the free world.

Second, elementary econ teaches that retail prices should be raised until the loss of sales causes a bottom line drop in prices. The retail price of gas rose a $1.50 from $3.00 (50% rise) and gas sales dropped 8%. By any economic theory except communism, the price of gas is to low.

Third, when any sale is made each party thinks that he is improving his condition. The seller wants your money more than he wants his product. The buyer want the product more than he wants his money.

Yes, gas sales might be inelastic but what is that to the retailer? A person says he can't afford to drive his gas hog 50 miles every day, can't afford to trade in on a new veh, and can't sell his house. Can he throw a sleeping bag in his suv and sleep in the company parking lot 2 nights a week and cut his fuel costs my 2/5ths? He doesn't want to? You pays your money and makes your choice.

Fourth, for most minimarts the gas sales is probably a loss leader. They want you to come in and buy ciggy butts, beer, and food.