3/29/2006

Who can we blame for high oil prices?

Who can we blame for high oil prices? According to this article by Ben Stein, the oil companies are not to blame. Oil prices are set by the trade market and not by executives of the oil companies. Factors that drive oil prices include expectation of war, weather, or terrorists. These all affect supply and demand of oil and in the end that is what drives oil prices. Some companies benefit greatly from higher oil prices while others only have a moderate profit.

3 comments:

Tom said...

I think we can blame ourselves for the high oil prices. We as Americans love oil. The bottom line is that we like to be independent and drive our cars (in more or less words). If we didn't like what they (oil companies) did bad enough we would find alternate alternatives.

Dr. Tufte said...

Umm ... Tom ... what is an "alternate alternative"?

Dr. Tufte said...

Oops, hit enter too soon.

Can anyone tell me precisely why we have to "blame" anyone for high prices?

Since when is changing prices an action that requires "blame"?

Of course, folks will say it isn't changing prices, but rather raising prices that requires blame. If that is the case, does that mean we "unblame" people who lower prices?

I didn't think so ... and I think doing the one without the other just makes a lot of us whiny jerks.