check this out
:
Supply is what is available. Production
determines supply, in the case of a commodity, so long as there are
available crude sources. Unlike farmers, who may not always yield great
crops due to fluctuations in the weather, those that own oil
derive it easily, and at a great profit. It is costly to drill a new
well, and so while a well exists, it is stretched out as long as it can
be––as you said, farmers decrease supply to increase prices. The owners
of crude oil do this by choice, rather than due to the weather. So long
as they feel they need more wealth, they will drive up the price of oil.
Since times are difficult everywhere right now, they feel they need
more wealth. And so, we suffer for whimsy. Yes, speculation can be
manipulated in favor of lower prices, but the threat of competition is
not enough to create stability. Unfortunately, unless it were
socialized, domestic drilling would only go into the pockets of oil
companies and not serve to benefit the American people. Truly socialized
oil will not happen.
oh, and the kicker? hes a registered Republican