Skip O'Neill – Liberty for All

Ron Paul for A New Direction

Free Markets and the Price of Oil

with 4 comments

About seven years ago natural gas was around $12.  Now it’s trading around $4.00.  What drove this dramatic price drop while oil was rising in price.   One answer, free markets.  The natural gas resources are here in North America, and the drillers were not restricted to explore and develop those reserves.  The drilling created an abundent supply of gas, thus driving down the price.  At the same time, the Obama administration and the anti-oil crowd has restricted drilling for oil here and is making us more dependent on foreign supply.  If we want cheap oil, all we need to do is follow the example of natural gas and the price will be driven down by market forces, not by government.

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4 Responses

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  1. WWRPD? (what would Ron Paul do). Remove all restrictions and let the free market work.

    Laurie j

    October 7, 2011 at 2:52 pm

  2. I like it. Thanks

    opinionoregon

    October 7, 2011 at 2:59 pm

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    Cindie Manlito

    October 31, 2011 at 6:29 am

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