The problem is that this industry is OVERregaluate around the world, Not the other way around. The level of regulations around those nationalize oil companies is what create this level of production/price inefficiencies since the late 60s' in the first place.
You have to be naive or extremely stupid to think that a nationalize oil industry is the best for this country. Ask Chavez if he want cheap oil. What makes you think that a Nationalize oil industry in the US will not look to profit big time?
Did you know that 90% of oil companies are nationalize? Did you Know what happen in russia after putin Oil companies takeovers?
Do you know how the international Oil trading market works?? Did you know about the corruption levels on those nationalize oil companies around the world? What about The freight market, you have any idea of the importance of that in this industry? Political problems around the world? the operating cost every time the gas goes up???
The Government tried that (price control) back in the 70's and it was a total disaster for the country and Every nationalize Oil companies around the world has become a joke over the past 50 years, look what happen to PDVSA after they became nationalize back in the 60's.
letâs look at the financial consequences. Letâs say that the taxpayers would pay market prices for the top oil companies and pay off their debts - for XOM, CVX, and COP - that would be about $900 billion to $1 trillion to nationalize. If this means that oil prices and those pesky âexcessive windfall profitsâ would decline, then the US taxpayer would be overpaying for assets and cash flows at their peak for an industry that the socialists want to put entirely out of business.
the US oil industry is just a part of the global energy industry. That means weâd have to renege on commitments to foreign companies who have drilling rights in US territory or compensate them for taking those as well. Please remember that much of the âobscene windfall profitsâ of the 5 oil companies interrogated by Congress came from outside the US. So does much of the exploration and production of those companies. If their businesses were nationalized, the new US national oil company would be restricted to current US production and revenues and weâd have to get rid of the non-US operations just as we would have to kick out the non-US companies operating here. As a result, we would almost certainly end up in a serious shortage situation.
In the end, the US dollar - it would be worth less than worthless. Oh and never mind the inflation that would result. Yep inflation - sadly making gas is not free and even if you price it at nationalized prices - we will have shortages and inflation in other products. Just check examples like Venezuela. I know socialist dream worlds suggest that there are no negative consequences for nationalizing industries.
Oil price is set on a global market, and while a company can influence pricing, BP, Shell, Exxon compete heavily. Refiners certainly arenât raking in any profit, and nobody is talking about the fallout in the industry just a few years ago. Where were the tax breaks then?
If the socialist US government would run the oil industry, where would they allow themselves to drill? Do they know precisely where the oil lies? If so, would they just tell us now? If there is no way to drill in an environmentally responsible manner in ANWR or the continental shelf or Florida or wherever else, then what would the socialists do to increase supply? Do Rep. Waters and the other socialists know how to explore, drill, transport, refine, and distribute oil in a sterile manner? If so, could they save the planet and just tell us now? Finally, by what mechanism do they plan to do all the work of the industry without having to raise taxes to pay for it, with or without 10% profit margins they call âobsceneâ and âexcessiveâ?
Oil companies pay Tons of taxes, Exxon along paid over 128 Billion in taxes around the world, 30-40 Billions in the US alone.
On the Other hand You can buy oil companies stocks, with a nationzalize company you buy inefficiency.
If you buy Oil from PDVSA right now, You can get a basis of -$30 dollar below the NYmex spot price, Then, they'll charge the trader with a 50% ilegal commision on that profit, So If the International spot price of Brent Blend Crude is quoting at $63, Venezuela sell you the tia juana oil at $33, You as a trader makes a $30 dollar profit per barrel, then You pay $15 dollar to venezuela oil ministers on "commisions".
That's One the most corrupt scheme in the industry, and Who cares about that in venezuela?