Dispelling 'Big Oil' myths

-A A +A
By The Staff

Dear Editor,

Ned Cantwell’s recent editorial piece drove home the point that most of America cannot, will not, or does not have the time to understand the reasons for the increase in the price of oil and gasoline. Since I have had the time, I hope I can clear up a few myths.

Myth #1: “Big Oil” is responsible for the price of oil and could choose to lower it.

Oil is a global market; its price is determined by the intersection of world demand (increasing fast) and world supply (stagnating).

Increasing demand and stable supply results in higher prices, the basic law of markets. Any sort of price fixing would take an incomprehensible conspiracy on a global scale. A more detailed discussion of the economics can be find the Congressional Research Service’s (CRS) report at www.fas.org/sgp/crs/misc/RL32530.pdf.

Myth #2: “Big Oil” is making reprehensibly high profits at the expense of consumers.

Yes, American oil companies are making huge profits but it is important to put those numbers in perspective. Oil companies are absolutely massive and so require nominally huge profits to operate.

If you subscribe to the newspaper, you receive FREE access to all the exclusive content of the web site! Simply register to receive uninterrupted access to our award-winning and in-depth local online content!

Renew Current or Past Subscription / Register for Online Subscription

If you currently subscribe or have subscribed in the past to the Los Alamos Monitor, then simply find your account number on your mailing label and enter it below.

Click the question mark below to see where your account ID appears on your mailing label.

Newspaper Acct. ID:
Street Address:
(exactly as it appears on the label)

If you are a subscriber and you do not know your account ID or don't have a copy of your newspaper available that shows the information on the address label you can click continue below to search for your account.

New Subscription/30 Day Free Trial Account

If you are new to the award winning Los Alamos Monitor and wish to get a subscription or simply gain access to our online content then please enter your ZIP code below and continue to setup your account.

ZIP Code:

Create a limited access account.
Register to participate in community forums, post on the community calendar, blog etc. This registration does not give you full access to read our award winning content, etc.

The Los Alamos Monitor | lacirculation@lamonitor.com | 505-662-4185
256 DP Road, Los Alamos, NM 87544
Office Hours are 8:00 a.m. to 5:00 p.m., Monday through Friday