Oil Pricing Ignorance

                       

Every time the prices of oil and gasoline go up, there’s a call for a congressional hearing, to put oil company CEOS on the grill.

                       

Of course, the results, after all the political hoopla, are the same. The politicos find nothing, despite all their efforts. The media get their headlines and stories. But the facts will be overlooked--again.

                       

The oil companies pay an effective tax rate of about 40%, much higher than most corporations, far too high in an industry where exploration is so necessary, and expensive.

                       

Oil prices are determined by expectation of future long-term oil production. Supply and demand for oil play an important part, and the left does all it can to reduce supply. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)