Is nationalizing oil fields on current public land a bad thing?

Question

My premise is that the public owns this oil right now.

If we lease the land and the mineral rights, what do we, the public get out of it? The oil companies pay us a nomimal fee to take our oil. What do the oil companies get? Our oil!

They take our oil and sell it back to us for a profit.

Why not contract the oil companies to pull the oil out of the ground, pay them for that service, but the government, hence the people, take the profit?

I just wondered why not nationalize the remaining oil fields?

Answer 1

It can be a measure oriented to increase the income of government and reduce the pression on taxes. This kind of decision must be seen down cost-benefit analizes because it can create some problems, vices or precedents. To own oil field means some kind of administration and business and it is demonstrated that governments are worst administrator and owners; this is because governments have many goals and limited resources so, those can not take optimum economic decisions.

when the economic resources are owned by ignorant in business the result is a loss...

Answer 2

Just think about how well the 'gubment runs Social Security, Amtrak, Medicare, Medicaid.  I certainly think that they should run the oil companies.

By the way what do Marx, Engels and Lenin have to say about nationalization?  Hugo Chavez just did it in Venezuela and nationalization has worked well in Cuba too where, according to Michael Moore they have a much better healthcare system than we do

Answer 3

The same reason you lease farm land to farmers rather than creating  government owned farms. They have the expertise to efficiently extract the resources. The owners of the land, be they private or public, get paid rents for doing so.  

Answer 4

Yes, it is a bad thing.  Consider how little the government does well right now, and then add the complexities of the marketplace.  It is always preferable in matters of commerce for the government to be paid a fair price for valued assets, and then allow businesses to exploit these assets for profit and jobs that have no place in the public sector.