What are some ways to force oil companies to lower their prices?

Question

Aside from asking them to pump out more oil.

For example: Raise food prices of other countries that the U.S trades to.

I don't know how legitimate that above statement is, but that is the only thing I could think of so far.

Thank you for your time.

Answer 1

Good question. Oil companies, work on the profit motive and the price of oil they buy or extract is the key, world market prices for oil are strongly influenced by traders, buying oil as a commody, a hedge against a falling dollar...........

In other words, my suggestion is to increase the value of the dollar so it buys relatively more oil. This can be done be re-establishing trust in the dollar worldwide by:

1. PAYING DOWN THE DEBT- if america returns to paying its debts, the world will regain trust in the long term security of the dollar.

2. Reduce international stress- financial markets react negatively/insecurely whenever we threaten to bomb Iran or whoever.

3. invest in alternative fuels, including technologies to extract the hard to reach huge oil fields in north dakota, wyoming and the rockies.

4. raise interest rates , so investors will invest in the  dollar again

while these dont make big oil lower their prices directly, indirectly will have a much greater and lasting effect.......

Answer 2

The only way to force oil companies to lower their prices is to put a maximum price or a price ceiling on it, and only the President can initiate that.

And to be completely honest, gas prices will always rise. In '81 they were $3.31, then went down, back up, down, up, down, up. They fluctuate constantly. Consumers just weren't expecting it to go up so fast, and nobody had time to accomodate for it.

Answer 3

Windfall profit tax to the big oil companies.  Tax their outrageous profits.

Step up production of bio fuels so it is real competition to crude oil.  Make these bio fuels out of something other than corn so it does not effect the production of food.  Celulostic ethanol can me made from switch grass or wood by products.  This type of ethanol is much more efficient to manufacture than corn ethanol.  Start production of bio diesel from algae.

Answer 4

greater taxes in their profits. also lower prices means lower taxes in oil companies

Answer 5

I think the price of oil is not going down for a loooong while because:

1. Our complete dependence on oil.....and

2. Oil suppliers are meeting demand, its not like there is a shortage. Demand increases as it is now, price naturally increases with it

3. and the fact that the large oil supplying countries act as a cartel

4. Also, the US is at war in a country that was a large producer....obviously they can not produce as much as they were previously capable

5. The U.S and U.N. are now imposing sanctions on Iran, another large oil producer

In my humble opinion, for these reasons, politics need to change before the price of oil will go down.

Answer 6

Take away from the demand for oil, then they'll lower the prices. Many people (in places like Portland) live without even owning a car. Other things you can do are walk or ride your bike on shorter trips. Think about whether trips in the car are necessary. If you are going to use a car, use one with better mileage as opposed to a gas guzzler (like SUV's).

Answer 7

Well, there are lot of things that can be done; but as far as common man is concerned we can :-

  ** minimize the use of oil/gasoline - can be done by using car pooled, taking public transportation, don't buy gas/petrol on specific day of a week, etc....

As far as Govt is concerned, they can try to do something to break the monopoly of OPEC and oil companies. They can also work towards promoting alternative source of fuel. This promotion is going to break the moral of the OPEC and Oil producing companies