Why do people think that a stateowned oil company that would make gas cheap and employ 1000s is evilCommunism?
When I lived in Alaska during the 04 elections there was a proposition by some candidate that I don't know the name of that suggested that Alaska state should allow the residents of Alaska to vote for or against a State owned oil and refinery company. and a month or so before the 04elections the idea was scrapped. The theory of the state owned oil company is that since the oil right in Alaska are on state land then it is owned by the state and therefor not under OPEC and therefore would not have to be placed on the world market and would simply be sold to America and Canada and Mexico thus eliminating the competition and making it cheaper since the government would drill for more oil unlike the oil companys who drill very little and pretend theres no possibility that producing oil is possible. I thought that was a great idea but apparently there hardcore capitalists that think low gas prices and more jobs for Americans is to "Communism" Why? Capitalism is free market and free trade but that doesn't mean that our natural resources like oil should be hauled off to The People's Republic Of China!! American tax payers should have the benefit of having a government that will not whore out our natural resources when we are paying over 4 a gallon.Shouldn't Alaska's oil fields be maned by State hourly workers instead of private companies like Exxon/HEss .I'm just wondering why the capitalist's would feel persecuted by low energy prices and spawning employment rates. can someone elaborate? I want to further explain how this system works in Alaska because the last time I posted this answer there were 1or2 people who said it was a monopoly which I find funny because according to capitalism eliminating monopolys is like taking away the incentive of producers to produce but anyway. IN Alaska since the discovery of oil the State has established itself as the rightful and legal owner of it's mineral rights and reserves the right to lease it mineral rights to Oil Companies for it own economical benefits. Alaska leases it oil rights on 10yr lease agreements to Conoco-phillips oil company .If a state owned oil company and refinery were to happen Alaska would stop leasing the mineral rights out and buy the equipment and materials from the company and probably rehire the employees and continue the same work .The oil companys would be able to set up shop anywhere else in the state or in the world if they so please and they will. Once this happens the elected officials who run the company would establish the minium price to be set that would ensure that "business" would remain cost effective. The Oil fields would be used to the full capacity to ensure there is an abundant amount of crude to keep prices low. A private company like conco phillips in this situation would simply reduce the amount of oil produced to create the falsehood of there not being enough oil and then marking the price up!!! The state owned company would atleast double the production thus creating more jobs and selling oil at wholesale prices thus making gas cheap! If you don't believe me feel free to do your research! in reply to- Ubuntu Linux A state owned Oil and refinary company is not a monopoly!! The state oned company would compete with the major oil companies. If the oil companies want to sell 4 dollars a gallon gas while the state sells it for a 1.50 then they have every right to the oil companies will make more money in actuality because the state owned companies would remove a a portion of the available oil supply from the world supply then the oil companys can have an excuse to rip off the People's republic of China and that way your family can get a huge return on the Exxon stock!!! 1 second ago in reply to username -wwpetcem_.. Who said....... Take over 1 company people don't like..it would be easier to take over more..where would it end? You did not listen there is no "taking over" The mineral rights are owned by the state and the state had the right to lease the mineral rights to the oil companies. All the state oned oil company would do is tap the oil field with there own drill and produce oil from there own property.and refine it and sell it for cheap while still allowing big oil companies to operate so as long as they pay there "RENT" because the oil companies do not own the mineral rights because no one can own mineral rights but either the state or the federal government!!! I'd also like to let all those who are about to say the government stinks when it comes to busness. My gas and electric is contracted by the state and pretty much is ran by the state with price and budget caps. Gasoline has doubled in the past 2 years!! however my electric and gas have not! I'd say the government is doing a fine job when it comes to regulating energy and commodities! Lets not forget to mention the Irs which is the biggest debt collector in the country. They have manage to collect everyones taxes no problem. Have you ever heard of the government going bankrupt because the IRS wasn't doing a good job at collecting debt.??? Ok now if your going to say the government should not run and own an oil company because they are no good at it . The I want you to explain why a state contracted heating gas company and a state ran electric company are doing just fine? Why do people fear the government when there is talk of having state owned oil companies yet they fail to realize local,state, and federal government does a great job at making your electricity,bringing you heating gas??? Are people fearful that the government might actually beable to help society?? Can hardcore capitalist explain why in Kuwait gasoline is less than a dollar per gallon ?? Kuwait has a state owned oil and refinery that take a small percentage of the oil and sells it in there own country for cheap regardless of the world market conditions!!! Why do people insist on supporting suck a strict for of capitalism when is clear that 5 dollar per gallon gas prices are now helping the economy as much as it's benefiting the few.?
Asked By: jay - 8/1/2008
Best Answer - Chosen by Asker
Hi, again, some misconceptions. There are actually very few public utilities left in the USA, almost all of them are now private providers who have exclusive contracts with the localities that they serve... More
Answered By: sdvwallingford - 8/1/2008
Additional Answers (5)
Because they're brain-washed, can't think for themselves conservative lap-dogs of the mega-rich.
Answered By: Rev Doofus - 8/1/2008
Its a slippery slope
Answered By: Matthew W - 8/1/2008
I'll be brief. When it comes to running a business, government's track record STINKS. But to answer your basic question: State ownership of industry is one of the underlying tenets of communism, so yes that would be more communist than capitalist... More
Answered By: bostonianinmo - 8/1/2008
I fail to see any reason for it. In fact we do have socialism for services that are considered vital to our society such as municipal fire and police departments which are paid for by tax dollars not users. By having them run by the government entity they can be sure that employees are local thereby helping the local... More
Answered By: ash - 8/1/2008
nationalizing anything is a bad idea they may claim they will compete with private companies, but soon they won't Read Ayn Rand's Atlas Shrugged.
Answered By: lazlo_dei - 8/1/2008
Over 371 New Local Jobs Hiring. Find Jobs and Apply Today!
$21/hr Start, Avg Pay $72K/yr Check Our Map of the 1700 Openings.
Click. Search. Apply. Free!
New job opportunities added daily. Search & apply for DC jobs now.
Other Career Questions
What jobs are there in the business field that are night jobs? Places and job titles please. Im have a BA in Business Admin and looking for a night job, already have a morning/day job.
Enumerate these jobs Say, patent application writting. patent application writing. In a company, what jobs are needed to keep confidential?
Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.
Best-Paying Work-from-Home Jobs
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
2013 Engineering Jobs Outlook
Engineers will find job opportunities in select disciplines in 2013, with candidates who are all-around, client-oriented businesspeople in demand.
Best-Paying Jobs by Major
What could you earn with a particular four-year degree? Find out by checking out this list of the top-paying jobs for 20 of the most common majors.
Eight High-Paying, Secure Jobs
Want to earn a good salary and enjoy a measure of job security as well? Check out these well-paying jobs on tap for fast growth in the coming years.