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November 21, 2016
The nation with the largest petroleum production in the world is the United States of America.
The reason oil is imported from other countries is that Federal regulations set an unrealistic limit on the price of domestic oil when sold domestically; consequently most American oil is sold abroad, and much of it is bought back at OPEC prices…and none of this oil moves across our borders, as these transactions are all on paper. The President can sidestep this insanity by having all domestic oil production purchased by the United States Navy, over which he has full command and need not consult Congress until such time as a Constitutional Amendment is passed to the contrary. This oil will be bought at a reasonable profit for domestic producers, and will in turn be sold to the domestic oil processing industry at a markup of ten percent, which is still well below OPEC prices and should do much to support my next step. The United States Navy will of course have in its physical possession just as much of this oil as foreign transshipment dealers do now.Suggestions for government, and other important matters – Chaos Manor – Jerry Pournelle
Posted by gerardvanderleun at November 21, 2016 2:06 PM. This is an entry on the sideblog of American Digest: Check it out.
Your Say
I kind of agree only that the free market should be completely opened up. 10% profit level? BAH! Any time prices are fixed then either production or quality will suffer. The gasoline shortages of the 1970s had nothing to do with the Arabs but the limiting of profit also limited supply. The free market is much like the laws of physics in that you cannot change what is.
Posted by: Snakepit Kansas at November 22, 2016 5:14 AM
Snakey is correct and Pournelle always was a bit nuts in his belief in the free market and big government at the same time.
If he gets his wish I look forward to the complete corruption and destruction of the US Navy.
Posted by: Fred Z at November 23, 2016 6:16 AM