Originally Posted by AndrewAZ
Even then if its a monopoly basic economics states that supply and demand still dictate price. And based on your irrational statements you have never taken an economic class in your life. Since any first year business student would realize your statements are wrong.
Lol, maybe you should go back and read The Wealth of Nations.
I've had many years of econ and business. The oil monopolies are not simple monopolies but state sponsored monopolies. Our government sponsors them, helps them out and receives kickbacks from them in the form of campaign "donations" ,etc. Read this brief Wiki article about what Marx thought of State Monopoly Capitalism.
Consumers have no reasonable choice but to buy oil from the cartels out there because there is no free competition. The cartels walk a fine line. Not too much production or profits will decrease and not too little or they will wreck the world economy. It's akin to a crack dealer getting a person hooked the first time for free because he knows that person will be coming back to get another hit and the next time will not be free.
If ethanol is so viable ask yourself why we aren't using it already on a massive scale? Why with all this technology are we STILL dependant on foreign oil? Why don't we have long term plans to completly do away with oil? Answer: because our government and the oil cartels are making far too much money off of it.
"The monopolists, by keeping the market constantly understocked, by never fully supplying the effectual demand, sell their commo-dities much above the natural price."
The Wealth of Nations, Book I, Chapter VII