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Originally Posted by czarina
what would Bush help research for other energy sources? He owns oil companies, at least partially. And he is, after all, a capitalist. So why would he give a flying sausage about the American people?
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High, unsustainable oil prices are actually detrimental to oil companies. Prolonged high prices drive down demand and, eventually, revenues from selling oil.
This uncertainty about future demand and the bottleneck in refining capabilities poses a large risk to oil companies due to the increasing costs of getting oil out of the ground or the sand or whereever it is.
There is a profit maximizing price for oil - and it is less then what it is now.