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?
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!!!
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!!!

8 Responses to “Why do people think that a stateowned oil company that would make gas cheap and employ 1000s is evilCommunism?”

  1. socialism sucks Says:

    By putting a ceiling on a commodity you hinder the producers incentives to produce efficiently…

  2. CM Says:

    What happened to state’s rights? Shouldn’t it be up to Alaska? What you say makes sense to me. I don’t see how that is communistic.

    I don’t see that as putting a ceiling or a floor for that matter. They would sell it cheaper yes, but isn’t that being competitive?

    It would not be a monopoly because they would be competing with all the other oil companies still. He is just talking about Alaska. Not the whole country.

  3. CaesarLives Says:

    Americans are indoctrinated to make the man richer at their own expense.
    State owned oil companies are common throughout the world. Alaskans shot themselves in the feet by abandoning it. They don’t love their children. They love their masters.

  4. wwpetcemetery Says:

    Take over 1 company people don’t like..it would be easier to take over more..where would it end?

  5. g Says:

    sometimes socialism isn’t as bad as they want to cry about…

    my electric bill didn’t double over the past 2 years… and it is state contracted with pricing limits…

    my gasoline bill did…

    why? the state was probably a little more expensive than it should have been 2 years ago, but overall, it stabilized the cost and the market much more than the oil market has been stabilized…

    capitalism is great as long as everyone is cool…

    when people get scared… things turn ugly REAL quick…

    the state doesn’t have this problem… and with KEY things like energy… a stable market is a huge help to a stable economy…

  6. Ubuntu Linux Says:

    because that is a monopoly its ILLEGAL… you can not shut down oil companys or their would be a stock market crash are you crazy my family alone has 300,000$+ in exxon

  7. rhsaunders Says:

    It is a bad idea, but the notion that it is bad because it is socialistic or communistic is naive. The fact is that petroleum is a worldwide industry, in which billions of dollars must be invested, at a return which is often not at all predictable — and a government owned oil facility has absolutely no advantages over a private operation when it comes to doing this sort of thing. Consider Pemex in Mexico, and the Venezuelan operations, as notorious examples. And the notion that the oil companies aren’t drilling is simplistic nonsense; you don’t drill unless geophysical studies indicate the presence of oil — and there is a lot of leased dirt where there isn’t any.

  8. guerrilla Says:

    Communism isn’t democratic, and nor are private owned companies. But state owned companies, in an effective democracy, are.

    Historically Europe has recognised the need for a mixed economy. Most essential services being provided in a planned way. Democratically controlled they can work for the benefit of the community rather than focus exclusively on profit making. This is socialism. Socialism is all about democracy – communism is undemocratic – but that distinction seems totally lost in America – to the benefit of private corporate interests.

    When you have democratic control of a company a whole mixture of concerns and issues can be addressed and balanced that would not be addressed by a profit focused corporation. Price is one issue, environmental practices and employment issues are others.

    The criticism of state owned companies is that they are not as economically efficient – but they are not meant to be. A private company might, for example, do the bare minimum to protect the environment (economically efficient for the company). A democratically owned company could do more to be environmentally responsible, even if that meant extra costs of production. Or a private company will lay off staff in a downturn, but a democratically owned company would be more reluctant to do so and thus add to the economic problems – instead they might maintain workforce and production levels, storing any excess for when demand picks up again. Prices too could be controlled for the benefit of the economy. When other prices are soaring a democratically controlled company can keep it’s prices down, not adding to inflationary pressures. A private company will always seek extra profits – no matter what the effect on the community or economy. A democratically controlled company doesn’t always need to make a profit, although when it does that profit can help to reduce taxes.

    The European model has been very successful – Sweden has a lower GDP per person, but less than half the poverty rate of America, higher life expectancy, a more equal distribution of wealth, lower crime rate and so on. What’s evil about those outcomes?