Quote:You don't even know your own argument.

 

When they control supply, they control demand. Limit supply, demand and prices increase.

 

If these companies conspired, like mentioned earlier, then the supply / demand model wouldn't be totally applicable. They'd still make their money but on less expended resources. There's no reason to believe one company couldn't own everything, either. Government doesn't have a factor in that equation until you remove them entirely, then imagine what a corporate oligarchy would do without any threat of legal action. People will not stop using oil / gas, Eric. 

 

Just a correction, they don't control demand, they control supply which can be manipulated to control price, but demand is something separate.

 

However, there is a very low price elasticity of demand for oil, which means that changes in price don't change demand very much, and if suddenly gas were $5 per gallon almost as much of it would be demanded as there would be demanded when it's $3 per gallon.

 

However, there a significant political pressures on oil supply that keep its price relatively low in the USA in spite of the fact that there's a lot of money to be made raising its price.

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