The price of oil today is a market price for the most part. Many of the biggest suppliers are national oil companies, and many of those participate in a cartel, but the cartel isn't very effective in controlling its own supply, and doesn't control anywhere near 100% of the supply.
Also to the extent the cartel can restrict supply, it drives the price up, so without it the price would be lower.
For example, why is it that we put stiff tarriffs on sugar ethanol imports?
Because the corn ethanol producers, and other interests, want government to manipulate things so they get more money.
OTOH corn ethanol is subsidized, and to a certain extent even required. Government interventions on ethanol are often to decrease the price of increase the use.
What does it cost to use our military to fight wars over oil and to secure our oil supplies?
Not much. Since we haven't fought any wars just over oil, and since our military has many other purposes. I suppose you could count the cost for specific operations to secure oil fields, pipelines, terminals, distribution points etc. in Iraq (and sometimes other places). |
