If free market economy regulates prices, why does that not work for oil prices?

It is working for oil prices. They have gone up laregy because of surging demand in the past few years, and supply has not kept up. China alone uses about 60% more oilt hen they used in 2000. Gas was so cheap in the late ninetees primarily because of the asian financial crisis that kept global demand low.

If anything, it is government controls that limit the supply of oil that causes the price to go up. OPEC is a government run cartel. The US prevents drilling in Alaska and offshore. Russia and Venuzuela have just nationalized their oil making production less efficient. Mexico's ineffcient state run company has production falling off because they havent tapped new oil fields. European oil in the North sea is being hampered by compliance with the Kyoto proticals.

Hubris is right. Oil can only be pumped out of the ground so fast, and if you haven't noticed the US uses more oil than any other country. We use it in our agricultural industry for pesticides and operating equipment, we use it to make plastics, and we drive EVERYWHERE.

I believe the prices will climb even higher as demand for oil in other developing countries rise. China and India are two, for example. The laws of supply and demand are at work.

Don't be so complacent, though. Why should China and India be allowed to share in our standard of living? We should keep them poor that way we don't have to share any of the world's resources with them. The more they consume the less there is for the US to consume. Vote for the presidential candidate you believe will start the most wars and rope off the middle east for the US.

ok, enable's say Washington comes to a decision to regulate oil expenses. Washington places its very amazing human being on the job. enable's say Washington turns to Maxine Waters. At a time at the same time as the international value of oil is $130 per barrel, Oil value Czarina Maxine places her foot down and says, "the price is $sixty 5." What takes position next?

The world produces 80 million barrels of oil per day.

we consume the same amount,

here's a word "Externality"

it means oil prices will double in the next five years, get used to small cars, wearing warm clothes in winter and maybe a lot less flooding and hurricanes

Newsflash: If the free market determined oil prices the price at the pump would double.