Wednesday, April 26, 2006

Schumer Shows Ignorance

Sen. Chuck Schumer (D-N.Y.) showed his ignorance of the oil industry today. He called for the breakup of the big oil companies.

The largest oil company, ExxonMobil, controls less than 2% of the world oil market. At that level of market penetration, ExxonMobil can not have any effect on oil prices.

OPEC has far greater influence on the price of oil. Iran and Venezuela, with large oil reserves and political leaders who make unsettling statements, also put more upward pressure on oil prices than ExxonMobil.

Schumer's go-for-the-throat politics and his willful ignorance of economics and commerce damages the political atmosphere in America. A little knowledge and reason would be helpful in the debate.


Blogger John Rodkin said...

This comment has been removed by a blog administrator.

4/26/2006 06:49:00 PM  
Anonymous John Rodkin said...

Not just the oil industry - economics in general!

4/26/2006 06:56:00 PM  

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