Now who will make money and pay decent wages by selling $2 gas over the long haul? Know that in many countries they are paying far less but the government subsidizes them. Not likely to happen in the states.
Not likely that the government “subsidizes” them.
If you live in a country with abundant land-based oil wells and refineries, then the actual production cost is minimal. So there would be no need to use the world market price. No subsidies needed.
There are places where oil just oozes or just naturally seeps out of the ground. If you drill for water, you will likely find oil just below the surface.
In fact, in Pennsylvania prior to around 1850, finding oil was a really big problem. No one before 1850 really knew what to do with the stuff.*
Drillers would be drilling for water and strike oil, time after time.
So, water became a big issue.
There are places that have no water. So for them, getting clean drinking water is very difficult and very expensive. For other places, fresh, clean drinking water is abundant and virtually free.
Where I live in the country, water is only a few feet down, and it is super abundant … even causes floods at times. Yet some people have actually said that “we should ration water to be in solidarity with the people in Africa who have no water”.
Or, we could tax water because water is so expensive in some places.
Rationing something because of “solidarity” makes no sense.
It makes more sense to assist those people to develop water resources where they are. [They do have water, by the way … but they also have totalitarian governments that make one catastrophic economic decision after another.]
Those people in Africa have an abundance of totalitarian government … should we ask them to share their surplus with us?
So, the issue of “subsidizing” is really not a valid issue.
- Finally, eventually, some guy hired a chemist and they figured out they could make useful products from the oil.
Go here and click on 1, 2, and 3. Fascinating reading … the history of oil in the United States:
priweb.org/ed/pgws/history/history_home.html
Burnable gas for illumination came about in the 1780’s in Europe:
inventors.about.com/od/lstartinventions/a/lighting.htm
It was made from coal … so it was called “coal gas”.