Surprise. :-)

If the [g]overnment "fixed" the price that oil may be exchanged at only those prices what would happen? Explora[t]ion would be increased [a]s suppliers tried to beat the market[. ] $9 dollar oil would no longer sink state economies tide to oil (AK, LA, TX and FL) and provides a counter to OPEC.

Where would the government get the money to fight the speculators?

This type of thing is exactly what goes on when governments try to fight the currency market. If they've got enough reserves, then they can make a Real worth $1. But if the currency traders, banks, etc., think that the government can't sustain it, they'll put pressure on the currency and eventually something will give. See, e.g., what's happening in Brazil, Argentina and other economies in South America.

Remember when the [link|http://www.buyandhold.com/bh/en/education/history/2000/hunt_bros.html|Hunt Brothers] tried to corner the silver market in the late 1970s? For a while, they were sitting pretty. Kodak was sweating. But eventually, the price of silver collapsed.

If the US government were able to, somehow, control the price of traded oil - a big IF - then there would be pressure among many to cheat. Organized Crime would love it.

The biggest problem is that them oil market is too big for any individual government's control.

Interesting thought though!

My $0.02.

Cheers,
Scott.