The first oil shock occurred in 1973, at a time when the government was perhaps more courageous, in terms of taking authoritarian action, such as freezing oil prices. In 2007, given globalization and company strength, it would probably be going too far to think in those terms, but some producing countries do just that.
At one extreme, we have Venezuela. Mr. Chavez may be selling gasoline at a price which is too far below the market price—at 12¢ US a gallon, based on 2005 data, which is about 3¢ or 4¢ a litre. However, there are also other producing countries where government-owned corporations sell gasoline to the population at below market prices, and despite that, they do a good business.
If what Hydro-Québec is doing with kilowatt-hours allows it to be profitable to a certain extent, why would that not work with petroleum products? The kilowatt-hour is quoted on the Nymex Exchange in the United States and it fluctuates on a daily basis, whereas in Canada, the price is regulated and companies are still able to make healthy profits.
It is really only a matter of finding a happy medium between the two and perhaps reconsidering the Free Trade Agreement, which the U.S. did not hesitate to set aside when it came to softwood lumber. They dragged their feet on that issue for three and a half years. Why couldn't Canada do the same thing with petroleum products and also reconsider the infamous clause?