Gas Prices Will Eventually Drop?
I have a hard time believing that, but this guy makes a case for it. If true, I hope it's sooner rather than later.
Addendum: The cover story in this week's North Coast Journal deals with the high gas prices. There's also a story about local gas thefts.
posted by Fred Mangels @ 6:45 AM
9 comments
9 Comments:
If the US dollar continues to be devalued, dont hold your breath for lower costs.
OPEC's top 3 reserves are Saudi Arabia(home of 19 of the 20 9/11 bombers), Iran(whom we threaten on a daily basis), and Iraq(who we now occupy). Iran and Saudi Arabia will never sell us cheap oil if they can help it. Iraq cant produce what they were produing under Saddam.
How could we possible think that prices will go down?
10 short years ago, the price was $11 a barrel. Our presence in the middle east has obviously been a mistake in regards to oil prices.
Plus, hedge funds and related investments are no longer being utilized. Instead, americans are investing in oil funds due to their high yeilds. That will keep the price high for the near future.
Interesting article, Fred. But I fear he is wrong about one key thing:
He states:
"But sooner or later the world won't keep paying those prices: Eventually, the price must fall back to the cost of that last barrel to clear the market."
But the world WILL keep paying those prices! Because they will have no choice. An addiction is just that- the inability to give something up-even when its bad for you.
Couple that with mismanagement by nation-states, and a disconnect from real economic reality here (by the White House), not to mention fantastic greed (Halliburton, anyone?) will keep us wishing gas were 'only' 5 or 7 bucks a gallon.
BTW- I was in the oil biz for over 20 years, so Im not just spouting opinion.
Things ARE different now, no matter how much the 'right' wants to pretend we can elect another Bush and go on as we have for 50 years.
Not. This. Time.
Or to put it another way:
We have been spending our childrens future like drunken sailors (cause people would rather do that than pay more taxes now apparently-)
and now our 'chickens' are indeed-'coming home to roost'
If supply and demand controls the market price, someone is going to have to tell China that they should reduce their growth into the fuel consumption market. You go ahead and do that, they won't listen to me!
Personally, folks, I am addicted to my computer. As long as the price of electricity is low, I don't care about the price of gasoline.
My only worry is that eco-nuts will be willing to pay tens of thousands of dollars for new "Green" cars that plug into the wall.
Then, with demand for electricity rising, I may have to quit my blogging. Oh, Alas and Alack! Then the World as I Know It will truly have come to an End!
Anon 11:23 AM, Which "oil biz" were you in? Anyone in the oil patch knows that Halliburton is a service company and owns NO production. Additionally, 94% of ALL crude oil reserves on the planet are in fact socialized; that is, owned and controlled by governments.
As usual, those whining loudest about the high price of gas are the very ones who had the "No Offshore Drilling" signs displayed on their VW busses.
Oh, and by the way, an ounce of gold in 1952 bought 138 gallons of gas. Today, that same ounce of gold buys 218 gallons of gas. Folks you are being ripped off by the socialist policies of government that have inflated the currency. Those greenbacks in your wallet used to be silver certificates. Now they are "Federal Reserve" notes i.e. scrip.
Earth to Anon 11:23AM: Bush is not a candidate in November. It will be Jug ears Husein Obama vs John "I wouldn't drill in the Grand Canyon" McPain.
Hello, gentle readers. I am 12:40. Today I am doing a survey. Would you be so kind as to help me?
I am trying to determine whether there is a place on our local blogs for feeble attempts at humor such as the one I posted at 12:40.
Please indicate your preference for our local blogs:
Occasional feeble attempts at humor, Frequent feeble attempts at humor, or Absolutely No feeble attempts at humor ever.
Extra points will be offered to those who refrain from using insults or sarcasm against yours truly.
Thank you in advance for your cooperation.
12:39 AM,
Why are you using Fred's bandwidth to do your survey? Why not come out of the closet? Most of these local blogs being "progressive" are hosted by humorless left wing ideologues (redundancy alert). We would enjoy a bit of levity.
ΛΕΟΝΙΔΑΣ- Well aware halliburton is only a service company- whos past chief ALSO owns millions in oil stocks- make no mistake-Halliburton carries alot of weight in the biz-
Yes- Most oil IS NOT owned by American companies- But the PRICE is set each and every day by market speculators who are overwhelmingly AMERICAN!
But, as usual it sounds like you are too busy finding ways to blame it all on hippies and liberals to look at facts....
And Pogo- you must be ΛΕΟΝΙΔΑΣ's alter-ego.
EARTH to YOU dude- GW is STILL in office! Now.
STILL screwing you & me. Now, and for many months to come.
Get it?
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