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...that very little will halt oil's ascent towards $200/barrel. Forcing Bush to divert strategic reserve oil had virtually no impact on the markets. This rise is slow and patient. I see no evidence of any sort of spike/crash scenario, although you will see pullbacks from time to time.
Get used to $200 oil and $5 gas. It's going to happen probably within the year and there's nothing you or your government representatives can do about it.
If there's speculative buying, it's probably caused by all the extra money flowing in the system courtesy of Helicopter Ben and his crusade to help broke investment banks. Foreigners are selling what they can in terms of dollars and bidding up prices. As long as there's "liquidity", this is only going to cause prices to rise more.
I agree. We built our economy and empire on oil and now the rest of the world wants to do the same. We are not running out of oil but we are at the end of cheap oil. Time we learned to do more with less. This will not be comfortable but it will be necessary.
I happen to agree since the rest of the world seems to be booming (China, India and their billion plus populations) we will never see oil at record lows again. It's actually quite sad it takes record prices for the US to finally take altenative energy seriously.
I think it is very important as this is obvious ,yes gas will be over $5.00 in the very near future. It is never going to be cheap again, the days of that are over. It is very important for cities and states and their general populations to face reality and to have measures in place that guarantee options besides vehicles. Every large metro area should have some from of transit in place. If a rail type system is unaffordable or not practical, then a much less costly extensive bus system can and should be required and I stress required in these metros. Much of the USA does not even have much in the way of bus sytems and this in large metros. Peoples attitudes have to change, and they have to face reality. I placed a thread on city data inquiring in one large heavily populated state with little public transit how they felt. The thread is very recent and only a few have responded but very few felt the cities and states should do anything as far as transit because it would cost money or would take way to long to build. Basically they don't want to get out of their cars, maybe drive less, combine trips but not find other options period. I think people and states that think that way are setting up their populations for such hard times as this problem grows with each week. There are several states in this country that have large populations and a number of metro areas. These states have next to nothing in place for even a practical bus system. I think these states and their citizens need a reality check and need to wake up. I think if nothing is put in place that gives a person another option besides a vehicle in these large metros, then the region should lose federal Transportation Funds. Thats how bad I feel this problem is going to get in this country and could cripple our economy and society if measures are not put in place. Many will not be able to afford to buy gas period.
The single biggest factor to reduce America's dependence on oil is to reorganize how we structure our urban areas - zoning boards must adjust and people will need to accept mixed commercial/residential districts. No one wanted a bakery, bank, small grocer, or hardware store nearby because they were afraid it will drop their home values (too late for that).
We're a car based economy where you work one place, live in another, and shop in another (usually at a big box store on the edge of town). If you could walk, bike, or have short drive to pick things up, we would burn far less oil.
Also, was it any surprise that driving massive trucks with low gas mileage would not bite us in the butt one day? I live in Italy where gas has always been $6 per gallon (only the dropping dollar is keeping it steady - all oil is priced/sold in dollars -- but that is another story). Because its so expensive to drive, cars are much smaller and every neighborhood has a grocery store, hardware store, cafe, newspaper stand, produce stand, etc. Everyone rides the metro or bus - it does not have the social class connotations it does in the States (esp California).
I can remember riding my bike across town to baseball practice, school, etc but now kids expect to be chauferred everywhere in Mommy's Ford Exhibition. Ride the bikes kids (and burn those calories). If Mom is paranoid that a stalker/pedophile is lurking (even though the stats show the chances are less than remote) ride along with them!
More business folks will need to reconsider more video teleconferencing instead of travelling for meetings (though they'll always be needed) and if you have any employees who can telecommute, now is the time to give it a try.
Congress will need to reconsider their previous idiotic expectation that Amtrack be able to pay for itself (and thus kept reducing its funding). Reinvigorate rail travel with private/public initiatives and watch how many people flock to is (they already were since 9/11).
We'll survive but it will take some adjusting to what is considered normal. Along the way, we may find ourselves developing a renewed sense of community.
To the OP:
So your thesis is that the climbing price is a financial phenomenon, not a supply/demand phenomenon? I would agree that the recent decline in the dollar's value as an international currency is a big factor in the rising price of oil. I would also agree that the funds available to oil futures traders in NYC would be expected to have an effect on how aggressively they would bid the spot price up or down.
...that very little will halt oil's ascent towards $200/barrel. Forcing Bush to divert strategic reserve oil had virtually no impact on the markets. This rise is slow and patient. I see no evidence of any sort of spike/crash scenario, although you will see pullbacks from time to time.
Get used to $200 oil and $5 gas. It's going to happen probably within the year and there's nothing you or your government representatives can do about it.
If there's speculative buying, it's probably caused by all the extra money flowing in the system courtesy of Helicopter Ben and his crusade to help broke investment banks. Foreigners are selling what they can in terms of dollars and bidding up prices. As long as there's "liquidity", this is only going to cause prices to rise more.
Watched C-SPAN and the Senators talking about this yesterday, around 7ish.
Interesting indeed, but confused as ever.
More times than not, they referred to oil being high due to the speculative nature in oil futures and the need for oversight.
BTW - It's funny how many times the senators used a metaphor dealing with farm animals to explain the recent quagmire. Example: "...the chickens have come home to roost"...
I like $200 oil, it will FORCE change that the corrupted democrats and republicans have refused to make because of their allegiance to Big Business... the problem? The changes they are going to make is going to make it CHEAPER for you... electric cars, etc. etc. They don't like it, Big Businesses don't like it... too bad.. $200 oil is the "champion" of CHANGE... let it come, the faster .... the BETTER...
I personally refuse to take such a pessimistic outlook. I am hopefull that when oil gets close to 5 dollars a gallon the American people will rise up and come to their senses and tell Algore and his following to pound sand, to hell with global warming and demand that we allow drilling and refining to start up again in this country. China is also aggressively drilling for oil , so it is not a zero sum game there will be increased oil on the market!
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