Well played. With an oligopoly (or in this case, cartel), price can be pushed well above true equilibrium. This is what we are seeing now.
I am getting more pessimistic, seeing how fast the gasoline price is hitting $4.00, I will say even the $5.00 would come a lot sooner than I thought. Then half of US auto industry will be erased, GM, Ford will shift 40% production capacities to fast East places like China, India. Jap autos will dominate US market.
It's $108 and very likely stay above for the year 2008. US Auto industry gotta brace themselves for a very long year.
Due to the rising oil prices, mass transit use is at a 50-year high...which I gather is good news. Seriously, I am somewhat conflicted on high gas prices. On the one hand I realize that a lot of people are suffering because of this, may be unable to pay their rising energy bills or keep up with general inflation of prices across the board (e.g. food) over the last few years, which isn't helped any by the shrinking dollar. On the other hand, I realize that the only way to force Americans to 'conserve' is to hit them where it hurts the most: their pocketbooks. The 'reverbertating' effects would also include more investment in research to find a workable alternative energy source(s), which in turn might help the environment and -- long term -- leave our economy, and indeed our country as a whole, in a much better place. Heck, may be we can even 'liberate' our foreign policymakers and reduce the likelihood of getting involved in conflicts abroad to protect our energy supplies. On balance, I am a 'long-term' thinker so I would settle for higher oil prices and Americans being forced to make the adjustment to live -- for once -- within their means.
Houston specifically can not exist without cheap gas. From my house to one of my friends house is bigger than the entire ciity of austin.
Houston is thriving, dude, and one very big reason for that IS rising oil prices. If people have to live in smaller houses, drive smaller cars, and live closer to their jobs then all the better.
You mean people working in oil and gas industry are thriving. I don' think people enjoy paying 3.50 for gas when they drive 25 miles to work each way.
Gas is at 110. Doesn't Iraq have one of the largest oil reserves in the world. Why don't we put some pressure on them to increase output. Since we are spending 3 billions a month there.
Gen. Petraeus says new discoveries has made them #2 in conventional reserves. http://www.iht.com/articles/2007/04/30/america/30petraeus-charlie-rose.php Iraqi Minister claimed they were #1 last year 80 dollar plus oil is making tar sands in Canada, deep sea drilling, and other alternate petroleum sources very viable and profitable options. I still don't believe in peak oil in terms of supply. There are production bottlenecks, and projected discovery rates of conventional sources will not meet future demand. However, the fears of the world going dark are overblown. Alternative renwable sources has to capitalize upon this as public acceptance is gaining. Otherwise, energy companies are reaping insane profits mostly geared upon the fear premium of conventional thinking.
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Supplies were more than expected, oil prices went up today, its getting crazy. supplies have been up all year btw
Dana's cute. What's so hard to understand? As the dollar is worth less it buys less, you pay more dollars for same amount oil. It's freaking kindergarten math. But in the longer run, it strenghtens US exports and encourages conservation. This energy ***** is going to hurt. This living on our children's debt is going to hurt. Who didn't know that?
I'm not into this cospiracy theory about bankers running the federal reserve, but the fed making moves to fix the stock market is killing the dollar. i don't claim to know more than those guys about economics, but it seems to be incredibly short sighted thinking
Just noticed the oil price shot through $110. It seems I spoke too early. My next targeted price is $150 given China is raising its strategic reserve level to 100m barrels by 2010.
