A small group of firms controls the vast majority of oil production. It is traded on the open market only at the level they allow. Having worked on multiple oil and gas clients I know supply and demand has only a marginal effect on the price per barrel.
Doesn't Mid-East turmoil pretty much always indicate a surge in gas prices? I wasn't driving back then, but it seems that I remember it happening during Desert Shield. Even though we don't get all of our oil from there, oil tycoons tend to be sleazy bastards. I wouldn't put it past them to increase the price of oil coming from somewhere else while using Mid-East ongoings as a scapegoat. Hell, I remember just back in the spring of 2000 paying $0.99/gal. What we're paying now is over a 220% increase from that figure.
Take one look at the recently signed "Energy Bill" and that says it all (for Republicans and Dems alike.) All special interests, and nothing looks beyond the next hour or two. It's irresponsible and completely expected.
I just returned from a long road trip vacation. Paid as much at 2.49 for regular, Never less than 2.20. The trip was entirely optional and I knew gas was going to be expensive. I went anyway. If gas jumped up to $5 a gallon right away it might inhibit me a little. But if it goes up gradually in an expanding economy and if our salaries go up too . . . they we will pay it. High prices and shortages are the only thing that will spur the development of whatever energy source will replace oil in the future. The sooner the better.
Here's a pretty good article from CNN Money discussing oil prices. We hit another record today at $66. CNN Money
That's a mighty strange way of looking at things. Are you saying that you wish for a shortage and higher prices?
You are exactly right. I saw someone on television explaining this. They even went as far to say that we will never run out of oil because the closer we get to depleting our resources, the more expensive oil will get and thus will become useless because of its expense...
I'm saying that spurring new development of energy sources is the silver lining in the black cloud of steady and inevitable oil depletion.
Its too bad that it often takes a shortage, scare or desperate measures to fix different problems that could've been resolved before. It must have to do with economics in this case.
