Over the Top! - Political Forum

Wheeldog · #1 (**permalink**) 11-20-2007, 10:50 PM

Quote:

Nov. 21 (Bloomberg) -- Crude oil rose above $99 a barrel for the first time in New York as a weakening U.S. dollar increased demand for commodities.

We are literally within spitting distance of an absolute record price for oil. One hundred dollar oil is a psychologically important milestone (or headstone). Once we cross this line there is virtually no way to predict how much higher oil prices will go. Obviously, market speculation and an anemic dollar play important roles in current oil cost. However, there is a much bigger and more important factor driving costs - consumption is outpacing production. Without this shortfall factor the price of oil would never have reached these levels. Welcome to the era of oil shocks. Now what?

nerv14 · #2 (**permalink**) 11-20-2007, 11:06 PM

despite any harm that trying to find a new energy source will be if our oil consumption doesn't fall any problems we have right now will just multiply

Wheeldog · #3 (**permalink**) 11-21-2007, 12:07 AM

Quote:

Originally Posted by nerv14

despite any harm that trying to find a new energy source will be if our oil consumption doesn't fall any problems we have right now will just multiply

I sincerely hope that the other shoe doesn't drop. A successful attack on a major Middle East oil facility would send the price off the charts. Combined with the stupidity of the Fed in re: to interest rate cuts resulting in a plunging dollar, we are in a very fragile economic situation.

Seer · #4 (**permalink**) 11-21-2007, 01:47 AM

You all best get used to peek oil. It will be a matter we will have to deal with for the rest of our lives… and 95% of all transportation in the US requires oil.

africanhope · #5 (**permalink**) 11-21-2007, 01:36 PM

it is a huge worry for us here in SA. For every $1 the price of oil goes up, the price of petrol rises with 7 SA cent. Last year petrol was R5.80, it is now already R7.20, and government predicts it will rise with another Rand before the end of January.

For an economy like ours, this is defnitly nt good news.

AH

Wheeldog · #6 (**permalink**) 11-21-2007, 11:17 PM

Quote:

Originally Posted by Voluntary

Gas is still at a reasonably low price. Adjusted for inflation, gas is still relatively cheap. I do not foresee a dip in gas prices again (or at least not a substantial dip).

Oil is America's crack. Americans could easily adopt more efficient means of transportation. Using diesel engines would increase the MPG by 33%. Establishing round-abouts instead of traffic lights would save on gas. Making cities more bike and pedestrian friendly would curb costs and make Americans healthier.

We have this thirst for energy. We must find new sources of instead of modifying our behavior. This is one of the reasons why I believe in the free markets. Governments and individuals cannot modify behavior like the free market. Trust me, you'll see behavior modification once people start paying $5.00/gallon of gas.

You are right re: the fact that oil (gasoline) is amazingly cheap considering its true value. A small bottle of water costs more than an equal amount of oil! In relative terms we spend more for soft drinks that we are literally pissing away. Oil is the stuff of magic. It has made it possible for humans to fly and enjoy a material standard of living completely unimagined by people just a hundred years ago. The life we now live is literally saturated with oil, but we still groan when we pay what is really a tiny price for what it gives back in return.