Re: $126 A Barrel - Can $7 / Gallong Be Far Away

On Mon, 12 May 2008 01:40:05 -0700 (PDT), necromancer
<o.20.tbim@xxxxxxxxxxxxxxx> wrote:

On May 9, 11:20 pm, Dave Head <rally...@xxxxxxx> wrote:
Geez, $126 a barrel today.

Well, in a year or 2, the gas oughta be about $7 a gallon. Chevy Volt should
sell really well, along with some really fuel efficient bikes.

I doubt that (gas at US$7.00 a gallon) will happen.

Yeah, I wouldn't bet a lotta money that it will happen. But... there doesn't
seem to be an end to the price rise.

The main reason
prices are high now is that the speculators are running wild trading
oil futures and the way that the dollar has been devalued over the
last couple of years. Even some in the oil/gasoline industry say these
prices are not justified by basic market economics (i.e. supply and
demand) and can't be sustained.

Yeah, that's why the research and development necessary to extract the oil from
the rocks in the NW US, which is a reserve supposedly 3X the Saudi reserve,
doesn't get done. Even tho it could produce at some smaller $/barrel, the
people that would have to do the R&D have no assurance that the price of oil
won't go back down to $35 / barrel overnight, and their investment would be
ruined.

IMO, its going to tip (FWIW, I think it will happen early next year
with oil at US$175.00 a barrel and gas at US$5.50 a gallon) before too
much longer (much like housing did). I just hope that when it happens
it doesn't bring the rest of the economy down with it.....

Yeah, there is that. But $7.00 a gallon would do that too. We can't win with
this...

Personally, I wouldn't mind it lasting a while longer - just to get
more SUV's and pick-ups (especially the jacked up oversized tire 4x4's
that will never see a dirt road - much less go off road) off the road
and into the junkyards.

Why would they go to the junkyard? If somebody sells an SUV, they're going to
sell it to someone that is still going to run it until it either wears out or
crashes. Until then, it'll still get driven, maybe even by richer people that
can more afford the $$$ for gas.
.

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