Happy Oil Independence Day
by John Laumer, Philadelphia on 07. 3.08
If ever a picture told a story...
No matter what curve fitting equation you use to project a trend; no matter what mental model you frame this chart with; no matter what your employer demands, you can see where this slippery slope is heading. Up.
Price analysts and political appointees have no better grasp of what the future will bring (economically, personally, financially, culturally, politically or technically) than you or I do.
Professional expertise and credibility are nearly zeroed out.
After the summer driving season is over; and, after the sun sets on the vacations of those who could afford them, the price per gallon will go down a bit - most assuredly.
By winter, though, oil, the blood of our economy, could well continue it's upward price climb, making for a winter of cabin fever that may not well warm us.
By Spring, we will begin creating a new culture - not life designed by government, but a world where brave ideas will bring value to a government created by the people, for the people.
Happy Oil Independence Day. The best is yet to come.
Via:USEIA, Weekly US Retail Gasoline Prices, Regular Grade
Got Mail? Here's How to Dump the Junk
|
Volkswagen to Make Limited Edition of 1-Liter Car (282 MPG!) in 2010
|
How is it even legal to have that much change in a WEEKLY price? I mean cmon... why aren't the oil companies, who are making BILLIONS in profit, being asked, or forced!, to use some of their profits to shield the consumer from this price gouging from the suppliers?
Am I completely naaive to the real world and missing the reason behind all this? Or is this not making sense to others, too? :)
SunwolfNC: There is only a finite amount of oil in the world, and as it starts to run out it gets harder to dig up more (the "easy" stuff has already been used).
The price of oil results from a simple supply/demand effect just like the price of everything else. Contrary to popular belief: oil companies don't produce oil they just dig it up, and they're starting to run out of places to dig. If you force the oil companies to lower their prices they'll just run out faster and then you'll see an even sharper price increase.
According to this graph...
http://www.inflationdata.com/inflation/Inflation_Rate/Gasoline_Inflation.asp
...gas is the most expensive it has ever been.
The graph shows gas prices from 1918 to 2008 expressed in 2008 dollars.
In 1918 gas was $3.50 a gallon in 2008 dollars!
>]Am I completely naaive to the real world and missing the reason behind all this? Or is this not making sense to others, too? :)
http://theoildrum.com/
Notice how it nearly bottomed out right before the '06 election...
Of course it makes sense. It is a bit like puberty - confusing first, then terrible, then a lot of fun, and then everything is totally different from they way it used to be!
Martin
If all oil company profits were taken away from them, it would only lower the price of gasoline by about 20 cents/gallon.
The main driver (70%) of gasoiline prices is the price of crude oil.
Hopefully we will use high prices to change our dependence on oil, instead of just complaining about it.
DK