Epiphanyblog

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Anyone want to bet that oil prices will rise?

with one comment

Right now, per barrel oil prices have fallen below $100/barrel. Speculators are betting that Americans and others will continue to drive less and buy cars (if they can get credit – a big “if) that consume less gasoline.

But I’m betting oil prices will increase in the coming weeks.

My reasoning?

OPEC met last week and decided to cut oil production by 500,000 barrels and may cut it more. They decided they want to keep prices at or above $100 a barrel.

That means we will not see gas prices fall much below $4/gallon again.

This alone is the major reason why we have to wean ourselves off oil. Oh, yeah, there are those who say that if we drill, drill, drill more we’ll see prices go down. Not so, folks!

Even if we drill everywhere, there are two reasons why the cost of gas will not go down.

One, we consume more than we can ever possibly produce. So we will still have to purchase foreign oil supplies. Bye, bye millions of dollars!!!!

Two, the length of time it takes to explore, drill, bring a well on line and produce a gallon of gas. Best estimates say it would take seven to 10 years to produce one gallon of gasoline from a new well. And, regardless of what Gov. Palin said, it will take until 2030 for a new pipeline from Alaska to be up and running.

Our best hope to reduce energy costs long term…

Immediately start a Manhatten project, as Silicon Valley CEOs have recommended, to eliminate the need, over the long term, for oil. That is the only way this country will become energy independent.

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Written by Valerie Curl

September 16, 2008 at 3:35 AM

Posted in Politics

Tagged with , , , , ,

One Response

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  1. Go to your local convenience store and ou’ll pay about a buck for a 12 ounces of water.

    The Saudis oil magnates know that.

    If we are willing to pay a buck for a ounces of water which is essentially a free product on tap, they know Americans are stupid enough to want to pay 6.00 or a gallon of gas.

    Stop buying bottled water.

    Get a canteen and put it on your American made bicycle. Thats the best form of revenge.

    An yes, gas prices will never stop rising. There is only so much oil in the ground.

    gettheconcept

    September 16, 2008 at 4:46 AM


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