Rat Creek wrote:Drill here, drill now.
Which I know you know, does not mean we stop research into alternatives for crude oil. Oil is too important to not do BOTH simultaneously.
I heard on a news show a couple days ago that they have created a bacteria that craps sulfur-free crude oil. This sounded credible. As you all know, I'm one of the biggest skeptics on the ability of future technology to deliver its promises. He really said the right things for developing a legitimate technology. It may all be BS, but it sounded promising. Maybe it will cost $1,000 per barrel. I don't know.
The so-called environmentalists will go absolutely nuts if they actually discovered a cheap, 100% renewable, carbon-neutral supply of crude oil. The hard core is not about making life better for the people, it's about eliminating the human blight on their mother earth God.
I do not think the Muslim countries have much of anything to do with this price spike. There has been no big reduction in output. The one problem is these are not privately run companies that respond to normal market forces. They just want to stay in power and hum along. They wouldn't even know what to do with the cash if they increased output. They wouldn't enrich their people. Unlike an evil corporations that have millions of shareholders through pension funds, 401(k)'s, etc. that would no exactly what to do with that extra money.
Don't forget Venezuela is a large oil producer that is in a state of huge political uncertainty. There oil output is likely to fall over the next decade unless Chavez disappears. Do we still have a CIA? China seems on a steady growth path. The U.S. has no interest in tapping it's own resources. Our economy and really the entire world economy is still solid. The collapse of the Soviet Union and specifically it's economy was in large part the reason for the long period of flat oil prices.
If the Olympics go as bad as I think they will in China, we could see huge instability in that country. It will take something like a collapse of the Chinese economy to collapse oil prices.