A Gasoline Price Drop In Our Future?

Everybody wants to blame the oil companies for $4 per gallon gas, but here is an interesting report from today's London Telegraph. A few salient points from the article:
  • Between 2004 and 2007, US oil consumption grew only 7%. Compare this to China's increase of 34%, Middle East - 25%, and Asia at 17%.

  • Those countries subsidize fuel prices, so their costs are artificially low. However, those subsidies will have to be removed or reduced in order to curtail inflation, thereby helping to reduce demand.

  • Non-OPEC oil production will increase by 600K barrels per day (bpd) over the next few months, despite decreases by Norway, Britain, and Mexico.

  • The Saudis have agreed to increase their production by 300K bpd. This was a result of President Bush's latest visit there.

There's nothing to stop a short-term run up, but in the longer haul, with a decrease in demand and an increase in supply, shouldn't we - at least theoretically - see an improvement in the price of gas? Maybe not next week or next month, but certainly over the next year or so. And hopefully to more reasonable levels, although we can probably kiss under-$2-per-gallon goodbye! (Watch the next president try to take credit for lowering gas prices!)

My point here - don't get too wrapped up in worrying that the sky is falling - there's good reason for optimism! After all, we are all corks on a rising and falling global economic sea.





Comments

Post a Comment

Popular posts from this blog

Timeless Style...

Image
L ast weekend I was at a flea market and found this: A JC Penney catalog from 1977. It's not often e-mail fodder just falls in my lap, but this was two solid inches of it, right there for the taking. I thumbed through it quickly and found my next dining room set, which is apparently made by adding upholstery to old barrels: Also, I am totally getting this for my bathroom: There's plenty more home furnishings where those came from, however I'm not going to bore you with that. Instead, I'm going to bore you with something else. The clothes. The clothes are fantastic . Here's how to get your ass kicked in elementary school : Just look at that belt. It's like a boob-job for your pants. He probably needed help just to lift it into place. The belt loops have to be three inches long. And way to pull them up to your armpits, grandpa. Here's how to get your ass kicked in high school: This kid looks like he's pretending to be David Soul, who is pretending to be a
Read more

Ok, so I'll give you an update on my weight loss...

This hasn't been exactly a piece of cake, no pun intended! I last wrote in August about hitting a plateau. Well, I have managed to break through it. Gradually. Persistently. Painfully slowly. So far, I've lost a total of 40 pounds. Please, spare the applause. I have a long way to go, no time to sit back and dwell in it. The biggest effect has shown up in my waistline - I'm down 6 inches there. I am now wearing pants that date back several years. They're still just a little tight, but once I get past them, it will require investing in some new ones. I am still eating healthier - more fruit and vegetables, fish a couple of times a week, whole grains, smaller portions - but I haven't exactly given up on certain indulgences, as in - and not limited to - a good bottle of red wine. I guess I could have lost more weight faster, but my approach was to make lifestyle changes, and look longer term. Walking has been the key. It's gotten to the point where I can't not w
Read more

Thank God Election Day Is Almost Here

I'm really tired of it all. The ads, the sound bites on the news, the debates - all of it over, at least for a little while, until everyone and their neighbor starts posturing for the 2012 election! In sizing up all 4 candidates, after all the dust has settled, after all the blah-blah, after the ridiculous amount of money spent on each side, I see only 4 politicians. Two of them are lawyers. Two of them aren't. Two of them are polished and eloquent. Two of them aren't so polished and eloquent. Two of them talk about a lot of things. Two of them make things happen. I don't think the choice is difficult. Be sure to vote...
Read more