Re: Oil's surge in 2010 paves the way for $4 gasoline

[Guest guest]

There is plenty of oil in the US, enough to see us through the next decade or two to transition into next generation motors. However, this is slowly being put off limits to US production. Just look at what happened after the Gulf Spill. Supposedly the drilling ban would be lifted but instead it is now through most of the Gulf up and the east coast. Of course, that's not stopping China from working with Cuba to look at putting rigs up just outside our waters yet in Cuban waters to drill that same oil. Oil sands in the Rockies is also available but for how long?

Gas prices are going up for increasing demands in other countries like China and India. I've read that OPEC is aiming for a price of $100 per barrel. The article says that gas will only go up to $5 or more if the oil goes up to $200 per barrel. That's assuming oil continues to be priced in dollars. A movement has been afoot to shift oil away from dollars to another pricing standard ranging from Euros to a basket of currencies. Either way since either of those would likely be stronger than dollars, oil prices would shoot up overnight. By the same token, if purchasers used other than dollars to buy oil, that would mean a sharp drop in dollars circulating in the world markets. That drop would translate into a further drop in the value of the dollar which in will in turn make oil prices rise which will weaken the economy more which will make the dollar weaker, and so on and on. I would suspect that the government would by then impose price controls and rationing, which would naturally cause supplies to dry up, just as happened under .

Its a pity that here and in most other nations facing crisis that such lightweight politicians are in charge when what is needed are real statesmen.

In a message dated 1/2/2011 1:30:11 A.M. Eastern Standard Time, no_reply writes:

Look for this to prolong the recession. In essence, it is the era administration all over again. Administrator