By analyzing oil prices over the past four years, the researchers have demonstrated more support for the hypothesis that the recent oil price run-up has less to do with supply-demand interplay and more to do with speculation.

In their analysis, the team gathered data on oil prices since 2005 in US dollars, euros, and other major currencies (to confirm that the results are not a consequence of the weakening of the US dollar). They also examined worldwide oil supply and demand data, specifically investigating the extent of increased demand from emerging markets such as China and India.

http://www.physorg.com/news134646313.html

as demand from asia continues to increase, what are we doing to transition from a cheap oil economy to a sustained 150-200+/pb oil economy?  i tend to agree that this runup in oil prices is more speculative driven than any other factor and the bubble will pop, but the fact remains that oil prices will continue to steadily climb until we figure out a way to power our livlihoods some other way.  the american consumer can not afford to devote 5 thousand dollars per year to gas for a sustained period.  i fear the problem with rising oil prices has yet to truly manifest itself.

There are many things we can do in the short term to help.  Conservation, more efficient cars, more refineries and more drilling. All sides must give a little and in the short term we must ease some environmental regulations to allow for more refineries and incentives to drilling in places like ANWR.

Also, there are cars and small trucks that can get 40 to 50mpg. Why can’t we use them? Big car makers don’t want us to import them. I had a 1981 Volkswagen Rabbit Diesel that got 50 mpg and it was a 4 door hatchback. Why aren’t there more of them? According to friends in the automobile business, the gov’t will only allow so many to be imported because they are protecting the big 3 automakers.

In the long run technology is our best shot at getting it right. We must encourage it by getting out of the way.

Taxing oil companies will not help.

roux - 09 July 2008 12:46 PM

There are many things we can do in the short term to help.  Conservation, more efficient cars, more refineries and more drilling. All sides must give a little and in the short term we must ease some environmental regulations to allow for more refineries and incentives to drilling in places like ANWR.

Also, there are cars and small trucks that can get 40 to 50mpg. Why can’t we use them? Big car makers don’t want us to import them. I had a 1981 Volkswagen Rabbit Diesel that got 50 mpg and it was a 4 door hatchback. Why aren’t there more of them? According to friends in the automobile business, the gov’t will only allow so many to be imported because they are protecting the big 3 automakers.

In the long run technology is our best shot at getting it right. We must encourage it by getting out of the way.

Taxing oil companies will not help.

i do agree with everything you state, but the danger of going the ‘more drilling’ route without parallel investment in wind, solar and nuclear energy, we will delay, yet again, addressing the real problem of an oil economy, that is its non-renewable nature.  i would love to hear republicans push for more drilling and renewable/nuclear investment at the same time.  i would also like to see democrats push for more renewable investment and more drilling and nuclear at the same time.  somebody needs to break the partisan gridlock on energy policy soon.

Also, eliminate this bio-fuel nonsense, and use only one formulation for gasoline for the entire country.

fred - 09 July 2008 01:41 PM

Also, eliminate this bio-fuel nonsense, and use only one formulation for gasoline for the entire country.

The elimination of multiple formulations of gasoline for different parts of the county would certainly be a quick fix. It could give us some help on the spike in prices each spring and fall.

I think turning food into fuel is foolish. The only biofuels I am for are those that come from waste or byproducts of agriculture.

BTW on a recent trip through north La. I noticed many farmers are growing corn in place of soybeans or cotton.

roux - 09 July 2008 02:15 PM

fred - 09 July 2008 01:41 PM

Also, eliminate this bio-fuel nonsense, and use only one formulation for gasoline for the entire country.

The elimination of multiple formulations of gasoline for different parts of the county would certainly be a quick fix. It could give us some help on the spike in prices each spring and fall.

I think turning food into fuel is foolish. The only biofuels I am for are those that come from waste or byproducts of agriculture.

BTW on a recent trip through north La. I noticed many farmers are growing corn in place of soybeans or cotton.

both points you make are very valid.  unfortunately iowa is where it is in the election cycle (and appears to be a swing state this fall) and large corporate agribusiness has deep ties on both sides of the aisle.

bignasty - 09 July 2008 05:21 PM

roux - 09 July 2008 02:15 PM

fred - 09 July 2008 01:41 PM

Also, eliminate this bio-fuel nonsense, and use only one formulation for gasoline for the entire country.

The elimination of multiple formulations of gasoline for different parts of the county would certainly be a quick fix. It could give us some help on the spike in prices each spring and fall.

I think turning food into fuel is foolish. The only biofuels I am for are those that come from waste or byproducts of agriculture.

BTW on a recent trip through north La. I noticed many farmers are growing corn in place of soybeans or cotton.

both points you make are very valid.  unfortunately iowa is where it is in the election cycle (and appears to be a swing state this fall) and large corporate agribusiness has deep ties on both sides of the aisle.

Iowa and New Hampshire used to be more representative of the rest of the USA. Sadly today they are much more liberal and pro-big gov’t.

Big Gov’t programs benefit big corporations more than they do the working man. The Dems and Republicans have been bought and it is destroying our country.