The Price of Oil

[boedicca]

The era of cheap gas is over - demand in the developing world will keep elevating prices. The sooner we move to alternatives (in an economically feasible way) the better. I do think we had a speculative bubble which has now burst.

I also changed my car habits significantly about 10 years ago by finding employment near BART (regional mass transit) stations and giving up car commuting. It's far less stressful as well as being much more economical.

[patrick]

Very, very weird....

White House disagrees with OPEC production cut
Reuters, Wednesday September 10 2008

WASHINGTON, Sept 10 (Reuters) - More oil is needed on the market, not less, the White House said on Wednesday, disagreeing with a surprise decision by OPEC to cut production by about half a million barrels a day.

"We need more supplies on the market, not less," White House spokesman Scott Stanzel said. "Energy prices are still very high, despite their recent decline."

On NPR this morning some analyst was claiming that OPEC is basically going to try to draw a line in the sand at $100/barrel.

[boedicca]

It's not weird - it's pretty much in line with what I expected. Oil producers have the incentive to price oil as high as the market will allow them. $147 was pushing it. I guessed things would even out around $100 when I started this thread - which is looking more and more likely.