THE HIGHER THE PRICE THE BETTER THE NEWS?Crude oil prices keep going up, up, up. There's plenty of fear and greed in the air and even talk of the end of the age of oil. Mr. T. Boone Pickens threw his dire predictions for oil into the fray yesterday only addding to the near panic of the markets.
"Eighty three million barrels of oil a day is all the world can produce," Pickens prognosticated, "and 87 millions barrels is the world demand. It's just that simple."
Never mind that Mr. Pickens self serving statements above only helps raise values of his hedge fund which is heavily invested in oil and energy stocks. Boone has rattled markets and helped his investment considerably. He may be right in the short term, but not in the long.
Increasing tension between supply and demand is adding more drama. Are we over a barrel yet?
Most people think this is terrible news, but I beg to differ. A crisis is always an opportunity to make necessary changes and so it is with the soaring costs and tight supplies of crude oil. Are we in the US finally ready to learn some lessons from this?
And what does this all mean for us as consumers of refined gasoline? Let's remember that we can't pump crude into our tanks. It's a long journey from crude oil to refined gasoline. Want to talk about this more in the days ahead.
Sorry to be missing in action the past few days. Am on the road and currently in D.C. Hope to get back in the swing of more meaty posts now.
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