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not likely....in fact, they look even higher on the horizon
Iran says they will stop exporting oil if sanctions are put on them and Venezuella says they will also stop exporting in their honor...We'd be looking at $200 per barrel then...to top it off, what if another hurricane slams the gulf of mexico?...$250 per bbl? at $200 bbl, gas would be around $8.00 per gallon. $250 oil would put gas at $9.00 per gal.
are you prepared? |
kako
|
No. We are in for more such issues, the infrastructure to support energy is really not in place.
This is the second time in a month that BP has shut in production in Alaska. Back in March, a pipeline leak went undetected, resulting in a 6,400 barrel (200,000 gallon) oil spill. In response to the incident, BP increased its spending, accelerated pipeline inspections, and created a plan to "restore the integrity" of its Alaskan oil field pipelines. Apparently, as the inspections progressed, it found problems. No doubt that more will be found, and not just by BP.
The current pipeline leak is just one more shoe dropping in the never-ending energy "crisis." Hurricanes devastate the Gulf of Mexico oil fields and refineries. Rebels in Nigeria blow up pipelines. Pipelines in Alaska corrode and leak. Heat waves expose the fragility of the power grid.
Why are all of these things seemingly happening at the same time? First, the global supply and demand situation is very tight; therefore, rebels in Nigeria have a much bigger impact than they would have had in 1998. Second, after the 1986 price crash, profits stopped flowing from the oil patch, and investments in infrastructure dried up. Add the NIMBY (not in my backyard) attitude toward new power plants, transmission stations, oil refineries, pipelines, or anything else related to energy, and we find most of the nation's energy infrastructure stretched awfully thin.
So until we get off the reliance of oil, we are in for higher and higher prices. Remember, oil is not a renewable resource. |
lcmcpa
 |
No, Virginia there is no Santa Claus. The plan is to continue to increase gas to at least $5 a gallon before Herr Bush leaves office.
Notice this didn't happen to gas during his first term, because he had to run again. Now, all bets are off as to how high the American public will let it go before they rebel.
Until such rebellion takes place, they will continue to bleed us. Whatever the traffic will bear, or the idiots will pay. If we marched by the millions in DC and voted out all incumbents, things would start to happen. |
jackmack65
|
No. Look for refinery problems to start cropping up in a big way come late summer / early fall.
The cost of gasoline is driven more by refinery capacity and distribution than by the underlying cost of crude. Obviously, the cost of crude is a huge influence, but there's a real pinch-point at refining. |
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