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Yes, it is partly the fault of politicians in the US and it is much worse than the somewhat trivial need to pay $4.50 for a gallon of gas, because THAT is likely not the end of price rises.

China is progressing in their quest for energy and helping their oil companies expand, while the US threatens their oil companies and makes it more attractive to invest outside the country. And of course, the US Corn-ethanol program is a fiasco that increases starvation around the world and is Energy-negative. The Environuts have stifled coal and nuclear. Wind, solar and other methods to produce energy are adjuncts but will not be enough to offset the coming supply problems in crude, or even natural gas, which will be increasingly sent to Asia and Europe because THEY are willing the bid the highest for it.

And there are significant problems in actual crude production/exploration capacity in the US so that ANY increase in exploration and development is retarded by the lack of trained manpower, pipe, rigs, and many more supplies needed by E&P companies.

I know, I specialize in this industry.

But most Americans are focused on oil prices and know little about economics or the petroleum business, which is worldwide. They also still seem to think that the US is the big dog in the world, when it no longer is, except in terms of military power...which we have seen being counterproductive in obtaining more supply of crude or friends.

Regrettably the people in the US have the Congress and President they elected and deserve. And until the people are worried about having enough energy, other countries will pay the price and they will be the ones that will be able to fill up their new cars, while more and more Americans will be forced to no longer own a car. Major E&P projects have normally taken 7 years to develop, so oil companies take a longterm view. The time to have acted was 5+ years ago to have gotten any benefit soon. The idiots that blocked action 5 years ago are the same ones who now say that it isn't necessary to do anything now because the effect won't be felt for 10 years. Anyone who buys this argument should be among the first to give up their "ration card" because ration cards are the logical outgrowth of policy that focuses on today and neglects tomorrow.

Price rations supply.

And if Congress tries to restrict price or profits, there will not be enough crude supplies for Americans. This is what Environmental extremists want, to get rid of the Petroleum economy. Too bad a peasant economy will be the result, but they apparently don't mind or are relying on an as-yet-undiscovered technological breakthrough.

Energy is at the base of everything.
07/12/08 @ 13:07

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