How do you like $4 gasoline?
How are you going to like $5 and $6 gasoline next year and $10 gasoline by 2012? That can't be true, can it? Ten years ago oil was between $10 and $20 per barrel. Last year it started at about $50 per barrel. Two months ago it hit $100. Last week it topped $135. Do you see a trend here?
The two governmental agencies that are charged with forecasting oil supplies have just awakened. In the past they just forecasted demand and figured producers would match it with supply. Guess what? Supply is getting harder and harder to provide, and while our demand is flat, the emerging world's demand is growing exponentially. So much so that these same agencies, i.e., the International Energy Agency and the Energy Information Administration, are now forecasting major shortfalls before 2012 if OPEC doesn't open the spigot.
Steve S. Blackham
Salt Lake City