May 27 2008
Who will have the last laugh?
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[NY Times]
Arjun N. Murti remembers the pain of the oil shocks of the 1970s. But he is bracing for something far worse now: He foresees a “super spike” — a price surge that will soon drive crude oil to $200 a barrel.
Mr. Murti, who has a bit of a green streak, is not bothered much by the prospect of even higher oil prices, figuring it might finally prompt America to become more energy efficient. An analyst at Goldman Sachs, Mr. Murti has become the talk of the oil market by issuing one sensational forecast after another. A few years ago, rivals scoffed when he predicted oil would breach $100 a barrel. Few are laughing now. Oil shattered yet another record on Tuesday, touching $129.60 on the New York Mercantile Exchange. Gas at $4 a gallon is arriving just in time for those long summer drives.
Mr. Murti, 39, argues that the world’s seemingly unquenchable thirst for oil means prices will keep rising from here and stay above $100 into 2011. Others disagree, arguing that prices could abruptly tumble if speculators in the market rush for the exits. But the grim calculus of Mr. Murti’s prediction, issued in March and reconfirmed two weeks ago, is enough to give anyone pause: in an America of $200 oil, gasoline could cost more than $6 a gallon.
Read about it here.
[From me]
Today I drove my new Honda Scooter to work. Yes, I’m sure there are those who think I’m crazy. I’m sure there were some who passed me that think I’m driving a DUI scooter. (I don’t drink) I would rather drive my car any day. But with gas going to unthinkable prices I wonder who will have the last laugh?
What will you do if gas goes to $6-7 a gallon?
11 responses so far
The days of cheap gasoline are gone…and probably gone forever. President Carter warned us of this situation more than 30 years ago, and no one listened…
I bet they are listening now….
Phil Hoover’s last blog post..My Precious Grandmother…
How was your drive on the scooter.
stuartd’s last blog post..Emergent Church Road Trip with Tony Jones - Episode 6
The biggest reasons for the prices being so high have to do with decreased value of the dollar, and out-of-control speculation on the oil markets. And darn nearly ALL of that can be tied in to the disastrous foreign policies of the past 5+ years.
But that’s not to blame any single person or group of people. Some of us saw this coming a long time ago. Politics and economies are only as good as the people behind them… meaning that they are corrupt to the core.
Now everyone is coming to realize how rotted the timbers have become.
Chris Knight’s last blog post..Want your own DHARMA Initiative snacks for LOST this week?!?
Stuart,
It has some nice pickup. I get to work in about the same amount of time.
Chris,
Something has to give.
Phil,
There isn’t a shortage though. We need to build new refineries & start more alternative fuel sources.
I already take the bus and live where I can walk to the movies, coffee shops, and some stores, so my driving habits probably won’t change all that much, but I think it’s good that the prices are forcing us to change our habits. Especially here in America, we haven’t been very good stewards of our natural resources, and a big part of that is because oil has been so cheap for most of our lives.
Glad you got your scooter! Be safe!
Texas in Africa’s last blog post..across the mud huts where the children sleep
Can i just mention that in the UK we already paying an average of $9.20 a gallon for petrol (gas
) - so we’d quite like to see it go for $6-7!
There are always the LPC’s (Leather Personnel Carriers).
Quinn Hooks’s last blog post..If Life is a highway?
TIA,
Good for you.
Quinn,
?
Rob,
In the words of our former President, “I feel your pain.”
Kevin Bussey’s last blog post..Habitat for Humanity Criticized for Planned Parenthood Partnership
Kevin asked,
“WHO WILL GET THE LAST LAUGH?”
GOD ALMIGHTY will get the last laugh…because…HE is the creator of everything in and of this world.
Look around you. Everything is made of the elements he called commanded to come together in orderto create us (in HIS own image), and the world we live in.
So in the final analysis, HE controls every aspect of what happens hereafter.
It is (good or bad) for HIS purposes, and is all designed to bring to pass the immortality of man.
WHY??? Because HE loves us.
I have few choices . . . there is no public transportation in my area. I have posted an ad in our workplace newsletter for a carpool member. I have asked senior management to consider a 4-day 10-hour workweek, thus eliminating at least one trip. I don’t know what else to do.
Kevin,
LOL
Sorry, I had a Citadel flashback: we called our shoes LPC’s
Quinn Hooks’s last blog post..If Life is a highway?