by eastbay » Mon 12 May 2008, 23:43:51
$this->bbcode_second_pass_quote('Revi', ' ')I have decided to shut up now.
That comment was funny.
I talked about PO with a small local group of people today. The topic was: Why are gas prices so high?
I drew a few bell curves on a piece of paper. Many of you have done this too, I'm sure. At the peak of one I wrote 1970. At the peak of another I wrote 1930. I noted that the USA went from 10 mbpd to 5 mbpd in the past 38 years.
Then I quickly drew two more noting 1965 at the top of one and 2005 at the top of the other. I noted that demand is generally strong and the only way for supply to meet production is for prices to increase high enough so enough people around the world cease buying oil, which is, of course happening.
I also mentioned we're getting so desperate that many countries around the world are starting to burn food in cars thereby reducing available food resulting in much higher food prices.
Amazingly, NOT ONE person out of 15 offered a rebuttal, in fact, all agreed that supply is getting shorter just about everywhere. It was an amazing 10 minute talk. It was the first time I've had no ridiculous fantasy remarks, such as 'hydrogen economy' or 'wind turbines'. People are starting to get it, finally.
