[roccman]

The Peak Oil Crisis: Our Government is Speaking

$this->bbcode_second_pass_quote('', 'Y')ou have to be quiet… and listen very carefully, for our government is trying to tell us something. If the news were good, of course, the White House would announce it at the daily press conference. If the news were very good, the President himself might come out into the rose garden and tell us the news himself.

But this news is bad, perhaps very bad, so the government relies on a third tier civil servant to break the bad news gradually so as not get the people too upset or cause a run on anything—banks, mutual funds, gas stations, or grocery stores. The bad news of course is something that many of us have been aware of for many months; this is likely to be a very tough winter for energy prices.

On Monday, Guy Caruso, head of the U.S. government's Energy Information Administration broke the bad news; although he never mentioned the dreaded words “peak oil,” the situation he describes is coming awfully close. The first announcement was that according to EIA models, gasoline prices are due to go up another 20 cents a gallon in the next few weeks. Considering that the AAA had just announced that the average U.S. price was now $3.10, having gone up by 30 cents in the last few weeks, this piece of news made headlines from coast to coast.

To see gasoline at new highs around $3.25 in December (and on the order of $3.75 on the West Coast) suggests that unless there are major changes such as a sharp and sudden decline in economic activity or OPEC discovers a spare million or two barrels a day, then we are all likely to be seeing $4 a gallon and higher next spring.

[roccman]

I think Tom may be a tad bit optimistic...

[highlander]

Where is that fuel being sold? WE are 3.15-3.25 in the inland NW. Diesel 3.79-3.89. My in-laws just filled up their oil tank at 3.15.
We have had a real mild winter so far. Wait till it gets cold.

[roccman]

$this->bbcode_second_pass_quote('highlander', 'W')here is that fuel being sold?

[PrairieMule]

$this->bbcode_second_pass_quote('', 'T')he upshot of all this should be clear in the next three to six months. Either OPEC can produce another 500,000 barrels a day or more on a sustainable basis, or they can’t.

[gnm]

If you get weird looks filling up 8 cans of gas, just shrug and tell them you're running chainsaws and a splitter all day, or going to the lake and you know how much those jet skis take, or snowmobiles etc.. Gotta tailor it for the season.

-G

[dinopello]

$this->bbcode_second_pass_quote('roccman', '')$this->bbcode_second_pass_quote('highlander', 'W')here is that fuel being sold?