Oil: The New Reality

Rising oil prices are pinching the wallets of consumers worldwide. And although oil may be in for some short-term drops, most experts agree that the days of cheap gasoline are gone and prices will continue to climb steeply over the long term. Can oil production keep up with rising demand, particularly from India and China? And will alternatives be available before it’s too late? With so many questions, and so few answers, the only thing there’s no shortage of is uncertainty.

Oil approached a record $145 barrel in early July. Although many observers believe the price is higher than supply and demand justify, it continues to rise. Moreover, the normal symptoms of too-high commodity prices — building inventories and significantly declining usage — have not appeared.

MSNBC