I spoke with my wife last night. She said gas in Thailand is over 40 baht a liter. It's $4.06 on the Dixie Highway in West Palm Beach, but not for long. Several petroleum experts are predicting $200/barrel by summer's end, despite GW Bush begging the Saudi's to produce more oil. That price will push gas over $5 a gallon. Driving is already 6% down from June 2007. Public transit is booming in the cities. Suburbs without access to trains are cut-off from the malls by the price of gas. This morning a writer proposed to sue OPEC since the true cost of getting oil out of the ground is around $15.
Sue them so the lawyers can earn 33% of the penalties and the price of gas will rise to cover the punishment.
So how do we combat the cost of gas?
By doing nothing, because if oil was ruled by the laws of supply and demand then the price would have fallen along with the driving miles, however oil has become a speculative asset and the investors will push the price until it reaches the bubble's breaking point.
$200 a barrel? $300 a barrel. $500 a barrel.
At this point there is no ceiling.
But at $10 a gallon we'll see a lot more bikes.
And less Hummers, but the SUV still rules the road in the USA, since the real reason Americans drive SUV is the following; "They don't make me look fat."
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