I’m ready for the price of oil.....

[kilroy]

There was another person on CNBC this morning predicting that diesel will hit $8/gallon by the end of the summer and $10 to $11 per gallon by end of the year.

There are already people here not going to work. I was talking to a small business owner the other day and for the first time he is getting calls from people saying they have no gas... When a married couple starts having to pay over $1000/month for gas, it will have a devastating impact on the economy as they simply will not be able to afford it.

At $8-$10/gallon, the entire boating industry will be destroyed in the US..

That would be only the beginning. Since the entire world pretty much runs on oil (a conscious decision made about 110 years ago, the cost of everydamnthing will go up. Anything transportation-related is a no-brainer, but things like property taxes, home building, remodeling, landscaping, food, *everything* will be affected because *everything* we do uses oil in one way or the other. The solution, I think (when cooler heads prevail after the election, if that's even conceivable) is probably going to involve maximizing the use of solar/wind for non-transportation-related energy (a no-brainer in itself), building more nuclear plants to reduce the use of fossil fuels, drilling in Alaska, and reserve the use of petroleum for transportion purposes until something else that works as well can be developed.

Meanwhile, I'll ride my motorcycle as much as I can and save my gas money for the boat ;-)

 

[rondds]

oil companies are not responsible for these prices. gas prices for this week in NJ one year ago averaged $2.95/gallon and a barrel of crude was $65. this week (2008) gas is averaging $3.71 and crude is more than $130. big oil hasnt doubled the price at the pump so it seems they are having mercy on us in terms of pricing.

congress just wants us to believe they are on "our side." it's a sham and to be honest i can't bare to watch it - it actually sickens me.

i found this chart interesting... (from wtrg.com)

 

[rondds]

mike - you make a good point - the real movers and shakers are STILL moving a LOT of money into crude. if they werent the price would be dropping. by the time you read about a good investment in business week or see some talking head pushing it on CNBC ("diesel's gonna hit $10!!!!! the sky is falling!!!! run for your lives!!!!!"), you've probably missed the boat already. the real braintrust is already dropping out as all the casual investors are just climbing aboard - and unfortuately they are then left holding the bag when the price falls off the table. it's going to happen with crude prices fairly soon - question is, where do prices settle back in at?

 

[Four Suns]

I think CNBC must go out and try to find people to make the most stupid predictions on oil prices. Yesterday late they had someone who who put up $500/bl in the next 4 years with gas and diesel over $20/gallon. He also said it was a great time to buy into oil. Yeah... right....

 

[ghuskin]

MSNBC is not a legitimate news source, IMO.

They are looking for folks that say what MSNBC wants to portray. The libs want to destroy capitalism.

 

[Four Suns]

I was referring to CNBC and not MSNBC... very different channels. CNBC is the channel that allows people to step on little people and make money.... For example, any stock that Jim Cramer recommends you should short 2 days after... but don't tell anyone.

 

[ghuskin]

Gary,

Sorry about that! My bad.

Aren't they both owned by GE? The company that continues to sell to Iran?

 

[rondds]

anything with NBC in their name is a marxist, alarmist and sensationalist!

 

[fc3]

I think CNBC must go out and try to find people to make the most stupid predictions on oil prices. Yesterday late they had someone who who put up $500/bl in the next 4 years with gas and diesel over $20/gallon. He also said it was a great time to buy into oil. Yeah... right....

Probably someone from goldman. They're one of the leading cheerleaders for the price run-up. BTW, I had goldman as customers many years ago. Lousy corporate culture. Vultures. Actually, vultures are probably nicer.

Best regards,
Frank

 

[Four Suns]

and they probably paid you net-90

 

[fc3]

I hear that the ex-Bear Stearns CEO is getting a $10M/year package from JP Morgan to stay on... maybe the government should block that as well... because, for some reason, that's not fair either.

Actually, since the BS CEO is responsible for getting BS into that mess in the first place and since the Fed and taxpayers are propping up their rotten structure, I'd like a piece of that as payback.

Once you hold you hand out for government money, you get the whole deal.

and they probably paid you net-90

Don't remember. But I do know that J&J pays all my consulting bills net 45. They pay everything net 45. I got lucky with one of my POs. The sponsor coded it for net-30. Wooo Hooo!

Best regards,
Frank C.