Sunday, May 25, 2008

The Truth About High Gas Prices.

Why is gasoline so damn expensive? The mainstream media has rounded up the usual suspects. They demonize oil companies (for excessive profits), lambaste environmentalists (for blocking domestic drilling and refining), and sock it to speculators (for fear mongering over supply). Simply put, the current crisis is a speculative bubble whose impact to American consumers is exacerbated by domestic economic conditions. I fully expect crude oil will trade below $80 a barrel in the not too distant future. Meanwhile, let’s tackle this one myth at a time.


Anonymous said...

Wasn't $80 high a few years ago?


Mike Stajduhar said...

Yep...but I'll take what I can get.