Memo to Detroit: Gas Prices Could Go Up!
GM CEO Rick Wagoner and his Motown pals maintain that "nobody could have predicted" the recent surge in gas prices. You know, the price hike that's driven a stake through the heart of their high profit light truck biz. Never mind the fact that TTAC and others were bemoaning The General's re-investment in their GMT900 trucks back in '03. Well, guys, here's an article in The New York Times that says that nationalization of oil resources around the globe could lead to a drop in supply. (Maybe we should drill nearer to home? Nah.) OK, it's kind of funny (ironic) that the Gray Lady's piece paints Big Oil as the good guy. But that's not the point. Now pay attention: this trend could mean oil prices will go up again. Which would raise the price of gas. Now there's many a slip between the well and the ship, but do NOT tell us that you're surprised if pump prices go up again. That is all.
More by Robert Farago
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$3.87 for me down from a high of $4.29. Eventually we'll get used to the prices and go buy our trucks again.
Hey RF, you change the headline to "Landcrusher called it..." Perhaps someone can figure out how many weeks it's been since I made my rant about how Big Government rather than Big Oil is causing the problems. I bet if you look in the NYT for that very day, they were blaming everything on Big Oil. I predict they go back to blaming Big Oil anyway. Also, for those of you who care about the truth, some of the oil companies that have a large share of their profits (or losses) based on refining margins are quite happy that oil has come down. They will make more money. For most integrateds its not a problem until oil gets back below $80. The exploration only companies will make less, but they are still happy at this price. Lastly, welcome to fisher72, just so you know, few folks here believe anything factual about the oil business. It's strange how many otherwise bright folks just don't get oil.
Down from about 1,60€/l to something around 1,45€/l, which feels cheap now. Funny how it works.
Today's NYT article was an eye opener. It gave an excellent history of the oil companies. I had been thinking the oil companies didn't want to drill off the US coast the oil companies just wanted to drill where it was easy in countries with proven reserves but now they have little choice because the countries with proven reserves want to develope their oil themselves. As the NYT points out countries with oil have internal fighting over the profits, may not have the expertise to drill efficiently, may not bother with maintenance, and who knows where they will sell their oil. The article in the September Wired page 118 titled "Driven" will also open eyes. We may be leaving the burning age (wood, coal, oil) because we may have found a better way. Remember humans didn't leave the stone age because we ran out of stones.