Paul Killinger

Peak Oil as a Direct Result of Misallocation of Funds

The author is absolutely correct! If you don't believe this, re-read his opening paragraph about America's growing economic woes and tell me which you think are incorrect.

Oil, gasoline and heating oil are taking a short price "pause" here due to annual seasonal factors, as domestic supplies have temporarily caught up to modestly reduced demand, and NG is following along for the ride.

But don't be fooled! Don't get lulled into somehow believing that oil prices will retreat over time, and there was an "oil bubble." Oil is now a GLOBAL commodity, and its price can only go up as the demand for Black Gold continues to increase throughout the world.

And this NEW demand is permanent. TENS OF MILLIONS of people across the globe are buying cars for the first time. So there's nothing "temporary" about this oil use, it will only INCREASE day by day. (No offense, but we can park ALL our SUV's, and this won't make a whit of difference as time goes on.)

So forecasting this pleasant break from ever higher oil prices was a good call. But you will need to get long again by the time you feel the first chill in the air. Between higher fuel prices and our resulting economic malaise, to do otherwise would be folly!