blu

The Crude Oil Price Disconnect

None of your huge discoveries of crude are significant in relation to spiking world demand of crude.
OPEC does not increase production for a very simple reason. It can't without doing great damage to its reservoirs.
I agree that speculators are flooding into the commodities markets.
However, they may just happen to be correct in their assessment of oil.
It is becoming apparent that our planet can only produce 87 million barrels of oil per day. Consumption is on ocassionally exceeding that amount. We have been spoiled to cheap energy for too long.

Now everyone wants a quick fix and some politicians are proposing to instigate another windfall profits tax on crude. (Obama)
The windfall profits tax of 1980 caused over 8,000 domestic oil wells to be plugged and abandoned and reduced our domestic production by 6 percent.... thereby adding to the present high price factors.
We can't afford to repeat that error again.