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WHAT Peak Oil? Try An Oil GLUT Instead!

From CNN/Fortune.

"Despite the Iraq War and the resulting production disruptions, despite the moratorium on drilling in the Gulf, despite turmoil in Nigeria and ongoing cross-border transshipment quarrels in Central Asia and the multiple, repeated declarations that "peak oil" has arrived and supplies will inevitably dwindle, the United States has more petroleum on hand today than it has had since at least the beginning of the first Gulf War.

Part of that surplus comes from increased oil and gas production, particularly from ongoing production in the non-OPEC countries (including the U.S., where a "shale gas boom" has created a natural-gas glut). It also comes from flat demand due to the stumbling economic recovery and changing consumer behaviors. Neither of those factors is guaranteed to last. But as the summer driving season passes and students head back to school, awareness has gradually dawned that we may be looking at an oil surplus for years to come."

...and to think Obama wants to continue to fund green energy and hybrid cars. Sheesh! What's worse? He wants to tax the bejeezus out of oil and gas to do it. The recession, combined with over-production, is what caused the glut, and because it will take a decade or more to completely recover from the recession/depression, we can expect to see low gas prices for years to come, unless Obama (or someone else) sets higher gas taxes, or states institute a per-mile tax (like London has).

Someday, cars will once again become a luxury, but not now. Loans are cheap,. the cars themselves are coming down in price, and now the gas to run them is in it's own depression. Now if we could just do something about the cost of maintenance... :)

Posted by Cute at 6:20 PM

Labels: economy, financial (non-tax), politics, social issues