Originally Posted by
BoilerUP
Its not that simple....
Oil spikes to over $110/bbl...it takes a couple weeks for the increased cost to be translated to the pump, just like it takes a couple weeks for decreased cost to be translated to the pump as well.
That's also not even taking into account the extremely weak value of the dollar vs. the Euro. Oil is traded in dollars, so when the value of the dollar drops vs. other world currencies it costs more dollars to purchase.
Don't blame the oil companies for the high cost of oil; blame the bastard commodities traders and speculators for that. THEY ARE TO BLAME.
This has been discussed many time before but to add to your point, India and China are now using much more oil than ever before. So until we start uncapping some of our domestic sources, using more nuclear, expanding alternative energy, we will be at the mercy of the traders. And no one is doing anything world wide to stop it! Tell me who out there has a real viable alternative to oil? No one that I'm aware of. So we have to increase our own supply. Otherwise as stated before, if oil goes to $200bbl, people are still going to buy it. We have no choice.
Add to that the bombing of the pipeline in Iraq and the nutjob in Iran in the picture looks worse.