Originally Posted by CargoBob
The graph on the previous page proves me right...fuel prices will fall again and will rise again...do you know anything about history or econmics...I am 100% right...but I am not proud of that...it is economic common sense the price will fall again.
Yup, the typical what goes up must come down argument. Hey, does that apply to housing prices? Not at all! Why? There is a limited amount of land, and a high demand for housing. Housing prices WILL NOT return to the level they were 10-20 years ago.
I believe the same is true with oil. I will make a prediction. Oil will not receed below $60 a barrel for more than one month's time period. It is likely to stay in this range, and perhaps increase in the next few years. High oil prices are here to stay. The only solutions are:
1. Reinvesting huge oil company profits into more technology to make drilling easier and more affordable. Also more exploration.
2. Reduce demand for oil.
3. Switch to alternative fuels.
Demand for oil will not drop with gas at $4, $5, and probably $6 a gallon. I think there is some break-point on gas prices that will cause a significant decrease in demand. But I think that amount if at about $6 or $7 a gallon. Demand will continue to increase across the globe.
I made my case that cars will be all electrically powered in about 20 years. Until then, we need to deal with oil prices as best we can. Reduce demand where we can. Make vehicles and aircraft more efficient.
P.S. I really hope I am wrong, and oil could return to $30 a barrel. I hope for it every day. But I just can't see it happening.