The really green blog
« September 2008 »
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30
You are not logged in. Log in
Entries by Topic
All topics  «
Cap and Trade
Conservation etc ...
Food Crunch and Ethanol
Green Business
Green News of the day
Blog Tools
Edit your Blog
Build a Blog
RSS Feed
View Profile
Blog Tools
Blog Catalog
Tuesday, 9 September 2008
Oil Prices: Do you see a pattern?
Topic: Green Business

There is a predictable pattern happening in oil prices. Some four years back, around the election time, the oil prices bucked the trend and went significantly down. I am not a big believer in the conspiracy theories but I am seeing the same pattern this year. The oil prices went to historical highs and now are coming back on track. The oil industry is saying that the forces of American demand are bringing the price low. Ok, that's not how I understand the industry. The last time I checked, this industry does not care for demand growth as the supply is controllable at a short notice. OPEC can shut off a few oil wells and the supply and demand will be in an upside down situation again.

I believe that the gas prices going down has more political reasons that any mathematical reasons provided by industry analysts. Did someone go tell the OPEC that this is an election year, so, don't mess with the prices? Do you smell a smoking gun?

On the other side, I am happy about the demand going lower. This will improve US lead on the alternative technology landscape. I have also read the reports from AAA saying that we have driven zillions of less miles for our vacations. But I can't help noticing that many people are driving high mileage cars. Overall, this trend will help reduce the demand of gas. But there is still a lot of ground to cover when it comes to the alternative fuel technologies.They are still not making the solar charged air planes as yet:-)


Posted by praneymittal at 8:11 PM PDT
Post Comment | Permalink

View Latest Entries