1054782
mmmmm biodiesel....
Although prices are high, watch what happens after the war (especially if SOCOM can
prevent the oil fields from being torched). Once the FUD (fear, uncertainty, doubt) is
passed, prices will drop back down.
In reality, the prospects of war with Iraq are causing the market shifts. The BS in
Venezuela is the one actually hitting the price at the pump. We get next to no oil from
Iraq, but quite a bit from Venezuela (~10% of world imports if I remember right).
Clearing up the issue in Iraq (if we can save the fields), would, in time (months) cause a
massive price drop (from ~$30 now to ~$18 to $22 per barrel I'm guessing) because the
massive oil reserves under Iraq would not be under OPEC control. Even though it would
take a year or more to bring Iraq up to capacity, the prospect of such an event should
have a positive effect on the market.
The problem, as I understand it, in Canada is the politicians (and we have our own still in
the states) who still think that cutting gas taxes means cutting revenues. They don't
seem to understand that if the cost to do something (like a pointless roadtrip) is lower,
people are more likely to do it, and thus buy more gas, thus generating more revenue
even at the lower rate.
In all, I'd much rather suffer through short term spikes in prices than to have a
"regulated" price that ends up being twice as high as we average now.
Okay. That was my soapbox. If I pissed you off, send me an e-mail.
jcooper-at-nevernight-dot-net
Cooper.
edited by: jcooper, Feb 12, 2003 - 09:39 AM[addsig]