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Originally Posted by Edward64
Warhammer. From what I've read, oil prices is increasing not because of anticipated supply and demand 20-30 years from now, but because oil production capacity is (or close to) maxed out.
The temporary Katrina effect notwithstanding (ex. when it was $3+), the sellers can demand a higher price (currently at $2+).
I feel like you do that the oil companies are gouging us. However, I temper that with the thought that if the oil companies were losing money, we would say "tough luck, you've got too much expenses and should trim the fat". It doesn't seem as if the oil companies can win in this current environment, we criticize them either way.
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Interesting topic considering the book I just started reading. "The Long Emergency" by James Howard Kunstler. The book is basically about what is ahead of us a decade or two in the future. According to the book, global oil production has already peaked and started diminishing. Assuming the estimates of reserves the author quotes are correct, as well as the global demand for oil, there are enough reserves to last another 40 years assuming no population growth and demand does not continue to grow. I'm not saying this is gospel, just food for thought.