[fallujah-nuker]

"These high oil prices may be a blessing in disguise, for it makes domestic energy sources more economically viable, but the envirowhackos will be screaming."

For Hugo Chavez there is no disguise, it is a blessing in plain view. I do expect oil prices to drop in the long run, having lived through the late 70's and early 80's, even more so if the US were to reduce its imports. At the price now even synthetic oil would pay, but OPEC would always be able to strangle the baby in the crib, so it would be foolhardy to risk capital in view of what happened in 1985 (remember shale oil).

We threw oil energy independence on the altar of free trade in 1985, we would be far better off today if we had taxed imports of oil back then. Or even hit Iranian oil facilities to keep our guys in business, Iran sure enough was providing provocation to us back then.

[Dane]

For Hugo Chavez there is no disguise, it is a blessing in plain view. I do expect oil prices to drop in the long run, having lived through the late 70's and early 80's, even more so if the US were to reduce its imports. At the price now even synthetic oil would pay, but OPEC would always be able to strangle the baby in the crib, so it would be foolhardy to risk capital in view of what happened in 1985 (remember shale oil)

I lived through it also, but with Chinese and Indian demand increasing, the saudi's don't have the leverage to flood the world with oil and undermine American alternative energy sources.

JMO, the next 10 years are going to be a boon for American energy producers, especially for nuclear and coal.

[Paul Ross]

it would be foolhardy to risk capital in view of what happened in 1985 (remember shale oil)

I wasn't paying attention to shale oil back then. What precisely are you alluding to? Somebody lose their shirts? Today, of course, shale oil is supposedly economic at $35/bbl. Current price for oil...$65/bbl. Is anybody in the oil companies imagining that we're going back below $50/bbl, let alone to $35?