That being said, after I posted....I think I asked the wrong question.
Why would you think there is a flat direct percentage correlation with demand to price? What I mean by that is....just because demand goes up 10%...doesn't mean price will only go up 10%.
And if a person subscribes to "peak oil"....where demand outstrips supply..in any given time frame...price will surely rise percentage wise much more than the percent increase in demand.
IOW, I think you just looked at demand...and not production. And then took the Dem's bait on this issue.
Speculators are here in America to stay, and they serve a function...Unless we just toss this country overboard and go totally socialistmarxist...speculators in all commodities will be here like it or not.
IMO, the DemocratLyingLiberals threw out that accusation that it's the "EVIL SPECULATORS" that have caused price inflation.....just to divert attention to the FACT that they are holding the country hostage for POLITICAL reasons.
Drill here, drill now.
Krauthammer had a great article on drilling here and now...in my paper today. It's a great read.......
FWIW, and FRegards,
“Why would you think there is a flat direct percentage correlation with demand to price? What I mean by that is....just because demand goes up 10%...doesn’t mean price will only go up 10%.”
No, I realize it’s not linear and not always proportional. There are other factors of course. What I’m saying is that the rise in prices have been so dramatic in such a short period of time, that it seems as though speculation is a more significant factor than anticipated demand relative to anticipated supply.
I could be completely wrong and do believe that worldwide supply and demand drive prices, but I also think we are now at the mercy of speculators and this will only get worse if Obama wins and the AGW crowd gets its way. We have got to start drilling for more domestic oil but I just don’t see this alone bringing down prices significantly.
“Speculators are here in America to stay, and they serve a function...Unless we just toss this country overboard and go totally socialistmarxist...speculators in all commodities will be here like it or not.”
We weren’t a socialistmarxist country before speculators starting buying oil on the futures market where they sit on it (on paper because they don’t actually take delivery of it) driving up the prices of futures. Ending that practice on wall street is not the same thing as socializing the oil industry.
How much will be too much? When it’s $9-$10 dollars a gallon. When even our national security is as stake because of how much oil we need for military training and operations? What will be the benefit of this kind of speculation then? What if more investment firms get on board doing this? This could be the beginning of gas prices going even much higher. Drilling here and drilling now would offset this some but by how much?