Forum Discussion
LindsayRichards
Oct 23, 2009Explorer
I know it’s hard to believe here in the US, but the world wide recession is easing a little and oil based energy prices are creeping back up. Pricing is once again over $80/bbl. Demand is starting to outstrip supply and prices are going back up. Under the free market system that has worked since the ancient times, people would be prospecting and producing more oil. Unfortunately this isn’t happening now. Much of the OPEC production capacity is tapering off and they need developed country’s technology to increase their production. This isn’t happening for political reasons. New areas like Brazil are going to be coming online, but too slow. Our government’s ban on oil, shale oil, coal, and natural gas probably won’t be changing. When gas hit $4/gallon, it was lifted and then quietly reinstated by congress when the recession drove down prices again. If (really when) the dollar no longer becomes the world’s reserve currency, then we are going to be hit very hard on non domestic energy prices. Business around the globe is now betting against America because of our over spending and over borrowing.
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