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General Observations

5/21/2008
Allan
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Gas Prices II


As I have said in the past, we will continue to monitor the price of gas in southeast Virginia. Today, the price of a barrel of oil reached $130, an all time high. With local stations charging $3.69 to $3.79 a gallon, I see the price of gas going to $3.80 or so in the area. No end is in sight. I saw a big oil guy interviewed yesterday who opined that the current rise in the price of oil is no bubble; we can expect the price of gas to stay high. As I said in my earlier blog, there is no outcry from the folks. Sen. John Kerry wanted to raise the federal gas tax to the point where $4.00 to $5.00 would be the norm for a gallon of gas. So high gas prices are acceptable or even desirable to our leaders in Washington. No help can be expected from politicians unless we get after them. We have the wherewithal to get a lot of energy in this country, going nuclear, shale oil, off-shore drilling, and Alaska oil fields. All of this is not going to be used in the present political climate. In an old movie titled "Three Days of the Condor", it was predicted that nothing would happen until people were running out, getting cold, and going hungry. Ah such dark thoughts on such a beautiful spring day. Enjoy it while you can; winter awaits.

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