innocent bystander said:
What gets me is that America get's hit, the price per drum goes up. OPEC compensate by giving half a billion barrels away, and the price goes up anyway regardless. Exxon must be rubbing there hands together. ( even if they have a facility in Baton Rouge)...
Granted the companies are doing well from this, but the prices were rising fast before Katrina hit.
Whenever peak oil hits is irrelevant really, since this year saw global demand outstrip supply in the summer months which are traditionally the cheap/surplus season. Demand from China and India coupled with a lack of new production capacity is going to force prices to continue to rise.
So what we need is a shift in Government thinking to adjust our society to be less depenant on the black stuff. [I think I just heard an oinker fly by] As has been pointed out, reducing taxes leads to an increase in the raw price, but that reasoning doesn't help someone whose trucking business is struggling to survive. For once I think the powers that be are right not to cut the tax
, despite doing it for the wrong reasons [doesn't seem to be a coherent plan with investment in alternatives], but I can understand the protesters viewpoint as well. Unfortunately "demand destruction" means a non-trivial number of companies will fold too.
As for me, the fuel increases hurt an already stretched budget, so I'm topping off and filling a couple of cans tonight.