Oil prices hit three year record … gas lines and $5 gas around the corner?

I must say I am not sure I believe the dire predictions but these days anything is possible, as long as the government continue to stick it’s regulatory nose into places it doesn’t belong. And no, my little lefties, more government regulation or even higher taxes won’t solve this problem.

Bloomberg news reported this one on New Year’s eve, or while you were partying (H/T Instapundit).

Oil surged to its highest year-end price since 2007 as the dollar weakened and gasoline and heating oil futures climbed.

Crude capped its second consecutive year of gains as the dollar dropped against the euro, boosting commodities’ appeal as an alternative investment. Oil settled above $91 a barrel after testing technical support near $89. Gasoline and heating oil advanced before the January contracts expired today.

“A weaker dollar and stronger product prices are all bolstering crude,” said Jason Schenker, president of Prestige Economics LLC, an Austin, Texas-based energy consultant.

Meanwhile, last week, former Shell Oil President John Hofmeister predicts gas lines this decade and $4 a gallon gas this year and $5 a gallon by 2012. He makes a compelling case, no?

Somehow I do not think squiggly light bulbs and electric cars are gunna make up the difference. I am one of those people who think all sources should be developed, but as Hofmeister says, in the short term we need to drill baby drill. Now, who is gunna convince a President who used the gulf spill crisis to shut down drilling … everywhere?

UPDATE: You will notice I have changed the post title because I can’t remember what year this is. Since Dec 31, 2007 would be a three year record, not a two year record as originally posted, I have corrected the title because this is 2011. My bad and I stand corrected.

8 replies
  1. GdavidH
    GdavidH says:

    Too bad we don't have a Republican president at this time, cuz if we did it would be price gouging at a biblical level, to be investigated by congress and the likes of Senator Skelator himself. Good thing we have the "one" in office. This spike in the price of oil must be due to globa…..climate change and is good for the planet.

  2. PatRiot
    PatRiot says:

    I hear what this guy is saying      BUT   I also think Wall Street is hearing things differently.

    They hear higher prices and up goes the futures market.  And "those in the know" make huge profits on this.

    The last time some other nut said " I think $100 a barrel is likely", the market went nuts !!  Just on his word, not because there was a change in supply or demand.  That was basically like shouting "FIRE" in a theater.  He should have been brought up on charges. 

  3. winnie888
    winnie888 says:

    PatRiot, that was my initial reaction to this boob saying what he did.  All it takes is for someone to say it's okay, it's likely, it's gonna happen and BAM! we'll have prices like we did back in the summer of '08.  But just like we did back then, we Americans will stop driving anywhere we don't have to drive, and keep our thermostats set to 55 degrees & wear warm, fuzzy stuff to fight off the cold in our homes.  For the record, drilling is what we obviously must do, but the futures market is what is going to drive prices up, and fast.

  4. Dimsdale
    Dimsdale says:

    If the oil companies make 9 cents/gallon in pure profit, and the federal government takes 18 cents/gallon, who is doing the gouging?

     

    Good thing we have Øbama and the environazis killing our domestic oil drilling, coal usage and nuclear power plant building!!  Atta boys!

  5. sammy22
    sammy22 says:

    I think that since oil is a global commodity, Pres. Obama has nothing to do w/ setting the price. The US is only one of the MANY players in this commodity space.

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