Pulled this from the Gregor.Us blog. He does a good job of tracking the oil production, and prices and visiting the economy associated.
As he said, for 6 years now the predicting people have said that the price of oil will come down. I wonder when that is going to happen?
I would guess if we lapse into a total world recession that it might force the price down, but if we stay in an average no growth no “fall off the cliff” then it is going to stay where it is, even if this price is a burden to much of the “developed” countries, I think it is a time to figure out we are going to live with higher prices… For every few 100K the US doesn’t use some developing country will. They all can’t continue to live with out power and the worlds power is hydrocarbon based with no economical alternatives at present. Yes we are putting in more wind, solar, etc… but with out government subsidies they are not economical compared to Natural Gas and oil based energy. When they get cheaper or oil gets higher it will swap over to other energy forms but no matter what we all want to think the whole thing is based on ECONOMICS. – WD0AJG