This is a bit off topic from Virginia politics, but we all care about oil prices, right? Well, according to a Canadian firm, CIBC World Markets, we're in deep crude. For starters, CIBC reports in its January 9, 2006 "Monthly Indicators" report, we're in for "another year of tight supply" in world energy markets. How tight? Tight enough that CIBC forecasts "oil prices [will] continue to rise to over $70 per barrel this year and to as much as $100 per barrel by the end of 2007." Finally, CIBC comes to the stunning conclusion that "2004, in hindsight, will prove to be a Hubbert curve peak, at least insofar as low-cost conventional crude is concerned."Yes, you heard it right. According to CIBC, 2004 was the year for peak world oil production. After 2004, it's all flat or downhill for supply, at the same time that demand continues to race ahead in China and elsewhere. Let's see now, if I can remember back to Econ 101, I do believe that flat or declining supply combined with increasing demand means higher prices. Unless, of course, I'm missing something here. And, unless I'm missing something else, our (Republican-dominated) government isn't doing anything about this situation. No energy policy. No massive program to move us from oil to renewables, or to make the country far more energy efficient than it is today. Nothing. Just record profits for ExxonMobil, continued dependence on our friends in Saudi Arabia, and melting of the polar ice caps as far as the eye can see. What a plan!
***SARCASM ALERT***All I can say is, at a time like, this, thank goodness we've got strong leaders like George W. Bush, Dick Cheney, and the House Republicans. And thank goodness we don't have a bunch of Democrats running the country. I mean, who knows, if those people were in charge, they might even get something done on this issue. Can't have that now, can we?***END SARCASM ALERT***
By the way, CIBC is not the only group making such forecasts. In addition, Goldman Sachs believes that we have entered a "super-spike" period in which oil prices could reach as high as $105 per barrel. And the U.S. Energy Information Administration (EIA) recently raised its long-term oil price forecast by about $21 per barrel. And guess where all this money's going? Not to the U.S. government, that's for sure. Not to U.S. consumers. Instead, OPEC is expected to earn oil export revenues of more than half a TRILLION dollars next year, also according to EIA. Amazing, huh? And just remember, our REPUBLICAN government is not doing a damn thing about it. You might want to keep that in mind next time you happen to be near a polling place...in November 2006, perhaps?