Another Record Day in the Price of Oil- Russian Output Falls

Record oil prices continue!

See: http://online.wsj.com/article/SB120820608486613923.html?mod=googlenews_wsj

Although not the largest exporter of oil, the Russian contribution is just as critical to the overall price structure as any other producer.  You may want to revisit my earlier writing on The Coming Energy Crisis from a Mathematical Perspective at http://www.servias.org/?p=68.

What happened to those predictions of $40 oil?  Don’t you wish that some of those people who erroneously suggested cheaper oil would have to recant their predictions with an apology?  Those "experts" must have had an impact on the average person who then went out and committed to a 6 or 7 year note for their new gas guzzler.  Unfortunately most of us cannot immediately reverse a decision like that.  I suggest that you take action to become more energy efficient.  $10 natural gas will equate to higher electricity costs.  If we have another Katrina-type hurricane, $150 oil is probable.  $125 oil is inevitable at this juncture.

Don’t let Congress off the hook.  They make money on high priced gasoline in taxes.  It is a very lucrative revenue stream.  The following graph provides a breakdown of the revenue distribution:

image

The taxes add no value to a gallon of gasoline.  I wonder if the government authorities will reduce their portion of revenue to help the hurting consumer?  Happy Tax day!

Comments are closed.