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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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Why is everyone suddenly gaga over gas?
Consumption; Demand; Pricesvox_mundi writes:

Crude oil gets all the headlines, but there's another fossil fuel that's had an even more impressive run this year.

Natural gas has surged 55 per cent in 2008, topping the 29-per-cent rise in crude. And it could go higher still, especially if the summer brings scorching temperatures that prompt homeowners to crank up their air conditioners or hurricanes that knock out gas platforms in the Gulf of Mexico.


“At this point, I don't see any real end in sight. For now, it looks like steady-as-she-goes higher,” said Peter Beutel, president of Cameron Hanover, an energy consulting firm in New Canaan, Conn.

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Posted on Thursday, May 15 @ 13:41:30 PDT by Leanan
 
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