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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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Do we have to beg for affordable oil?

Such a public plea, from the leading western industrial countries plus Japan, was hardly a show of strength. But in the old days the accompanying news that Saudi Arabia was prepared to raise output to assist western economies would almost certainly have brought instant relief.

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Posted on Sunday, May 30 @ 18:27:38 PDT by admin

Most read story about Consumption; Demand; Prices:
Forget About Cheap Oil

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