There was an article yesterday in CNN.com that talks about how Saudi Arabia wants oil at $75 per barrel, which is approximately a 50% increase from where it has been trending. Everything else being constant, this means the price of gas will go back up to the $3 range (50% increase).
Additionally, as previously written, Iran and Venezuela are looking for crude prices in the $90 range, in order to meet its spending needs. OPEC will be meeting over the next few weeks to announce another cut in production as a means of raising the price the world pays for crude oil.
The most difficult thing for me to understand is that the oil producing countries did very little to bring prices down when they were in the $140 to $150 range, which contributed to the current economic recession. Oil prices did not cause the housing crises or the resulting banking system troubles. What it did do was push people over the edge. This is what contributed to the housing and banking troubles.
Oil prices went up, companies raised prices, sales declined, companies laid off employees and unemployed workers could not afford to pay their mortgage. When prices for gas started to increase dramatically, it took money out of peoples wallets and they were unable to pay for their homes and other basic needs.
This situation makes it extremely dire in my mind that we continue our shift towards alternative forms of energy to power our cars, homes, offices and business locations. We can’t allow other nations to dictate our economic future. Allow them to play with us as if we were a pawn in their game.
We must take back control over our economic future. We must stop our dependence on foreign oil. We must develop and use alternative forms of fuel. America… we can do this!
Hybrid and Electric cars are a great way to go. If your in the market for a new car, check out this site electriccarbargains.com.
If your currently using heating oil to heat your home, shop for a new energy efficient heating system. It will cost you some up front, but the savings will pay for it over time.
Tags: alternative energy, alternative energy cars, alternative fuels, Foreign oil, higher oil prices, Iran, OPEC, Saudi Arabia, Venezuela
