"I think we've actually turned the corner in terms of market psychology (to
borrow from a previous thread). U.S. consumers are going to continue to
ditch big fat gas guzzlers in droves and move to lighter, more
fuel-efficient cars, scooters, and public transport. Alternative energy
companies are going to invest billions in their solutions, which can now be
profitable because of the price of oil."

I remember the first time I saw an electric car on the road. It was 1980 and
gas was $1.20. The thing looked stupid but it didn't look so bad driving
past the people in line to buy gas at unprecedented prices. Gas prices went
back down and it was bye-bye clown car.

I have a feeling that gas prices are not going back down to the $2 range,
but I wouldn't bet the rent money on it.


"It will be the oil companies themselves (and more importantly thug regimes
like Iran, Sudan, and Venezuela) that are most damaged by the dramatic rise
in prices. The current price range makes every conceivable fuel alternative
economically viable, which is what this is all about at the end of the day.
It's going to take decades for the economy to shift away from oil, but there
is now no question that it is going to happen."

You can count on those who have a stake in oil's future to protect their
industry from competition. If alternative energies get some traction in the
marketplace, gas prices could again fall precipitously...even with China and
India in the economic mix this time around.

I'm also expecting gas stations to start selling gasoline by the liter.
American consumers suck at math so they wouldn't know whether $0.99 per
liter was a good deal or not.




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