Thursday, May 29, 2008

Is demand finally slowing?

A couple interesting articles:

[1] The average per-gallon price topped $4 in 11 states.

[2] People are finally cutting back.

My guess? Short term, prices will come down a bit (don't they always go up right before a 3-day weekend?). Long term, prices will increase dramatically. Unless there is a world-wide depression, in which case, all bets are off. Bottom line: Supply is decreasing. Peak oil is hitting countries, now:

That said, the fundamental supply is shrinking and demand is increasing. Alternatives to burning stuff for energy are the only thing that will get us through the coming decades. One person's perspective.



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