Friday, May 29, 2015
I live in Utah. When the price of crude oil as around $105 a barrel, we have never paid more than $4 for a gallon of regular gasoline. When the price of crude oil was down in the low $40s a barrel, we saw our price for a gallon of gas at about $2. The price of a barrel of crude oil is around $60 but a gallon of gasoline is $3.
So when the price of crude goes back up to the $75 range, and it will, we will be paying more for a gallon of gas than when the price of crude was over $100.
Because of the stagnant nature of the Obama economy -- which can be considered the new norm given onerous government restrictions and anti-capitalist policies -- we earn less, pay more in taxes, and pay more for goods and services.
Oil and gas are critical to the global economy. Renewable energy is gaining in attractiveness but is dwarfed by non-renewables. The current supply and demand quadrangular with oil and gas may stagger the oil and gas corporations, but they will get their money one way or another. If the price of oil goes back over $100, we will be paying substantially more than we did in 2014, and it cannot be explained by inflation, etc.