RE: Oil prices could hit 80 dollars in next two years: OPEC

Richard Penley said:

You hit on a topic that truly aggravates me to no end. So I will now post my first comment on the Rogers Institute.

I am reminded of an e-mail I sent to two state assemblymen two years ago concerning a bill to prevent wholesalers from selling gas at discounted prices. I can't remember the state bill number but it struck me as anti-competitive. This was a direct assault on Sams Club and Costco probably sponsored by the gasoline/convenience store retail lobby in Raleigh. I am uncertain as to the status of this bill but what I do remember is the House voted for its version and the Senate was still trying to work out the language on its side of the aisle. Nevertheless, I believe the bill died that year because Sam's is still selling gas at a discounted rate relative to the retailers here in W-S. I e-mailed Mr. Horton (R) who I believe is on the Senate side of the Assembly and I e-mailed the representative (D) on the House side. I was glad to see a timely response from Mr. Horton but never received an e-mail from his counterpart on the House side.

But I digress, when I read this article last week I was somewhat dismayed to see that someone was making predictions in the coming years on the price of crude. Future trading in oil is highly speculative and dependent upon a whole host of geo-political and market dynamics that no one can really predict accurately. Nobody can predict what the price will be in three weeks let alone two years. So I don't understand why such a dire warning was issued. I can only speculate that maybe it was intended to send a message to the oil cartel in the Middle East to open up their eyes and their taps because there is an oil disaster waiting around the corner caused by increasing global demand. Or maybe it was intended to get these future traders to buy more crude. It's frustrating to be dependent upon countries that are so diametrically opposed to democratic and capitalistic ideals.

That's why I believe it is time to push harder for alternative ideas to fuel consumption in this country, if not for our own national security then for our own economic well-being.

I'm not an environmentalist in any stretch of the imagination but what I would love to see happen in this state is a program that spurs development in the bio-diesel industry. Indiana has helped their corn growers by making the market in ethanol more attractive. North Carolina ranks in 18th place in corn production. We feed our hogs corn, why not promote corn production by encouraging the growth of ethanol refineries in NC? It just seems like a natural conclusion to take advantage of our own resources.

E85 vehicles (vehicles that run on 85 percent ethanol and 15 percent fossil fuels) have been on the road for several years now. All of the major car manufactures produce their own E85 versions. I know the state and local governments have been purchasing fleet vehicles that run on E85. But the only refueling stations are owned and operated by the state and local governments. Why not educate the public on the benefits of E-85 and also encourage gasoline retailers an auto manufactures to offer E85 fuel vehicles to consumers? We spend millions in tax incentives for Dell to hire 1400 employees over four years why not promote a whole industry in this state while doing our part to end our dependence on Middle Eastern oil?

Well, I'm off my soap box for now. But let me end this by telling you what happened to me this weekend. I went to Sam's on Saturday to fill up my wife's car. I told her about this article and said, "I think it would be prudent to fill up now because I'm afraid by next week the price of gasoline will increase." I was planning to fill up my own car on Saturday but got busy doing other things. Sunday evening rolls around; I jump in my car to go to Sam's and the price of regular unleaded jumped from $1.779 to $1.839 per gallon. Needless to say, I wasn't very happy about it.

*Sigh* why couldn't they waited one more day? Meanwhile, the local BP is charging $1.91. Would someone please tell these carnie folk to stop this roller-coaster ride, I want to get off right now!