Sunday, January 18, 2009

The Price of Oil

This video leaves me saying "and so what??" Seems fairly inconclusive and not very informative to say the least. Of course there is a lot of speculation in the market (can be seen in any market). I think it's naive to think that oil trading at $40/barrel is the true market value. Basically the pendulum swings up and down in any speculative market.

If you take a step back from today and look 5, 10 or 50 years from now there is still is going to be a huge demand for oil. Yeah, it will fluctuate up and down in those years. If you are someone who thinks the Chevy Volt battery powered cars, solar and wind energy will replace oil in the next few years- what fuel will be used to replace oil in the manufacturing of these new technologies?

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