::tear::
I nearly cried tears of joy today as I was driving home. Not only am I starting a weeks vacation but the 3 gas stations down the road from me we'e displaying reg. unleaded for $1.99 for cash. I thought I'd never see this day again. Who knew that only a scant two months ago, when we were paying up to $4.25 a gallon that it would rebound to this
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Demand did drop when the prices rose, plus companies hurting for money in a crappy economy use less fuels. Demand decreased, price decreased. This price decrease is killing those oil-producing countries whose oil is being sold more cheaply than they have set it to be. OPEC is or will be addressing this soon. Also the drop in oil prices means that people will think it's safe to go out and buy the "now much cheaper" gas guzzling SUVs.
There's also the probability that we've hit peak oil (that just means we're halfway through the oil reserves on the planet). When oil fields get past their initial gush of oil, companies have to employ expensive measures to extract the remaining oil in those fields. SO more expensive procedures means more expensive oil. It's projected that most of Saudi Arabia's oil fields are past their peak. Saudi Arabia is the country that can supposedly hold out and balance out the oil supply if other countries have problems. Will they really be able to?
This global climate change course I'm in is amazing. The way I've viewed gas prices in the past makes me feel like a lemming.
Just some stuff to think about. I know it IS such a relief to see gas much cheaper. Almost cheaper than its been in 2-3 years. But it probably won't last, and it probably shouldn't.
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