Crude Remains Strong Despite Inventory Build
Light Crude Oil (CL, NYMEX)
Daily Commodity Futures Price Chart: July, 2007
chart courtesy of TFC Commodity Charts
Crude closed at $68.86 (August 2007) today -- down 68 cents -- and the new futures contract starts tomorrow.
Since I have been ranting today -- I remain firmly convinced that:
- Energy is not only a matter of economics, but a matter of National Security;
- Subsidies for Oil and Ethanol need to be replaced with subsidies for Solar;
- CAFE standards need to be raised;
- Expedited processing for Nuclear Power plant permits should be issued
I own a V8 (automatic), a straight 6 (6 speed), and a 4 cylinder (5 speed) -- so I am the last person to preach we all need to shift to Vespas and biofuels. But its pretty apparent to even a gas hog like me that we need to do something other than send billions of dollars to terrorist nations each and every single month.
Source: Pat Oliphant via Yahoo!
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Good points. Unlike previous oil shocks which were politicaly induced we're facing a long-term demand/supply imbalance with the preponderance of sources offshore and in increasingly unstable localities. It'll take 20-30 years to migrate away from the current infrastructure (think $Ts of investment to changeover). Aside of national security and exponentially increasing exposure we could continue to reduce the costs and shock risks. In particular one thing left off is increased conservation - which could reduce energy/oil demand by 30% or better VERY quickly (cf SciAm or Amory Lovins work). Another s.t. ameliorative would be expedited processes for refinery development. But a concerted national effort (think Manhattan project jr.) to get clean-coal and nuclear would provide workable and affordable alternatives inside the 20 year horizon, lower total costs if done properly and reduce the security risks. If you wanted to look for a political cause to support an effort like the early space program for energy alternatives wouldn't be out of place. And it could be made viable and workable via a carbon tax where the funds were ear-marked for R&D and infrastructure development.
p.s. - a rapid increase in mileage would add another potential 20%+ to oil demand decreases.
Posted by: dblwyo | Jun 20, 2007 3:45:05 PM
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