Crude Oil Hits Record Price

Oil surged nearly 5 percent yesterday to cross over the $100 a barrel mark for the second time ever. Crude actually set a new all-time record at $100.10, closing one cent above the previous high on January 3rd of this year. Analysts are saying the price oil could be sustained at this level for some time. “Where can it be at the end of the year? Another 10 per cent [higher] is entirely possible,” said Mark Johnson, an energy analyst for OMFinancial Group.

OPEC might not increase output to ease high prices—despite pressure from, and fears of a recession in, the United States, the world’s largest consumer of oil. The spike comes as speculation grows that OPEC will, in fact, hold or even cut output when it meets on March 5th.

As both fuel costs and anxiety levels continue to rise, the push for hybrid technologies and other energy-efficient technologies is expected to grow.


  • David

    It is what it needs to be.

    Our oil addiction will only be reduced by forcing us to move to alternatives. No one should be upset about the price of gasoline anymore. OPEC in a way is answering the call by reducing their oil production, especially to us.

    If we run headfirst into a recession, so be it. Things have to hit rock bottom before they can push off on the floor. Right now, were building a higher floor with solar energy, and other alternative fuels.

    Yes, we might be in recession right now. Thanks Bush… but, now we must face our problems and our shortcomings to rebuild the shoddy foundation we previously built.

  • Steveorino

    David – Your analysis of this issue only proves that you know nothing about the issues.

  • Collin Burnell

    Well Steveorino,

    Educate us.

    Which part of what David said is questionable?

  • gok

    Doesn’t mean anything if OPEC cuts back production. I believe in the theory that we won’t run out of oil it’ll just be to expensive to get it.

    At 100 a barrel oil sands of Canada become viable source of oil. Bye-Bye OPEC.
    Once we stop burning oil we’ll still be buying it in it’s many other forms. One word “Plastic”… and “Lubrication”

    Hypothetically if the US stops using Oil today. It would become really cheap. So our reason for not buying Oil can’t be based on price alone. Or we’ll just go right back to using it.

  • Mr. babu flubber von schnauzer

    Kudos to David. I can’t disagree with one word of your post. There would be no hybrids in the US if gas was under $2. I’m sure your Bush reference upset a few people, but hey, the US economy turned fecal under Bush rule. There’s no denying it.

    If you don’t vote Obama… yo momma!

  • Gerald Shields

    Hate to say it Steveorino, but David is mostly correct. We are being held hostage by Big Oil and the Big Three. We have the technology to build better, fuel efficient cars and trucks, but GM and company won’t do it and the Bush Administration and Congress won’t force them to. The only hope we have now is (1) Get a new president (2) Set new CAFE standards that are up to snuff. Untill that happens, forget buying anything but a Prius!

  • BIG DAVE

    STOP BLAMING BUSH, its all our fault for buying big suvs and not speaking up years ago and demanding that we do something to fix this dependence problem. We have all known about it for a long time, everyone just burried their heads in the sand, as long as oil was cheap we will not think about it or do anything to use less. We are all to blame, now tell me what are you going to do to use or conserve oil… electricity… be part of the solution.

  • Eric

    It will only get worse this spring. Every spring, prices get jacked up due to refinery shutdowns and the switch to the “summer blend” gasoline.

    Last spring, I think prices topped at $3.50/gal, I wonder what it will be this year…

  • AP

    BIG DAVE is right. It isn’t Bush’s fault, any more than it’s Clinton’s fault (the 1st Clinton), or Reagan’s. Several things come into it:

    1) China and India are using much more oil than a few years ago, driving the price up,
    2) Some countries (like Venezuela) have kicked oil companies out of their oil fields, and now can’t maintain them, reducing their supply,
    3) The US consumer is fickle. One year they want power, the next it’s fuel economy (not everyone puts conservation high on the list like we do). After each fuel crisis, we say “never again will we get caught with inefficient vehicles. Two years later, we go back to them. It makes it risky for domestic automakers to rely on the market for fuel-efficient vehicles).
    4) It takes 4+ years to create new vehicles and powertrains, so manufacturers can’t react very quickly (it’s a lot harder than coming out with a new laptop).
    5) Non-US companies react more quickly to high fuel prices because gas in their home market costs $7/gallon. They just bring their home-grown products here and look like geniuses.

    The obvious way to encourage the domestic (and other) manufacturers to make fuel-efficient vehicles to to tax the heck out of petroleum fuels (Hondas weigh 50% more than they used to). Even Obama doesn’t want to do that: he wants to keep gas cheap! Combine that with more fuel-efficient vehicles and what do you get? More people moving further from work, more urban sprawl, more congestion, wider freeways, more construction, more needless trips, less car-pooling, more road-trips, and probably no reduction in fuel consumption.

  • David

    Sorry I bashed the hell out of bush earlier. But He could’ve voiced the importance of our countries structural(energy/economy) issues to the public instead of saying oh wait we can’t do that… It will hurt our economy, that’s just ignorant to me. How can you have an economy when everyone is dead, or too ill to feel like buying stuff? Umm Look around, everyone is constantly sick> the only ones making money right now are the drug/oil companies.

    Anyways, Responding to AP: I think that the Dinosaurs like GM and Christler are bound to eat the floor. It’s not to say that when they die, a new more modern company can be built in their stead right here in the United states. I just think that they are so stuck in their ways that they need to pass-on and a new market could emerge. We then can learn from their mistakes and see the facts about what happens when you don’t adapt to the needs (not wants) of the world around you. Our world is no longer infinite like we used to believe. Whatever we do now will most definitely come back to kick us in the face a few years from now.

    Zap electric, Tesla Motors, Detroit Electric… Look how these companies progress. Hell…. Look at this website?! It came out of nowhere, and now it’s building like mad!

    Oh… One more thing… Vote for Obama, Sh*t’s for real.

  • lesly

    By the way stop complaning about the gas price you american here in canada is a 1.20$ the liter (1 liter=3.54 usgallons) we are paying way more than you do so stop complaning and change your habits..:) peace

  • AP

    David, one of my points earlier is that the foreign (mainly Japanese)manufacturers have NEVER had to adapt quickly to change. Their governments have taxed their citizens heavily on fuel, so always have made small, fuel-efficient cars. They don’t have to react to the whims of American consumers – they just sell what they already make.

    Because of their governments having an energy policy, the foreign manufacturerers are always ready if Americans decide they want fuel economy, which today we do: tomorrow, who knows? If our government had taxed us in the same way, our manufacturers would also have reacted. It isn’t that Japanese engineers are smart and Americans are not – it’s mainly US government policy. Perversely, the lack of American government action before may cost us our domestic auto industry, which employs many more people than the Japanese transplants.

    But CAFE isn’t the way to do it. It creates a fuel-efficient product
    without creating a reliable market for them (i.e., predictably high fuel prices). It may force automakers to provide a more expensive product for the same price as before, making them unprofitable. Every other country taxes fuel heavily, creating a demand for smaller vehicles and enabling manufacturers to make a profit on them.

    Obama isn’t doing the right thing here – he wants to keep fuel cheap.

  • BoilerCivicHy

    Thanks Bush? I seem to remember 8 years of a certain democratic president who was more interested in chasing skirts than worrying about the environment. When are people going to stop blaming one party or the other, look in the mirror, and admit that we are the problem. Thats the issue with this society always looking for someone else to blame, and not owning up to our own sins and excesses. I know I am preaching to a group of people who are probably the least guilty here, but we as a society have to own up to our gasoline addiction like a heroin addict would, and do something about it and stop whining. When Americans make it obvious they really want alternatives and are willing to pay a little more to get them, we will finally get some real movement away from oil. The yuppie, I can only drive an SUV mentality is going to be the death of this country due to our dependence on a group of people in this world that would like nothing more than to see America on its knees and begging.

  • sean

    Professor Garnaut in Australia is preparing a report on Climate change and Economy. An extract from the interim report:
    “…
    The decision not to ratify Kyoto by the US and Australia after the election of the Bush administration seven years ago was of historic importance in disrupting an international approach…”

    The USA is the biggest market for cars, so the “taste” of buyers is very important for the trend of designing cars in the whole world, not only in the USA. Car companies around the world, especially ones with big productions (like Toyota) will have to try hard to satisfy their consumers. No wonder cars are getting fatter and fatter, thanks to the “American taste”.

  • David

    Thanks Sean.

    Just FYI, I research this stuff daily and all I really care about is us taking the best path and the right path in the direction that keeps our ethics and morality about the environment up. I drive a 16 gallon car that gets 35MPG and I fill it up maybe once a month!… So you know I’m not whining about gas. I’m one of the people who want’s to actually do something bigger with my life. Hopefully next summer I will be graduating as Mechanical Engineer willing to jump into the challenges to make everyone else’s life better.

    The nay sayers might now think, oh look at this kid he’s a dreamer…. YEA!.. AND?! Someone tell me what’s wrong with that? We can do better than this. But, in order for that to happen we must hope for the future. that’s why Obama needs to win. We need to raise the bar and become the greatest country again.

    … Screw Oil I don’t even like oil.. I mean, what is oil? I get hives even thinkin about oil…(Dane cook)

  • John Acheson

    Human beings will consume all or most of the solar produced oil we discuss in a few centuries. Does it matter if it’s two or three.

    Why is the debate centered on who and what used it???

    If anything we should save oil for the things we use everyday, from the computers we typed on to the fuel that delivers everything in every store we shop at.

    Why not talk about saving oil rather than bashing the addicts.

    We’ll never get 1,000,000,000 growing to 2,000,000,000 automobiles to get off oil over night. Heck, in Beijing, there are 1,000 BRAND NEW automobiles on the streets everyday, and traffic cops dying in their 40s and everyone’s wearing a mask in the city that will host the highest performance human beings on Earth.

    What can we do that would make other worlds proud.

    Bash each other or talk about digital solutions at
    http://johnacheson.blogspot.com/

  • David M

    The saddest thing about all that is talked about there is good and bad that has come out of this .We are now looking at what should have been look after since the industrial revolution started……taking care of what we conquered.
    ” Money” got us into this mess ,maybe just maybe it will get us out of it. But….. great invention never came from the desire of money.
    The Maya indians where abscess with time.
    we are absecss with time and money. that is why we will go down twice as fast we have a lot of luggage to carry

  • DonQuixote

    Both parties are avoiding the coming crisis that will be created by the peaking of global oil production – followed by a never ending decline. It will likely lead to another Great Depression. But nobody believes in infinite resources and is against conservation like the conservatives, aka Republicans. They will be the last to come to terms with the reality of Peak Oil. Most unfortunately, it is likely they will lead the charge in using our military superiority to steal (and in the process kill and destroy) large amounts of the remaining production. And as you can see from the Iraq invasion and occupation, Republicans lose no sleep from killing and destroying. In fact, they sleep like happy babies.

  • David M

    Don, you are so right;
    My father would say war makes money, not just by the weapons it uses but by the rebuilding of what was destroyed…..the rebirth is where the real money is at. He would also say “you never know who you work for”.
    I was capitalist .But what I have been seeing in the last few years has been Crimes against countrymen backed by blocking power of the government to cut the competition out . Now they do not get angry, or even EVEN, they just make you lose money in expenses….They take your moneyand you go broke. no money no fight,no pot to piss in

  • Anonymous

    We should vote for Clinton then next time Bush then Clinton then Bush then Clinton … then bush isn’t that the pattern we’ve all been stuck in …