No End In Sight for Oil Price Troubles

By David L. Brown

Just after I wrote the previous post about the up-and-down cycle of the petroleum markets, and their joined-at-the-hip effects on world economies, I saw the following news report on FoxNews.com. It makes an appropriate addendum to my musings on the subject.

Gas Prices Worry Longtime Oilman

June 12, 2009 – 3:08 pm

The price of oil has its ups and downs. But Tex Pitfield, a former fuel company president and petroleum industry consultant, says gone are the days of dollar a gallon gas.

With America still in a recession, Pitfield says the current spike in oil prices could not come at a worse time. Here’s what he told FOX News in a recent interview:

“The dramatic increase in the cost of energy last summer is what put this economy over the edge, and now we’re in the situation we’re in. How ironic that, here we are in the deep end of the pool drowning and the cost of energy is going through the roof again.”

More evidence for the case that the world economies are due for a continuing wave of shocks in the post Peak Oil era. And what is this “dollar a gallon gas” thing? I thought we passed that point a long time ago. The odds more strongly favor five dollar gas than any return to dollar gas.

For those of you who have not been around as long as I have, I can report that when I was a youth I purchased gas for as little as ten cents a gallon. For a dollar, you could nearly fill your tank. That surely puts the lie to the French saying “plus c’est la même chose” (the more things change, the more they stay the same). The longer I live, the more it seems the opposite is true.

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